Zevia Announces Third Quarter 2024 Results
Zevia (NYSE: ZVIA) reported Q3 2024 results with net sales of $36.4 million, down 15.6% year-over-year. Despite sales decline, the company showed improvements in several metrics: gross profit margin increased to 49.1%, net loss improved to $2.8 million, and Adjusted EBITDA loss reduced to $1.5 million. Loss per share was $0.04, improving from $0.16 year-over-year. Notably, Zevia expanded its distribution to over 4,300 Walmart stores, up from 800 previously. The company expects to achieve $15 million in annual cost savings through its Productivity Initiative and projects Q4 2024 net sales between $38-40 million.
Zevia (NYSE: ZVIA) ha riportato i risultati del terzo trimestre 2024 con vendite nette pari a 36,4 milioni di dollari, in calo del 15,6% rispetto all'anno precedente. Nonostante la diminuzione delle vendite, l'azienda ha mostrato miglioramenti in diversi indicatori: il margine di profitto lordo è aumentato al 49,1%, la perdita netta è migliorata a 2,8 milioni di dollari e la perdita EBITDA rettificata è scesa a 1,5 milioni di dollari. La perdita per azione è stata di $0,04, in miglioramento rispetto a $0,16 dell'anno precedente. È notevole che Zevia abbia ampliato la sua distribuzione a oltre 4.300 negozi Walmart, rispetto a 800 in precedenza. L'azienda prevede di raggiungere 15 milioni di dollari di risparmi annuali sui costi attraverso la sua Iniziativa di Produttività e stima vendite nette per il quarto trimestre 2024 tra $38 e $40 milioni.
Zevia (NYSE: ZVIA) informó los resultados del tercer trimestre de 2024 con ventas netas de 36,4 millones de dólares, una disminución del 15,6% interanual. A pesar de la caída en las ventas, la compañía mostró mejoras en varios indicadores: el margen de utilidad bruta aumentó al 49,1%, la pérdida neta se mejoró a 2,8 millones de dólares y la pérdida de EBITDA ajustada se redujo a 1,5 millones de dólares. La pérdida por acción fue de $0,04, mejorando desde $0,16 interanual. Es notable que Zevia amplió su distribución a más de 4.300 tiendas Walmart, frente a 800 anteriormente. La compañía espera alcanzar 15 millones de dólares en ahorros anuales de costos a través de su Iniciativa de Productividad y proyecta ventas netas del cuarto trimestre de 2024 entre $38 y $40 millones.
Zevia (NYSE: ZVIA)는 2024년 3분기 실적을 보고하며 순매출이 3640만 달러로 전년 대비 15.6% 감소했다고 발표했습니다. 판매 감소에도 불구하고 회사는 몇 가지 지표에서 개선을 보였습니다: 총 이익률은 49.1%로 증가하였고, 순손실은 280만 달러로 개선되었으며, 조정된 EBITDA 손실은 150만 달러로 줄어들었습니다. 주당 손실은 $0.04로, 전년의 $0.16에서 개선되었습니다. 특히, Zevia는 4,300개 Walmart 매장으로의 유통 확대를 이뤘으며, 이는 이전의 800개에서 증가한 수치입니다. 회사는 생산성 이니셔티브를 통해 연간 1500만 달러의 비용 절감 효과를 달성할 것으로 예상하고 있으며, 2024년 4분기 순매출은 $38-40백만 달러 사이가 될 것으로 전망하고 있습니다.
Zevia (NYSE: ZVIA) a annoncé les résultats du troisième trimestre 2024 avec des ventes nettes de 36,4 millions de dollars, en baisse de 15,6 % par rapport à l'année précédente. Malgré cette baisse des ventes, l'entreprise a montré des améliorations dans plusieurs indicateurs : la marge brute a augmenté à 49,1 %, la perte nette a été réduite à 2,8 millions de dollars, et la perte d'EBITDA ajusté a baissé à 1,5 million de dollars. La perte par action était de 0,04 $, améliorée par rapport à 0,16 $ l'année précédente. Notamment, Zevia a élargi sa distribution à plus de 4 300 magasins Walmart, contre 800 auparavant. L'entreprise prévoit d'atteindre 15 millions de dollars d'économies annuelles grâce à son Initiative de Productivité et projette des ventes nettes pour le quatrième trimestre 2024 entre 38 et 40 millions de dollars.
