Zevia Announces Second Quarter 2024 Results
Zevia PBC (NYSE: ZVIA) reported Q2 2024 results with net sales of $40.4 million, exceeding guidance but down 4.3% year-over-year. The company faced a net loss of $7.0 million and an Adjusted EBITDA loss of $4.4 million. Gross profit margin decreased to 41.9%, impacted by inventory write-downs. Despite challenges, Zevia saw accelerating retail growth trends and double-digit growth in soda sales. The company's Productivity Initiative is now expected to deliver $12 million in annualized savings. Zevia reaffirmed its full-year 2024 guidance, projecting net sales between $158-$166 million, and expects Q3 2024 net sales of $37-$40 million.
Zevia PBC (NYSE: ZVIA) ha pubblicato i risultati del secondo trimestre 2024, riportando vendite nette di 40,4 milioni di dollari, superando le previsioni ma in diminuzione del 4,3% rispetto all'anno precedente. L'azienda ha registrato una perdita netta di 7,0 milioni di dollari e una perdita di EBITDA rettificato di 4,4 milioni di dollari. Il margine di profitto lordo è sceso al 41,9%, influenzato da svalutazioni delle scorte. Nonostante le sfide, Zevia ha visto tendenze di crescita al dettaglio in accelerazione e una crescita a doppia cifra nelle vendite di soda. L'Iniziativa di Produttività dell'azienda è ora prevista per generare risparmi annualizzati di 12 milioni di dollari. Zevia ha ribadito le sue previsioni per l'intero anno 2024, stimando vendite nette tra 158 e 166 milioni di dollari, e si aspetta vendite nette nel terzo trimestre 2024 tra 37 e 40 milioni di dollari.
Zevia PBC (NYSE: ZVIA) reportó los resultados del segundo trimestre de 2024, con ventas netas de 40.4 millones de dólares, superando las expectativas pero con una disminución del 4.3% en comparación al año anterior. La compañía tuvo una pérdida neta de 7.0 millones de dólares y una pérdida de EBITDA ajustado de 4.4 millones de dólares. El margen de utilidad bruta disminuyó al 41.9%, afectado por las depreciaciones de inventario. A pesar de los desafíos, Zevia experimentó tendencias de crecimiento minorista aceleradas y un crecimiento de dos dígitos en las ventas de refrescos. Se espera que la Iniciativa de Productividad de la compañía genere ahorros anualizados de 12 millones de dólares. Zevia reafirmó su guía para el año completo 2024, proyectando ventas netas entre 158 y 166 millones de dólares y espera ventas netas en el tercer trimestre de 2024 entre 37 y 40 millones de dólares.
Zevia PBC (NYSE: ZVIA)는 2024년 2분기 결과를 발표하며 순매출 4,040만 달러를 기록해 가이던스를 초과했으나 전년 대비 4.3% 감소했다고 보고했습니다. 회사는 순손실 700만 달러와 조정된 EBITDA 손실 440만 달러를 기록했습니다. 총 이익률은 재고 손실로 인해 41.9%로 감소했습니다. 어려움에도 불구하고 Zevia는 소매 성장 추세의 가속화와 탄산음료 판매의 두 자릿수 성장을 목격했습니다. 회사의 생산성 이니셔티브는 연간 1,200만 달러의 절감을 예상하고 있습니다. Zevia는 2024년 전체 연도 가이던스를 재확인하며, 순매출을 1억 5,800만 달러에서 1억 6,600만 달러 사이로 예상하고, 2024년 3분기 순매출을 3,700만 달러에서 4,000만 달러 사이로 예상하고 있습니다.
Zevia PBC (NYSE: ZVIA) a annoncé les résultats du deuxième trimestre 2024, avec des ventes nettes de 40,4 millions de dollars, dépassant les prévisions mais en baisse de 4,3% par rapport à l'année précédente. L'entreprise a enregistré une perte nette de 7,0 millions de dollars et une perte d'EBITDA ajusté de 4,4 millions de dollars. La marge brute a diminué à 41,9%, affectée par des amortissements de stocks. Malgré les défis, Zevia a constaté une accélération des tendances de croissance au détail et une croissance à deux chiffres des ventes de sodas. L'initiative de productivité de la société devrait désormais générer 12 millions de dollars d'économies annualisées. Zevia a réaffirmé ses prévisions pour l'année 2024, avec des ventes nettes projetées entre 158 et 166 millions de dollars, et s'attend à des ventes nettes pour le troisième trimestre 2024 entre 37 et 40 millions de dollars.
