The following is a summary of the Reed's, Inc. (REED) Q4 2023 Earnings Call Transcript:
Financial Performance:
Reed's reported Q4 2023 revenues of $11.7 million, a drop from the $15 million from the same period in 2022.
The company saw a gross profit of $0.5 million in Q4 2023, a significant decrease from the $3.4 million recorded during Q4 2022.
The adjusted gross profit excluding certain non-cash items was $4.3 million, accounting for 34.9% of revenue.
The company experienced a higher operating loss in Q4 2023 ($5 million), compared to a loss of $3.7 million in Q4 2022.
Business Progress:
The company has a new sales strategy to drive growth in 2024 for Reed's and Virgil's brands.
Two new co-packers were added in 2023 to improve capacity and logistical efficiencies.
Reed's recorded significant growth in its ready-to-drink alcohol portfolio, and further new product launches are planned.
The company will also introduce new products focusing on organic ginger for the better-for-you lifestyle category, expecting a launch in late 2024.
Cost-saving efforts resulted in over $6 million expense reductions in 2023, with an expectation of positive cash flow from operations in 2024.
The company plans to pursue market expansion in Asia, similar to its successful market growth strategies previously employed in the UK and Europe.
More details: Reed's Inc IR
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