The Alkaline Water Company Delivers Record Full Year Fiscal 2020 Results

SCOTTSDALE, Ariz., July 23, 2020 (GLOBE NEWSWIRE) -- The Alkaline Water Company Inc. (NASDAQ and CSE: WTER) (the “Company”), is a producer of premium bottled alkaline water, flavored-infused waters, and CBD infused products sold under the brand names Alkaline88^®, A88 Infused™, and A88CBD™, respectively. The Company today announces that it reported record fiscal fourth-quarter and full-year revenue that exceeded expectations. Financial results reported in this document are preliminary. Final financial results and other disclosures will be reported in our Annual Report on Form 10-K for the year ended March 31, 2020, and may differ materially from the results and disclosures in this document due to, among other things, the completion of final review procedures, the occurrence of subsequent events, or the discovery of additional information. We expect to file our Form 10-K by August 14, 2020.

“Fiscal 2020 was a banner year for The Alkaline Water Company. We delivered record revenue of $41.1 million, which came in above the high end of our guidance range. Our lifestyle brands are gaining momentum as we continue to make solid progress toward our strategic goals. During the year, our teams expanded our national footprint, added new trades, accelerated our c-store penetration, launched a new line of in-demand CBD products, established a direct to consumer e-commerce presence, and made good progress on our flavors and eco-friendly offerings,” stated Richard A Wright, President and CEO of The Alkaline Water Company.

“Our growing brands, Alkaline88^®, A88 Infused^™, and A88CBD^™, are resonating with the health and wellness-focused consumers. More households have tasted our water over the past three months than at any time in the Company’s history.  We see solid demand from new and existing retailers who are increasing shelf space for all-natural products. Also, our entrance into the much larger hospitality space and our recently launched e-commerce site, Alkaline88.com, will provide new growth catalysts in the coming year. While we are not providing full-year guidance due to COVID related macro uncertainties, we expect our growing brands to outperform their respective segment growth. In particular, our major growth catalysts will include our single-serve sizes, flavor-infused waters, and eco-friendly aluminum bottle. In addition, there is a pent up demand for our proprietary CBD products that will see accelerated growth in the third and fourth quarter of fiscal 2021. Our experienced team of professionals and our efficient variable cost business model ensures that we will be able to execute on all of our current business objectives.”

Key Operational Highlights:

• Reported record April sales of $7.1 million, representing growth of approximately 171% over the prior-year month.
• More than doubled supply chain capabilities and secured domestic suppliers for every component of our product portfolio.
• Successfully launched direct-to-consumer, end-to-end e-commerce platforms, A88CBD.com, and Alkaline88.com.
• Expanded online and brick-and-mortar channels for the A88CBD^™ portfolio of products.
• Added over 15,000 retail locations during the current calendar year bringing national retail footprint up to 70,000 stores.
• Delivered 300,000 aluminum bottles of Alkaline88^® in 500-ml sustainable single-serve packaging to the California and Texas markets.
• A88 Infused^™ flavor waters to reach up to 12,500 stores nationwide by the end of Summer.
• Strengthened leadership team; added Director of Operations, Director National Sales, and sales and operational executives to its CBD operations.

“We delivered exceptional growth during our fiscal Q4 as demand for our products continued to accelerate throughout the quarter and into the new fiscal year. Our team and partners adjusted quickly to the surging demand, driving strong growth, and creating new opportunities for our growing lifestyle brands. To further strengthen our brand equity and to align with shifting consumer buying trends, we launched our direct-to-consumer e-commerce site during that quarter. And for the first time in the company’s history, we will launch our full-scale traditional marketing program led by the highly reputable Los Angeles based agency, Davis Elen. This national campaign will enhance our existing digital strategies with TV, radio, billboards, social media, and online ads to provide users with a seamless omnichannel experience for all our product categories.”

The full report may be viewed here.