- Reed's, Inc. (NASDAQ:REED) reported fourth-quarter revenue growth of 20% year-over-year to $12.8 million, missing the consensus of $13.02 million.
- The increase was attributed to solid demand across Reed's portfolio of products, particularly Reed's Ginger Ale, Ginger Beer, and Virgil.
- The gross margin was 20.4% for the quarter compared to 32.7% in 4Q20.
- Delivery and handling costs increased to $3.1 million compared to $1.9 million a year ago, driven by volume growth and higher freight rates.
- Loss from operation expanded to $4.3 million in Q4, versus $2.66 million in 4Q20.
- EPS was $(0.05), missing the estimate of $(0.04).
- Modified EBITDA was $(3.9) million for the quarter, compared to $(2 million in 4Q20.
- Reed's net cash used in operating activities for FY21 totaled $17.59 million, compared to $9.5 million in FY20.
- FY22 Outlook: Reed expects net sales to range between $59 million-$62 million (versus a consensus of $59.85 million), reflecting growth of ~20-25% from 2021.
- It expects the gross margin to be ~30% compared to 27.4% in 2021.
- REED shares are down about 22.9% YTD.
- Price Action: REED shares are trading lower by 14.50% at $0.26 during the post-market session on Thursday.
