Wildpack Beverage Announces Strong Growing Q2 2023 Financial Results

Rhea-AI Summary

Wildpack Beverage Inc. reports strong Q2 2023 financial results with sales revenue growing 70% to $15.18 million and production volume increasing 118% to 110.63 million cans compared to Q2 2022. Gross profit reached a record 16.55% compared to Q2 2022. Confirmed customer orders grew 11.5% to $22.87 million. Plant utilization increased to 45.3% from 31.9% in Q2 2022.

Positive

• Sales revenue grew 70% to $15.18 million
• Production volume increased 118% to 110.63 million cans
• Gross profit reached a record 16.55%
• Confirmed customer orders grew 11.5% to $22.87 million
• Plant utilization increased to 45.3%

Negative

• None.

Second Quarter 2023 Highlights (in USD):

• Q2 2023 Sales Revenue grew 70% to $15.18 million compared to $8.91 million in Q2 2022.
• Production volume for Q2 2023 grew 118% to 110.63 million cans compared to 50.75 million cans in Q2 2022.
• Plant Utilization in Q2 2023 grew to 45.3% from 31.9% in Q2 2022.
• Gross Profit in Q2 2023 reached a record 16.55% compared to 4.49% in Q2 2022.
• Confirmed Customer Orders grew 11.5% in Q2 2023 to $22.87 million from $20.52 million the previous quarter.

VANCOUVER, BC / ACCESSWIRE / August 29, 2023 / Wildpack Beverage Inc. (TSXV:CANS)(OTC PINK:WLDPF) ("Wildpack Beverage" or the "Company") a leading US middle market co-packer of canned goods announces unaudited financial results for the second quarter ("Q2") ending June 30, 2023. All currencies referenced herein are US Dollars, unless otherwise indicated.

"The momentum we built in Q1 2023 carried into a strong growing Q2 from an operation and sales standpoint," commented Mitch Barnard, CEO of Wildpack Beverage. "The thesis we have long been committed to is that higher volume throughput would drive up gross profit, as the business is subject to considerable operating leverage on its fixed assets. In Q2 we began to realize that, while also continuing to push towards greater efficiencies in operations and broadening our customer base."

Q2 2023 Condensed Consolidated Interim Statements of Loss & Comprehensive Loss (Unaudited)

	Three months ended June 30,								Six months ended June 30,
	2023				2022				2023				2022
					(Restated, note 20)								(Restated, note 20)
Sales	$	15,181			$	8,911			$	27,794			$	17,440
Cost of sales
Production costs		12,098				7,959				23,503				15,695
Depreciation and amortization		571				552				1,163				1,309
Cost of sales		12,669				8,511				24,666				17,004
Gross profit		2,512				400				3,128				436
Operating expenses
Selling		1,034				713				1,895				1,306
Salaries, wages, and benefits		1,732				1,782				3,425				3,667
Depreciation and amortization		934				963				1,833				1,890
Office and administrative		786				390				1,183				920
Share-based compensation		512				80				532				181
Professional fees		563				765				887				922
Bad debt		78				107				380				126
Other operating		131				(104	)			292				(188	)
Operating expenses		5,770				4,696				10,427				8,824
Other expenses
Bank and finance charges		155				7				156				21
Interest on long-term debt		1,818				1,420				3,127				2,520
Interest on lease obligations		97				191				259				393
Loss on derivative asset		-				18				-				153
Foreign exchange loss		(2	)			-				9				-
Other expenses		2,068				1,636				3,551				3,087
Net loss	$	(5,326	)		$	(5,932	)		$	(10,850	)		$	(11,475	)
Other comprehensive income (loss)
Items that may be reclassified to profit or loss:
Foreign currency on translation (loss) gain		(698	)			861				(641	)			821
TOTAL COMPREHENSIVE LOSS	$	(6,024	)		$	(5,071	)		$	(11,491	)		$	(10,654	)
Weighted average number of common shares outstanding		112,215,655				101,216,367				111,804,309				101,139,935
Loss per share - basic	$	(0.05	)		$	(0.06	)		$	(0.10	)		$	(0.11	)
Loss per share - diluted	$	(0.05	)		$	(0.06	)		$	(0.10	)		$	(0.11	)

Q2 2023 Condensed Consolidated Interim Statement of Cashflows (Unaudited)

