Fort Lauderdale, Florida, November 15, 2022 — McapMediaWire — On November 15, 2022, Splash Beverage Group, Inc. (NYSE American:SBEV) (“Splash” or the “Company”), a portfolio company of leading beverage brands, issued a press release announcing financial results for the third quarter period ended September 30, 2022. The purpose of this press release is to correct the references to the second quarter period ending June 30, 2022 made in the previous press release. Investors are encouraged to read the Company’s quarterly report on Form 10-Q which was filed with the Securities and Exchange Commissions (the “SEC”), contains additional information, and is posted at https://splashbeveragegroup.com/.
Third Quarter Financial Performance
- Gross sales for the third quarter were $5.1 million compared to $2.9 million in the prior year period, an increase of 73% over the prior year period. The increase in revenue were primarily due to increased sales from e-commerce as well as increased sales through a number of retail authorizations. On a nine-month basis, revenues increased to $14.0 million from $8.6 million in the prior year period, a 64% increase.
- Company reported nine new or expanded distribution/sales agreements with distributors or retailers.
- Gross profit in the third quarter increased 40% to $1.1 million vs. $0.8 million in the prior year period, and in the nine-month period to $2.6 million from $2.2 million in the prior year, an 18% increase.
- Third quarter net loss from continued operations narrowed to $5.1 million compared to a loss of $12.1 million in the prior year period. For the nine-month period, the net loss narrowed to $16.6 million from $22.9 million in the prior year period. The decrease in net loss is due primarily to an increase in revenues as well as lower operating expenses and non-cash items.
- As of September 30, 2022, the company had total cash and cash equivalents of $2.6 million, compared with $4.1 million at December 31, 2021.
- The company is currently evaluating various credit facility offers in hand to augment inventory needs as the company grows and has more traditional lending opportunities.
Robert Nistico, Splash Beverage Group’s Chairman and CEO, commented, “We continue to execute our business strategy, and our third quarter results reflect those efforts. Distribution is key to the beverage industry for success. We continue to focus expanding our distribution network with (9) nine new distribution/sales agreements with distributors and retailers this quarter alone.
Inventory build is a vital component of growth as we add more retail and distribution partners. We’ve accessed the capital markets to help fund this growth, and as mentioned above, we intend to activate various traditional credit facilities that are on the table as we speak. We will keep a close eye on expenses, evidenced by our reduced operating expenses this quarter as we work towards a revenue neutral/positive position. We are opportunistic, with good reason regarding our ability to further our expansion of distribution and retail support, which ultimately builds revenue and profitability.”
About Splash Beverage Group, Inc.
Splash Beverage Group, an innovator in the beverage industry, owns a growing portfolio of alcoholic and non-alcoholic beverage brands including Copa di Vino wine by the glass, SALT flavored tequilas, Pulpoloco sangria, and TapouT performance hydration and recovery drink. Splash’s strategy is to rapidly develop early-stage brands already in its portfolio as well as acquire and then accelerate brands that have high visibility or are innovators in their categories. Led by a management team that has built and managed some of the top brands in the beverage industry and led sales from product launch into the billions, Splash is rapidly expanding its brand portfolio and global distribution.
This press release includes “forward-looking statements” within the meaning of U.S. federal securities laws. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results and, consequently, you should not rely on these forward-looking statements as predictions of future events. These forward-looking statements and factors that may cause such differences include, without limitation, the risks disclosed in the Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2022, and in the Company’s other filings with the SEC. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release.
Splash Beverage Group