New Age Beverages (NBEV) Misses Q2 EPS by 1c, Revenues Miss

New Age Beverages (NASDAQ: NBEV) reported Q2 EPS of ($0.10), $0.01 worse than the analyst estimate of ($0.09). Revenue for the quarter came in at $62.6 million versus the consensus estimate of $65.93 million.

Brent Willis, Chief Executive Officer of NewAge, commented, “We are pleased with how the business is holding up in the current business environment, especially compared to most peer group companies. Despite our Japan and China markets being locked down because of the pandemic for much of the quarter, we are seeing good organic growth in North America, Latin America, Western Europe and recovery in certain Asia Pacific markets as they began to reopen.”

NewAge, Inc., which recently changed its name from New Age Beverages Corporation to reflect the expanded breadth of opportunities in front of the Company, announced the signing of a definitive agreement to acquire ARIIX and four other e-commerce/direct selling companies on July 20, 2020. The combination creates a company with expected annual revenues of more than $500 million, a blended gross margin of 70%, and expected EBITDA of more than $30 million.

Greg Gould, Chief Financial Officer of NewAge, commented, “The impending merger will be transformational for NewAge, not just in terms of scale and reach, but also in terms of profitability, financial flexibility, and strength to further the Company’s mission. With the imminent disposition of many of the low margin retail brands and the expected cost savings accruing from the merger of more than $20 million, we expect the combined entity to generate significant positive EBITDA going forward.”

For earnings history and earnings-related data on New Age Beverages (NBEV) click here.

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