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2021 Gross Profit Increased 45% to Record $4.9 Million
LOS ANGELES, CA / ACCESSWIRE / May 2, 2022 / Pacific Ventures Group, Inc. (OTC PINK:PACV) ("Pacific Ventures" or the "Company"), a consumer-centric holding company specializing in the distribution of food, beverage and alcohol-related products, provided financial results for the fourth quarter and full year ended December 31, 2021.
Fourth Quarter and Full Year 2021 Financial Highlights
Revenues in 2021 increased 39% to a record $42.0 million, compared to $30.2 million in 2020. Revenues in the fourth quarter of 2021 increased 58% to a record $11.5 million, compared to $7.3 million in the same year-ago quarter.
Gross profit in 2021 increased 45% to a record $4.9 million, compared to $3.4 million in 2020. Gross profit in the fourth quarter of 2021 increased 55% to $1.3 million, compared to $0.9 million in the same year-ago quarter.
Gross profit margin was 11.6% in 2021, representing an improvement of 45 bps from 2020.
"Our record revenues of $42 million in 2021 were directly attributed to our ability to meet increased demand from our existing customers while growing our sales channels," said Shannon Masjedi, President and CEO of Pacific Ventures Group. "The strategic steps that we have taken to create efficiencies in our operating segments have positioned our company for continued expansion into 2022, with the restaurant sector now having fully recovered from pre-pandemic sales volumes. As we look forward, we are focused on leveraging cutting-edge technology to optimize processing, production, and distribution while realizing cross-selling synergies across our businesses. We are also continuing to employ an opportunistic approach to our growth strategy and maintain a robust pipeline of attractive acquisition candidates. I would like to thank our loyal customers and employees for their dedication as we work diligently to become a leading food and beverage distributor and ultimately create sustainable, long-term value for our stakeholders."
Fourth Quarter and Full Year 2021 Financial Results
Revenues in 2021 increased 39% to $42.0 million, compared to $30.2 million in 2020. Revenues in the fourth quarter of 2021 increased 58% to $11.5 million, compared to $7.3 million in the same year-ago quarter. The significant increase in revenue was primarily the result of marked increase in demand for our products.
Gross profit in 2021 increased 45% to a record $4.9 million, compared to $3.4 million in 2020. Gross profit in the fourth quarter of 2021 increased 55% to $1.3 million, as compared to $0.9 million in the same year-ago quarter. The increase in gross profit margins was primarily due to decreased cost of goods sold per dollar of revenue earned.
Operating expenses in 2021 were $8.3 million in 2021, as compared to $7.0 million in 2020. Operating expenses in the fourth quarter of 2021 were $2.1 million, as compared to $1.9 million in the same year-ago quarter. The increase in operating expense was primarily driven by increased SG&A, marketing fees and professional fees in 2021.
Net loss in 2021 improved to $5.6 million, or $(0.18) per share, as compared to net loss of $5.7 million, or $(0.35) per share in 2020. Net loss in the fourth quarter of 2021 improved to $1.0 million, as compared to a net loss of $2.0 million in the same year-ago quarter.
The full text of the Company's Annual Report on Form 10-K for the year ended December 31, 2021 was filed with the SEC on April 11, 2022 and can be found here.
AboutPacific Ventures Group, Inc.
Pacific Ventures Group, Inc. (OTC:PACV) is a consumer-centric distribution company focused on food, beverage, and alcohol-related products. Through its portfolio of operating subsidiaries, Pacific Ventures delivers specialty groceries, top quality proteins and produce, and innovative products to consumers through wholesale, retail, and direct-to-consumer channels. For more information on Pacific Ventures Group, please visit www.pacvgroup.com.
Forward Looking Statements
This press release contains "forward-looking statements." Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) market acceptance of our existing and new products, (ii) delays in bringing products to key markets, (iii) an inability to secure regulatory approvals for the ability to sell our products in certain markets, (iv) intense competition in the industry from much larger, multinational companies, (v) product liability claims, (vi) product malfunctions, (vii) our limited manufacturing capabilities and reliance on subcontractors for assistance, (viii) our efforts to successfully obtain and maintain intellectual property protection covering our products, which may not be successful, (ix) our reliance on single suppliers for certain product components, (x) the fact that we will need to raise additional capital to meet our business requirements in the future and that such capital raising may be costly, dilutive or difficult to obtain and (xi) the fact that we conduct business in multiple foreign jurisdictions, exposing us to foreign currency exchange rate fluctuations, logistical and communications challenges, burdens and costs of compliance with foreign laws and political and economic instability in each jurisdiction. More detailed information about the Company and the risk factors that may affect the realization of forward looking statements is set forth in the Company's filings with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
SOURCE: Pacific Ventures Group, Inc.