Q3 2024 Zevia PBC Earnings Call Transcript
Key Points
- Zevia PBC (ZVIA) reported a significant improvement in adjusted EBITDA loss, reducing it to $1.5 million from $9.1 million in the same quarter last year.
- The company achieved a record gross margin of 49%, driven by enhanced efficiencies, cost savings, and better product costing.
- Zevia PBC (ZVIA) is expanding its distribution to over 4,300 Walmart stores, which is expected to drive growth in the fourth quarter.
- The company has increased its annual cost savings target to $15 million, up from the previous estimate of $12 million.
- Zevia PBC (ZVIA) is seeing strong sales growth in key strategic channels, with grocery channel scan data indicating dollar growth of 8% and unit growth of 9%.
- Net sales for the third quarter were slightly below expectations at $36.4 million, representing a 16% decline compared to the same period last year.
- The decline in net sales was attributed to a reduction in club distribution and the exit from the kids and mixers categories.
- The company experienced a slight miss in net sales due to lower than expected response to promotional tests and shipping challenges related to hurricanes.
- Zevia PBC (ZVIA) anticipates modest growth in 2025, indicating that the path to re-accelerating growth will be gradual.
- The company is still facing challenges in channel-specific distribution, which has impacted sales performance.
Greetings and welcome to the ZAP BC Q3 2024 earning school.
At this time, all participants are in listen-only mode.
A question-and-answer session will follow the formal presentation.
If anyone should require operator assistance during the conference, please press star then zero on your telephone keypad.
As a reminder, this conference is being recorded.
I would now like to turn the conference over to your host, Reed Anderson from ICR. Please go ahead, sir.
Thank you and welcome to Zvi's third quarter, 2024 earnings conference call and webcast on today's call are Amy Taylor, President and Chief Executive Officer and Gas Satia, Chief Financial Officer. By now, everyone should have access to the company's third quarter, 2024 earnings press release and investor presentation made available this morning. This information is available on the investor relations section of Z B's website at investors.za dotcom.
Before we begin, please note that all the financial information presented
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