Zevia PBC (NYSE: ZVIA) hat die Ergebnisse des zweiten Quartals 2024 bekannt gegeben, mit Nettoverkaufszahlen von 40,4 Millionen Dollar, die die Prognosen übertreffen, jedoch im Vergleich zum Vorjahr um 4,3% gesunken sind. Das Unternehmen verzeichnete einen Nettoverlust von 7,0 Millionen Dollar und einen verstellten EBITDA-Verlust von 4,4 Millionen Dollar. Die Bruttogewinnmarge sank auf 41,9%, was durch Bestandsabschreibungen beeinflusst wurde. Trotz der Herausforderungen sah Zevia beschleunigte Einzelhandelswachstumstrends und zweistelliges Wachstum bei den Limonadenverkäufen. Die Produktivitätsinitiative des Unternehmens soll nun jährliche Einsparungen von 12 Millionen Dollar bringen. Zevia bestätigte die Prognosen für das Gesamtjahr 2024 und schätzt Nettoverkäufe zwischen 158 und 166 Millionen Dollar und erwartet Nettoverkäufe im 3. Quartal 2024 zwischen 37 und 40 Millionen Dollar.
- Net sales of $40.4 million exceeded guidance
- Productivity Initiative expected to deliver $12 million in annualized savings
- Double-digit retail scan growth for Zevia soda, outperforming the Carbonated Soft Drinks category
- New regional distribution partners driving same-store sales improvement
- Reaffirmed full-year 2024 guidance with net sales projected between $158-$166 million
- Net sales decreased 4.3% year-over-year to $40.4 million
- Net loss of $7.0 million, with loss per share of $0.10
- Adjusted EBITDA loss of $4.4 million
- Gross profit margin decreased 4.7 percentage points to 41.9%
- Volumes reduced by 5.9% due to distribution challenges and lost club channel distribution
Insights
Zevia's Q2 2024 results present a mixed picture. While net sales of
On a positive note, the Productivity Initiative is now expected to deliver
Zevia's retail performance shows promising signs despite overall sales decline. Double-digit growth in 4-week retail scans for Zevia soda, outpacing the Carbonated Soft Drinks category, indicates strong consumer demand. The company's focus on regional distribution partners is yielding positive results, with same-store sales improvements and new channel penetration.
However, challenges remain, including delays in SKU-level distribution recovery and lost club channel distribution. The company's shift towards more competitive promotional levels suggests a highly competitive market environment. Zevia's investment in enhanced visuals for better on-shelf visibility demonstrates a strategic focus on brand presence, which could drive future growth. The reaffirmed full-year guidance of
Zevia's supply chain improvements are evident in Q2 results. The decrease in selling and marketing expenses from
However, the company faced inventory challenges, particularly with club-specific excess inventory leading to write-downs. This highlights the need for more agile inventory management. The ongoing Productivity Initiative, now expected to yield
Net Sales of
Productivity Initiative now expected to deliver
Second Quarter 2024 Highlights
-
Net sales of
, exceeding guidance$40.4 million -
Gross profit margin was
41.9% , impacted by inventory write-downs -
Net loss was
, including$7.0 million of non-cash equity-based compensation expense$1.4 million -
Adjusted EBITDA loss was
(1)$4.4 million -
Loss per share was
per diluted share to Zevia’s Class A Common stockholders$0.10
(1) Adjusted EBITDA is a non-GAAP financial measure. See the supplementary schedules in this press release for a discussion of how we define and calculate this measure and a reconciliation thereof to the most directly comparable GAAP measure. |
“We delivered net sales above our guidance in the second quarter, and scan sales reflect accelerating retail growth trends through the quarter and into July,” said Amy Taylor, President and Chief Executive Officer. “Demand is healthy, and Zevia shopper spending levels continue to increase. Recent 4-week retail scan growth for Zevia soda was double-digits and ahead of the Carbonated Soft Drinks category in dollars and in units in a competitive environment.”
