The following is a summary of the Splash Beverage Group, Inc. (SBEV) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Reported revenue of $1.05 million for Q2, significantly down from $5 million in the previous quarter.

• Net loss of $5.3 million, or $0.11 per share, compared with a loss of 13% in Q2 2023.

• Gross margin improved from 11% in Q1 to 23% in Q3, positively impacted by lower raw material costs. Despite limited liquidity, SG&A spending decreased by 9% from Q1 and 52% from Q2 of last year.

• EBITDA for the period was a loss of $2.6 million, an improvement of $300,000 from Q2 and half the loss of Q2 2023.

Business Progress:

• Despite inventory funding challenges, significant authorization expansions for Copa de Vino and Pulpoloco across multiple states and major retailers.

• Successful product launches and tests in key outlets like Walmart and Walgreens.

• Continued focus on efficient distribution networks and national marketing efforts.

Opportunities:

• Plans for launching e-commerce platform Qplash aiming for significant sales in 2025.

• Pulpoloco's expansion to Sea World parks and other entertainment venues, and Copa de Vino's expansion into convenience stores across several states.

• Strategic investment in building our team and focusing on an aggressive merger and acquisition strategy, leveraging capital structure improvements.

Risks:

• The sharp decline in revenue primarily due to liquidity constraints affecting inventory procurement.

• Dependency on strategic financing to alleviate liquidity concerns and fund operations, which if not managed, could affect further scalability.

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