Zevia (NYSE: ZVIA) berichtete über die Ergebnisse des dritten Quartals 2024 mit einem Nettoumsatz von 36,4 Millionen Dollar, was einem Rückgang von 15,6% im Jahresvergleich entspricht. Trotz des Umsatzrückgangs zeigte das Unternehmen Verbesserungen in mehreren Kennzahlen: Die Bruttogewinnmarge stieg auf 49,1%, der Nettoverlust verbesserte sich auf 2,8 Millionen Dollar, und der bereinigte EBITDA-Verlust verringerte sich auf 1,5 Millionen Dollar. Der Verlust pro Aktie lag bei $0,04, eine Verbesserung gegenüber $0,16 im Vorjahr. Bemerkenswert ist, dass Zevia seine Verteilung auf über 4.300 Walmart-Filialen ausgeweitet hat, im Vergleich zu 800 zuvor. Das Unternehmen erwartet, durch seine Produktivitätsinitiative 15 Millionen Dollar an jährlichen Kosteneinsparungen zu erzielen, und prognostiziert für das vierte Quartal 2024 Nettoumsätze zwischen 38 und 40 Millionen Dollar.
- Gross profit margin improved by 3.7 percentage points to 49.1%
- Net loss improved by $8.4 million to $2.8 million
- Adjusted EBITDA loss improved by $7.6 million to $1.5 million
- Significant expansion in Walmart distribution from 800 to 4,300 stores
- Expected $15 million in annual cost savings from Productivity Initiative
- Strong balance sheet with $32.7 million in cash and no debt
- Net sales declined 15.6% to $36.4 million
- Volume reduction of 12.2% due to lost distribution in club channel
- Increased promotional activity affecting sales
- Downward revision of full-year 2024 net sales guidance
- Expected continued Adjusted EBITDA losses in Q4 ($1.8-2.2 million)
Insights
The Q3 results present a mixed picture for Zevia. While net sales declined
The expansion into 4,300 Walmart stores from 800 previously is a major distribution win that could drive significant volume growth. However, the lowered full-year guidance of
The distribution expansion into Walmart represents a strategic pivot to mass market presence, potentially offsetting the lost club channel business. This move targets underpenetrated regions and could accelerate brand awareness and trial rates. However, increased promotional activity suggests competitive pressure in the natural soda category.
The company's focus on reinvesting cost savings into growth initiatives, coupled with their emphasis on product innovation, indicates a long-term strategy to build sustainable market share. The
Net loss improved to
Expands Distribution into 4,300 Walmart Stores
Third Quarter 2024 Highlights
-
Net sales of
, a decline of$36.4 million year over year$6.7 million -
Gross profit margin was
49.1% , an improvement of 3.7 percentage points year over year -
Net loss was
, including$2.8 million of non-cash equity-based compensation expense, an improvement of$1.0 million year over year$8.4 million -
Adjusted EBITDA loss was
(1), an improvement of$1.5 million year over year$7.6 million -
Loss per share was
to Zevia’s Class A Common stockholders, an improvement of$0.04 year over year$0.12 -
Subsequent to the third quarter, Zevia expanded distribution to more than 4,300
U.S. Walmart stores from the 800 it previously served
(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 are very pleased to have delivered vast improvements in net loss and adjusted EBITDA, despite coming in slightly below our net sales expectations,” said Amy Taylor, President and Chief Executive Officer. “Through the strong execution of our Productivity Initiative, we now expect to achieve
“Looking ahead, we expect to resume net sales growth in the fourth quarter, in large part due to expanded nationwide distribution at Walmart. This partnership not only bolsters volume, but also fosters awareness and trial across regions where we are underpenetrated and growing fastest. Overall, we remain laser focused on executing a powerful brand marketing strategy, building sustainable distribution expansion and delivering product innovation that is unmatched in the natural soda category, all of which we believe will help pave the way to strong profitable growth long term.”
Third Quarter 2024 Results
Net sales decreased
Gross profit margin was
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 third quarter of 2024 was
Loss per share for the third quarter of 2024 was
Adjusted EBITDA loss was
Balance Sheet and Cash Flows
As of September 30, 2024, the Company had
Guidance
The Company is updating its guidance for the full year of 2024 to reflect recent results. Net sales for the full year of 2024 are now expected to be in the range of
We have not provided the forward-looking GAAP equivalent to our Adjusted EBITDA outlook or a GAAP reconciliation as a result of the uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation, income tax, and charges associated with restructuring and cost saving initiatives, including but not limited to severance costs, warehouse/distribution facility exit costs, and asset impairments. Accordingly, a reconciliation of this non-GAAP guidance metric to its corresponding GAAP equivalent is not available without unreasonable effort. These items are inherently variable and uncertain and depend on various factors, some of which are outside of the Company’s control or ability to predict. However, it is important to note that the reconciling items could have a significant effect on future GAAP results. We have provided historical reconciliations of GAAP to non-GAAP metrics in tables at the end of this release. For more information regarding the non-GAAP financial measures discussed in this earnings release, please see "Reconciliation of GAAP to non-GAAP Financial Results" below.
