Summary of Reed's (REED) Conference Call - June 26, 2025 Company Overview - Reed's operates in the beverage industry, specifically focusing on ginger-based products such as ginger ale and ginger beer, as well as craft sodas under the Virgil's brand [4][6][25] - The company has a long-standing history since the 1980s and has expanded its product portfolio over the years [4][5] Core Points and Arguments Business Strategy and Product Innovation - The CEO expressed excitement about the company's direction and recent innovations, including a new functional beverage line launched in 2025 [3][15] - Reed's is focusing on expanding its product offerings in the flavored malt beverage (F&B) category, which is experiencing significant growth in the U.S. market [6][11] - The company is also introducing a zero-sugar ginger ale to align with consumer trends towards healthier options [10][11] Market Opportunities - There is a strong belief that the ginger beer and ginger ale segments have substantial growth potential, particularly in non-traditional channels such as convenience stores and dollar stores [9][10] - The company aims to enhance its distribution network, currently reaching 32,000 retail doors, with plans to expand further [16][17] Financial Performance and Strategic Initiatives - The company underwent a recapitalization in Q4 2024, which reduced debt and allowed for reinvestment in working capital [18][19] - The focus is on achieving profitable growth, with a target to reach breakeven and net profitability in the near future [20][21] - The management is closely monitoring sales velocity and channel expansion to drive top-line growth [21][24] Margin Improvement - Reed's is working on margin expansion, aiming to improve gross margins to the mid-30s percentage range, with aspirations to reach the high 30s or even 40% in the long term [24][25] Additional Important Insights - The company is committed to maintaining high-quality standards in its products, emphasizing the use of premium ingredients [25][26] - There is a strong focus on building brand strength and customer relationships, with plans to enhance marketing efforts for new products [30][32] - The management team is optimistic about the future, citing a clean balance sheet and a strong brand as key advantages [28][29] Conclusion - Reed's is positioned for growth in the beverage market, with a clear strategy focused on innovation, market expansion, and improving financial performance. The management is optimistic about capturing new opportunities while maintaining a commitment to product quality and customer satisfaction [27][33]

NORWALK, Conn., June 18, 2025 (GLOBE NEWSWIRE) -- Reed’s, Inc. (OTCQX: REED) (“Reed’s” or the “Company”), owner of the nation’s leading portfolio of handcrafted, natural ginger beverages, today announced its participation in the upcoming OTC Markets Virtual Investor Conference on Thursday, June 26, 2025. Reed’s management team will hold virtual 1x1 meetings throughout the day and host a presentation at 2:00pm ET. This will be a live, interactive event where investors are invited to ask the Company questions ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission file number: 001-32501 REED'S, INC. (Exact name of registrant as specified in its charter) (State of incorporation) Delaware 35-2177773 (I.R.S. Employer Identificati ...

Reed's (REED) Q1 2025 Earnings Call May 14, 2025 08:30 AM ET Company Participants Cyril Wallace - CEO & DirectorDouglas McCurdy - CFO Conference Call Participants Sean McGowan - MD & Senior Research AnalystNone - Analyst Operator Good morning, and welcome to Reed's First Quarter twenty twenty five Earnings Conference Call for the three months ended 03/31/2025. My name is Angeline, and I will be your conference call operator for today. We have prepared remarks from Cyril Wallace, Reed's Chief Executive Offic ...

