DENVER — New Age Beverages Corporation (NASDAQ: NBEV) the Colorado-based organic and natural healthy functional beverage company whose brands include XingTea, XingEnergy, Aspen Pure, Búcha Live Kombucha, Marley One Drop, Marley Mellow Mood, Marley yerba Mate, Coco-Libre, and others today announced earnings for its third quarter ended September 30, 2017.
In Q3 2017 New Age delivered $16.8 million in gross revenue vs. $15.8 million for the period ended September 30, 2017. In net revenue, the group achieved $15.1 million vs. $13.5 million in the prior year. Year to date through nine months, New Age achieved $44.3 million in consolidated gross revenue and $40.9 million in net revenue, both up over 1,700% versus the prior year 9-month period.
Gross margin in the quarter grew 33% reaching 31.9% of net sales versus 26.7% of net sales in Q3 of the prior year. During the quarter, additional investment of $1.7 million versus prior year was made in sales, marketing, distribution and operations to expand key national accounts and support the brands and execution in a broader scale business. The impact of those investments are expected to benefit topline results in Q4 and thereafter, but the expense was recognized in the third quarter.
Adjusted EBITDA minus non-recurring expenses for Q3 was ($131) thousand and year-to date through nine months was $2.7 million.
Brent Willis, Chief Executive Officer of New Age Beverages commented, “We are now 5 quarters into our journey to create New Age from a $2 million starting base 16 months ago. In that time period, we have acquired and integrated 5 companies, uplisted onto the NASDAQ exchange, eliminated virtually all debt, significantly strengthened the balance sheet, and built a credible business platform with a competitive brand entrant in each of the top 5 growth segments of the beverage industry. We are on track to where we expected to be when we visioned what success looked like at this waypoint. Now, with the launch of innovative new products within the acquired brand platforms, we are seeing how our business model is working, and are gaining excellent feedback from retailers and consumers on the resonance of our portfolio of healthy functional brands.”
New Age recently announced the launch of Marley yerba Mate, Coco-Libre Sparkling, and PediaAde, and has been expanding its Aspen Pure Probiotic Water brand following its initial test market. To support the launch of these new brands, the Company has added more than 15,000 new convenience and grocery points of distribution in the third quarter, and recently signed preferred beverage partnerships with both Dot Foods and Unified Strategies Group (USG) to expand to foodservice, hospitals, work locations, micro-markets, and other alternative channels throughout the US beginning in January.
About New Age Beverages Corporation
(NASDAQ: NBEV) New Age Beverages Corporation is a Colorado-based, leading all-natural and organic healthy functional beverage company that was founded in 2003. The Company competes in the fast growing healthy functional beverage segments including Ready to Drink (RTD) Tea, RTD Coffee, Kombucha, Energy Drinks, Relaxation Drinks, Coconut Waters and Functional Waters with the brands XingTea, Marley One Drop, Búcha Live Kombucha, XingEnergy, Marley Mellow Mood, Marley Mate, Coco-Libre, and Aspen Pure PH and Aspen Pure Probiotic Water. The Company’s brands are sold across all 50 states within the US and in more than 10 countries internationally across all channels via direct and store door distribution systems. The company operates the websites http://newagebev.com, http://newagehealth.com, www.mybucha.com, www.xingtea.com, www.aspenpure.com, www.drinkmarley.com, and www.cocolibre.com.
Safe Harbor Disclosure
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are any statement reflecting management’s current expectations regarding future results of operations, economic performance, financial condition and achievements of the Company including statements regarding New Age Beverage’s expectation to see continued growth. The forward-looking statements are based on the assumption that operating performance and results will continue in line with historical results. Management believes these assumptions to be reasonable but there is no assurance that they will prove to be accurate. Forward-looking statements, specifically those concerning future performance are subject to certain risks and uncertainties, and actual results may differ materially. New Age Beverages competes in a rapidly growing and transforming industry, and other factors disclosed in the Company’s filings with the Securities and Exchange Commission might affect the Company’s operations. Unless required by applicable law, NBEV undertakes no obligation to update or revise any forward-looking statements.