Q2 2024 Reed's Inc Earnings Call Transcript
Key Points
- Reed's Inc (REED) reported a 19% increase in net sales for Q2 2024, reaching $11.9 million compared to $10 million in the same period last year.
- Gross profit increased by 53% to $3.8 million, with a gross margin expansion of 720 basis points to 32.3%.
- The company achieved a 60% reduction in delivery and handling expenses, bringing costs down to $2.18 per case from $3.05 per case in Q2 2023.
- Reed's ginger beer sales surged by 70% year-over-year in the second quarter.
- The company successfully completed several promotions with major retail partners like Whole Foods, Sprouts, Publix, and Kroger, enhancing product visibility and sales.
- Reed's alcohol sales were flat for the quarter compared to Q2 2023, indicating a lack of growth in this category.
- Selling, general, and administrative costs increased to $3.1 million from $2.6 million in the year-ago quarter, remaining flat as a percentage of net sales.
- The company reported an operating loss of $0.7 million for Q2 2024, although this was an improvement from a loss of $1.7 million in Q2 2023.
- Cash used in operations was $0.9 million, although this was a decrease from $3.4 million in the same period last year.
- Reed's Inc (REED) has a significant debt load, with $27.4 million in total debt as of June 30, 2024, including $18.4 million from a convertible note and $9 million from a revolving line of credit.
Good afternoon, and welcome to Reed's second-quarter 2024 earnings conference call for the three months ended, June 30, 2024. My name is Emery, and I will be your conference call operator for today. You will have prepared remarks from Norman E. Snyder, Reed's Chief Executive Officer; and Joann Tinnelly, Reed's Chief Financial Officer. Following their remarks, we will take your questions.
Before we begin, please take note of the company's cautionary statement. Today's call will include forward-looking statements, including statements about Reed's business plans and 2024 guidance. Forward-looking statements inherently involve risks and uncertainties, and only reflect management's view as of today, August 13, 2024, and the company is under no obligation to update them.
When discussing results, the presenters may refer to non-GAAP measures, which include certain items from reported results. Please refer to Reed's second-quarter 2024 earnings release on Reed's Investor website, investors.reedsinc.com, and its second-quarter 2024 Form 10-Q expected to be available on the website on August 14,
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