New Age Beverages (NBEV) Reports Q4 Revenues Beat

New Age Beverages (NASDAQ: NBEV) reported Q4 revenue for the quarter came in at $90.4 million versus the consensus estimate of $81.02 million.

Fourth Quarter 2020 Financial Results

• Net revenue reached $90.4 million for the quarter ended December 31, 2020, versus $59.2 million for the fourth quarter of the prior year, an increase of 53%. Contributing to the results were the U.S., which grew 11% in the three months ended December 31, 2020 compared to the same period of the prior year, the Direct to Store (DSD) Division, which was up 15% and the contributions from the ARIIX acquisition starting in November.
• Gross margin in the fourth quarter of 2020 reached $60.4 million, or 66.8% of net revenue, compared with $32.2 million, or 54.3% of net revenue in the same period of the prior year, an increase of 12.5 percentage points. Gross margin percentage increase was driven by higher net revenue from our Direct/Social Selling Division and the elimination of the BWR business.
• Net loss was $4.0 million, an improvement of $61.8 million compared to a net loss of $65.8 million, in the fourth quarter of the prior year. Adjusted EBITDA(1) was $2.9 million for the fourth quarter of 2020, compared with a negative $17.4 million for the fourth quarter of 2019, an improvement in Adjusted EBITDA of $20.2 million.

Brent Willis, Chief Executive Officer of NewAge commented, “2020 was another transformative year for NewAge, whereby we reached nearly half a billion dollars in pro forma revenue and achieved positive adjusted EBITDA in the fourth quarter, and we believe we are just getting started. Beyond the scale and profitability benefits that came with ARIIX and the four other companies that merged with us in November, we significantly strengthened our management teams and execution capabilities, and as a result are seeing excellent organic growth momentum in 2021.”

Mr. Willis continued, “We are seeing record growth in Western Europe, the U.S., and Mexico, and are now seeing resurgence in both China and Japan in Q1 2021. The recently announced letter of intent to acquire Aliven in Japan, will add further momentum in this highly profitable core market for NewAge. We continue to make substantial progress on converging our companies and capturing cost synergies and are ahead of schedule on capturing our $20 million target. This will further add to the bottom line, on top of the benefits that accrue from the disposition of BWR.”

“We believe our social selling focus and direct route-to-market is both pandemic and recession resilient, and we are beginning to see the benefits of our business model. During the remainder of 2021 we will continue pursuing our key strategies of: converging with ARIIX and reducing costs; enhancing our social selling platform; driving organic growth by focusing on key geographic regions; and pursuing strategic acquisitions and collaboration opportunities that will drive value for all of our stakeholders,” said Willis.

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

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