Splash Beverage Group Reports 2022 Fourth Quarter and Full Year Financial Results

Rhea-AI Summary

Splash Beverage Group (SBEV) reported strong financial results for Q4 and the full year ended December 31, 2022. Q4 revenues rose 56% to $4.79 million, while full-year revenues increased 61% to $19.0 million, driven by growth in its ecommerce platform Qplash and the Copa Di Vino brand.

Gross margins improved significantly, reaching $3.3 million in Q4 and $5.9 million for the full year. The net loss narrowed to $4.8 million in Q4 and $21.7 million for the year, compared to $6.2 million and $29.0 million, respectively, in 2021. Cash reserves increased slightly to $4.4 million. The CEO emphasized ongoing investments in marketing and distribution as key to future growth.

Positive

• Q4 revenues increased 56% to $4.79 million.
• Full-year revenues rose 61% to $19.0 million.
• Significant improvement in gross margin to $3.3 million for Q4.
• Net loss decreased to $4.8 million for Q4 and $21.7 million for the full year.

Negative

• Net losses remain substantial at $21.7 million for the full year.
• Increased marketing expenses contributing to cash outflows.

Fort Lauderdale, FL, March 31, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire – Splash Beverage Group, Inc. (NYSE American: SBEV) ("Splash" or the "Company"), a portfolio company of leading beverage brands, today reported financial results for the  fourth quarter and full year period ended December 31, 2022.  Investors are encouraged to read the Company’s annual report on Form 10-K which was filed with the Securities and Exchange Commissions (the “SEC”), contains additional information, and is posted at https://splashbeveragegroup.com/.

Fourth Quarter and Full Year Financial Performance

·       Revenues for the fourth quarter were $4.79 million compared to $3.06 million in the prior year period, an increase of 56%.  Full-year gross revenues were $19.0 million compared to $11.8 million in the prior year period, an increase of 61%.  The increase in revenue was due to increases in the company’s ecommerce platform Qplash and the beverage brands with Copa Di Vino at the lead.

·       Gross margin for the fourth quarter significantly increased to $3.3 million compared to $339K in the prior year period.  Full year gross margin was $5.9 million compared to $3.9 million in the prior year period.

·       Fourth quarter net loss narrowed to $4.8 million compared to $6.2 million in the prior year period.  Net loss for the full year narrowed to $21.7 million, compared to $29.0 million in the prior year period.  Non-cash items were down to $7.4M vs $18.4 the prior year. Cash items were slightly up as expected from $10.7M to $14.3M due to several onetime expenses and an increase in marketing spend to support our retail chain distribution push and increase in freight to customer cost.  

·       As of December 31, 2022, the company had total cash and cash equivalents of $4.4 million, compared to $4.2 million at December 31, 2021.

Robert Nistico, Splash Beverage CEO, commented, “Our 2022 full year results reflect solid progress in the execution of our long-term business plan.  It was our first full year of operating results after our mid-year 2021 public offering and up-listing of our shares to the NYSE American.   We’ve grown gross revenue to more than $19 million while continuing to enhance gross margins.  We are doing the work internally to rachet down cost of goods and capture efficiencies.  We have made new investments in marketing and personnel in support of our brand’s growth and still successfully narrowed net losses on a year over year basis.  These investments resulted in significant new retail chain activity toward the back half of 2022 strengthening the base of our revenues as we head into 2023.    

“We’ve successfully accessed the capital and credit markets when we needed to grow inventory, and all the while we have been adding to our top tier distribution network across all of our brands, and most importantly with some of the largest names in the retail chain industry.  As I’ve said many times, in the beverage industry, distribution is key, if you can’t put product on the shelves, you won’t succeed.  

“We’ve invested heavily to build the infrastructure needed to put product through our distribution networks and into the hands of our consumers, and we expect the combination of infrastructure and distribution to translate into continued fast revenue growth shortening our path on our march toward profitability.”

About Splash Beverage Group, Inc.

Splash Beverage Group, an innovator in the beverage industry, owns a growing portfolio of alcoholic and non-alcoholic beverage brands including Copa di Vino wine by the glass, SALT flavored tequilas, Pulpoloco sangria, and TapouT performance hydration and recovery drink. Splash’s strategy is to rapidly develop early-stage brands already in its portfolio as well as acquire and then accelerate brands that have high visibility or are innovators in their categories. Led by a management team that has built and managed some of the top brands in the beverage industry and led sales from product launch into the billions, Splash is rapidly expanding its brand portfolio and global distribution. 

For more information visit:
www.SplashBeverageGroup.com
www.copadivino.com
www.drinksalttequila.com
www.pulpo-loco.com
www.tapoutdrinks.com

Forward-Looking Statement

This press release includes “forward-looking statements” within the meaning of U.S. federal securities laws. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results and, consequently, you should not rely on these forward-looking statements as predictions of future events. These forward-looking statements and factors that may cause such differences include, without limitation, the risks disclosed in the Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2022, and in the Company’s other filings with the SEC. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release.