“Our new regional distribution partners are driving same-store sales improvement and opening outlets in new channels in their first weeks in market as expected, and we see proof of our increasing marketing efficacy as retail sales from key focus metros significantly outperform,” Taylor continued. “With a healthy brand, strong consumer demand, and an evolving route-to-market strategy, coupled with increased marketing and product innovation in the pipeline, we remain bullish on our long-term growth opportunities.”
Second Quarter 2024 Results
Net sales decreased
Gross profit decreased
Selling and marketing expenses were
General and administrative expenses were
Restructuring expenses were
Equity-based compensation, a non-cash expense, was
Net loss for the second quarter of 2024 was
Loss per share for the second quarter of 2024 was
Adjusted EBITDA loss was
Balance Sheet and Cash Flows
As of June 30, 2024, the Company had
Guidance
The Company is reaffirming its guidance for the full year of 2024 and continues to expect net sales to be in the range of
Webcast
The Company will host a conference call today at 8:30 a.m. Eastern Time to discuss this earnings release. Investors and other interested parties may listen to the webcast of the conference call by logging on via the Investor Relations section of Zevia’s website at https://investors.zevia.com/ or directly here. A replay of the webcast will be available for approximately thirty (30) days following the call.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the
About Zevia
Zevia PBC, a
(ZEVIA-F)
ZEVIA PBC
|
||||||||||||||||
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net sales |
|
$ |
40,426 |
|
|
$ |
42,241 |
|
|
$ |
79,225 |
|
|
$ |
85,541 |
|
Cost of goods sold |
|
|
23,484 |
|
|
|
22,549 |
|
|
|
44,564 |
|
|
|
45,744 |
|
Gross profit |
|
|
16,942 |
|
|
|
19,692 |
|
|
|
34,661 |
|
|
|
39,797 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling and marketing |
|
|
13,622 |
|
|
|
16,100 |
|
|
|
28,692 |
|
|
|
28,012 |
|
General and administrative |
|
|
7,694 |
|
|
|
6,207 |
|
|
|
15,809 |
|
|
|
14,852 |
|
Equity-based compensation |
|
|
1,427 |
|
|
|
2,358 |
|
|
|
2,916 |
|
|
|
4,738 |
|
Depreciation and amortization |
|
|
403 |
|
|
|
404 |
|
|
|
731 |
|
|
|
823 |
|
Restructuring |
|
|
865 |
|
|
|
— |
|
|
|
865 |
|
|
|
— |
|
Total operating expenses |
|
|
24,011 |
|
|
|
25,069 |
|
|
|
49,013 |
|
|
|
48,425 |
|
Loss from operations |
|
|
(7,069 |
) |
|
|
(5,377 |
) |
|
|
(14,352 |
) |
|
|
(8,628 |
) |
Other income, net |
|
|
142 |
|
|
|
403 |
|
|
|
239 |
|
|
|
743 |
|
Loss before income taxes |
|
|
(6,927 |
) |
|
|
(4,974 |
) |
|
|
(14,113 |
) |
|
|
(7,885 |
) |
Provision for income taxes |
|
|
34 |
|
|
|
35 |
|
|
|
47 |
|
|
|
36 |
|
Net loss and comprehensive loss |
|
|
(6,961 |
) |
|
|
(5,009 |
) |
|
|
(14,160 |
) |
|
|
(7,921 |
) |
Loss attributable to noncontrolling interest |
|
|
1,070 |
|
|
|
1,078 |
|
|
|
2,445 |
|
|
|
1,899 |
|
Net loss attributable to Zevia PBC |
|
$ |
(5,891 |
) |
|
$ |
(3,931 |
) |
|
$ |
(11,715 |
) |
|
$ |
(6,022 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss per share attributable to common stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
(0.10 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.11 |
) |
Diluted |
|
$ |
(0.10 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
58,653,413 |
|
|
|
50,094,096 |
|
|
|
57,285,039 |
|
|
|
49,735,478 |
