## Zevia PBC Reports Second Quarter 2024 Financial Results

## Zevia PBC Reports Second Quarter 2024 Financial Results Zevia PBC ("Zevia" or the "Company") (NYSE: ZVIA), the company known for its naturally delicious, zero sugar, clean-label beverages, announced its financial results for the second quarter ended June 30, 2024. ### Key Financial Metrics | Metric | Q2 2024 | Q2 2023 | YoY Change | Wall Street Consensus | Guidance / Consensus Variance | |-------------------------|------------------|-----------------|-------------|-----------------------|------------------------------| | Net Sales | $40.4 million | $42.2 million | -4.3% | $38.94 million | +3.73% | | Gross Profit | $16.9 million | $19.7 million | -14.0% | N/A | N/A | | Gross Profit Margin | 41.9% | 46.6% | -4.7 pp | N/A | N/A | | Net Loss | $7.0 million | $5.0 million | -40% | N/A | N/A | | Loss Per Share (EPS) | -$0.10 | -$0.08 | N/A | -$0.1 | In-line | | Adjusted EBITDA Loss | $4.4 million | $2.6 million | N/A | N/A | N/A | **Interpretation:** While the net sales of $40.4 million exceeded the consensus estimate of $38.94 million and surpassed company guidance, this was a decrease of 4.3% year-over-year (YoY) compared to the second quarter of 2023. The gross profit margin declined by 4.7 percentage points, primarily driven by inventory write-downs and higher unit costs. The net loss widened to $7.0 million from $5.0 million YoY, and adjusted EBITDA loss increased to $4.4 million from $2.6 million in the same period last year. ### Revenue Performance by Segment | Segment | Q2 2024 | Q2 2023 | YoY Change | Previous Guidance | |--------------------------|------------------|-----------------|-------------|-------------------------| | Beverages | $40.4 million | $42.2 million | -4.3% | Exceeded | **Interpretation:** Revenue from beverages decreased by 4.3% YoY, primarily due to delays in SKU level distribution and fulfillment issues, as well as lost distribution in the club channel. Though this was offset somewhat by higher price realizations, overall volumes fell. ### Comments from Company Officers Amy Taylor, President and CEO, noted in the release: "We delivered net sales above our guidance in the second quarter, and scan sales reflect accelerating retail growth trends through the quarter and into July. Demand is healthy, and Zevia shopper spending levels continue to increase. Recent 4-week retail scan growth for Zevia soda was double-digits and ahead of the Carbonated Soft Drinks category in dollars and in units in a competitive environment." Taylor highlighted the positive impact of new regional distribution partners and the company's increased marketing efficacy, contributing to same-store sales improvements and the opening of new outlets. She concluded by expressing confidence in the company's long-term growth opportunities given the healthy brand and strong consumer demand. ### Forward Guidance Zevia reaffirmed its full-year 2024 guidance, expecting net sales to be in the range of $158 million to $166 million. For the third quarter of 2024, net sales are projected to be between $37 million and $40 million. ### Stock Price Movement The company’s stock experienced an increase of 5.87% following the earnings release. **Summarization:** Zevia PBC surpassed its revenue guidance for Q2 2024 but faced several challenges, including lower gross profit margins and increased net loss compared to the previous year. The company maintains a strong cash position and reaffirmed its guidance for the full year. Investor confidence appears to be positive, reflected in the stock price increase following the earnings announcement.