Iconic Brands Announces Record Revenue for Second Quarter 2022

Rhea-AI Summary

Iconic Brands, Inc. (OTC: ICNB) reported impressive second-quarter 2022 financial results, with total revenue of $6.65 million, a remarkable 1,038% increase year-over-year, surpassing the entire 2021 revenue of $4.9 million. For the first half of the year, revenue surged 778% to $10.7 million. Gross profit also rose 567% to $1.73 million. Cash reserves improved to $4.7 million as of June 30, 2022, from $2.19 million at the end of 2021. The Company continues to develop its product lines and innovate sustainable packaging solutions.

Positive

• Total revenue increased 1,038% year-over-year, reaching $6.65 million.
• Gross profit rose 567%, amounting to $1.73 million.
• Cash reserves improved to $4.7 million from $2.19 million.
• Revenue for the first half of 2022 hit $10.7 million, up 778%.

Negative

• Net operating loss expanded to $3.86 million, a 136% increase year-over-year.
• Total operating expenses rose 195% to $5.59 million.

• Total revenue for the quarter ended June 30, 2022, was up 1,038% year-over-year, driven by strong demand for TopPop’s, ready-to-freeze (RTF), ready-to-drink (RTD) alcohol ice pops and flexible pouches.
• Total revenue for the quarter ended June 30, 2022, was over $6.6 million, surpassing revenue of $4.9 million for the entire year of 2021.
• Revenue for the six months ended June 30, 2022, was $10.7 million vs. $1.2 million for the six months ended June 30, 2021, an increase of $9.4 million, or 778%.

AMITYVILLE, NY, Aug. 23, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – Iconic Brands, Inc. (OTC: ICNB) (“Iconic” or the “Company”), a leader in the development, design and delivery of alcohol and non-alcohol beverages, today reported financial results for the second quarter ended June 30, 2022. 

Second Quarter 2022 Financial Highlights:

• Total revenue for the quarter ended June 30, 2022, was $6,654,221, an increase of $6,069,307 compared to the same period in 2021, representing an increase of approximately 1,038% year-over-year.
• Gross profit was $1,733,547 for the quarter ended June 30, 2022, an increase of approximately 567% year-over-year.
• Cash as of June 30, 2022, was $4,697,929, compared to $2,190,814 on December 31, 2021.

Second Quarter and Recent 2022 Highlights:

• Appointment of Tom Martin as interim Chief Executive Officer. Mr. Martin has been in the primary and secondary packaging industry for over 40 years. He is a co-founder of TopPop Packaging, which was built by capitalizing on the idea of alcohol-infused adult ice pops and single-use food and beverage products. Mr. Martin has served as President and Chief Operating Officer of TopPop and has been with Iconic since TopPop was acquired in July 2021.
• Iconic is considering a name change to “TopPop Innovative Brands, Inc.” and a ticker change to “TPOP” to reflect the Company’s core mission and commitment to sustainable packaging solutions. The majority of the Company’s revenue is currently attributed to TopPop’s packaging business.
• At the end of March 2022, TopPop reached full-scale production capability at its newest facility. The facility is expected to produce 80 million units by the end of 2022.
• The Company celebrated Earth Day 2022 by kicking off its “Tree Planting Campaign for Earth Day 2022.” From April 22 through May 31, Iconic collaborated with the international, environmental nonprofit tree-planting charity, One Tree Planted, to plant one tree in the California areas devastated by the wildfires for each bottle of Bellissima sold through splashwines.com. This was the second year that Iconic has embarked on its sustainability campaign with One Tree Planted, successfully planting 10,000 trees in 2021.
• Iconic’s Bellissima Prosecco and Zero wines were featured at the at Lé Lauriér’s debut New York Bridal Fashion Week Runway Show as the event’s exclusive wine sponsor. The event was produced by Sophisticated Weddings magazine at Capitale in New York on April 10, 2022, and showcased tuxedos and suits by custom menswear clothier Alton Lane.

Management Commentary

“2022 is off to a strong start with record-breaking first and second quarters. Revenue is up 1,038% year-over-year, and we surpassed our full-year 2021 revenue of $4.9 million by producing $6.6 million in the second quarter of 2022. For the six months ended June 30, 2022, revenue was $10.7 million, compared to $1.2 million in the same period last year. Demand for our popular RTF, RTD ice pops, pouches, and Bellissima products remains high. Our Bellissima Zero brand, a new line of zero-sugar still wines that are certified vegan and made with organic grapes, which we launched in the first quarter of 2022, is showing progress and adheres to our ‘better-for-you’ and ‘better-for-the-planet’ approach. Our core TopPop products are performing well, which is reflected in our sales. We believe that the completion of our new Pennsauken facility, which is now running at full production, will allow us to focus on opportunities for new customers and to continue supporting our existing customers. Our cash balance is solid, and we will continue to capitalize on our momentum,” commented Tom Martin, interim Chief Executive Officer of Iconic.  

