KOLOA, Hawaii, April 13, 2015 /PRNewswire/ -- KonaRed
Corporation (OTCQB: KRED), manufacturers of Antioxidant
Juices and nutritional supplements from the unique and exclusive
Hawaiian CoffeeBerry® coffee fruit from Kona, Hawaii, today reported strong sales growth for
the twelve months ended December 31,
2014.
Twelve Months Ended December 31,
2014 Financial Summary
- Consumer products sales plus delivery revenues increased 80% to
$1,088,118 for the year ended
December 31, 2014 compared to
$604,772 for the year ended
December 31, 2013.
- Net sales (which include consumer product sales, delivery fees,
and raw material ingredient sales) increased 39% to $1,254,234 for the year ended December 31, 2014, compared to $905,799 for the year ended December 31, 2013.
- Cash provided by financing activities increased to $2,850,001 for the year ended December 31, 2014 versus $1,807,590 for the prior year, representing an
increase of 58%.
- Net working capital increased to a balance of $495,422 at December 31,
2014 from a balance of $363,748 at December 31,
2013.
- Planned expenditures on advertising and marketing increased to
$967,164 for the year ended
December 31, 2014 versus $143,061 for the prior year, representing an
increase of 576%.
Commenting on the 2014 full year financial results, KonaRed's
CEO Shaun Roberts stated, "Our first
full year as a public company ended strongly and we are pleased
with what we've accomplished thus far. Sales growth continued and
led to a 39% growth in overall revenue year-over-year, and consumer
product related revenues up at an impressive rate of 80%. An
example of the work done to increase sales is the entry of our
nutritional supplement products into select Whole Foods Markets.
Another example is the achievement of gaining placement of our
three flavors of delicious beverages at 978 Kroger family of stores
throughout the U.S., including Kroger, Food4Less, Ralphs and
Fred Meyer, and other nationally
recognized brands. Kroger is one of the world's largest grocery
retailers with close to $100 billion
in sales in 2013. We view Kroger's selection of KonaRed products as
a major milestone and anticipate continued expansion of our
distribution network in 2015."
Mr. Roberts continued, "2014 also saw us secure placement of our
products into thousands of other stores including Walmart, and we
expanded our distribution into the New
York Metro area as well as many other top metro areas
throughout the country, adding 30 new distribution points to our
network. It has been a solid year, but we're not taking our eye off
the ball and are pushing hard on new initiatives to further
increase sales throughout 2015."
Comparatively, due primarily to additional costs associated with
KonaRed's quick sales growth, cost of goods sold for the year ended
December 31, 2014 increased by 144%
to $1.09 million from $447,569 for the year ended December 31, 2013; gross margin decreased to
$160,197 for FY2014, versus the gross
margin of $458,230 for FY2013.
Additionally, some revenue items were reclassified during
preparation of the Company's FY2014 year-end financial statements
and, as a result, full year sales were less than the estimate of
$1.49 million published on
January 27, 2015 and were a total of
$1.25 million.
The Company's net loss for FY2014 was $(4.6 million), or $(0.06) per share, versus a net loss of
$(3.9 million), $(0.06) per share for FY2013. When the net losses
for FY2014 and FY2013 are adjusted to exclude non-cash expenses
totaling $2.1 million and
$1 million, respectively, the
comparative net losses decrease to $(2.5
million), or $(0.03) per share
for FY2014, versus $(2.9 million), or
$(0.04) per share for FY2013.
Net working capital increased to a balance of $495,422 at December 31,
2014 from a balance of $363,748 at December 31,
2013.
The Company raised $2.7 million
through equity sales during the fiscal 2014, and $150,000 by rolling scheduled license fee
payments due to its partner VDF FutureCeuticals Inc. into a senior
convertible note. Additionally, subsequent to FY2014 year-end, in
January 2015 the Company entered into
an agreement for the issuance of up to $1.1
million of unsecured subordinated convertible debentures
maturing 18 months from each issuance date and issued a debenture
in the principal amount of $440,000
for $400,000 in cash. The Company may
issue to Lender an additional $660,000 in Debentures consisting of two
additional convertible debentures, each in the principal amount of
$330,000, including $30,000 of original issue discount.
About KonaRed Corporation
KonaRed Corporation produces
health and wellness nutritional products including beverages and
nutritional supplements, which bring the attributes of Hawaiian
Coffee fruit to an international consumer market. The Company was
established in August 2008 and
achieved its first sales in February
2009. In October 2013 KonaRed
went public and trades on the OTCQB under the symbol KRED. KonaRed,
through a licensing agreement with VDF FutureCeuticals, Inc.,
utilizes innovative, state of the art, proprietary processes that
produce antioxidant extracts and powders from Hawaiian Coffee
Fruit, which are used to produce KonaRed's Antioxidant Juice,
Organic Green Tea, Coconut Water, On-the-Go Packs and 100% Coffee
Fruit Powders. KonaRed Corporation is headquartered in Koloa, Hawaii, and its distribution center is
in San Clemente, California.
KonaRed products are sold in select Kroger, Vitamin Shoppe, Whole
Foods, Safeway, Walmart, 7-Eleven, and many other retail outlets
throughout the US and Canada. More information about KonaRed
and its products can be found at www.konared.com.
Forward Looking Statements
Certain information contained in this press release, including any
information as to our strategy, plans or future financial or
operating performance and other statements that express
management's expectations or estimates of future performance,
constitute "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. All statements, other than
statements of historical fact, are forward-looking statements. The
words "believe," "expect," "will," "anticipate," "contemplate,"
"target," "plan," "continue," "budget," "may," "intend,"
"estimate," "project" and similar expressions identify
forward-looking statements. Forward-looking statements are subject
to risks and uncertainties that could cause actual results to
differ materially from those expressed in the forward-looking
statements, including, but not limited to, certain delays beyond
the company's control with respect to its plans or operations. Our
actual results may differ materially from the results anticipated
in these forward-looking statements due to a variety of factors,
including, without limitation those set forth as "Risk Factors" in
our filings with the SEC which can be found at www.sec.gov. There
may be other factors not mentioned above or included in the
Company's SEC filings that may cause actual results to differ
materially from those projected in any forward-looking statement.
The Company disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by
applicable law.
Contact:
Investor and Media Relations:
Robert Haag
IRTH Communications
kred@irthcommunications.com
866-976-4784
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SOURCE KonaRed Corporation