Reed’s, Inc., manufacturer of top-selling sodas in natural food stores nationwide, today announced its financial results for the year ended December 31, 2008. Compared to 2007 results, net sales increased 17% to $15.3 million; gross margin expanded 700 basis points to over 22%; and gross profit increased 68% to $3.4 million.
The company anticipates an even stronger 2009, projecting gross profit improvements of 20%-40%, a further reduction in operating expenses, and operating cash flow of breakeven by the end of the year as a result of gross profit expansion and additional operating expense savings.
Chris Reed, Founder and CEO stated, “Our success in natural foods is transitioning to the mainstream and it is showing in our financial results. Our Company is currently being valued at less than one times revenues, while, as recently as December 2008 private beverage companies were receiving two to three times revenues in sales transactions; and, in spring of 2007 Glaceau, the maker of Vitamin Water, sold in a cash deal valued at $4.1 billion, which is over 11 times its prior year revenues.”
He added, “Reed’s products are premium products. As we continue to grow, we believe the market will recognize the strength of our brand, and will value our company accordingly. In the meantime we will continue to move our company forward to add value for our shareholders.”