The financial results for the third – quarter ending September 30 2020 were today revealed by Reed’s Inc. ( Nasdaq: REED), owner of the ‘s top portfolio of handmade and all-natural beverages.
Net revenues rose 21% to $10.6 million for the third quarter of 2020 compared with the previous year’s 8.7 million dollars. Brand core gross sales grew 18% over the same timeframe in 2019, led by Reed’s Brand’s 32% volume growth with 6% Virgil’s brand volume growth. The growth in all Reed products and almost all Virgil products was prevalent across SKU’s. The new technology of Reed in recent years also played a major role in development.
Gross profits rose 35% to $3.4 million during the third quarter of 2020 compared to 2019. The increase in gross profit is due to strong growth in Reed’s brand in terms of volume during the quarter and lower cost per case during the time. Gross margin rose from 29% in the previous year’s figure by 350 basis points to 32%.
In contrast to this same time in 2019, shipping and handling costs rose 16% over the third quarter of 2020 to 2.2 million dollars. As a percentage to net sales, distribution, and processing costs, the amounts rose by the quarter and partly offset by higher transport costs associated with COVID-19 fell by 86 basis points in comparison to the prior year.
During the third quarter of 2020, selling and marketing expenses decreased 25 percent to $1.9 million. Selling and marketing expenses declined to 18 percent from 29 percent in the prior-year period as a percentage of net sales.
Compared to a loss of $3.3 million in the third quarter of 2019, the adjusted EBITDA loss was $2.0 million in the third quarter of 2020.
Reed’s Inc. ( Nasdaq: REED) is increasing its net sales forecast for fiscal 2020. The Company now expects net revenue growth to be roughly 19%, up from 10% previously.