New Age Beverages Corporation is feeling good vibes with the announcement of its Q3 financial results, which reported $15,765,898 gross revenue and a net revenue increase of $13,482,012, a 10 percent improvement compared to 2015.
In a conference call to investors Tuesday, New Age Beverages CEO Brent Willis expressed enthusiasm for the direction of the company, which in Q2 completed a $20 million merger with Bucha, Inc. Willis said the company’s four brands — Bucha, XingTea, XingEnergy and Aspen Pure — all saw “excellent growth” over the three-month period.
On October 24, New Age Beverages completed a merger with the sales, marketing and distribution departments of Marley Beverage Company, which sells ready-to-drink coffee and relaxation drinks branded with the face of reggae music icon Bob Marley. Willis said the deal could produce up to $10 million in additional annual revenue. Combined, the two companies annual revenue is projected to reach $70 million.
Gross profit for Q3 came in at $2,952,548, compared to $151,141 in 2015. According to a company press release, “improved costs of goods sold from increased scale production and lower freight costs” contributed to the profit. The corporation also reported operating expenses were down with lower personnel costs. On the call, Willis said there was a significant elimination of “headcount” at Bucha.
Chief Financial Officer Chuck Ence, who took the position last month, said the company had been “stuck” for the past five years with “no investment or growth.” On Tuesday, Ence praised the work of the sales team and the acquisition of the XingTea brand as reasons for the rising momentum.
Willis said the company hopes to grow the brand’s popularity and reach. In Q3 New Age increased its presence in Chile and the Caribbean and is now available in 10 different countries with an eye on east Asia and parts of the Middle East.
Willis also said within the U.S., Bucha is currently most popular in Georgia and that New Age hopes to move beyond a market for dedicated kombucha enthusiasts to the wider mainstream consumer base.
“What are we doing? Nothing different from what we have been doing,” Willis said. “We’re just executing, executing, executing.”