CBD Drink Maker New Age Beverages Trades Higher On Q4 Print
New Age Beverages Corp (NASDAQ: NBEV)'s shares opened higher Friday after the healthy beverage maker reported its fourth-quarter results.
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New Age Beverages recorded net revenue of $14 million in the quarter, up by 24 percent on the year, but slightly lower than the expected $14.6 million. The gross profit amounted to $3.22 million, an increase from $2.63 million a year earlier.
The Denver-based company posted an operating loss of $10.13 million and an adjusted EBITDA loss of $4.48 million, substantially wider than the previous year's operating loss of $4.87 million and adjusted EBIDA loss of $2.26 million.
New Age said the negative EBITDA was due to inventory impacts and the increased costs associated with the acquisition of Morinda in December.
New Age Beverages ended the year with $280 million in assets and $42 million in cash.
Why It's Important
New Age Beverages has a portfolio of healthy beverages, such as Bucha, Marley and Xing, all of which saw large organic growth last year.
As a company focused on healthy beverages, New Age took notice of the rising popularity of CBD last year and announced several lines of CBD-infused products, the latest of which will be released under the Bob Marley brand. Last year, it acquired Morinda, which allowed it to expand its reach to more than 60 countries.
In 2019, New Age Beverages said it expects to generate more than $320 million in net revenue and EBITDA over $15 million on the back of an expansion in national distribution of its brands in the U.S. and internationally.
The stock was trading up 4.32 percent to $5.44 at the time of publication Friday.
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