Financial Guidance - Zevia PBC announced updated guidance for its fourth fiscal quarter and full year ended December 31, 2024[5]. Company Classification - The company is classified as an emerging growth company under the Securities Act of 1933[4]. Press Release Information - The press release detailing the financial results is dated January 13, 2025[7].

Financial Data and Key Metrics Changes - The company reported net sales of $36.4 million for Q3 2024, a 15.6% decline compared to the previous year, primarily due to reduced distribution in club channels and the exit from Kids and Mixers categories [9][24] - Adjusted EBITDA loss improved to $1.5 million from $9.1 million in the prior year, reflecting successful productivity initiatives [8][28] - Gross margin increased to 49.1%, up 370 basis points year-over-year, driven by productivity initiatives and improved inventory management [26][28] Business Line Data and Key Metrics Changes - The company experienced a 16% decline in net sales, attributed to reduced club distribution and strategic exits from certain product lines [9][24] - Strong sell-through was noted in key strategic channels, with grocery channel scan data showing dollar growth of 8% and unit growth of 9% [10][12] Market Data and Key Metrics Changes - The Pacific Northwest market showed stronger performance due to enhanced service levels and merchandising, outperforming other markets [11][51] - The company is expanding its presence in Walmart, rolling out to over 4,300 locations, which is expected to significantly increase brand awareness [17][33] Company Strategy and Development Direction - The company aims to capitalize on the growing demand for healthier soda alternatives through robust brand marketing, distribution expansion, and product innovation [7][14] - A focus on building brand marketing capabilities and leveraging digital platforms is central to the company's strategy [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to growth in Q4, supported by strong velocity performance and the Walmart rollout [6][20] - The company anticipates gradual growth as it builds sustainable momentum and aims for positive adjusted EBITDA by 2026 [30][31] Other Important Information - The company expects annual cost savings of $15 million, an increase from the previous estimate of $12 million, due to productivity initiatives [8][23] - The company ended the quarter with approximately $32 million in cash and cash equivalents, along with an undrawn revolving credit line of $20 million [29] Q&A Session Summary Question: Impact of lost distribution in club and mass channels - Management noted that the softness in sales was due to volume impacts from reduced store selling in club channels and promotional timing variances, but velocity remains strong across channels [32][33] Question: Marketing spend as a percentage of sales and profitability outlook - Management emphasized the importance of balancing marketing investments with profitability goals, aiming for profitability by 2026 while continuing to invest in brand building [36][37][38] Question: Insights on gross margins and structural improvements - Management attributed improved gross margins to better inventory management and renegotiated input costs, indicating a reset at a higher margin level [40][41] Question: Promotional strategies and their effectiveness - Management discussed testing various promotional strategies and noted a significant increase in sales lift from new approaches, with plans to finalize strategies by Q1 2025 [42][44] Question: Performance of Salted Caramel flavor and digital advertising engagement - Management indicated that the Salted Caramel flavor is driving both trial and engagement, with digital marketing initiatives showing promising results [48][49]

Vanilla Cola Grange 12 FL CZ BBET 文章 Q3 2024 FINANCIAL RESULTS ZEVIA FORWARD-LOOKING STATEMENTS This presentation and the related earnings press release contain "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words such as "anticipate," "belie ...

