From GlobeNewswire: 2024-03-28 16:15:00

Reed’s, Inc. reports sixth consecutive quarter of year-over-year operating expense and profitability improvements. In Q4 2023, net sales were $11.7 million, gross profit was $0.5 million, and modified EBITDA improved to $43,000. Fiscal year 2023 saw net sales of $44.7 million and a reduction in operating loss to $9.4 million. The company anticipates growth and profitability in 2024.

Reed’s experienced order volume increases in 2023 but faced challenges meeting demand due to short order shipments. The company is actively working to increase production capacity and reduce short shipments with an improving inventory position. Reed’s plans to focus on key product categories and uncover cost-saving opportunities for growth and profitability in 2024.

In Q4 2023, net sales were $11.7 million, a decrease from the year-ago period due to short order shipments and lower sales from seasonal programs. Gross profit was $0.5 million with a gross margin of 4.0%. Operating loss was $5.0 million, but modified EBITDA improved to $43,000. The company plans to utilize recent financing to reduce short shipments in 2024.

During Q4 2023, delivery and handling costs were reduced by 32% and selling, general, and administrative expenses decreased by 23%. Cash used in operations was $0.2 million, primarily due to higher inventory purchases. As of December 31, 2023, Reed’s had $0.6 million in cash and $27.4 million in total debt. The company projects net sales growth, gross margin expansion, and modified EBITDA profitability for 2024.



Read more at GlobeNewswire:: Reed’s Reports Fourth Quarter and Full Year 2023 Results