Reed's reports Q1 EPS (11c), consensus (9c)
Reports Q1 revenue $8.4M, consensus $8.36M. "We continued to generate strong core brand gross sales growth during the first quarter, with improved gross margins. The Virgil's brand accelerated to 46% volume growth during the quarter, illustrating the type of positive impact our current launch of Reed's new Zero Sugar line and Reed's 12oz cans can have on the brand," stated Val Stalowir CEO of Reed's, Inc. "We are now beginning to see the benefit of our asset-light sales and marketing business model, as we have all but eliminated idle plant costs and are directing all of our attention and capital toward growing our category leading brands. We have a busy second quarter planned with significant new innovation hitting for the Reed's brand. Reed's Zero Sugar and Reed's cans will be hitting shelves during the quarter and we will begin the pilot tests of Reed's ready-to-drink Mules and Reed's Wellness Ginger Beer with Hemp Extract at the end of the quarter. We have also now launched our first ever 360-degree consumer marketing campaign on Reed's, focused on five key markets. The key communication point centers on busting the long-held myth of ginger ale being able to soothe upset stomachs and the clear choice for consumers looking for the benefits of real fresh ginger is Reed's Ginger Beer. With our new innovation and increased sales and marketing investments, we are positioned to further accelerate our growth throughout the year and continue to forecast 20% to 30% sales growth of our core brands during 2019."