Financial Performance - Net sales for Q3 2024 were $36.366 million, a decrease of 15.6% compared to $43.089 million in Q3 2023[66] - Cost of goods sold for Q3 2024 was $18.516 million, down from $23.517 million in Q3 2023, reflecting a 21.3% reduction[66] - Gross profit for Q3 2024 was $17.850 million, compared to $19.572 million in Q3 2023, resulting in a gross margin decline[66] - Net loss attributable to Zevia PBC for Q3 2024 was $2.527 million, compared to a loss of $8.217 million in Q3 2023[66] - Net sales for the three months ended September 30, 2024, were $36.4 million, a decrease of 15.6% from $43.1 million in the same period of 2023[68] - Cost of goods sold decreased by 21.3% to $18.5 million for the three months ended September 30, 2024, compared to $23.5 million for the same period in 2023[69] - Gross profit for the three months ended September 30, 2024, was $17.9 million, down 8.8% from $19.6 million in the prior year, with a gross margin improvement to 49.1% from 45.4%[70] - Net loss attributable to Zevia PBC for the three months ended September 30, 2024, was 7% of net sales, compared to 19% in the same period of 2023[68] - For the nine months ended September 30, 2024, net sales were $115.6 million, a decrease of 10.1% from $128.6 million in the same period of 2023[75] - Gross profit for the nine months ended September 30, 2024, was $52.5 million, a decrease of 11.6% from $59.4 million in the same period of 2023, with a gross margin decline to 45.4% from 46.2%[78] - The net loss for the nine months ended September 30, 2024, was $(17,002) thousand, a slight improvement from $(19,171) thousand in the same period of 2023[91] Expenses - Selling and marketing expenses decreased to $11.981 million in Q3 2024 from $20.455 million in Q3 2023, a reduction of 41.5%[66] - Selling and marketing expenses decreased by 41.4% to $12.0 million for the three months ended September 30, 2024, compared to $20.5 million in the same period of 2023[71] - General and administrative expenses were $7.4 million for the three months ended September 30, 2024, a decrease of 10.6% from $8.3 million in the prior year[72] - Selling and marketing expenses decreased to $40.7 million for the nine months ended September 30, 2024, down 16.1% from $48.5 million in the same period of 2023, primarily due to reduced freight transfer and warehousing costs[79] - General and administrative expenses increased slightly to $23.2 million for the nine months ended September 30, 2024, a 0.4% increase from $23.1 million in the prior year, mainly due to higher employee compensation costs[80] - Equity-based compensation expenses were $4.0 million for the nine months ended September 30, 2024, a decrease of 40.3% from $6.6 million in the same period of 2023, primarily due to changes in expense recognition methods[81] - Restructuring expenses for Q3 2024 were $112,000, with total operating expenses at $20.814 million, down from $30.992 million in Q3 2023[66] - The company incurred restructuring expenses of $0.1 million for the three months ended September 30, 2024, related to exiting two third-party warehouse and distribution facilities[74] - Restructuring expenses amounted to $1.0 million for the nine months ended September 30, 2024, reflecting costs related to employee severance and exiting third-party warehouse facilities[82] Cash Flow and Liquidity - As of September 30, 2024, the company had $32.7 million in cash and cash equivalents, which, along with operating activities and available borrowings, is expected to provide adequate liquidity for ongoing operations[84] - Net cash provided by operating activities was $1.0 million for the nine months ended September 30, 2024, driven by a net increase in cash related to changes in operating assets and liabilities[87] - Net cash used in investing activities was $0.2 million for the nine months ended September 30, 2024, primarily due to purchases of property and equipment[88] - The company drew $8 million from its Secured Revolving Line of Credit during the first quarter of 2024, which was repaid in the same period, leaving no outstanding amount as of September 30, 2024[85] - The company expects future capital requirements to depend on revenue growth, gross margin, and expenditure levels, with potential increases in operating and capital expenditures as business activities expand[84] Strategic Initiatives - The company expects annualized benefits of approximately $15.0 million from the Productivity Initiative, with savings expected to be fully realized over the next 3-5 quarters[53] - The company plans to reinvest the majority of cost savings from the Productivity Initiative into brand marketing and Direct Store Delivery strategies[53] - The company has sold over 2.1 billion cans of Zevia to date, indicating strong brand traction in the market[52] Compliance and Governance - The company regained compliance with NYSE listing standards on October 1, 2024, after the average closing price of Class A common stock rose above $1.00[54] - The company maintains effective disclosure controls and procedures as of September 30, 2024, ensuring timely reporting and management communication[99] - No changes in internal control over financial reporting were identified that materially affected the company's financial reporting as of September 30, 2024[100] - The company is classified as an "emerging growth company" and may take advantage of certain exemptions from reporting requirements until it no longer qualifies[95] Supply Chain and Risks - The company has entered into a two-year agreement for stevia leaf extract with a multi-national ingredient company, effective October 15, 2023, which includes fixed pricing[96] - Three vendors accounted for approximately 87% of total raw material and finished goods purchases during the nine months ended September 30, 2024[96] - The company is exposed to inflation risks, which could materially affect its business and financial condition if costs rise significantly[98] - Foreign exchange gains and losses were not material for the three and nine months ended September 30, 2024, and 2023, respectively[97]

