Aegis Brands reports 2021 fourth-quarter and year-end financial results

March 31, 2022
Aegis Brands sees wholesale growth and sales recovery in 2021 as COVID-19 restrictions lift.

Aegis Brands Inc. reported financial results for the fourth quarter and 2021 fiscal year, which ended December 26, 2021.

Highlights include:

  • Aegis reported a net loss of $7,900,000 compared to a net loss of $19,600,000 in 2020.
  • EBITDA for the year was a loss of $3,931,000, compared to a loss of $2,805,000 in the prior year.
  • Fourth-quarter net loss of $2,131,000 or $0.09 per share was net income of $179,000 or $0.01 per share when adjusted for impairment charges, other income, and discontinued operations.
  • Revenue for the company increased 15.4% over 2020.
  • Bridgehead Coffee's Same Store Sales (SSS) increased 17.7% in 2021.
  • $28,000,000 Development Line of Credit secured from CWB Franchise Finance.

"Heading into 2022, we continue to prioritize acquisitions to build a portfolio of great brands within Aegis," said Steven Pelton, president and CEO of Aegis. "As part of this strategy, we are committed to putting entrepreneurs first. We want them to know the integrity and values of their company will stay intact while it grows with alongside other brands within Aegis. Shared expertise and resources between the brands and their people will be the driving force behind the success of each brand and therefore the success of Aegis."

Bridgehead Coffee

As Ontario saw COVID-19 restrictions ease, Bridgehead's coffeehouse sales and revenue from e-commerce and wholesale for the fourth quarter were $3,375,000 compared to $2,688,000 in the prior year, representing an increase of $687,000 or 25.6%. During the same quarter, coffeehouse SSS were up 18.9% despite increased restrictions due the onset of the omicron variant in December.

For the year, system sales of all channels were $10,876,000 compared to $9,428,000 in the prior year, an increase of 15.4%. The largest contributing increase came in the wholesale division with revenue doubling year over year as a result of a targeted effort to increase sales from that channel. In addition, one of Bridgehead's new coffeehouses, which opened in November 2020 added to system sales for all the 2021 fiscal year versus just over a month in the 2020 fiscal year.

Relaxed COVID-19 measures contributed to increased foot traffic and in turn, increased coffeehouse sales 18.9% in Q4. However, sales dipped in December 2021 as the omicron COVID-19 variant spread across Ontario and resulted in further restrictions across Canada. Overall, Bridgehead coffeehouse sales increased 17.7% for the year.  Subsequent to the end of the year, Bridgehead continues to build on the recovery of 2021 with year-to-date SSS increasing 10.9% over the same months last year despite continued challenges, including protesters occupying downtown Ottawa, Bridgehead's core market, for several weeks in early 2022.

Bridgehead continues to make investments in digital, e-commerce and its wholesale/grocery channel. Bridgehead brokered a new distributor partnership, helping expand its grocery channel in Ontario and eventually into other provinces. Recently Bridgehead added 31 Longo's stores to the growing list of grocery retailers that carry its coffee. Bridgehead also distributes through Sobeys, Costco, Farm Boy and Whole Foods.

"A silver lining from this pandemic is that it has forced us to pivot, evolve and diversify our business," said Kate Burnett, president of Bridgehead. "We are no longer just brick and mortar and no longer just selling in Ottawa – we are tackling digital, e-commerce and wholesale and they are delivering exciting results."


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