The Alkaline Water Company Announces Plan for Pathway to Profitability with an Estimated $4.5-$5 Million in Annual Savings
The Alkaline Water Company (NASDAQ: WTER) has identified approximately $4.5-$5 million in potential annual expense reductions and margin enhancements as part of its plan to achieve profitability. The company aims to drive topline sales in fiscal 2023 through new-store expansion and organic growth despite economic challenges. Key cost-saving strategies include adding strategic copacking partners, increasing operational efficiencies, and evaluating overall company structure. The management plans to provide updates and guidance in its upcoming earnings call on July 14, 2022.
- Identified potential expense reductions of $4.5-$5 million annually.
- Plans to enhance margins through strategic copacking and operational efficiencies.
- Commitment to drive sales growth despite economic headwinds.
- None.
Company Management Has Identified Significant Expense Reductions and Margin Enhancements To Enhance the Company’s Bottom Line
(All amounts are in
“We are committed to continue driving topline sales in fiscal year 2023 through new-store expansion and organic growth, despite economic headwinds,” said Alkaline88 President and CEO,
“During the past 30 days, we have undergone an extensive and thorough Company-wide review in which we’ve identified
The Company has broadly identified cost-saving measures including:
- Adding strategic copacking partners to decrease freight costs and expand capacity to support anticipated record sales
- Increasing efficiencies with copackers and raw material providers to boost margins on finished products
- Eliminating redundancies and inefficiencies in third-party services and partnerships
- Evaluating overall structure and productivity of the Company
- Initiating a more disciplined capital management approach
Company Management will share more details on their pathway to profitability, positive Alkaline88® brand momentum, and fiscal year 2023 revenue guidance on their upcoming full year fiscal 2022 earnings call. The call will take place on
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Founded in 2012,
To purchase The Alkaline Water Company’s products online, visit us at www.alkaline88.com.
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Notice Regarding Forward-Looking Statements
This news release contains “forward-looking statements.” Statements in this news release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations, or intentions regarding the future. Such forward-looking statements include, among other things, the following: the statements relating to the Company’s plan for pathway to profitability; the statements relating to an estimated
The material assumptions supporting these forward-looking statements include, among others, that the Company’s cost-saving measures will be effective to reduce the Company’s annual expense and enhance the Company’s margin to the extent anticipated by the Company; that the demand for the Company’s products will continue to significantly grow; that the past production capacity of the Company’s co-packing facilities can be maintained or increased; that there will be increased production capacity through implementation of new production facilities, new co-packers and new technology; that there will be an increase in number of products available for sale to retailers and consumers; that there will be an expansion in geographical areas by national retailers carrying the Company’s products; that there will be an expansion into new national and regional grocery retailers; that there will be an expansion into new e-commerce, home delivery, convenience, and healthy food channels; that there will not be interruptions on production of the Company’s products; that there will not be a recall of products due to unintended contamination or other adverse events relating to the Company’s products; and that the Company will be able to obtain additional capital to meet the Company’s growing demand and satisfy the capital expenditure requirements needed to increase production and support sales activity. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, governmental regulations being implemented regarding the production and sale of alkaline water or any other products, including products containing hemp/CBD; the fact that consumers may not embrace and purchase any of the Company’s CBD-infused products; the fact that the Company may not be permitted by the FDA or other regulatory authority to market or sell any of its CBD-infused products; additional competitors selling alkaline water and enhanced water products in bulk containers reducing the Company’s sales; the fact that the Company does not own or operate any of its production facilities and that co-packers may not renew current agreements and/or not satisfy increased production quotas; the fact that the Company has a limited number of suppliers of its unique bulk bottles; the potential for supply-chain interruption due to factors beyond the Company’s control; the fact that there may be a recall of products due to unintended contamination; the inherent uncertainties associated with operating as an early stage company; changes in customer demand and the fact that consumers may not embrace enhanced water products as expected or at all; the extent to which the Company is successful in gaining new long-term relationships with new retailers and retaining existing relationships with retailers; the Company’s ability to raise the additional funding that it will need to continue to pursue its business, planned capital expansion and sales activity; and competition in the industry in which the Company operates and market conditions. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by applicable law, including the securities laws of
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