New Age Beverages Corporation (Nasdaq: NBEV), the
Colorado-based healthy products company dedicated to inspiring and
educating the planet to “live healthy”, today provided an update
including preliminary financial results for the quarter ended March
31, 2020, highlighting the Company’s expected improved growth rates
and gross profit performance in the midst of a changing business
environment as a result of the COVID-19 pandemic.
The Company expects to report revenue for the quarter ended
March 31, 2020 of between $62 and $64 million, compared to the
$58.3 million for the quarter ended March 31, 2019, an increase of
approximately 6% to 10%. The Company expects to report gross margin
in the low to mid 60% range a reversal of the previous trend in
fiscal 2019 of 66%, 63%, 58%, and 54% in the quarters ended March
31, June 30, September 30, and December 31, 2019, respectively.
“We are seeing accelerated growth in multiple aspects of our
business and in a majority of our markets,” said Brent Willis,
Chief Executive Officer of NewAge. “China and the US Direct
businesses were up double digits and we also saw renewed growth in
Japan. Our North America Retail and Direct Store Distribution
Divisions also saw double digit growth. Driving growth has been the
launch of Noni+CBD in Japan, the launch of our intermittent fasting
product, Te Mana Shape in several key markets, and consumer
interest in our immunity strengthening products, ‘Nhanced Cell
Defense and Tahitian Noni.”
“There has been some short-term loading in U.S. retail that has
positively impacted revenue in North America, but overall, we are
seeing sustainable growth drivers impacting our business in this
new reality. Nearly 80% of revenue is ordered and fulfilled online
and is delivered direct to consumers homes, which we believe
positions us well to address consumer buying patterns worldwide
going forward.”
Greg Gould, Chief Financial Officer commented, “Our balance
sheet remains strong while we continue to take actions on driving
improved profitability, as evidenced in part by the improvement in
gross margin. As we committed to shareholders during our last
quarterly update, we have taken actions on strategic alternatives
related to our retail branded products and improved profitability.
We expect to have further updates on these initiatives in the
coming quarters.”
Preliminary First Quarter 2020 Results
The Company expects to report net revenue for the quarter ended
March 31, 2020 in the range of $62 to $64 million, an increase of
approximately 6% to 10% compared to revenue of $58.3 million in the
quarter ended March 31, 2019. The increase was primarily driven by
growth in Noni by NewAge, higher margin new products including Te
Mana Shape and Noni+CBD, and was led by strong results in China,
North America, and Japan, our largest markets.
The Company expects to report gross margin for the quarter ended
March 31, 2020 in the low-to-mid 60% range a reversal of the
previous trend in fiscal 2019 of 66%, 63%, 58%, and 54% in the
quarters ended March 31, June 30, September 30, and December 31,
2019, respectively. This growth was primarily driven by more
favorable sales mix with increased sales of Tahitian Noni® Juice
and cost reduction measures implemented during the first
quarter.
The Company does not intend to regularly provide preliminary
revenue or financial results in the future. The Company expects to
report first quarter 2020 financial results in mid-May 2020.
About NewAge Beverages Corporation (NASDAQ:
NBEV)NewAge is a Colorado based
healthy products company dedicated to inspiring and educating
consumers to “Live Healthy.” The Company is the only omni-channel
distributed company with access to traditional retail, e-commerce,
direct-to-consumer, and medical channels across 60 countries
worldwide. NewAge markets a portfolio of better-for-you products
including the brands Tahitian Noni, TeMana, Nestea, Volvic, Illy
Coffee, Evian, Búcha Live Kombucha, ‘Nhanced and others. The
Company operates the websites www.newage.com, www.noninewage.com,
www.nestea.com, www.volvic-na.com, www.illy.com, www.evian.com, and
a number of other individual brand websites.
Safe Harbor DisclosureThis press release
contains forward-looking statements that are made pursuant to the
safe harbor provisions within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements are any statement reflecting management's current
expectations regarding future results of operations, economic
performance, financial condition and achievements of the Company
including statements regarding NewAge’s expectation to see
continued growth and improved gross margins. The forward-looking
statements are based on the assumption that operating performance
and results will continue in line with historical results.
Management believes that Tahitian Noni® Juice and ‘NHanced™ Cell
Defense will help support the immune health systems of their users
and that these assumptions to be reasonable based on the referenced
studies. Forward-looking statements, specifically those concerning
future performance are subject to certain risks and uncertainties,
and actual results may differ materially. NewAge competes in a
rapidly growing and transforming industry, and risk factors,
including those disclosed in the Company's filings with the
Securities and Exchange Commission, might affect the Company's
operations. Unless required by applicable law, the Company
undertakes no obligation to update or revise any forward-looking
statements.
Statements in the press release relating to our products have
not been evaluated by the FDA. Our products are not intended to
diagnose, treat, cure, or prevent any disease.
For investor inquiries about NewAge Beverages
Corporation please contact:
Investor Relations Counsel:John
Mills/Scott Van WinkleICR – Strategic Communications and
AdvisoryTel: 1-646-277-1254/1-617-956-6736newage@icrinc.com
NewAge Beverages
Corporation:Gregory A. GouldChief Financial OfficerTel:
1-303-566-3030Greg_Gould@NewAge.com
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