Financial Data and Key Metrics Changes - Net sales for Q1 2025 increased by 4.5% to $10 million compared to $9.6 million in the same quarter last year, driven by higher volumes with recurring national customers [18] - Profit for Q1 2025 remained flat at $3.4 million compared to the previous year [19] - Gross margin decreased to 33.9% from 35.6% year-over-year, primarily due to higher cost of goods sold [19] - Operating loss for Q1 2025 was $1.7 million, compared to a loss of $700,000 in Q1 2024 [20] - Cash used in operating activities increased to $5.4 million from $2.4 million year-over-year, driven by higher inventory purchases [21] Business Line Data and Key Metrics Changes - The company launched a new multifunctional soda line, which includes flavors like berry bubbly and strawberry vanilla, and secured national distribution in Sprouts Farmers Market [8][9] - Expanded presence at Albertsons Safeway for Reed's Ginger Ale, adding over 1,100 new points of distribution [10] - Successfully launched a national offshoot program with Flying Cauldron at Albertsons, exceeding internal projections [10] Market Data and Key Metrics Changes - Distribution gains were noted in three states at Trader Joe's for classic new alcohol products, reflecting growing demand across core functional and alcohol portfolios [12] - The company executed national display programs across core product lines at Sprouts Farmers Market, strengthening visibility [11] Company Strategy and Development Direction - The company is focused on sustainable growth and profitability, with a commitment to delivering premium, better-for-you beverages [15] - A strategic initiative includes transitioning from glass bottles to cans, enhancing cost structure and scalability [13] - The company is taking a measured approach to innovation, prioritizing its heritage and brand credibility [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about operational improvements and the alignment across the team, laying groundwork for profitable growth [22] - The company expects some modest gross margin pressure in Q2 due to seasonal promotion activity and higher trade spend [14] - Management is focused on improving cash flow performance in the second half of 2025 [26] Other Important Information - The company appointed Rude Baker to the board of directors, bringing extensive experience in the beverage industry [7] - The company is actively evaluating alternative suppliers and sourcing strategies to mitigate potential disruptions from global trade dynamics [13] Q&A Session Summary Question: Operating expenses were higher than expected; what should be expected going forward? - The increase in SG&A is attributed to upfront investments in personnel and marketing to support strategic initiatives [26] Question: Will gross margins be pressured in Q2? - There may be seasonal compression in gross margins due to trade discounts and additional investment in the functional beverage launch [28] Question: Is there any revenue guidance for the year? - The company has not provided specific revenue guidance but is focused on growth and operating efficiency [33]

Financial Performance - Net sales increased by 4.5% to $10.0 million compared to $9.6 million in Q1 2024[5] - Gross profit remained flat at $3.4 million, with a gross margin of 33.9%, down from 35.6% in the previous year[7] - Operating loss increased to $1.7 million, compared to a loss of $0.7 million in Q1 2024[9] - The company reported a net loss of $2,031 million for the three months ended March 31, 2025, compared to a net loss of $1,673 million for the same period in 2024, representing an increase in loss of approximately 21.5%[30] - Modified EBITDA loss was $1.6 million, worsening from a loss of $0.4 million in the same quarter last year[10] - Modified EBITDA for the three months ended March 31, 2025, was $(1,634) million, a significant decline from $(370) million in the same period of 2024, indicating a deterioration in operational performance[30] Cash Flow and Liquidity - Cash used in operating activities was approximately $5.4 million, up from $2.4 million in Q1 2024[11] - As of March 31, 2025, the company had approximately $4.9 million in cash, down from $10.4 million at the end of 2024[11] - Net cash used in operating activities increased to $(5,362) million for the three months ended March 31, 2025, compared to $(2,395) million in the prior year, reflecting a worsening cash flow situation[29] - Cash at the end of the period was $4,862 million, a decrease from $10,391 million at the beginning of the period, highlighting liquidity challenges[29] - Cash paid for interest decreased to $199 million from $318 million year-over-year, indicating a potential reduction in debt obligations or interest rates[29] - The company incurred interest expenses of $289 million for the three months ended March 31, 2025, a decrease from $1,023 million in the prior year, indicating a reduction in debt servicing costs[30] Operational Efficiency and Management - Delivery and handling costs were $1.6 million, representing 16.2% of net sales, compared to 15.7% in Q1 2024[8] - Selling, general and administrative expenses rose to $3.5 million from $2.6 million, driven by investments in growth initiatives[9] - The company aims to improve operational efficiency, reducing short shipments from approximately 20% to roughly 2% by April 2025[3] - Total EBITDA adjustments for the three months ended March 31, 2025, amounted to $397 million, down from $1,303 million in the same period of 2024, suggesting increased operational inefficiencies[30] - The company experienced a decrease in accounts receivable by $125 million, while inventory saw a significant decrease of $4,194 million, indicating potential issues with sales or inventory management[29] - The company reported a significant write-down in inventory of $25 million, compared to $783 million in the previous year, reflecting improved inventory management practices[29] Investment Activities - The company’s cash flows from investing activities were $(74) million for the three months ended March 31, 2025, compared to $(18) million in the prior year, indicating increased investment activity despite cash flow challenges[29] - New product launches include functional beverages, which are expected to drive growth in 2025[2]

