New Age Beverages Corporation (Nasdaq: NBEV), the Colorado-based healthy products company dedicated to inspiring and educating the planet to “live healthy”, today provided an update including preliminary financial results for the quarter ended March 31, 2020, highlighting the Company’s expected improved growth rates and gross profit performance in the midst of a changing business environment as a result of the COVID-19 pandemic.

The Company expects to report revenue for the quarter ended March 31, 2020 of between $62 and $64 million, compared to the $58.3 million for the quarter ended March 31, 2019, an increase of approximately 6% to 10%. The Company expects to report gross margin in the low to mid 60% range a reversal of the previous trend in fiscal 2019 of 66%, 63%, 58%, and 54% in the quarters ended March 31, June 30, September 30, and December 31, 2019, respectively.

(*Consensus sees Q1 revenue of $56.6 million)

“We are seeing accelerated growth in multiple aspects of our business and in a majority of our markets,” said Brent Willis, Chief Executive Officer of NewAge. “China and the US Direct businesses were up double digits and we also saw renewed growth in Japan. Our North America Retail and Direct Store Distribution Divisions also saw double digit growth. Driving growth has been the launch of Noni+CBD in Japan, the launch of our intermittent fasting product, Te Mana Shape in several key markets, and consumer interest in our immunity strengthening products, ‘Nhanced Cell Defense and Tahitian Noni.”

“There has been some short-term loading in U.S. retail that has positively impacted revenue in North America, but overall, we are seeing sustainable growth drivers impacting our business in this new reality. Nearly 80% of revenue is ordered and fulfilled online and is delivered direct to consumers homes, which we believe positions us well to address consumer buying patterns worldwide going forward.”

Greg Gould, Chief Financial Officer commented, “Our balance sheet remains strong while we continue to take actions on driving improved profitability, as evidenced in part by the improvement in gross margin. As we committed to shareholders during our last quarterly update, we have taken actions on strategic alternatives related to our retail branded products and improved profitability. We expect to have further updates on these initiatives in the coming quarters.”

Preliminary First Quarter 2020 Results

The Company expects to report net revenue for the quarter ended March 31, 2020 in the range of $62 to $64 million, an increase of approximately 6% to 10% compared to revenue of $58.3 million in the quarter ended March 31, 2019. The increase was primarily driven by growth in Noni by NewAge, higher margin new products including Te Mana Shape and Noni+CBD, and was led by strong results in China, North America, and Japan, our largest markets.

The Company expects to report gross margin for the quarter ended March 31, 2020 in the low-to-mid 60% range a reversal of the previous trend in fiscal 2019 of 66%, 63%, 58%, and 54% in the quarters ended March 31, June 30, September 30, and December 31, 2019, respectively. This growth was primarily driven by more favorable sales mix with increased sales of Tahitian Noni^® Juice and cost reduction measures implemented during the first quarter.

The Company does not intend to regularly provide preliminary revenue or financial results in the future. The Company expects to report first quarter 2020 financial results in mid-May 2020.