The veteran-owned coffee chain saw first quarter wholesale segment revenue climb 51% compared to the same period last year while also posting $1.9m net income – a $19.2m year-on-year improvement
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Utah-based Black Rifle Coffee achieved 18% year-on-year sales growth in the quarter | Photo credit: Black Rifle Coffee
A sustained focus on wholesale continues to yield strong results for veteran-owned Black Rifle Coffee which achieved a ‘dramatic improvement in profitability’ during its first quarter.
The Utah-based coffee chain overcame a fall in revenue from its direct-to-consumer (DTC) and outlet segments to post 18% year-on-year sales growth in the three months ending 31 March 2024, reaching $98.4m.
Black Rifle Coffee’s wholesale business achieved 51% year-on-year sales growth, offsetting respective 11% and 19% declines for its DTC and outlet segments. In a press release the coffee chain said it has paused store expansion to focus on driving sales across its 36 outlets.
The veteran-owned coffee chain also posted net income of $1.9m and adjusted EBITDA of $14.1m for the quarter, compared to a $17.3m net loss and $5.2m adjusted EBITDA loss in the first quarter of 2023.
“I am pleased with Black Rifle Coffee’s holistic first quarter performance. It illustrates our team’s balance of market growth and disciplined execution. The Black Rifle brand is stronger than ever, and our mission continues to resonate in the minds of American consumers,” said Chris Mondzelewski, CEO, Black Rifle Coffee.
Black Rifle Coffee’s full-year sales reached $395.6m in 2023, driven by revenues of $119.6m in the fourth quarter. The business forecasts sales will reach between $430m-$460m in 2024, with adjusted EBITDA expected to fall between $27m-$40m.