Brewery faces leadership change amid financial struggles in Faroe Islands

OY Brewery is struggling to maintain its operations. Established in December 2020 and commencing serious operations in 2022, the company reported a combined loss of around eight million Danish kroner over its first three operational years.

As a result, the company’s share capital of 7.5 million kroner was depleted by the end of the 2023 financial year. This raises concerns about the future of the new brewery’s operations.

Significant changes are now underway. In a statement to the Faroese Business Registry, Jens Meinhard Rasmussen, the chairman of the board, announced that Lis Waagstein, who took over as managing director in April last year following Petur Petersen’s departure, has left the company. She has been replaced by Óli Restorff Hansen.

Rasmussen described the leadership change as entirely undramatic, clarifying that Waagstein’s resignation was due to personal reasons. He confirmed that this transition is unrelated to the 2.8 million kroner loss the company faced last year, noting that Waagstein performed well during her tenure, successfully reducing the brewery’s deficit by approximately 1.5 million kroner.

The chairman dismissed concerns regarding the brewery’s continued operations. “The company secured new capital earlier this year, making the auditor’s comments no longer relevant. Shareholders have converted debt into equity and additionally injected new capital into the company,” Rasmussen stated.

He further acknowledged the financial challenges of starting a new brewery but indicated that the investors were fully aware of these when OY was established. “This did not come as a surprise to anyone, and we intend to continue until we achieve operational sustainability,” he concluded.