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First Quarter 2022 Gross Margin Increased 91% to Record $1.7 Million Driven by Operational Improvements
LOS ANGELES, CA / ACCESSWIRE / May 23, 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 first quarter ended March 31, 2022.
First Quarter 2022 Financial Highlights
Revenues in the first quarter of 2022 increased 43% to a record $10.4 million, compared to $7.3 million in the same year-ago quarter.
Gross profit in the first quarter of 2022 increased 91% to a record $1.7 million, compared to $0.9 million in the same year-ago quarter.
Gross profit margin was 16.2% in the first quarter of 2022, representing an improvement of 40 bps from the same year-ago quarter.
"We continue to see strong demand from our growing customer base, which allowed us to deliver another quarter of record revenues," said Shannon Masjedi, President and CEO of Pacific Ventures Group. "As we grow our sales channels to unlock new growth avenues, our strategy to generate operational efficiencies is also taking hold, as reflected by our notable year-over-year and sequential improvements in gross margin during the quarter. We are pleased to see our technology-based approach to enhancing our supply chain and distribution functions take effect, which will allow us to have greater flexibility in the quarters ahead. I look forward to the remainder of 2022, which is shaping up to be a breakout year for Pacific Ventures as we work diligently to generate long-term value for our stakeholders."
First Quarter 2022 Financial Results
Revenues in the first quarter of 2022 increased 43% to $10.4 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 the first quarter of 2022 increased 91% to $1.7 million, compared to $0.9 million in the same year-ago quarter. The resulting gross margin was 16.2% for the first quarter of 2022, an increase of 40 bps as compared to 12.2% for the same year-ago quarter.
Operating expenses in the first quarter of 2022 were $1.8 million, compared to $1.6 million in the same year-ago quarter. The increase in operating expense was due to an increase in operating activities.
Net loss in the first quarter of 2022 improved to $1.1 million, or $(0.03) per share, compared to net loss of $1.2 million, or $(0.07) per share in the same year-ago quarter.
The full text of the Company's Annual Report on Form 10-Q for the quarter ended March 31, 2022 was filed with the SEC on May 19, 2022 and can be found here.
About Pacific 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.
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