LOS ANGELES, CA–(Marketwired – Aug 12, 2014) – Reed’s, Inc. (NYSE MKT: REED), maker of the top-selling sodas in natural food stores nationwide, today announced the financial results for its fiscal second quarter ended June 30, 2014.
Financial Highlights: Second Quarter 2014 Compared to Second Quarter 2013
· Net revenue increased 18% to a record $11.2 million
· Gross profit increased 51% to $3.7 million
· Gross profit margin increased 700 basis points to 33% from 26%
· Plant Idle Capacity costs improved from 5% of net sales to 4%
· Company achieved net income of $633,000 versus a net loss of ($494,000)
· Earnings per diluted share of $0.05 versus loss of ($0.04) per diluted share
· Modified EBITDA was $1.1 million during the 2014 second quarter versus a negative $100,000 during the same period last year. (See EBITDA table at end of this release for further non-GAAP information).
Operational Highlights: Second Quarter 2014 Compared to Second Quarter 2013
· Reed’s Ginger Brew sales increased by 34%
· Virgil’s craft sodas sales increased by 10%
· Reed’s Culture Club Kombucha sales increased by 35%
· Driven by plant improvements in Los Angeles in 2013, production was 221,000 cases during the second quarter 2014, an increase of 28% over the second quarter 2013
“Our sales momentum continues and we achieved profitability, not only in the second quarter, but also year-to-date. Sales for the quarter were driven by a 34% increase in sales of Reed’s Ginger Brews that grew organically at an accelerated clip without any new marketing programs. Our Kombucha sales slowed while we changed packaging, but still racked up 35% sales growth for the quarter. We estimate that our Kombucha growth rate would have been approximately double this rate had we not experienced these production delays. We are second in market share and continue to believe that there is significant growth opportunity in this beverage category that is estimated to be $500 million in annual retail sales,” commented Chris Reed, Founder and CEO of Reed’s, Inc. Full report.