Core Insights - Reed's, Inc. reported a 4.5% increase in net sales for Q1 2025, reaching $10.0 million compared to $9.6 million in Q1 2024, driven by higher volumes with national customers [6][10] - The company is focused on improving operational efficiency, having reduced short shipments from approximately 20% to roughly 2% in April 2025, and is now producing in line with demand [4][5] - The new CEO, Cyril Wallace, emphasizes a commitment to quality and operational excellence, aiming for sustainable growth across existing and new product lines [3][5] Financial Performance - Gross profit for Q1 2025 remained flat at $3.4 million, with a gross margin of 33.9%, down from 35.6% in the previous year, primarily due to increased costs of goods sold [7][10] - Delivery and handling costs increased to $1.6 million, representing 16.2% of net sales, compared to 15.7% in Q1 2024 [8][10] - Selling, general, and administrative expenses rose to $3.5 million from $2.6 million, reflecting investments in personnel and marketing [9][10] Loss and Cash Flow - The operating loss for Q1 2025 was $1.7 million, compared to a loss of $0.7 million in Q1 2024, with a modified EBITDA loss of $1.6 million versus a loss of $0.4 million in the prior year [9][11][30] - The company used approximately $5.4 million in cash from operating activities in Q1 2025, compared to $2.4 million in the same period of 2024 [12][30] - As of March 31, 2025, Reed's had approximately $4.9 million in cash and $9.6 million in total debt, down from $10.4 million in cash at the end of 2024 [12][30] Strategic Outlook - The management is in the early stages of refining a long-term strategic plan, focusing on building scale, improving margins, and returning to profitability [5] - The company is expanding its distribution of core products and launching new functional beverages, which are expected to contribute to meaningful results in 2025 [4][5]

Group 1 - Reckitt Benckiser Group PLC (RBGLY) is currently outperforming its peers in the Consumer Staples sector, with a year-to-date gain of approximately 10.8% compared to the sector average of 5.4% [4] - The Zacks Rank for Reckitt Benckiser Group PLC is 1 (Strong Buy), indicating a strong potential for outperformance based on earnings estimate revisions and improving earnings outlooks [3] - The Zacks Consensus Estimate for RBGLY's full-year earnings has increased by 7.5% over the past quarter, reflecting stronger analyst sentiment and an improving earnings outlook [4] Group 2 - Reckitt Benckiser Group PLC belongs to the Soap and Cleaning Materials industry, which is currently ranked 1 in the Zacks Industry Rank [5] - The Consumer Staples group, which includes Reckitt Benckiser, is ranked 11 within the Zacks Sector Rank, which evaluates 16 different sector groups [2] - Another notable stock in the Consumer Staples sector is Reeds (REED), which has seen a significant year-to-date increase of 175.1% and has a Zacks Rank of 2 (Buy) [5][6]

Core Insights - Reed's, Inc. has launched a new Multifunctional Soda Line featuring four flavors aimed at health-conscious consumers, incorporating functional ingredients alongside organic ginger [1][2][3] Product Details - The new soda line includes flavors: Berry Bubbly, Strawberry Vanilla, Root Beer, and Lemongrass Ginger, each designed with functional ingredients [1][6] - Each can contains an average of 5g of sugar, 2000-5000mg of organic ginger, and 30-45 calories, positioning it as a healthier alternative to traditional sodas [3][6] Market Positioning - Reed's emphasizes its commitment to plant-based and functional ingredients, aiming to redefine the beverage category with a focus on health and wellness [2][3] - The company has established itself as a leader in the craft beverage market, with products sold in over 32,000 stores nationwide [5][6] Availability - The Functional Soda Line is currently available at Sprouts Farmers Market and will soon be accessible through other retailers and online platforms [4]

Core Viewpoint - Reed's, Inc. will host a conference call on May 14, 2025, to discuss its financial results for Q1 2025, with results to be reported in a press release prior to the call [1] Company Overview - Reed's, Inc. is a leader in handcrafted, natural ginger beverages, established in 1989, and offers a portfolio under the Reed's®, Virgil's®, and Flying Cauldron® brand names [4] - The company is recognized as America's 1 name in natural, ginger-based beverages, with products including ginger beers, ginger ales, and ready-to-drink ginger mules [5] - Reed's has expanded into the zero-sugar segment with a proprietary natural sweetener system [5] Product Lines - Virgil's® offers an award-winning line of craft sodas made with natural ingredients, free from GMOs and artificial preservatives, available in various flavors including Root Beer and Vanilla Cream [6] - Flying Cauldron® is a non-alcoholic butterscotch beer made with natural ingredients, known for its creamy vanilla and butterscotch flavors, and contains no artificial additives [7] Conference Call Details - The conference call will take place at 8:30 a.m. Eastern time, with a toll-free dial-in number provided for participants [2] - The call will include a question-and-answer period following the management's discussion [2] - The conference call will be available for live broadcast and replay on the investor relations section of the company's website [3]