Company Performance - Zevia reported a quarterly loss of $0.04 per share, better than the Zacks Consensus Estimate of a loss of $0.11, and an improvement from a loss of $0.16 per share a year ago, representing an earnings surprise of 63.64% [1] - The company posted revenues of $36.37 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 5.60%, and down from $43.09 million year-over-year [2] - Over the last four quarters, Zevia has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Zevia shares have declined approximately 45.8% since the beginning of the year, contrasting with the S&P 500's gain of 21.2% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.10 on revenues of $40.28 million, and for the current fiscal year, it is -$0.36 on revenues of $158.02 million [7] Industry Outlook - The Medical - Products industry, to which Zevia belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Zevia's stock performance [5]

Financial Performance - Net sales for Q3 2024 were $36.4 million, a decrease of 15.6% from $43.1 million in Q3 2023[2] - Net loss for Q3 2024 was $2.8 million, an improvement of $8.4 million compared to a net loss of $11.3 million in Q3 2023[4] - Adjusted EBITDA loss was $1.5 million in Q3 2024, improving by $7.6 million from a loss of $9.1 million in Q3 2023[4] - Loss per share improved to $0.04 for Q3 2024, compared to $0.16 in Q3 2023[4] - Net loss for the nine months ended September 30, 2024, was $17,002,000, compared to a net loss of $19,171,000 for the same period in 2023, showing an improvement of approximately 11.3%[16] - Adjusted EBITDA for the nine months ended September 30, 2024, was $(11,348,000), compared to $(12,200,000) for the same period in 2023, indicating a reduction in losses of about 7%[19] Cost Management - Selling and marketing expenses decreased to $12.0 million, or 32.9% of net sales, down from $20.5 million, or 47.5% of net sales in Q3 2023[4] - The company anticipates achieving $15 million in annual cost savings through its Productivity Initiative[1] Sales Projections - The company expects full-year 2024 net sales to be in the range of $154 million to $156 million[6] - For Q4 2024, net sales are projected to be between $38 million and $40 million[6] Distribution and Expansion - Zevia expanded distribution to over 4,300 Walmart stores, up from 800 previously served[1] Asset and Liability Management - Total assets decreased from $90,857,000 on December 31, 2023, to $72,859,000 on September 30, 2024, representing a decline of approximately 19.8%[15] - Current assets fell from $82,687,000 to $66,062,000, a decrease of about 20.2%[15] - Total liabilities decreased from $29,090,000 to $24,144,000, a reduction of approximately 17%[15] - Stockholders' equity decreased from $89,878,000 to $72,508,000, a decline of about 19.4%[15] Cash Flow and Receivables - Cash and cash equivalents increased from $31,955,000 at the beginning of the period to $32,688,000 at the end, reflecting a net change of $733,000[16] - Accounts receivable decreased from $11,119,000 to $10,008,000, a decline of approximately 10%[15] - Inventories significantly dropped from $34,550,000 to $20,690,000, a decrease of about 40%[15] Non-Cash Expenses - The company reported a non-cash lease expense of $450,000 for the nine months ended September 30, 2024, compared to $423,000 for the same period in 2023[16]