|
Diluted |
|
|
58,653,413 |
|
|
|
50,094,096 |
|
|
|
57,285,039 |
|
|
|
49,735,478 |
|
ZEVIA PBC
|
||||||||
|
|
June 30, 2024 |
|
|
December 31, 2023 |
|
||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
28,942 |
|
|
$ |
31,955 |
|
Accounts receivable, net |
|
|
11,351 |
|
|
|
11,119 |
|
Inventories |
|
|
22,254 |
|
|
|
34,550 |
|
Prepaid expenses and other current assets |
|
|
2,952 |
|
|
|
5,063 |
|
Total current assets |
|
|
65,499 |
|
|
|
82,687 |
|
Property and equipment, net |
|
|
1,709 |
|
|
|
2,109 |
|
Right-of-use assets under operating leases, net |
|
|
1,662 |
|
|
|
1,959 |
|
Intangible assets, net |
|
|
3,363 |
|
|
|
3,523 |
|
Other non-current assets |
|
|
541 |
|
|
|
579 |
|
Total assets |
|
$ |
72,774 |
|
|
$ |
90,857 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
|
12,129 |
|
|
$ |
21,169 |
|
Accrued expenses and other current liabilities |
|
|
8,456 |
|
|
|
5,973 |
|
Current portion of operating lease liabilities |
|
|
610 |
|
|
|
575 |
|
Total current liabilities |
|
|
21,195 |
|
|
|
27,717 |
|
Operating lease liabilities, net of current portion |
|
|
1,056 |
|
|
|
1,373 |
|
Total liabilities |
|
|
22,251 |
|
|
|
29,090 |
|
|
|
|
|
|
|
|
||
Stockholders’ equity |
|
|
|
|
|
|
||
Class A common stock |
|
|
59 |
|
|
|
54 |
|
Class B common stock |
|
|
14 |
|
|
|
17 |
|
Additional paid-in capital |
|
|
187,969 |
|
|
|
191,144 |
|
Accumulated deficit |
|
|
(113,052 |
) |
|
|
(101,337 |
) |
Total Zevia PBC stockholders’ equity |
|
|
74,990 |
|
|
|
89,878 |
|
Noncontrolling interests |
|
|
(24,467 |
) |
|
|
(28,111 |
) |
Total equity |
|
|
50,523 |
|
|
|
61,767 |
|
Total liabilities and equity |
|
$ |
72,774 |
|
|
$ |
90,857 |
|
ZEVIA PBC
|
||||||||
|
|
Six Months Ended June 30, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Operating activities: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(14,160 |
) |
|
$ |
(7,921 |
) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
||
Non-cash lease expense |
|
|
297 |
|
|
|
281 |
|
Depreciation and amortization |
|
|
731 |
|
|
|
823 |
|
(Gain) loss on disposal of property, equipment and software, net |
|
|
(9 |
) |
|
|
3 |
|
Amortization of debt issuance cost |
|
|
38 |
|
|
|
38 |
|
Equity-based compensation |
|
|
2,916 |
|
|
|
4,738 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable, net |
|
|
(232 |
) |
|
|
(5,860 |
) |
Inventories |
|
|
12,296 |
|
|
|
(10,020 |
) |
Prepaid expenses and other assets |
|
|
2,111 |
|
|
|
554 |
|
Accounts payable |
|
|
(9,109 |
) |
|
|
20,171 |
|
Accrued expenses and other current liabilities |
|
|
2,483 |
|
|
|
(1,447 |
) |
Operating lease liabilities |
|
|
(282 |
) |
|
|
(289 |
) |
Net cash (used in) provided by operating activities |
|
|
(2,920 |
) |
|
|
1,071 |
|
Investing activities: |
|
|
|
|
|
|
||
Purchases of property, equipment and software |
|
|
(93 |
) |
|
|
(1,532 |
) |
Proceeds from sales of property, equipment and software |
|
|
— |
|
|
|
69 |
|
Net cash used in investing activities |
|
|
(93 |
) |
|
|
(1,463 |
) |
Financing activities: |
|
|
|
|
|
|
||
Proceeds from revolving line of credit |
|
|
8,000 |
|
|
|
— |
|
Repayment of revolving line of credit |
|
|
(8,000 |
) |
|
|
— |
|
Proceeds from exercise of stock options |
|
|
— |
|
|
|
23 |
|
Net cash provided by financing activities |
|
|
— |
|
|
|
23 |
|
Net change from operating, investing, and financing activities |
|
|
(3,013 |
) |
|
|
(369 |
) |
