Reed’s ( (REED) ) has released its Q3 earnings. Here is a breakdown of the information Reed’s presented to its investors.
Reed’s, Inc. is a leading producer of handcrafted, natural ginger beverages in the United States, known for its high-quality and innovative products in the craft beverage industry. The company also offers a range of craft sodas and non-alcoholic beverages under its Virgil’s and Flying Cauldron brands.
Reed’s recently announced its financial results for the third quarter of 2024, highlighting a challenging period with a notable decline in net sales and gross profit compared to the previous year. The company has also strengthened its financial position by securing a new $10 million credit facility and addressing outstanding secured notes.
The third quarter of 2024 saw Reed’s net sales decrease to $6.8 million from $11.9 million in the same period last year, primarily due to production limitations and inventory challenges. Gross profit fell to $1.2 million, and operating loss widened significantly to $3.1 million. However, delivery and handling costs were reduced by 33%, providing some operational relief. The company’s liquidity position was bolstered by recent transactions involving its majority stockholder, including the purchase of secured notes and the establishment of a revolving credit facility.
Despite the financial setbacks in the third quarter, Reed’s is optimistic about its future, bolstered by new capital aimed at addressing inventory shortages and fulfilling demand. The company has withdrawn its FY 2024 outlook due to ongoing inventory challenges but remains committed to leveraging the recent financial restructuring to drive growth and profitability in the coming months.
