Flow Beverage Corp. Reports Q4 2024 and Fiscal 2024 Results, Introduces Financial Targets for Fiscal 2025
Flow Beverage Corp reported Q4 2024 results with consolidated net revenue of $11.8 million, up 22% from Q4 2023. The company's Flow brand net revenue decreased 11% to $6.4 million, while co-packing revenue increased 115%. Gross margin improved to 21% from 9% year-over-year, and Adjusted EBITDA loss narrowed to $2.6 million from $10.5 million.
For FY 2025, Flow introduced financial targets including net revenue between $72-82 million, gross margin between 38-48%, and Adjusted EBITDA between $6-11 million. The company completed its operational transformation, focusing on production efficiency at its Aurora facility and implementing cost reduction measures. Key changes included facility consolidation, balance sheet recapitalization, and exit from unprofitable partnerships.
Flow Beverage Corp ha riportato i risultati del quarto trimestre 2024 con un fatturato netto consolidato di 11,8 milioni di dollari, in aumento del 22% rispetto al quarto trimestre 2023. Il fatturato netto del marchio Flow è diminuito dell'11% a 6,4 milioni di dollari, mentre il fatturato da co-packing è aumentato del 115%. Il margine lordo è migliorato al 21% dal 9% rispetto all’anno precedente, e la perdita Adjusted EBITDA si è ridotta a 2,6 milioni di dollari rispetto ai 10,5 milioni di dollari.
Per l'anno fiscale 2025, Flow ha introdotto obiettivi finanziari che includono un fatturato netto compreso tra 72 e 82 milioni di dollari, un margine lordo compreso tra il 38% e il 48%, e un EBITDA rettificato compreso tra 6 e 11 milioni di dollari. L'azienda ha completato la sua trasformazione operativa, concentrandosi sull'efficienza produttiva nella sua struttura di Aurora e implementando misure di riduzione dei costi. Le modifiche chiave hanno incluso la consolidazione delle strutture, la ricapitalizzazione del bilancio e l'uscita da partnership non redditizie.
Flow Beverage Corp reportó resultados del cuarto trimestre de 2024 con ingresos netos consolidados de 11.8 millones de dólares, un aumento del 22% en comparación con el cuarto trimestre de 2023. Los ingresos netos de la marca Flow disminuyeron un 11% a 6.4 millones de dólares, mientras que los ingresos por co-packing aumentaron un 115%. El margen bruto mejoró al 21% desde el 9% en comparación con el año anterior y la pérdida ajustada de EBITDA se redujo a 2.6 millones de dólares desde 10.5 millones de dólares.
Para el ejercicio fiscal 2025, Flow presentó objetivos financieros que incluyen ingresos netos entre 72 y 82 millones de dólares, un margen bruto entre el 38% y el 48%, y un EBITDA ajustado entre 6 y 11 millones de dólares. La empresa completó su transformación operativa, centrándose en la eficiencia de producción en su instalación de Aurora e implementando medidas de reducción de costos. Los cambios clave incluyeron la consolidación de instalaciones, la recapitalización del balance y la salida de asociaciones no rentables.
Flow Beverage Corp는 2024년 4분기 결과를 보고하며, 총 순매출이 1180만 달러로 2023년 4분기 대비 22% 증가했다고 발표했습니다. Flow 브랜드의 순매출은 11% 감소한 640만 달러였고, 대신 공동 포장 수익은 115% 증가했습니다. 총 이익률은 전년 대비 9%에서 21%로 개선되었고, 조정된 EBITDA 손실은 1050만 달러에서 260만 달러로 축소되었습니다.
2025년도 회계연도에는 Flow가 7200만~8200만 달러의 순매출, 38%~48%의 총 이익률, 600만~1100만 달러의 조정 EBITDA를 포함한 재무 목표를 제시했습니다. 회사는 오로라 시설에서의 생산 효율성에 초점을 맞추고 비용 절감 조치를 시행하며 운영 전환을 완료했습니다. 주요 변화에는 시설 통합, 재무 구조 재편성, 수익성이 없는 파트너십 종료가 포함되었습니다.