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 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) (in thousands, except share and per share amounts) |
||||||||||||||||
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net sales |
|
$ |
36,366 |
|
|
$ |
43,089 |
|
|
$ |
115,591 |
|
|
$ |
128,630 |
|
Cost of goods sold |
|
|
18,516 |
|
|
|
23,517 |
|
|
|
63,080 |
|
|
|
69,261 |
|
Gross profit |
|
|
17,850 |
|
|
|
19,572 |
|
|
|
52,511 |
|
|
|
59,369 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling and marketing |
|
|
11,981 |
|
|
|
20,455 |
|
|
|
40,673 |
|
|
|
48,467 |
|
General and administrative |
|
|
7,377 |
|
|
|
8,250 |
|
|
|
23,186 |
|
|
|
23,102 |
|
Equity-based compensation |
|
|
1,034 |
|
|
|
1,876 |
|
|
|
3,950 |
|
|
|
6,614 |
|
Depreciation and amortization |
|
|
310 |
|
|
|
411 |
|
|
|
1,041 |
|
|
|
1,234 |
|
Restructuring |
|
|
112 |
|
|
|
— |
|
|
|
977 |
|
|
|
— |
|
Total operating expenses |
|
|
20,814 |
|
|
|
30,992 |
|
|
|
69,827 |
|
|
|
79,417 |
|
Loss from operations |
|
|
(2,964 |
) |
|
|
(11,420 |
) |
|
|
(17,316 |
) |
|
|
(20,048 |
) |
Other income, net |
|
|
118 |
|
|
|
165 |
|
|
|
357 |
|
|
|
908 |
|
Loss before income taxes |
|
|
(2,846 |
) |
|
|
(11,255 |
) |
|
|
(16,959 |
) |
|
|
(19,140 |
) |
(Benefit) provision for income taxes |
|
|
(4 |
) |
|
|
(5 |
) |
|
|
43 |
|
|
|
31 |
|
Net loss and comprehensive loss |
|
|
(2,842 |
) |
|
|
(11,250 |
) |
|
|
(17,002 |
) |
|
|
(19,171 |
) |
Loss attributable to noncontrolling interest |
|
|
315 |
|
|
|
3,033 |
|
|
|
2,760 |
|
|
|
4,932 |
|
Net loss attributable to Zevia PBC |
|
$ |
(2,527 |
) |
|
$ |
(8,217 |
) |
|
$ |
(14,242 |
) |
|
$ |
(14,239 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss per share attributable to common stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
(0.04 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.27 |
) |
Diluted |
|
$ |
(0.04 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.27 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
59,490,258 |
|
|
|
50,754,470 |
|
|
|
58,037,780 |
|
|
|
50,074,992 |
|
Diluted |
|
|
59,490,258 |
|
|
|
50,754,470 |
|
|
|
58,037,780 |
|
|
|
50,074,992 |
|
ZEVIA PBC
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands) |
||||||||
|
|
September 30, 2024 |
|
|
December 31, 2023 |
|
||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
32,688 |
|
|
$ |
31,955 |
|
Accounts receivable, net |
|
|
10,008 |
|
|
|
11,119 |
|
Inventories |
|
|
20,690 |
|
|
|
34,550 |
|
Prepaid expenses and other current assets |
|
|
2,676 |
|
|
|
5,063 |
|
Total current assets |
|
|
66,062 |
|
|
|
82,687 |
|
Property and equipment, net |
|
|
1,490 |
|
|
|
2,109 |
|
Right-of-use assets under operating leases, net |
|
|
1,509 |
|
|
|
1,959 |
|
Intangible assets, net |
|
|
3,276 |
|
|
|
3,523 |
|
Other non-current assets |
|
|
522 |
|
|
|
579 |
|
Total assets |
|
$ |
72,859 |
|
|
$ |
90,857 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
|
14,865 |
|
|
$ |
21,169 |
|
Accrued expenses and other current liabilities |
|
|
7,700 |
|
|
|
5,973 |
|
Current portion of operating lease liabilities |
|
|
629 |
|
|
|
575 |
|
Total current liabilities |
|
|
23,194 |
|
|
|
27,717 |
|
Operating lease liabilities, net of current portion |
|
|
892 |
|
|
|
1,373 |
|
Other non-current liabilities |
|
|
58 |
|
|
|
— |
|
Total liabilities |
|
|
24,144 |
|
|
|
29,090 |
|
|
|
|
|
|
|
|
||
Stockholders’ equity |
|
|
|
|
|
|
||
Class A common stock |
|
|
60 |
|
|
|
54 |
|
Class B common stock |
|
|
13 |
|
|
|
17 |
|
Additional paid-in capital |
|
|