Sales Performance - Net sales for the three months ended June 30, 2024, were $40.4 million, a decrease of 4.3% from $42.2 million in the same period of 2023[66]. - Net sales for the six months ended June 30, 2024, were $79.2 million, a decrease of 7.4% from $85.5 million in the same period of 2023[72]. - Equivalized cases sold decreased to 3.1 million for the three months ended June 30, 2024, down from 3.3 million in the same period of 2023[66]. Cost and Profitability - Cost of goods sold increased by 4.1% to $23.5 million for the three months ended June 30, 2024, compared to $22.5 million in the prior year[67]. - Gross profit decreased by 14.0% to $16.9 million for the three months ended June 30, 2024, down from $19.7 million in the same period of 2023[68]. - Cost of goods sold decreased by $1.2 million, or 2.6%, to $44.6 million for the six months ended June 30, 2024, primarily due to an 8.2% decrease in shipment of equivalized cases[73]. - Gross profit fell by $5.1 million, or 12.9%, to $34.7 million for the six months ended June 30, 2024, with gross margin declining to 43.8% from 46.5%[74]. Expenses - Selling and marketing expenses were $13.6 million for the three months ended June 30, 2024, a decrease of 15.4% from $16.1 million in the prior year[69]. - Selling and marketing expenses increased by $0.7 million, or 2.4%, to $28.7 million for the six months ended June 30, 2024, driven by higher marketing and warehousing costs[75]. - General and administrative expenses increased by 24.0% to $7.7 million for the three months ended June 30, 2024, compared to $6.2 million in the same period of 2023[70]. - General and administrative expenses rose by $1.0 million, or 6.4%, to $15.8 million for the six months ended June 30, 2024, primarily due to increased employee compensation costs[76]. - Restructuring expenses were $0.9 million for the three months ended June 30, 2024, primarily related to employee severance costs[71]. - Restructuring expenses amounted to $0.9 million for the six months ended June 30, 2024, primarily related to employee severance costs and exiting third-party facilities[78]. Cash Flow and Financing - Cash used in operating activities was $(2.9) million for the six months ended June 30, 2024, compared to $1.1 million provided in the same period of 2023[84]. - Net cash used in operating activities for the six months ended June 30, 2024, was $2.9 million, driven by a net loss of $14.2 million, partially offset by non-cash expenses of $4.0 million and a net increase in cash from changes in operating assets and liabilities of $7.3 million[86]. - Net cash used in investing activities for the six months ended June 30, 2024, was $0.1 million, compared to $1.5 million for the same period in 2023, indicating a reduction in capital expenditures[87]. - Net cash provided by financing activities for the six months ended June 30, 2024, was less than $0.1 million, primarily from proceeds of $8 million from a secured revolving line of credit, which was repaid in the same period[87]. Compliance and Risks - The company received a notice from the NYSE regarding non-compliance with the $1.00 average closing price requirement, with a six-month cure period to regain compliance[53]. - The company is exposed to inflation risks, which could materially affect its business and financial condition if costs rise significantly without the ability to pass on those costs through price increases[96]. - As of June 30, 2024, three vendors accounted for approximately 89% of total raw material and finished goods purchases, indicating a high vendor concentration risk[94]. Strategic Initiatives - The company initiated a multi-year Productivity Initiative expected to yield annualized benefits between $8.0 million and $12.0 million, with costs associated with this initiative amounting to $0.9 million in Q2 2024[52]. - The company has transitioned procurement of raw materials to contract manufacturers, which is expected to optimize the supply chain and improve cost management[51]. - The company is increasing its marketing spend to enhance brand awareness and drive sales velocity, particularly in key accounts[51]. - The company has entered into a two-year agreement effective October 15, 2023, for fixed pricing of stevia extract, a key ingredient, to mitigate raw material cost fluctuations[94]. Operational Insights - The company has sold over 2.0 billion cans of Zevia to date, focusing on zero sugar, zero calorie beverages made with plant-based ingredients[50]. - In the first half of 2024, the company experienced delays in SKU level distribution due to supply chain challenges and increased competition, resulting in reduced volumes[51]. - Gross profit is influenced by the mix of distribution channels and promotional activities, with a focus on leveraging an asset-light business model[57]. - Selling and marketing expenses are expected to increase in absolute dollars long-term due to higher warehousing and distribution costs, but decrease as a percentage of sales over time[59]. - General and administrative expenses are expected to remain flat in absolute dollars in the near term[60]. - The company expects continued seasonality effects, with net sales typically higher in the second and third quarters of the year[79]. - Foreign exchange gains and losses were not material for the three and six months ended June 30, 2024, indicating limited exposure to currency fluctuations[95]. - As of June 30, 2024, the company had $28.9 million in cash and cash equivalents, which is expected to support ongoing operations and planned capital expenditures[80]. - The company drew $8 million on its Secured Revolving Line of Credit during the first quarter of 2024, which was repaid in the same period, leaving no outstanding amount as of June 30, 2024[81]. - Adjusted EBITDA for the six months ended June 30, 2024, was $(9.84) million, compared to $(3.07) million for the same period in 2023, reflecting a decline in operating performance[90].

