Flow Beverage Corp. announced its financial results for the second quarter ended April 30, 2024. All figures are in Canadian dollars unless otherwise specified. Nicholas Reichenbach, Chairman and CEO of Flow, highlighted the quarter as their best in Adjusted EBITDA since going public in July 2021, indicating that restructuring efforts and a focused operational strategy are yielding improved financial performance. Despite a decline in Flow brand net revenue due to the discontinuation of unprofitable partnerships, significant enhancements in gross margin and operational efficiencies were achieved. Flow anticipates further momentum with upcoming launches of a refreshed brand and summer hydration campaign across North America, alongside growth in their co-pack operations.
Trent MacDonald, CFO and EVP Operations, noted substantial year-over-year and sequential improvements in profitability metrics, positioning the company to achieve positive Adjusted EBITDA and cash flow from operations by Q4 2024. The ongoing operational transformation, now nearing completion, is expected to drive operational leverage as Flow expands in profitable channels and co-pack revenues continue to grow.
Financial Highlights for Q2 2024:
- Flow brand net revenue was $7.0 million, down 26% from Q2 2023, primarily due to the exit of certain U.S. commercial partnerships.
- Consolidated net revenue totaled $12.1 million, a 14% decrease from Q2 2023, partly offset by a 12% increase in co-packing revenue driven by new contracts.
- Gross margin2 improved to 28% from 18% in Q2 2023 and (15)% in Q1 2024, attributed to production consolidation and enhanced efficiencies.
- EBITDA1 Loss was $4.2 million, improving from $7.1 million in Q2 2023, reflecting cost reductions and operational streamlining.
- Adjusted EBITDA1 Loss was $3.5 million, compared to $6.6 million in Q2 2023, reflecting operational efficiencies and excluding non-cash charges.
Conference Call Details:
- Date: June 17, 2024
- Time: 8:30 a.m. ET
- Conference ID: 01170
- Dial-in: (289) 514-5100 or (800) 717-1738
- Webcast: [Link]
- Replay: (289) 819-1325 or (888) 660-6264
- Passcode: 01170
- Available until July 17, 2024
For more detailed financial measures and explanations, refer to the full Management Discussion and Analysis (MD&A) available on Flow Beverage Corp.’s website.
