Reed's Inc. Announces Year-End 2014 Results

LOS ANGELES, CA–(Marketwired – Mar 26, 2015) – Reed’s, Inc., maker of the top-selling sodas in natural food stores nationwide, today announced the financial results for its fiscal year ending December 31, 2014.

Financial highlights for full year 2014 versus 2013:

• Net sales increased 16% to a record $43.4 million driven by:

           20% gross sales growth of Reed’s Ginger Brews

           16.5% gross sales growth in Virgil’s Craft Soda

           38% gross sales growth in Kombucha

           Partially offset by 25% decline in Private Label business

• Topline promotional activity decreased to 9.6% of sales versus 12.0% in the prior full year
• Gross profit dollars increased 20% to $13 million – an increase $2.2 million
• Plant efficiency improved by $521,000 to 5% of net sales versus 7% of net sales in 2013
• Gross margin improved from 29% in 2013 to 30% in 2014
• Operating expenses decreased as a percent of sales from 31% in 2013 to 30% in 2014
• Renegotiated credit facility and decreased effective interest rate from 13.5% to 9%
• Operating income for 2014 was $41,000 versus a loss of ($869,000) in 2013
• EBITDA improved to $1.2 million in 2014 versus $13,000 in 2013. View full report here.