A business health report for an existing brewery
A business health report is a structured look at an existing brewery: where the money is made, where it leaks and what to do first. It is based on your own numbers.
What it is for
It suits an owner who suspects something is wrong but cannot say what, a founder preparing for a lender or investor conversation or a team about to expand. It reads the accounts and operating data and returns a short list of findings and actions. It is different from a project report, which looks forward at a single investment, such as an expansion.
Margin by product and channel
Overall profit hides the mix. A health report works out contribution per litre by product, pack and channel: price received, less ingredients, packaging, excise or duty where relevant and direct selling cost. Often one keg product earns well and a small-pack line loses money once packaging and returns are counted. You cannot see this from the total.
Yield and loss
How much of the wort you make becomes beer you sell? Losses occur at the brewhouse, in fermenters, at filtration and in packaging. Returned or expired stock adds more. A report measures them stage by stage with your records, compares them with what the equipment should achieve and costs the gap. Every percentage point lost is paid for in malt, hops, energy and labour. A hypothetical: if 100 units of wort cost 40 in ingredients and energy, losing 5 percent of the beer after that point wastes about 2 units for every 100 made. Small, but it repeats on every batch, which is why we measure it.
Working capital
Three numbers tell the story. Debtor days: receivables divided by sales times 365. Stock days: stock divided by cost of goods sold times 365. Creditor days: payables divided by cost of goods sold times 365.
A hypothetical in neutral units. Sales are 120 and receivables 20, so debtor days are about 61. Cost of goods sold is 70 and stock is 15, so stock days are about 78. Payables are 10, so creditor days are about 52. The cash cycle is 61 plus 78 minus 52, about 87 days. That is how long money is tied up between paying suppliers and collecting from customers. A brewery that stretches this by a month needs far more funding without selling a litre more.
Debt and cover
The report looks at what the loans cost, when they fall due and whether cash covers them. The ratio is cash available for debt service divided by principal plus interest in the year. Lenders set their own minimum. If cover is thin in the weakest month, you want to know before the lender tells you.
Quality and customer signals
Returns, complaints and shelf-life losses are costs and warnings. A health report records them with the numbers behind them and links them to process data where it exists. It does not replace laboratory work. It points to where money leaks, so that the lab time goes where it counts.
Price and channel check
Compare what you receive per litre in each channel with what the same product earns elsewhere. Look for discounts that grew without anyone deciding, free stock given away and sales to customers who pay late. A brewery that gives a 10 percent discount to win a customer, then waits 90 days for payment, has paid twice. The report puts a number on each of these so they can be argued on facts.
The output: a short action list
A good report ends with five to ten actions, ranked by the money at stake and by effort. For example: correct the price on the pack that loses money, fix the loss at the filler, tighten credit terms with two slow-paying customers, rebuild the cash forecast. Findings should come with the numbers that justify them, so that you can argue with them or act on them. A finding without a figure is an opinion. It is easy to set aside.
This work uses your numbers. We make no claim that a given percentage improvement will follow. A health report finds what to examine. The results depend on what you do next and on your market. Our related guides on expansion and common report mistakes show how the same numbers feed a future plan.
Common questions
Is a business health report an audit?
No. An audit checks historical accounts for accuracy. A health report reads your accounts and operations to find where the business earns and leaks.
What data do you need?
Recent accounts, sales by product and channel, production and loss records, debtors and creditors and loan schedules.
Will it tell me how much I can save?
It will point to where the money is and by how much on your own numbers. It will not promise a percentage improvement.
Can it help with a loan application?
It gives you a clear view of your own position, which helps. Lenders decide on their own criteria.
