Reed’s has narrowed its net losses for the first quarter boosted by private label and branded product sales.
For the three months to the end of March, the firm made a net loss of US$273m compared to a net loss of $498m in the prior year period.
First quarter sales increased 17% to reach $4m, while EBITDA reached $172m from a loss of $159m in the comparable period of 2009.
“The first quarter is usually the weakest, but the fact that the company was EBITDA positive makes it clear to us that we have moved into profitability,” said company founder and CEO Chris Reed today (11 May). “Our strategic plans are unfolding and are boosted by the improving economy.”
He added: “In the first quarter, revenues from our existing brands provided a solid base while our new branded products and private label sales took us to a 17% sales increase over last year, with higher margins.”
In March, Reed’s signed a letter of intent to merge with Jones Soda, which was later terminated in order for Jones to explore an “unsolicited, nonbinding transaction proposal” submitted by a third party.
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