Second Quarter 2022 Financial Results

Iconic reported revenue of $6,654,221 for the three months ended June 30, 2022, an increase of $6,069,307, or 1,038%, compared to $584,914 for the three months ended June 30, 2021. Sales were comprised of Bellissima Prosecco and Sparkling Wine, the line of Hooters brand products, and the Company’s RTF TopPop products. The increase is due primarily to $5,795,321 in sales from newly acquired TopPop products.

The revenue increase is mainly attributed to the integration of TopPop; on an unaudited pro forma basis for the quarter ended June 30, 2022, revenue was $6,654,221, compared to $6,441,386 for the same period in 2021, an increase of roughly $212,835.For the first six months of 2022, revenue is up $10,701,018, compared to $9,443,983 for the same period in 2021.

Cost of sales was $4,920,674, or approximately 74% of sales, for the three months ended June 30, 2022, compared to $325,206, or approximately 56% of sales, for the three months ended June 30, 2021. The increase in cost of goods as a percentage of sales, year-over-year, is due to the change in product mix in 2021 as a result of the Company’s TopPop acquisition. Cost of goods for the three months ended June 30, 2022, for the Company’s alcohol sales remained at approximately 45%, which is similar to the prior year, while the costs associated with the Company’s TopPop acquisition were approximately 78% during the three months ended June 30, 2021.

Total operating expenses were $5,589,226 for the three months ended June 30, 2022, an increase of $3,693,026, or approximately 195%, compared to $1,896,200 for the three months ended June 30, 2021.

Net operating loss was $3,855,679 for the three months ended June 30, 2022, an increase of $2,219,187, or approximately 136%, compared to $1,636,492 for the three months ended June 30, 2021.

About Iconic

Iconic Brands, Inc (OTC: ICNB) is a leader in the development, design and delivery of alcohol and non-alcohol beverages. TopPop, Iconic’s wholly owned subsidiary, is a leader in the innovation of low-calorie, “ready to go” drinks and ready-to-freeze (RTF) and ready-to-drink (RTD) products in sustainable, flexible and stand-up pouch packaging, and in the alcohol ice-pop and “cocktails-to-go” market. Iconic’s brands include “Bellissima” by Christie Brinkley, a premium better-for-you and better-for-the-planet collection of prosecco, sparkling wines and still wines, all of which are certified vegan and made with organic grapes. Bellissima is strategically positioned with its zero sugar wines in the zero sugar beverage category. Iconic operates in multiple states, distributes around the globe and has Fortune 500 customers that include some of the world’s largest alcohol beverage companies and brands.

Please visit Iconic’s websites, and follow us on social media. 

Websites: iconicbrandsusa.com; bellissimaprosecco.com; toppoppkg.com; sonjasangria.com 

Twitter: @iconicbrandsus; @Sonja_Sangria 

Instagram: @IconicBrandsUSA; @BellissimaProsecco; @sonja_sangria 

LinkedIn: Iconic Brands USA; TopPop Packaging

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of management, are not guarantees of performance, and are subject to significant risks and uncertainties. These forward-looking statements should, therefore, be considered in light of various risks, including those set forth in Iconic’s reports that it files from time to time with the U.S. Securities and Exchange Commission and which you should review, including those statements under “Item 1A – Risk Factors” in Iconic’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. 

Contact 
ir@iconicbrandsusa.com    

FAQ

What were Iconic Brands' financial results for Q2 2022?

Iconic Brands reported Q2 2022 revenue of $6.65 million, a 1,038% increase year-over-year.

What is the revenue for the first half of 2022 for ICNB?

For the first half of 2022, Iconic Brands generated revenue of $10.7 million, up 778% from the same period in 2021.

How much cash did Iconic Brands have as of June 30, 2022?

As of June 30, 2022, Iconic Brands had cash reserves of $4.7 million.

What led to the revenue increase for Iconic Brands?

The revenue increase was primarily driven by strong sales from newly acquired TopPop products.

What is the current net operating loss for ICNB?

The net operating loss for Q2 2022 was $3.86 million, a significant increase compared to the previous year.