The following is a summary of the Reed's, Inc. (REED) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Q2 2024 net sales were $11.9 million, a 19% increase from Q2 2023.

• Gross profit surged by 53% to $3.8 million with a gross margin increase of 720 basis points to 32.3%.

• The company reduced delivery and handling costs by 16%, decreasing to $1.4 million, and lowered OpEx margin by 460 basis points to 38% of net sales.

• Operating loss improved to $0.7 million with a modified EBITDA of $45,000, marking significant recovery from an EBITDA loss of $1.6 million in Q2 2023.

Business Progress:

• Implemented measures to stabilize inventory and enhance production through new co-packing partnerships.

• Launched optimization initiatives that improved gross margin, reduced operation expenses, and aided in strategic price repositioning.

• Expanded product distribution by adding new points of sale, launching products in large retailers like Costco and Walmart, and strengthened partnerships in the retail sector.

• Initiated new partnerships with Battle Copacking and DrinkPak to bolster production and distribution capabilities.

Opportunities:

• The launch of innovative beverage lines in 2025 with low sugar and calorie content catering to the 'better-for-you' market.

• Positive market reception and partnership interests for upcoming product launches across various channels.

Risks:

• No explicit risks detected.

More details: Reed's Inc IR

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