Reed’s ( (REED) ) has released its Q4 earnings. Here is a breakdown of the information Reed’s presented to its investors.
Reed’s, Inc. is a leading company in the beverage industry, known for its handcrafted, natural ginger beverages and a diverse portfolio of craft sodas and non-alcoholic drinks. The company reported its financial results for the fourth quarter and full year of 2024, highlighting significant improvements in gross profit and operating loss despite a decline in net sales.
In the fourth quarter of 2024, Reed’s achieved a gross profit of $2.9 million, a substantial increase from the previous year’s $0.5 million, driven by improved gross margins and reduced delivery costs. However, net sales decreased to $9.7 million from $11.7 million, primarily due to inventory constraints. For the full year, net sales were $38.0 million, down from $44.7 million, while gross profit rose by 18% to $11.4 million, reflecting a strategic focus on operational efficiencies.
Reed’s management emphasized the company’s efforts to strengthen its balance sheet and expand its market presence. The company secured a $10 million private placement and restructured its debt, enabling investments in inventory, marketing, and international expansion. Notable distribution gains were achieved with major retailers, enhancing the reach of Reed’s products.
Looking forward, Reed’s is poised for growth with the launch of a new multi-functional beverage line and increased retail distribution. The company aims to capitalize on its improved financial flexibility and strategic initiatives to drive profitability in 2025.