Splash Beverage Group Reports 2022 Fourth Quarter and Full Year Financial Results
Source: SPLASH BEVERAGE GROUP INC.
Fort Lauderdale, FL - (NewMediaWire) - March 31, 2023 - Splash Beverage Group, Inc. (NYSE American: SBEV) ("Splash" or the "Company"), a portfolio company of leading beverage brands, today reported financial results for the fourth quarter and full year period ended December 31, 2022. Investors are encouraged to read the Company’s annual report on Form 10-K which was filed with the Securities and Exchange Commissions (the “SEC”), contains additional information, and is posted at https://splashbeveragegroup.com/.
Fourth Quarter and Full Year Financial Performance
· Revenues for the fourth quarter were $4.79 million compared to $3.06 million in the prior year period, an increase of 56%. Full-year gross revenues were $19.0 million compared to $11.8 million in the prior year period, an increase of 61%. The increase in revenue was due to increases in the company’s ecommerce platform Qplash and the beverage brands with Copa Di Vino at the lead.
· Gross margin for the fourth quarter significantly increased to $3.3 million compared to $339K in the prior year period. Full year gross margin was $5.9 million compared to $3.9 million in the prior year period.
· Fourth quarter net loss narrowed to $4.8 million compared to $6.2 million in the prior year period. Net loss for the full year narrowed to $21.7 million, compared to $29.0 million in the prior year period. Non-cash items were down to $7.4M vs $18.4 the prior year. Cash items were slightly up as expected from $10.7M to $14.3M due to several onetime expenses and an increase in marketing spend to support our retail chain distribution push and increase in freight to customer cost.
· As of December 31, 2022, the company had total cash and cash equivalents of $4.4 million, compared to $4.2 million at December 31, 2021.
Robert Nistico, Splash Beverage CEO, commented, “Our 2022 full year results reflect solid progress in the execution of our long-term business plan. It was our first full year of operating results after our mid-year 2021 public offering and up-listing of our shares to the NYSE American. We’ve grown gross revenue to more than $19 million while continuing to enhance gross margins. We are doing the work internally to rachet down cost of goods and capture efficiencies. We have made new investments in marketing and personnel in support of our brand’s growth and still successfully narrowed net losses on a year over year basis. These investments resulted in significant new retail chain activity toward the back half of 2022 strengthening the base of our revenues as we head into 2023.
“We’ve successfully accessed the capital and credit markets when we needed to grow inventory, and all the while we have been adding to our top tier distribution network across all of our brands, and most importantly with some of the largest names in the retail chain industry. As I’ve said many times, in the beverage industry, distribution is key, if you can’t put product on the shelves, you won’t succeed.
“We’ve invested heavily to build the infrastructure needed to put product through our distribution networks and into the hands of our consumers, and we expect the combination of infrastructure and distribution to translate into continued fast revenue growth shortening our path on our march toward profitability.”
About Splash Beverage Group, Inc.
Splash Beverage Group, an innovator in the beverage industry, owns a growing portfolio of alcoholic and non-alcoholic beverage brands including Copa di Vino wine by the glass, SALT flavored tequilas, Pulpoloco sangria, and TapouT performance hydration and recovery drink. Splash’s strategy is to rapidly develop early-stage brands already in its portfolio as well as acquire and then accelerate brands that have high visibility or are innovators in their categories. Led by a management team that has built and managed some of the top brands in the beverage industry and led sales from product launch into the billions, Splash is rapidly expanding its brand portfolio and global distribution.
This press release includes “forward-looking statements” within the meaning of U.S. federal securities laws. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results and, consequently, you should not rely on these forward-looking statements as predictions of future events. These forward-looking statements and factors that may cause such differences include, without limitation, the risks disclosed in the Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2022, and in the Company’s other filings with the SEC. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release.