Flow Beverage Corp a annoncé les résultats du quatrième trimestre 2024, avec un chiffre d'affaires net consolidé de 11,8 millions de dollars, en hausse de 22 % par rapport au quatrième trimestre 2023. Le chiffre d'affaires net de la marque Flow a diminué de 11 % pour atteindre 6,4 millions de dollars, tandis que les revenus de co-packing ont augmenté de 115 %. La marge brute a amélioré à 21 % contre 9 % d'une année sur l'autre, et la perte d'EBITDA ajusté s'est réduite à 2,6 millions de dollars contre 10,5 millions de dollars.
Pour l'exercice fiscal 2025, Flow a présenté des objectifs financiers comprenant un chiffre d'affaires net entre 72 et 82 millions de dollars, une marge brute entre 38 et 48 %, et un EBITDA ajusté entre 6 et 11 millions de dollars. L'entreprise a achevé sa transformation opérationnelle en se concentrant sur l'efficacité de production de son site d'Aurora et en mettant en œuvre des mesures de réduction des coûts. Les changements clés comprenaient la consolidation des installations, la recapitalisation du bilan, et le retrait de partenariats non rentables.
Flow Beverage Corp berichtete von Ergebnissen im vierten Quartal 2024 mit konsolidierten Nettoumsätzen von 11,8 Millionen Dollar, was einem Anstieg von 22 % im Vergleich zum vierten Quartal 2023 entspricht. Der Nettoumsatz der Flow-Marke sank um 11 % auf 6,4 Millionen Dollar, während der Co-Packing-Umsatz um 115 % stieg. Die Bruttomarge verbesserte sich von 9 % auf 21 % im Jahresvergleich, und der Verlust bei bereinigtem EBITDA verringerte sich auf 2,6 Millionen Dollar von 10,5 Millionen Dollar.
Für das Geschäftsjahr 2025 stellte Flow finanzielle Ziele vor, die Nettoumsätze zwischen 72 und 82 Millionen Dollar, eine Bruttomarge zwischen 38 und 48 % sowie ein bereinigtes EBITDA zwischen 6 und 11 Millionen Dollar umfassen. Das Unternehmen hat seine betriebliche Transformation abgeschlossen, indem es sich auf die Produktionseffizienz in seiner Anlage in Aurora konzentriert und Kostenreduktionsmaßnahmen umgesetzt hat. Zu den wichtigen Änderungen gehörten die Konsolidierung von Einrichtungen, die Rekapitalisierung der Bilanz und der Ausstieg aus unrentablen Partnerschaften.
- Consolidated net revenue increased 22% YoY to $11.8 million
- Co-packing revenue grew 115% in Q4 2024
- Gross margin improved to 21% from 9% YoY
- Adjusted EBITDA loss reduced by $7.9 million to $2.6 million
- Operating expenses decreased 59% in sales, marketing and admin
- Flow brand net revenue declined 11% to $6.4 million
- Production challenges led to significant downtime
- Missed previous target of Adjusted EBITDA profitability in Q4 2024
- Net loss of $8.679 million in Q4 2024
-
Consolidated net revenue was
$11.8 million 22% increase from Q4 2023 -
Flow brand net revenue was
$6.4 million 11% decrease from Q4 2023 -
Gross margin1 was
21% in Q4 2024, as compared to9% in Q4 2023 -
Adjusted EBITDA2 loss was
$2.6 million $10.5 million -
Flow is introducing FY 2025 financial targets of net revenue between
$72 million $82 million 38% to48% , and Adjusted EBITDA2 between$6 million
Management Commentary
“Fiscal 2024 was a pivotal year during which we completed our operational transformation and restructuring. In the last three quarters, we have seen significant improvement in financial performance, starting with higher gross margin1 and dramatically lower operating expenses. Our co-packing revenue increased significantly off the back of our
Trent
Update on Operational Transformation
In fiscal 2022, Flow reported a gross margin1 of
During this period, Flow made a series of strategic decisions and implemented processes to position the Company for the long-term. Highlights of strategic changes include: the divestiture of the
Beginning in fiscal Q2 2024, progress towards profitability and positive cash flow became evident. Even while net revenue was impacted by the exit of unprofitable partnerships, gross margin1 improved
Financial Targets for FY 2025
Flow is introducing its financial targets for FY 2025 (the “2025 Financial Targets”). The Company expects to earn net revenue between
The material assumptions underlying the 2025 Financial Targets include but are not limited to: 1) Flow brand growth, both for existing SKUs in Tetra format and through the Company’s launch of sparkling water in aluminum format; 2) scaling of the Company’s co-pack operation with a full year of running four production lines and installation and commissioning of two additional production lines beginning in the second half of FY 2025; 3) higher capacity utilization and gaining production efficiencies at the Aurora production facility; 4) gross margin1 reflective of profitable channels for Flow brand net revenue, accretive co-pack contracts and improved production performance; and 5) Flow’s ability to implement its growth strategy with continued discipline in operating expenses.