Cash and cash equivalents at beginning of period |
|
|
31,955 |
|
|
|
47,399 |
|
Cash and cash equivalents at end of period |
|
$ |
28,942 |
|
|
$ |
47,030 |
|
|
|
|
|
|
|
|
Use of Non-GAAP Financial Information
We use Adjusted EBITDA, a financial measure that is not calculated in accordance with
We calculate Adjusted EBITDA as net income (loss) adjusted to exclude: (1) other income (expense), net, which includes interest (income) expense, foreign currency (gains) losses, and (gains) losses on disposal of fixed assets, (2) provision (benefit) for income taxes, (3) depreciation and amortization, (4) equity-based compensation, and (5) restructuring expenses (for 2024, in light of our Productivity Initiative). Adjusted EBITDA may in the future also be adjusted for amounts impacting net income related to the Tax Receivable Agreement liability and other infrequent and unusual transactions.
Adjusted EBITDA is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of the limitations of Adjusted EBITDA include that (1) it does not properly reflect capital commitments to be paid in the future, (2) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA does not reflect these capital expenditures, (3) it does not consider the impact of equity-based compensation expense, including the potential dilutive impact thereof, and (4) it does not reflect other non-operating expenses, including interest (income) expense, foreign currency (gains) losses and (gains) losses on disposal of fixed assets, and restructuring. In addition, our use of Adjusted EBITDA may not be comparable to similarly titled measures of other companies because they may not calculate Adjusted EBITDA in the same manner, limiting its usefulness as a comparative measure. Because of these limitations, when evaluating our performance, you should consider Adjusted EBITDA alongside other financial measures, including our net loss or income and other results stated in accordance with GAAP.
The following table presents a reconciliation of net loss, the most directly comparable financial measure stated in accordance with GAAP, to Adjusted EBITDA for the periods presented:
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
(in thousands) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net loss and comprehensive loss |
|
$ |
(6,961 |
) |
|
$ |
(5,009 |
) |
|
$ |
(14,160 |
) |
|
$ |
(7,921 |
) |
Other income, net* |
|
|
(142 |
) |
|
|
(403 |
) |
|
|
(239 |
) |
|
|
(743 |
) |
Provision for income taxes |
|
|
34 |
|
|
|
35 |
|
|
|
47 |
|
|
|
36 |
|
Depreciation and amortization |
|
|
403 |
|
|
|
404 |
|
|
|
731 |
|
|
|
823 |
|
Equity-based compensation |
|
|
1,427 |
|
|
|
2,358 |
|
|
|
2,916 |
|
|
|
4,738 |
|
Restructuring |
|
|
865 |
|
|
|
— |
|
|
|
865 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
(4,374 |
) |
|
$ |
(2,615 |
) |
|
$ |
(9,840 |
) |
|
$ |
(3,067 |
) |
* Includes interest (income) expense, foreign currency (gains) losses, and (gains) losses on disposal of fixed assets. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807949632/en/
Investors
Greg Davis
Zevia PBC
424-343-2654
Gregory@zevia.com
Reed Anderson
ICR
646-277-1260
Reed.Anderson@icrinc.com
Source: Zevia PBC
FAQ
What were Zevia's (ZVIA) Q2 2024 net sales?
How much did Zevia (ZVIA) lose per share in Q2 2024?
What is Zevia's (ZVIA) full-year 2024 net sales guidance?
How much is Zevia's (ZVIA) Productivity Initiative expected to save annually?