Reed's, Inc. Announces Preliminary Fiscal Year 2008 Results
04 Março 2009 - 11:00AM
Marketwired
Reed's, Inc. (NASDAQ: REED), maker of the top-selling sodas in
natural food stores nationwide, today announced preliminary results
for the fiscal year ended December 31, 2008.
-- Full year 2008 net sales increased 17% over full year 2007 to $15.3
million
-- Full year 2008 gross profit increased 69% over full year 2007 to $3.4
million
-- Full year 2008 gross margin expands 680 basis points over full year
2007 to approximately 22%
-- Anticipates additional improvement in 2009 gross profit; by another
20% - 40%
-- Anticipates an additional 2009 OPEX savings of $2.5 million over 2008
-- Anticipates 2009 to be close to breakeven as a result of gross profit
expansion and OPEX savings
Based on preliminary results for the full year of 2008, Reed's
expects to report net sales of approximately $15.3 million,
representing a 17% increase over 2007 net sales of $13.1 million.
The growth in net sales was driven by a number of factors including
increased sales of the Company's Virgil's and Reed's Ginger Brews
product lines in existing natural food supermarkets, the launch of
new products in specialty packaging, introduction of Virgil's Diet
Cola, and rapid expansion into new mainstream supermarkets and
distributors.
Gross profit for the full year 2008 is expected to be $3.4
million, or approximately 22.2% of net sales, an increase of
approximately 69% from $2.0 million, or 15.5% of net sales, for the
full year 2007. The year-over-year improvement in gross margin
reflects the benefit of several strategic initiatives implemented
in 2008 including pricing increases of the Company's Reed's Ginger
Brew line by approximately 20%, better management of promotional
discounting by the sales force and renegotiated production costs
from the Company's largest co-packer.
Christopher Reed, Founder and CEO of Reed's, Inc., stated, "Our
strong preliminary revenue and gross margin results reflect the
inherent value in Reed's re-aligned business model centered on
mainstream grocery store accounts. In 2008, we recognized the
opportunity to leverage our position as the top #1, #2, #3 and #4
selling-sodas in natural foods into the mainstream marketplace. We
subsequently repositioned our sales force to better capitalize on
this opportunity and have made tremendous strides in expanding our
presence in several nationwide grocery store accounts. In addition,
we reaffirmed our commitment to innovation with the introduction of
several new beverage products and specialty packaging which we
believe will improve brand awareness and highlight Reed's as a
trendsetter in the beverage category."
Mr. Reed continued, "In addition to driving top-line growth, we
implemented several methods to improve gross margins and generate
operating efficiencies. The initial success of these initiatives is
demonstrated in our estimated 680 basis point improvement in our
gross margins for the full year 2008 versus 2007. We also expect to
generate approximately $2.5 million in additional operating expense
savings in 2009 resulting from ongoing operating efficiencies
implemented in the 4th quarter of 2008.
"Looking ahead, we expect to continue to improve our top and
bottom line results as we build upon our positive momentum. We
believe our focus on mainstream grocery store accounts, compelling
new product introductions, like our Reed's Natural Energy Elixir
Energy drink launch and expansion of existing product lines
positions Reed's to continue to grow its market share in 2009."
About Reed's, Inc.
Reed's, Inc. makes the top selling sodas in natural food markets
nationwide and is currently selling in 10,500 supermarkets in
natural foods and mainstream. Its six award-winning non-alcoholic
Ginger Brews are unique in the beverage industry, being brewed, not
manufactured and using fresh ginger, spices and fruits in a brewing
process that predates commercial soft drinks. In addition, the
Company owns the top selling root beer line in natural foods, the
Virgil's Root Beer product line, and the top selling cola line in
natural foods, the China Cola product line. Other product lines
include: Reed's Ginger Candies and Reed's Ginger Ice Creams.
Reed's products are sold through specialty gourmet and natural
food stores, mainstream supermarket chains, retail stores and
restaurants nationwide, and in Canada. For more information about
Reed's, please visit the company's website at:
http://www.reedsgingerbrew.com or call 800-99-REEDS.
Follow Reed's on Twitter at:
http://www.twitter.com/reedsgingerbrew
Join the Reed's Facebook group at:
http://www.facebook.com/group.php?gid=79281735864
More information can be found at:
http://www.irthcommunications.com/clients_REED.php
SAFE HARBOR STATEMENT
Some portions of this press release, particularly those
describing Reed's goals and strategies, contain "forward-looking
statements." These forward-looking statements can generally be
identified as such because the context of the statement will
include words, such as "expects," "should," "believes,"
"anticipates" or words of similar import. Similarly, statements
that describe future plans, objectives or goals are also
forward-looking statements. While Reed's is working to achieve
those goals and strategies, actual results could differ materially
from those projected in the forward-looking statements as a result
of a number of risks and uncertainties. These risks and
uncertainties include difficulty in marketing its products and
services, maintaining and protecting brand recognition, the need
for significant capital, dependence on third party distributors,
dependence on third party brewers, increasing costs of fuel and
freight, protection of intellectual property, competition and other
factors, any of which could have an adverse effect on the business
plans of Reed's, its reputation in the industry or its expected
financial return from operations and results of operations. In
light of significant risks and uncertainties inherent in
forward-looking statements included herein, the inclusion of such
statements should not be regarded as a representation by Reed's
that they will achieve such forward-looking statements. For further
details and a discussion of these and other risks and
uncertainties, please see our most recent reports on Form 10-KSB
and Form 10-Q, as filed with the Securities and Exchange
Commission, as they may be amended from time to time. Reed's
undertakes no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events,
or otherwise.
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Contact: IRTH Communications, LLC Mark B. Moline Managing
Partner 760-458-4899 Email Contact
http://www.irthcommunications.com
http://www.twitter.com/irthcomm
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