Reed’s Reports First Quarter 2025 Results

Core Insights - Reed's, Inc. reported a 4.5% increase in net sales for Q1 2025, reaching $10.0 million compared to$9.6 million in Q1 2024, driven by higher volumes with national customers [6][10] - The company is focused on improving operational efficiency, having reduced short shipments from approximately 20% to roughly 2% in April 2025, and is now producing in line with demand [4][5] - The new CEO, Cyril Wallace, emphasizes a commitment to quality and operational excellence, aiming for sustainable growth across existing and new product lines [3][5] Financial Performance - Gross profit for Q1 2025 remained flat at $3.4 million, with a gross margin of 33.9$1.6 million, representing 16.2% of net sales, compared to 15.7% in Q1 2024 [8][10] - Selling, general, and administrative expenses rose to $3.5 million from$2.6 million, reflecting investments in personnel and marketing [9][10] Loss and Cash Flow - The operating loss for Q1 2025 was $1.7 million, compared to a loss of$0.7 million in Q1 2024, with a modified EBITDA loss of $1.6 million versus a loss of$0.4 million in the prior year [9][11][30] - The company used approximately $5.4 million in cash from operating activities in Q1 2025, compared to$2.4 million in the same period of 2024 [12][30] - As of March 31, 2025, Reed's had approximately $4.9 million in cash and$9.6 million in total debt, down from $10.4 million in cash at the end of 2024 [12][30] Strategic Outlook - The management is in the early stages of refining a long-term strategic plan, focusing on building scale, improving margins, and returning to profitability [5] - The company is expanding its distribution of core products and launching new functional beverages, which are expected to contribute to meaningful results in 2025 [4][5]