Should the underlying assumptions on which the 2025 Financial Targets are based not materialize, it could have a material impact on the Company’s reported results. Specific risk factors that could cause financial results to differ materially from the 2025 Financial Targets include, but are not limited to, access to working capital, achieving production efficiency targets, delays in obtaining the necessary capacity at the Aurora production facility, and counter-party risk in relation to co-pack partners.
Financial Results for Q4 2024
Flow brand net revenue was
Consolidated net revenue was
Gross margin1 was
Flow reported an EBITDA2 loss of
Flow reported an Adjusted EBITDA2 loss of
Three months ended October 31 |
||||||
2024 |
2023 |
|||||
In thousands of Canadian dollars, except percentage amounts |
||||||
$ |
$ |
|||||
Net revenue |
11,848 |
|
9,692 |
|
||
Cost of revenue |
9,377 |
|
8,828 |
|
||
Gross profit |
2,471 |
|
864 |
|
||
Operating expenses |
6,641 |
|
12,399 |
|
||
Finance expense, net |
2,957 |
|
(511 |
) |
||
Restructuring and other costs |
1,522 |
|
328 |
|
||
Net loss for the period |
(8,679 |
) |
(10,882 |
) |
||
EBITDA loss2 |
(4,564 |
) |
(11,296 |
) |
||
Adjusted EBITDA loss2 |
(2,626 |
) |
(10,515 |
) |
||
Adjusted net loss |
(6,741 |
) |
(12,242 |
) |
||
Gross margin1 |
21 |
% |
9 |
% |
||
Three months ended October 31 |
||||||||
2024 |
2023 |
|||||||
Consolidated net loss: |
$ |
(8,679 |
) |
$ |
(10,882 |
) |
||
Tax expense |
|
34 |
|
|
— |
|
||
Finance expense, net |
|
2,957 |
|
|
(511 |
) |
||
Amortization and depreciation |
|
1,124 |
|
|
96 |
|
||
EBITDA loss2 |
|
(4,564 |
) |
|
(11,297 |
) |
||
Share-based compensation |
|
422 |
|
|
368 |
|
||
Impairment of assets and restructuring |
|
1,522 |
|
|
327 |
|
||
Loss on option revaluation |
|
(6 |
) |
|
86 |
|
||
Adjusted EBITDA loss2 |
$ |
(2,626 |
) |
$ |
(10,516 |
) |
||
(1) |
Gross margin is a supplementary financial measure and is used throughout this MD&A. See “Non-IFRS and Other Financial Measures” for more information on the supplementary of financial measure. See “How We Assess the Performance of Our Business” for an explanation of the composition of such measure. |
|
(2) |
This is a non-IFRS financial measure and is used throughout this MD&A. See “Non-IFRS and Other Financial Measures” for more information on each non-IFRS financial measure. See “How We Assess the Performance of Our Business” for an explanation of the composition of such measure. |
Conference Call and Webcast Details
Nicholas Reichenbach, Founder and Chief Executive Officer, and Trent MacDonald, Chief Financial Officer and EVP Operations, will host a conference call and webcast featuring a presentation, followed by a Q&A session where webcast participants will have the chance to submit questions directly to management.