188,014 |
|
|
|
191,144 |
|
Accumulated deficit |
|
|
(115,579 |
) |
|
|
(101,337 |
) |
Total Zevia PBC stockholders’ equity |
|
|
72,508 |
|
|
|
89,878 |
|
Noncontrolling interests |
|
|
(23,793 |
) |
|
|
(28,111 |
) |
Total equity |
|
|
48,715 |
|
|
|
61,767 |
|
Total liabilities and equity |
|
$ |
72,859 |
|
|
$ |
90,857 |
|
ZEVIA PBC CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) (in thousands) |
||||||||
|
|
Nine Months Ended September 30, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Operating activities: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(17,002 |
) |
|
$ |
(19,171 |
) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
||
Non-cash lease expense |
|
|
450 |
|
|
|
423 |
|
Depreciation and amortization |
|
|
1,041 |
|
|
|
1,234 |
|
Loss on disposal of property, equipment and software, net |
|
|
55 |
|
|
|
101 |
|
Amortization of debt issuance cost |
|
|
57 |
|
|
|
57 |
|
Equity-based compensation |
|
|
3,950 |
|
|
|
6,614 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable, net |
|
|
1,111 |
|
|
|
(5,295 |
) |
Inventories |
|
|
13,860 |
|
|
|
(21,822 |
) |
Prepaid expenses and other assets |
|
|
2,387 |
|
|
|
(451 |
) |
Accounts payable |
|
|
(6,296 |
) |
|
|
30,312 |
|
Accrued expenses and other current liabilities |
|
|
1,727 |
|
|
|
(1,234 |
) |
Operating lease liabilities |
|
|
(427 |
) |
|
|
(436 |
) |
Other non-current liabilities |
|
|
58 |
|
|
|
— |
|
Net cash provided by (used in) operating activities |
|
|
971 |
|
|
|
(9,668 |
) |
Investing activities: |
|
|
|
|
|
|
||
Purchases of property, equipment and software |
|
|
(238 |
) |
|
|
(1,557 |
) |
Proceeds from sales of property, equipment and software |
|
|
— |
|
|
|
2,343 |
|
Net cash (used in) provided by investing activities |
|
|
(238 |
) |
|
|
786 |
|
Financing activities: |
|
|
|
|
|
|
||
Proceeds from revolving line of credit |
|
|
8,000 |
|
|
|
— |
|
Repayment of revolving line of credit |
|
|
(8,000 |
) |
|
|
— |
|
Proceeds from exercise of stock options |
|
|
— |
|
|
|
25 |
|
Net cash provided by financing activities |
|
|
— |
|
|
|
25 |
|
Net change from operating, investing, and financing activities |
|
|
733 |
|
|
|
(8,857 |
) |
Cash and cash equivalents at beginning of period |
|
|
31,955 |
|
|
|
47,399 |
|
Cash and cash equivalents at end of period |
|
$ |
32,688 |
|
|
$ |
38,542 |
|
|
|
|
|
|
|
|
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, (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 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.
ZEVIA PBC RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS (in thousands) (unaudited) |
||||||||||||||||
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net loss and comprehensive loss |
|
$ |
(2,842 |
) |
|
$ |
(11,250 |
) |
|
$ |
(17,002 |
) |
|
$ |
(19,171 |
) |
Other income, net* |
|
|
(118 |
) |
|
|
(165 |
) |
|
|
(357 |
) |
|
|
(908 |
) |
(Benefit) provision for income taxes |
|
|
(4 |
) |
|
|
(5 |
) |
|
|
43 |
|
|
|
31 |
|
Depreciation and amortization |
|
|
310 |
|
|
|
411 |
|
|
|
1,041 |
|
|
|
1,234 |
|
Equity-based compensation |
|
|
1,034 |
|
|
|
1,876 |
|
|
|
3,950 |
|
|
|
6,614 |
|
Restructuring |
|
|
112 |
|
|
|
— |
|
|
|
977 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
(1,508 |
) |
|
$ |
(9,133 |
) |
|
$ |
(11,348 |
) |
|
$ |
(12,200 |
) |
* Includes interest (income) expense, and foreign currency (gains) losses.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106357116/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
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