Reed's (NASDAQ: REED) reported Q2 EPS of ($0.03), in-line with the analyst estimate of ($0.03). Revenue for the quarter came in at $11.3 million versus the consensus estimate of $12.2 million.

“Demand remained strong across our portfolio during the second quarter reflecting positive underlying consumer trends related to our new products and broader availability. Growth remains exceptional in our Reed’s Real Ginger Ale, both full sugar and zero sugar varieties, and we continued to see solid gains in Reed’s Extra and Zero Extra cans,” said Norman E. Snyder, Chief Executive Officer of Reed’s, Inc. “We had great response to several promotions at key customers during the quarter and our pipeline of new distribution opportunities remains robust. We also made significant progress reducing delivery and handling expenses compared to the first quarter although these costs remain elevated in comparison to historic trends. Unfortunately, supply chain headwinds created delays and shortages, particularly in cans, pushing some expected deliveries from the second quarter to the third. The 4% increase in net sales to $11.3 million was less than we anticipated; however, we were still able to drive a 150 basis point improvement in our gross margin, reflecting cost reduction initiatives and reduced discounts as a percent of sales. We are reaffirming our financial guidance for 2021 net sales growth, expecting most of the top-line shortfall in the second quarter to be captured in the third. The Reed’s brand and product portfolio remain well positioned strategically and competitively, giving us a high degree of confidence in our long-term growth outlook.”

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