Q1 2024 Zevia PBC Earnings Call Transcript
Key Points
- Zevia PBC has successfully launched a new brand visual ID and initiated regional direct store distribution, which is expected to enhance market penetration and brand visibility.
- The company has reported a strong consumer demand and an increase in velocity, with sales per point of distribution growing consistently since the start of the year.
- Zevia PBC has implemented a price increase on soda multipacks which, along with stable customer fulfillment, supports stronger unit economics.
- The introduction of a comprehensive productivity initiative is projected to deliver significant annualized savings, enhancing long-term growth and profitability.
- Zevia PBC's gross margins are strong and improving sequentially, providing a solid foundation for future investments and operational enhancements.
- Net sales for Q1 2024 declined by 10.4% year-over-year, primarily due to distribution setbacks and a delay in the recovery of SKU-level distribution at retailers.
- The company experienced a significant increase in net loss, from $2.9 million in Q1 2023 to $7.2 million in Q1 2024, indicating challenges in maintaining profitability.
- Despite the launch of productivity initiatives, Zevia PBC forecasts a gradual path to profitability, with sustainable adjusted EBITDA profitability not expected until 2026.
- The company faces ongoing challenges with SKU-level distribution recovery, which has impacted volume and revenue in the short term.
- There are risks associated with the increased marketing and promotional investments, particularly if these efforts do not yield the expected lift in sales.
Good day, ladies and gentlemen, and welcome to Zevia PBC Q1 2024 earnings call. (Operator Instructions) Please note that this conference is being recorded. I'll now turn the conference over to Reed Anderson of ICR. Please go ahead.
Thank you, and welcome to Zevia's first-quarter 2024 earnings conference call and webcast. On today's call are Amy Taylor, President and Chief Executive Officer; and Girish Satya, Chief Financial Officer. By now, everyone should have access to the company's first-quarter 2024 earnings press release and investor presentation made available this morning.
This information is available on the Investor Relations section of Zevia's website at investors.zevia.com. Before we begin please note that all the financial information presented on today's call is unaudited. Certain comments made on this call include forward-looking statements subject to the Safe Harbor provisions of the Private Securities Litigation Reform Act of
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
