Organic beverage company New Age Beverages Corporation (NASDAQ: NBEV) reported net revenue growth of 404% year-over-year to $58.3 million for the first quarter of 2019.
Net loss narrowed to $1.6 million, or $0.02 per share, versus $2.7 million, or $0.07 per share, in the prior-year period, reflecting an improvement of 39%.
Despite the company missing market estimates for revenue and earnings, shares climbed over 4% in premarket hours on Thursday.
CEO Brent Willis said, ”We are pleased with our first quarter operating results, especially in light of the fact that we were in the midst of integrating Morinda into New Age. With our strengthened balance sheet and financial flexibility, we look to accelerate our business in the second half of 2019, buttressing our organic growth coming from the launch of our CBD portfolio, our brands now entering national distribution in the US, and a number of other initiatives launching in the second quarter and throughout the rest of the year.”
Gross profit increased 1,375% year-over-year to $38.6 million. Gross margin rose to 66% versus 23% in the prior year, mainly due to mix and the combination with Morinda which was completed in December.
EBITDA grew to $0.6 million compared to a loss of $2.1 million last year. The company significantly strengthened its balance sheet with $110 million in cash versus $42.5 million at year-end. Total assets were $349.5 million versus $286.9 million on December 31, 2018.
On Tuesday, New Age announced the national expansion of its Bucha Live Kombucha brand at participating 7-Eleven stores. Bucha Live Kombucha is the only major shelf-stable brand, with a 12-month shelf life that is an industry first.
According to data technology company, SPINS, Kombucha is the fastest-growing category among all non-alcoholic beverages, with a sales increase of 31.4% year-over-year in 2018 and household penetration growth of 20%.