The Alkaline Water Company Announces Plan for Pathway to Profitability with an Estimated $4.5-$5 Million in Annual Savings
July 07 2022 - 9:15AM
Business Wire
Company Management Has Identified Significant
Expense Reductions and Margin Enhancements To Enhance the Company’s
Bottom Line
(All amounts are in U.S. dollars)
The Alkaline Water Company Inc. (NASDAQ and CSE: WTER) (the
“Company”), the country’s largest independent alkaline water
company and the Clean Beverage® company, today announced it has
identified an estimated $4.5-$5 million in annual expense
reductions and margin enhancements, once fully implemented, as part
of an ongoing plan to put the Company on a pathway to
profitability.
“We are committed to continue driving topline sales in fiscal
year 2023 through new-store expansion and organic growth, despite
economic headwinds,” said Alkaline88 President and CEO, Frank
Lazaran. “While focused on continued sales growth, the Company will
emphasize a pathway to profitability in order to improve the bottom
line and enhance shareholder value.
“During the past 30 days, we have undergone an extensive and
thorough Company-wide review in which we’ve identified $4.5-$5
million in annual profit enhancements to be implemented over the
next twelve months. This review is ongoing to determine additional
areas of savings and we will keep our shareholders updated
regularly on our progress.”
The Company has broadly identified cost-saving measures
including:
- Adding strategic copacking partners to decrease freight costs
and expand capacity to support anticipated record sales
- Increasing efficiencies with copackers and raw material
providers to boost margins on finished products
- Eliminating redundancies and inefficiencies in third-party
services and partnerships
- Evaluating overall structure and productivity of the
Company
- Initiating a more disciplined capital management approach
Company Management will share more details on their pathway to
profitability, positive Alkaline88® brand momentum, and fiscal year
2023 revenue guidance on their upcoming full year fiscal 2022
earnings call. The call will take place on Thursday, July 14th,
2022 after market close. Specific details to follow.
About The Alkaline Water Company:
The Alkaline Water Company is the Clean Beverage® company making
a difference in the water you drink and the world we share.
Founded in 2012, The Alkaline Water Company (NASDAQ and CSE:
WTER) is headquartered in Scottsdale, Arizona. Its flagship
product, Alkaline88®, is a leading premier alkaline water brand
available in bulk and single-serve sizes along with eco-friendly
aluminum packaging options. With its innovative, state-of-the-art
proprietary electrolysis process, Alkaline88® delivers perfect 8.8
pH alkaline drinking water with trace minerals and electrolytes and
boasts our trademarked “Clean Beverage” label. In 2021, The
Alkaline Water Company was pleased to welcome Shaquille O’Neal to
its board of advisors and to serve as the celebrity brand
ambassador for Alkaline88®.
To purchase The Alkaline Water Company’s products online, visit
us at www.alkaline88.com.
To learn more about The Alkaline Water Company, please visit
www.thealkalinewaterco.com or connect with us on Facebook, Twitter,
Instagram, or LinkedIn.
Notice Regarding Forward-Looking Statements
This news release contains “forward-looking statements.”
Statements in this news release that are not purely historical are
forward-looking statements and include any statements regarding
beliefs, plans, expectations, or intentions regarding the future.
Such forward-looking statements include, among other things, the
following: the statements relating to the Company’s plan for
pathway to profitability; the statements relating to an estimated
$4.5-$5 million in the Company’s annual expense reduction and
margin enhancements; the Company’s commitment to continue driving
topline sales in fiscal year 2023 through new-store expansion and
organic growth; that while focused on continued sales growth, the
Company will emphasize a pathway to profitability in order to
improve the bottom line and enhance shareholder value; that the
Company has identified $4.5-$5 million in annual profit
enhancements to be implemented over the next twelve months; the
statements relating to the identification of cost-saving measures,
including (i) adding strategic copacking partners to decrease
freight costs and expand capacity to support anticipated record
sales; (ii) increasing efficiencies with copackers and raw material
providers to boost margins on finished products; (iii) eliminating
redundancies and inefficiencies in third-party services and
partnerships; (iv) evaluating overall structure and productivity of
the Company; and (v) initiating a more disciplined capital
management approach.
The material assumptions supporting these forward-looking
statements include, among others, that the Company’s cost-saving
measures will be effective to reduce the Company’s annual expense
and enhance the Company’s margin to the extent anticipated by the
Company; that the demand for the Company’s products will continue
to significantly grow; that the past production capacity of the
Company’s co-packing facilities can be maintained or increased;
that there will be increased production capacity through
implementation of new production facilities, new co-packers and new
technology; that there will be an increase in number of products
available for sale to retailers and consumers; that there will be
an expansion in geographical areas by national retailers carrying
the Company’s products; that there will be an expansion into new
national and regional grocery retailers; that there will be an
expansion into new e-commerce, home delivery, convenience, and
healthy food channels; that there will not be interruptions on
production of the Company’s products; that there will not be a
recall of products due to unintended contamination or other adverse
events relating to the Company’s products; and that the Company
will be able to obtain additional capital to meet the Company’s
growing demand and satisfy the capital expenditure requirements
needed to increase production and support sales activity. Actual
results could differ from those projected in any forward-looking
statements due to numerous factors. Such factors include, among
others, governmental regulations being implemented regarding the
production and sale of alkaline water or any other products,
including products containing hemp/CBD; the fact that consumers may
not embrace and purchase any of the Company’s CBD-infused products;
the fact that the Company may not be permitted by the FDA or other
regulatory authority to market or sell any of its CBD-infused
products; additional competitors selling alkaline water and
enhanced water products in bulk containers reducing the Company’s
sales; the fact that the Company does not own or operate any of its
production facilities and that co-packers may not renew current
agreements and/or not satisfy increased production quotas; the fact
that the Company has a limited number of suppliers of its unique
bulk bottles; the potential for supply-chain interruption due to
factors beyond the Company’s control; the fact that there may be a
recall of products due to unintended contamination; the inherent
uncertainties associated with operating as an early stage company;
changes in customer demand and the fact that consumers may not
embrace enhanced water products as expected or at all; the extent
to which the Company is successful in gaining new long-term
relationships with new retailers and retaining existing
relationships with retailers; the Company’s ability to raise the
additional funding that it will need to continue to pursue its
business, planned capital expansion and sales activity; and
competition in the industry in which the Company operates and
market conditions. These forward-looking statements are made as of
the date of this news release, and the Company assumes no
obligation to update the forward-looking statements, or to update
the reasons why actual results could differ from those projected in
the forward-looking statements, except as required by applicable
law, including the securities laws of the United States and Canada.
Although the Company believes that any beliefs, plans, expectations
and intentions contained in this news release are reasonable, there
can be no assurance that any such beliefs, plans, expectations or
intentions will prove to be accurate. Readers should consult all of
the information set forth herein and should also refer to the risk
factors disclosure outlined in the reports and other documents the
Company files with the SEC, available at www.sec.gov, and on the
SEDAR, available at www.sedar.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20220707005199/en/
The Alkaline Water Company Inc. Jeff Wright Director of
Investor Relations 866-242-0240
investors@thealkalinewaterco.com
Media Jessica Starman 888-461-2233
jessica@elev8newmedia.com
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