Norwalk, CT—Reed’s, Inc., announced preliminary results for the first quarter ended March 31, 2019, in a press release. Net Sales were $8.4 million in the first quarter, a 2% increase compared to 2018, while core brand gross sales increased 15% driven by strong volume growth of Virgil’s, a craft sodas brand, which increased 46%.
- Gross profit increased 9% to $2.5 million from $2.3 million in the prior year period. Gross margin increased 185 basis points to 30% from 28% in the prior year period;
- Operating loss was $2.9 million compared with $1.1 million in the first quarter of 2018. First quarter 2019 operating loss included $1.0 million of incremental investment in sales and marketing to support new product launches and future accelerated sales growth;
- Net loss was $3.3 million or $0.11 per share compared to $1.6 million or $0.06 per share in the prior year period; and
- Modified EBITDA was a loss of $2.3 million compared to a loss of $0.7 million in the prior year period.
“The Virgil’s brand accelerated to 46% volume growth during the quarter, illustrating the type of positive impact our current launch of Reed’s new Zero Sugar line and Reed’s 12oz cans can have on the brand,” said Val Stalowir CEO of Reed’s, Inc. “We have a busy second quarter planned with significant new innovation hitting for Reed’s brand. Reed’s Zero Sugar and Reed’s cans will be hitting shelves during the quarter and we will begin the pilot tests of Reed’s ready-to-drink Mules and Reed’s Wellness Ginger Beer with Hemp Extract at the end of the quarter.”
According to the report, the company expects to generate revenue in the range of $42 million to $44 million for the full year 2019 and anticipates year-over-year core brand growth of 20% to 30%.
The full report can be found here.