ZEVIA Q2 2024 FINANCIAL RESULTS AT FORWARD-LOOKING STATEMENTS This presentation and the related earnings press release contain "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words such as "anticipate," "believe," "consider," "contemplate," "c ...

Financial Data and Key Metrics Changes - In Q2 2024, net sales reached $40.4 million, slightly above the top-end of guidance, but down 4.3% year-over-year [18] - Volume decreased by 5.9%, reflecting challenges in on-shelf distribution, partially offset by a price increase contributing $2.4 million [18] - Gross margin was 41.9%, down 4.7 percentage points from the previous year, impacted by a €1.8 million charge related to excess inventory [16][18] - Net loss increased to $7 million compared to a net loss of $5 million last year, with adjusted EBITDA loss at $4.4 million [19] Business Line Data and Key Metrics Changes - Strong performance in the food channel, with 16% growth over 12 weeks and 20% growth over the last 4-week period [9] - New product launches, including Cran-Raspberry, are expected to drive incremental growth [8][15] - The company implemented a 4.5% price increase on soda multipacks, which was well-received by retailers and consumers [9] Market Data and Key Metrics Changes - Zevia soda scan dollars were up 6% for the 12 weeks ending July 14, with units up 2% [8] - Retail sales growth accelerated, with dollars closing at +10% and units at +11% in the latest 4-week period, marking the highest retail sales month in Zevia's history [8] - The company is seeing promising growth in strategic channels, particularly in food, which outpaced the broader Carbonated Soft Drinks category [9][23] Company Strategy and Development Direction - The company is focused on enhancing brand visibility and expanding distribution through direct-store delivery (DSD) initiatives [10][14] - A productivity initiative aims for annualized savings of $12 million, targeting brand maximization, margin enhancement, and operational discipline [12][13] - The strategic focus includes increasing marketing investments to drive consumer awareness and trial packages to expand the user base [10][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about retail sales growth despite challenges in club distribution, expecting improvements in Q4 [32] - The promotional environment is competitive, with increased promotional spending planned to drive in-store activity [35] - Management anticipates a return to mid-40s gross margins in Q3, with sequential improvements expected [21][41] Other Important Information - The company ended the quarter with approximately $29 million in cash and cash equivalents, alongside an undrawn revolving credit line of $20 million [19] - The company is committed to maintaining a right-sized inventory level, targeting around 90 days of inventory on hand [45] Q&A Session Summary Question: Impact of club distribution losses - Management acknowledged regional losses in club distribution but noted strong retail scan data and overall healthy retail performance [26] Question: Strategies for reaching new consumers without club visibility - The focus is on expanding singles distribution to drive trial packages in various channels, including mainstream grocery and convenience [28] Question: Clarification on Q3 revenue guidance - Management explained that Q3 guidance reflects temporary distribution challenges and a focus on optimizing the product portfolio [32][33] Question: Promotional environment insights - The promotional environment is competitive, with deeper promotions observed, but the company plans to increase promotional investments to drive growth [35] Question: Marketing efficacy and metro outperformance - Marketing campaigns across multiple markets have shown a 3 percentage point improvement in revenue, indicating effective strategic planning [39] Question: Future gross margin potential - Management expects to maintain mid-40s gross margins while reinvesting in promotional activities and expanding the DSD network [41] Question: Inventory management going forward - The company aims to maintain inventory levels close to current levels while managing working capital effectively [45]

Company Performance - Zevia reported a quarterly loss of $0.09 per share, better than the Zacks Consensus Estimate of a loss of $0.13, and compared to a loss of $0.08 per share a year ago, indicating an earnings surprise of 30.77% [1] - The company posted revenues of $40.43 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 2.13%, but down from $42.24 million in the same quarter last year [2] - Over the last four quarters, Zevia has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Zevia shares have declined approximately 55.2% since the beginning of the year, contrasting with the S&P 500's gain of 9.9% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.10 on revenues of $44.85 million, and for the current fiscal year, it is -$0.37 on revenues of $163.17 million [7] Industry Outlook - The Medical - Products industry, to which Zevia belongs, is currently ranked in the top 42% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Zevia's stock performance [5]