Contact Information:
Splash Beverage Group
Info@SplashBeverageGroup.com
954-745-5815

Consolidated Balance Sheets

		December 31, 2022				December 31, 2021
Assets
Current assets:
Cash and cash equivalents		$	4,431,745			$	4,181,383
Accounts Receivable, net			1,812,110				1,114,452
Prepaid Expenses			348,036				607,178
Inventory			3,721,307				1,923,479
Other receivables			344,376				41,939
Assets from discontinued operations			—				473,461
Total current assets			10,657,574				8,341,892
Non-current assets:
Deposit			49,290				330,886
Goodwill			256,823				256,823
Intangibles assets, net			4,851,377				5,604,512
Investment in Salt Tequila USA, LLC			250,000				250,000
Right of use asset			750,042				1,031,472
Property and equipment, net			489,597				569,785
Total non-current assets			6,647,129				8,043,478
Total assets		$	17,304,703			$	16,385,370
Liabilities and Stockholders’ Equity
Liabilities:
Current liabilities
Accounts payable and accrued expenses		$	3,383,187			$	1,913,459
Right of use liability			268,749				294,067
Related party notes payable			—				653,081
Notes payable			1,080,257				2,667,812
Liability to issue shares			91,800				—
Shareholder advances			—				390,500
Accrued interest payable			141,591				171,452
Liabilities from discontinued operations			—				389,086
Total current liabilities			4,965,584				6,479,457
Long-term Liabilities:
Notes payable			2,536,319				300,000
Right of use liability			480,666				732,686
Total long-term liabilities			3,016,985				1,032,686
Total liabilities		$	7,982,569			$	7,512,143
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized, no shares issued			—				—
Common Stock, $0.001 par, 300,000,000 shares authorized, 41,085,520 and 33,596,232 shares issued and outstanding, at December 31, 2022 and December 31, 2021, respectively			41,086				33,596
Additional paid in capital			121,632,547				99,480,188
Accumulated Other Comprehensive Income			(20,472	)			—
Accumulated deficit			(112,331,027	)			(90,640,557
Total stockholders’ equity			9,322,134				8,873,227
Total liabilities and stockholders’ equity		$	17,304,703			$	16,385,370

Consolidated Statements of Operations

		2022				2021
Net revenues		$	18,087,486			$	11,316,002
Cost of goods sold			(12,168,621	)			(7,398,241	)
Gross margin			5,918,865				3,917,761
Operating expenses:
Contracted services			1,505,788				1,584,830
Salary and wages			4,179,403				3,807,492
Non-cash share-based compensation			7,409,884				18,395,488
Other general and administrative			11,411,535				8,425,046
Sales and marketing			2,806,888				787,827
Total operating expenses			27,313,498				33,000,683
Loss from continuing operations			(21,394,633	)			(29,082,922	)
Other income/(expense):
Other Income			—				3,632
Interest income			6,068				643
Interest expense			(251,497	)			(442,807	)
Gain from debt extinguishment			—				176,082
Total other expense			(245,429	)			(262,450	)
Provision for income taxes			—				—
Net (loss) from continuing operations, net of tax			(21,640,062	)			(29,345,372	)
Net (loss) income from discontinued operations, net of tax			(199,154	)			294,550
Gain on discontinued operations			148,747				—
Net income (loss) from discontinued operations, net of tax			(50,407	)			294,550
Net loss		$	(21,690,469	)		$	(29,050,822	)
Other Comprehensive loss
Foreign Currency Translation loss			(20,472	)			—
Total Comprehensive Income			(21,710,941	)			(29,050,822	)
Loss per share - continuing operations
Basic and Diluted			(0.58	)			(1.01	)
Weighted average number of common shares outstanding - continuing operations
Basic and Diluted			37,389,990				28,900,292
Income (loss) per share - discontinued operations
Basic and Diluted			(0.00	)			0.01
Weighted average number of common shares outstanding - discontinued operations
Basic and Diluted			37,389,990				28,900,292

FAQ

What were Splash Beverage's Q4 2022 revenues?

Splash Beverage reported Q4 2022 revenues of $4.79 million, a 56% increase from the prior year.

How did Splash Beverage perform in 2022 compared to 2021?

In 2022, Splash Beverage's full-year revenues increased by 61% to $19.0 million compared to $11.8 million in 2021.

What is Splash Beverage's net loss for the full year 2022?

Splash Beverage's net loss for the full year 2022 was $21.7 million, which is an improvement from $29.0 million in 2021.

How is Splash Beverage enhancing its gross margins?

Splash Beverage is working to reduce the cost of goods and capture efficiencies, resulting in gross margins of $5.9 million for the full year 2022.

What strategic actions did Splash Beverage take in 2022?

Splash Beverage invested in marketing and infrastructure to enhance distribution capabilities and support brand growth.