Reed's Reports Fourth Quarter and Full Year 2024 Results

Core Viewpoint - Reed's, Inc. has reported its financial results for the fourth quarter and full year of 2024, highlighting both challenges and strategic advancements aimed at growth and profitability [1]. Financial Highlights Q4 2024 Financial Highlights - Net sales for Q4 2024 were $9.7 million, down from $11.7 million in Q4 2023, primarily due to short order shipments caused by inventory constraints [7][9]. - Gross profit increased significantly to $2.9 million from $0.5 million year-over-year, resulting in a gross margin of 30.0%, compared to 4.0% in the previous year [8][9]. - Delivery and handling costs decreased by 10% to $3.00 per case [10]. - Selling, general, and administrative expenses rose to $4.1 million from $3.0 million [10]. - The operating loss improved to $2.9 million from $5.0 million, with modified EBITDA at $(0.7) million compared to $43,000 in Q4 2023 [11][9]. FY 2024 Financial Highlights - For the full year 2024, net sales totaled $37.9 million, down from $44.7 million in 2023 [9]. - Gross profit increased by 18% to $11.4 million, with a gross margin of 30.0%, up 830 basis points from 21.7% [9]. - The operating loss for the year improved to $7.4 million from $9.4 million, with modified EBITDA at $(4.1) million compared to $(3.7) million in 2023 [9]. Management Commentary - The CEO expressed optimism about the company's progress in 2024, citing efforts to strengthen the balance sheet, streamline operations, and enhance efficiencies [4]. - A $10 million private placement was closed, alongside a new demand note and convertible debt restructuring, aimed at funding inventory, personnel, marketing, and international expansion [4]. - The company secured distribution gains across major retailers, including Kroger and Costco, for various products [4]. Leadership Changes - Douglas W. McCurdy was appointed as the new CFO, and Salvatore Vassallo was named Vice President of Operations, both expected to enhance efficiency and scalability [5]. Future Outlook - Reed's plans to launch a new multi-functional beverage line in April 2025, with over 8,000 points of distribution already secured [6]. - The company aims for meaningful growth and profitability in 2025, supported by a de-leveraged balance sheet and improved financial flexibility [6].