Date: |
January 30, 2025 |
|||
Time: |
8:30 a.m. ET |
|||
Conference ID: |
11856 |
|||
Dial-in: |
(289) 514-5100 or (800) 717-1738 |
|||
Webcast: |
||||
Replay: |
(289) 819-1325 or (888) 660-6264 |
|||
Passcode: 11856 |
||||
|
Available until February 22, 2025 |
About Flow
Flow is one of the fastest-growing premium water companies in
For more information on Flow, please visit Flow’s investor relations site at: investors.flowhydration.com.
Forward-Looking Statements
This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws (“Forward-Looking Statements”). The Forward-Looking Statements contained in this press release relate to future events or Flow’s future plans, operations, strategy, performance or financial position, including in relation to the 2025 Outlook, and are based on Flow’s current expectations, estimates, projections, beliefs and assumptions, including, among other things, growth of Flow brand both for existing SKUs in Tetra format and through the Company’s launch of sparkling water in aluminum format, the scaling of the Company’s co-pack operation with a full year of running four production lines and installation and commissioning of two additional production from lines beginning in the second half of fiscal FY 2025, a higher capacity utilization and gaining production efficiencies at the Aurora production facility, gross margins reflective of profitable channels for Flow brand net revenue, accretive co-pack contracts and improved production performance and Flow’s ability to implement its growth strategy with continued discipline in operating expenses.
Such Forward-Looking Statements have been made by Flow in light of the information available to it at the time the statements were made and reflect its experience and perception of historical trends. All statements and information other than historical fact may be forward-looking statements. Such Forward-Looking Statements are often, but not always, identified by the use of words such as “may”, “would”, “should”, “could”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “foresee”, “believe”, “continue”, “expect”, “believe”, “anticipate”, “estimate”, “will”, “potential”, “proposed” and other similar words and expressions.
Although Flow believes that the assumptions underlying Forward-Looking Statements are reasonable, they may prove to be incorrect. Forward-Looking Statements are based on certain expectations and assumptions and are subject to known and unknown risks and uncertainties and other factors, many of which are beyond Flow’s control, that could cause actual events, results, performance and achievements to differ materially from those anticipated in these Forward-Looking Statements. As it pertains to the 2025 Outlook, those risks include but are not limited to access to working capital, achieving production efficiency targets, delays in obtaining the necessary capacity at the Aurora production facility, and counter-party risk in relation to co-pack partners. Forward-Looking Statements are provided for the purpose of assisting the reader in understanding Flow and its business, operations, prospects, and risks at a point in time in the context of historical and possible future developments, and the reader is therefore cautioned that such information may not be appropriate for other purposes. Forward-Looking Statements should not be read as guarantees of future performance or results. Readers are cautioned not to place undue reliance on these Forward-Looking Statements, which speak only as of the date of this press release. Unless otherwise noted or the context otherwise indicates, the Forward-Looking Statements contained herein are provided as of the date hereof, and the Company disclaims any intention or obligation, except to the extent required by law, to update or revise any Forward-Looking Statements as a result of new information or future events, or for any other reason.
The following press release should be read in conjunction with the management’s discussion and analysis and consolidated financial statements and notes thereto as at and for the year ended October 31, 2024. Additional information about Flow is available on the Company’s profile on SEDAR+ at www.sedar.com, including the Company’s Annual Information Form for the year ended October 31, 2024 dated January 29, 2025.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250130265903/en/
Trent
1-844-356-9426
investors@flowhydration.com
Investors:
Marc Charbin
investors@flowhydration.com
Media:
Natasha Koifman
nk@nkpr.net
Source: Flow Beverage Corp.
FAQ
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