	Six months ended			Six months ended
	June 30,			June 30,
	2023			2022
				(Restated, note 20)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	(10,850	)		$(11,475	)
Adjustments for items not affecting cash:
Depreciation and amortization	2,928			3,126
Interest expense	3,382			2,861
Share-based compensation	532			181
Unrealized loss on derivative asset	-			153
Non-cash interest expense and other	(77	)		-
Changes in non-cash working capital:
Accounts receivable	(5,636	)		(1,041	)
Sales taxes recoverable	71			169
Other assets	-			(116	)
Inventories	(473	)		2,820
Prepaid expenses and deposits	(1,359	)		249
Accounts payable and accrued liabilities	(2,961	)		999
Deferred revenue	1,320			1,089
Cash used in operating activities	(13,123	)		(985	)
CASH FLOWS FROM FINANCING ACTIVITIES
Line of credit	-			(70	)
Repayments of long-term debt	(7,948	)		(658	)
Net proceeds from convertible debentures	24,920			3,793
Proceeds from promissory notes	-			794
Payments of lease obligations	(1,380	)		(1,597	)
Proceeds from long-term debt	4,445			-
Interest paid	(1,345	)		(1,394	)
Cash generated by financing activities	18,692			868
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment	(900	)		(46	)
Proceeds from sale of equipment	267			-
Cash used in investing activities	(633	)		(46	)
Net increase (decrease) in cash	4,936			(163	)
Cash, beginning of period	943			1,450
Effect of foreign exchange rate changes on cash	9			(34	)
CASH, END OF PERIOD	5,888			$1,253

Q2 2023 Condensed Consolidated Interim Statement of Financial Position

	June 30,				December 31,
	2023				2022
ASSETS
Current assets
Cash	$	5,888			$	943
Cash held in trust		658				658
Accounts receivable		10,774				5,138
Sales taxes recoverable		235				302
Inventories		5,325				4,852
Prepaid expenses and deposits		1,501				140
	$	24,381			$	12,033
Property, plant, and equipment		9,493				6,375
Right of use assets		7,548				9,503
Derivative asset		12				12
Intangible assets		19,417				20,498
Goodwill		4,965				4,965
Other deposits		317				317
TOTAL ASSETS	$	66,133			$	53,703
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities		13,759				16,002
Deferred revenue		3,320				2,000
Current portion of lease obligations		1,937				2,107
Current portion of long-term debt		4,904				7,422
	$	23,920			$	27,531
Lease obligations		6,403				8,168
Long term debt		45,806				26,228
TOTAL LIABILITIES	$	76,129			$	61,927
SHAREHOLDERS' EQUITY
Share capital		38,007				37,853
Equity reserve		17,809				8,765
Contributed surplus		4,597				4,076
Accumulated deficit		(70,872	)			(60,022	)
Accumulated other comprehensive loss		463				1,104
TOTAL SHAREHOLDERS' EQUITY (DEFICIENCY)	$	(9,996	)		$	(8,224	)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY)	$	66,133			$	53,703
Nature of operations and going concern Commitments and contingencies

The accompanying notes are an integral part of these condensed consolidated interim financial statements (unaudited) please refer to the full condensed consolidated interim financial statements (unaudited) for the three and six months ended June 30, 2023 and June 30, 2022 filed on Sedar on August 29, 2023.

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 Beverage

Wildpack Beverage provides beverage manufacturing and packaging to the middle market by providing sustainable aluminum can filling, decorating, packaging, brokering, sleeve/label printing services, and logistics to brands throughout the United States. Wildpack Beverage currently operates indirectly through its wholly owned subsidiaries and out of five facilities in Baltimore, Maryland; Grand Rapids, Michigan; Atlanta, Georgia; Sacramento, California; and Las Vegas, Nevada with a focus on digital innovation and green ready-to-drink packaging. Wildpack Beverage commenced trading on the TSX Venture Exchange under the symbol "CANS" on May 19, 2021.

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 the timing, review, completion and filing of the Required Filings, Wildpack Beverage's plans, investments, anticipated revenue from manufacturing agreements, plans to build additional facilities, 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 scaling up production. 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: the risk of the Company not filing the Required Filings on time, 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 particularly in light of the COVID pandemic, tax rules and regulations, and political and economic developments where Wildpack Beverage 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 the actual results, performance, or achievements of Wildpack Beverage to be materially different from any future results, performance, or achievements expressed, 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 Beverage are subject to a number of risks, uncertainties, and conditions, many of which are outside of Wildpack Beverage's control, and undue reliance should not be placed on such statements. Although Wildpack Beverage 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 Beverage'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 Beverage operates. Except as required by securities law, Wildpack Beverage 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.

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