Wildpack Announces First Quarter 2022 Financial Results

Rhea-AI Summary

Wildpack Beverage (OTCQB: WLDPF) reported a robust first quarter for 2022, with revenue increasing by 33% to $8.53 million compared to $6.43 million in the previous year. Production volume surged 181% to 44.9 million cans. However, the company also faces challenges, including a net loss of $3.89 million against $0.89 million last year. Wildpack has pivoted its strategy to focus on organic growth and profitability, announcing a 2022 revenue outlook of $40-$55 million, excluding any acquisitions or new builds.

Positive

• Revenue grew 33% to $8.53 million.
• Production volume increased by 181% to 44.9 million cans.
• Completed C$5 million of debt financing.
• Filling production yields averaged 85%.
• Decorating production yields averaged 99%.
• Increased sales team headcount by 172%.

Negative

• Net loss increased to $3.89 million from $0.89 million.
• Total costs and expenses rose to $12.43 million, up from $7.48 million.
• Average plant utilization is only 15.8%.

First Quarter Highlights:

• Revenue for the quarter grew 33% to $8.53 million compared to $6.43 million in the prior period
• Production volume for the quarter grew 181% to 44.9 million cans compared to 15.96 million cans in the prior period
• Completed C$5 million of debt financing
• Filling production yields averaged 85%
• Decorating production yields averaged 99%
• Increase sales team headcount by 172%
• Average plant utilization of 15.8%

VANCOUVER, BC / ACCESSWIRE / May 30, 2022 / Wildpack Beverage Inc. (TSXV:CANS)(OTCQB:WLDPF) ("Wildpack" or the "Company") a US national beverage co-packer and packaging supplier focused on the aluminum can format, announces unaudited financial results for the first quarter ending March 31, 2022. All currencies referenced herein are US Dollars, unless otherwise indicated. Reference to "C$" refers to Canadian dollars.

"The first quarter presented a challenge for us," commented CEO, Mitch Barnard. "Seasonality, which had largely been smoothed from the cyclicality of our business during COVID-19, returned to impact our expected sales and throughput. This coupled with the current state of capital markets required us to pivot our strategy away from one focused on growth of footprint, to a strategy focused on organic growth and profitability. These changes came with some difficult decisions but demonstrated the nimbleness and adaptability of Wildpack. I am proud of our team's ability to adapt in the face of adversity and persevere to strengthen Wildpack for the long term as it was no small feat completely altering business strategies in a one-month period but one our team executed on beyond expectation."

First Quarter 2022 Financial Summary

		Three months ended
		March 31,				March 31,
		2022				2021
Total Revenue		$	8,529			$	6,434
Total costs and expenses		$	12,425			$	7,476
Net loss before income taxes		$	-3,896			$	-1,042
Deferred income tax recovery			-			$	-153
Net Loss		$	-3,896			$	-889

2022 Outlook

Wildpack expects 2022 total revenue to be US$40 - 55 million and will no longer provide a guidance on can throughput. Wildpack has not factored in any acquisitions and/or new builds into its FY 2022 guidance. The guidance is solely modelled from the continued scaling of the Company's existing 6 operating facilities in accordance with Wildpack's strategic business plan.

Earnings Webcast Event

Wildpack will host a webcast tomorrow to discuss financial results for the quarter ended March 31, 2022, with CEO, Mitch Barnard, CFO, Ryan Mason, and COO, Chuck Zadlo.

Presentation Details:

Date: May 31, 2022
Time: 8:30am ET (5:30am PT)
Registration: Online Registration

HAVE QUESTIONS? Management will be available to answer your questions following the presentation on the webinar platform. You may submit your question(s) beforehand in the registration form or by email: invest@wildpackbev.com.

This news release should be read in conjunction with the Company's unaudited consolidated Financial Statements and Management's Discussion and Analysis for the three-month period ended March 31, 2022.

Per: "Mitch Barnard"

Mitch Barnard
Chief Executive Officer and Director

For further information, please contact us at:

invest@wildpackbev.com

or

Elijah Clare
Vice President, Investor Relations
elijah@wildpackbev.com

Advisors

Fasken Martineau DuMoulin LLP is the legal advisor to Wildpack Beverage Inc.

Visit our investor website at:

https://investor.wildpackbev.com

About Wildpack

Wildpack is engaged in beverage manufacturing and packaging, operating in the middle market by providing sustainable aluminum can filling, decorating, packaging, and sleeve and label printing services to brands throughout the United States. Wildpack currently operates indirectly through its wholly owned subsidiaries and out of facilities in Baltimore, Maryland, Grand Rapids, Michigan, Atlanta, Georgia, Longmont, Colorado, Sacramento, California and Las Vegas, Nevada with a focus on digital innovation and green ready-to-drink packaging. Wildpack commenced trading on May 19, 2021, on the TSX Venture Exchange under the symbol "CANS" and commenced trading on February 23, 2022, on the OTCQB® Venture Market under the symbol "WLDPF".

Cautionary Statement on Forward Looking Information

This news release may contain "forward-looking statements" within the meaning of applicable Canadian securities laws, including, but not limited to, statements with respect to Wildpack's plans, financial performance and operating performance, anticipated growth in co-packing business, the estimation of revenue, the timing and targets of M&A activity, costs, future capital expenditures, and the success of integration. Forward-looking statements are based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive risks including but not limited to: risks related to the successful integration of acquisitions; risks related to operations; risks related to general economic conditions and credit availability, ability to obtain sufficient and suitable financing, actual results of current production and decorating, fluctuations in prices of aluminum; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the co-packaging industry; delays in the completion of capex activities, changes in national and local government regulation of manufacturing operations and labour laws in light of the current COVID pandemic, tax rules and regulations, and political and economic developments where Wildpack operates. These statements generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance, or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. Forward-looking statements expressed or implied by Wildpack are subject to a number of risks, uncertainties, and conditions, many of which are outside of Wildpack's control, and undue reliance should not be placed on such statements. Although Wildpack has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Forward-looking statements are qualified in their entirety by the inherent risks and uncertainties related to Wildpack's business, including that Wildpack's assumptions in making forward-looking statements may prove to be incorrect; delays in filing of financial information; adverse market conditions; risks inherent in the beverage manufacturing and packaging sector in general; that future results may vary from historical results; and competition in the markets where Wildpack operates. Except as required by securities law, Wildpack does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Wildpack Beverage Inc.

View source version on accesswire.com:
https://www.accesswire.com/703260/Wildpack-Announces-First-Quarter-2022-Financial-Results

FAQ

What were Wildpack Beverage's revenue results for the first quarter of 2022?

In the first quarter of 2022, Wildpack Beverage reported revenue of $8.53 million, up 33% from the previous year.

What is Wildpack Beverage's 2022 revenue outlook?

Wildpack expects total revenue between $40 million and $55 million for 2022, excluding acquisitions and new builds.

What is the production volume growth reported by Wildpack Beverage?

Wildpack's production volume grew by 181% to 44.9 million cans in the first quarter of 2022.

How much was Wildpack's net loss for the first quarter of 2022?

Wildpack reported a net loss of $3.89 million in the first quarter of 2022, up from $0.89 million in the prior year.