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The Alkaline Water Company Reports Record Revenue of $19.6 Million in Second Quarter Fiscal 2023



$19.6 Million in Revenue Represents Year-Over-Year Growth of 28.3%

$5.7 Million Reduction in Operating Expenses, a 37% Year-over-Year Improvement

Company Identifies an Estimated $5 million in Additional Cost-Savings and Margin Enhancements, Now Approximately $20 Million Total

(All amounts are unaudited and in U.S. dollars)

SCOTTSDALE, Ariz.–(BUSINESS WIRE)–The Alkaline Water Company Inc. (NASDAQ and CSE: WTER) (the “Company”), the country’s largest independent alkaline water company and the Clean Beverage® company, today reported financial results for the quarter ending September 30, 2022. The Company reported record revenue of approximately $19.6 million, representing the best quarterly revenue in company history and 28.3% year-over-year growth. The Company filed the corresponding Form 10-Q with the SEC on November 14th, 2022, also available here:

“In our first full quarter since we announced our Pathway to Profitability, The Alkaline Water Company’s operating results show the significant progress we are already making toward our goal of profitability,” said Frank Lazaran, President and CEO of The Alkaline Water Company. “We’ve reported record revenue, our spending is down, and we are improving our gross margin, having regained almost 300 basis points over last quarter.

“We grew revenue 28.3% year-over-year, to a record $19.6 million while at the same time reducing operating expenses by $5.7 million. We reiterate our revenue guidance of $70 million. Due to our continued emphasis on executing our Pathway to Profitability strategy, we project our gross margins will be between 26% and 27% next quarter and 29% and 30% for the last quarter of the fiscal year which ends March 31, 2023. This would amount to a gross margin improvement of approximately 850 to 900 BPS over the course of the year.”

Second Quarter Fiscal 2023 Financial Highlights (all amounts in U.S. dollars) (unaudited):

  • Record revenue of $19.6 million, +28.3% year-over-year compared to $15.3 million
  • Gross Profit was $4.6 million, 23.7% of revenue, up 295 BPS sequentially over first quarter
  • Total Operating Expenses were $9.7 million, a 37% YoY improvement
  • Total Operating Loss was ($5.1 million), a 50% YoY improvement
  • Net Loss was ($8.4 Million), a $2 million YoY improvement
  • Net Loss Per Share of ($0.06) compared to ($0.11) in Q2 Fiscal 2022
  • Cash Position on September 30, 2022 was approximately $2.3 million

Complete results for the Company’s Second Quarter Fiscal Year 2023 have been filed on EDGAR at and on SEDAR under the Company’s profile on

Pathway to Profitability Update

The Company announced that an estimated $5 million in additional cost savings and margin enhancements have been identified. Total estimated savings, once fully implemented throughout fiscal years 2023 and 2024, are now approximately $20 million compared to fiscal year 2022.

“We have examined and reexamined the cost of every single component involved in the production and distribution of Alkaline88, and we are doing everything we can to become a more efficient company and rebuild our gross margin,” continued Mr. Lazaran. “Non-essential General and Administrative expenses remain frozen, saving us almost $2.7 million compared to last year and Sales and Marketing expenses were reduced more than $3 million from a year ago.

“Our total operating losses were reduced by over $5 million, a 50% improvement year-over-year. Our net loss improved by $2 million from prior year quarter to $8.4 million which included approximately $3.1 million, or $0.02 per share, in non-cash nonrecurring other expenses. We’ve made significant progress toward profitability in a very short time while increasing total revenue by 28.3% and continuing to grow the Alkaline88 brand.”

The Company provided additional details on measures taken as part of its Pathway to Profitability strategy:

  • Reduction in Freight and Shipping & Handling
    • Strengthened production and distribution network
    • Lower fuel prices in Q2 vs Q1
    • Renegotiated prices with primary transportation partners for up to $1 million in potential savings per year at current shipping volumes
    • Decreased less-than-full-truckload shipments to high-volume customers
    • Freight cost per case shipped in the second quarter was down approximately 20% year-over-year and 6% sequentially over last quarter
  • New Lower Prices for Raw Materials
    • Renegotiated lower prices with multiple raw material vendors, including bottles and packaging options
    • The Company will begin to see the benefit of newly negotiated lower prices on raw materials after more expensive existing inventory is sold through in Q3 and Q4
  • Inventory Reduction
    • Over $800,000 reduction in overall inventory in Q2, approximately $500,000 of which was raw materials
    • Goal to reduce overall inventory by $2 million by end of year
  • Financing
    • The Company has executed term sheets for $6-$7 million of nondilutive financing, anticipated to close by year end

Second Quarter Fiscal Year 2023 Key Business Highlights

The Company provided additional insight into the success of Alkaline88® at retail and its trajectory for continued growth as a brand within the Value-Added Water category.

  • Nielsen Data Shows Strong Growth at Retail (for xAOX+Conv. ending 10/08/2022)
    • Alkaline88® grew 36.6% year-over-year in retail sales for the trailing 52 weeks with sales totaling almost $90 million
    • Alkaline88’s growth rate outpaced the category’s by 2.8 times for the trailing 13 weeks
    • Alkaline88’s 13-week retail sales were over $26 million
  • New Stores
    • Alkaline88 has closed deals to add over 11,000 new locations to its retail footprint since the start of the calendar year
    • Second quarter additions include Dollar Tree, BJs Wholesale Club, AMPM, and Giant Eagle
  • SKU Expansion
    • Alkaline88 has closed deals to add new SKUs to existing clients in over 18,000 locations since the start of the calendar year
    • Second quarter additions include adding the Alkaline88 2-liter in Rite-Aid nationally and H-E-B in Texas.
  • Convenience Store Channel Growth
    • Alkaline88 is now a top-15 brand in the convenience channel by dollar volume according to 52-week Nielsen data
    • Cases shipped are up 2.5 times in the first half of fiscal year 2023 over the same period from the previous year
    • 12 states now have Direct-Store-Delivery coverage
    • Alkaline88’s weighted distribution of less than 5% is one-tenth the average of the larger brands in the channel, suggesting strong opportunity for continued growth

“Alkaline88 is the largest independent enhanced-water brand in the country,” continued Mr. Lazaran. “We are outpacing the competition and showing strong growth at retail as a growing brand in a growing beverage category, with products that consumers love. This continued success at retail combined with the clear improvements to our operating results make us very optimistic about the future of The Alkaline Water Company.”

Second Quarter Fiscal Year 2023 Conference Call

The Company will host a conference call Tuesday November 15th, at 8:30 AM Eastern Time.

Conference Call Details:

Date: November 15, 2022

Time: 8:30AM Eastern Time (ET)

Dial-in Number for U.S. and Canadian Callers: 877-407-3088

Dial-in Number for International Callers (Outside of the U.S. and Canada): 201-389-0927

Conference ID Number: 13734370

Participating on the call will be the Company’s President and CEO, Frank Lazaran, and Chief Financial Officer, David Guarino, who will discuss operational and financial highlights for the second quarter and the outlook for the second half of fiscal year 2023. They will be joined for the question-and-answer portion of the call by the Company’s Director of Sales and Operations, Frank Chessman.

To join the live conference call, please dial into the above-referenced telephone numbers five to ten minutes prior to the scheduled call time.

A replay will be available for one week starting on November 15th, 2022, at approximately 12:30 PM (ET). To access the replay, please dial 877-660-6853 in the U.S. or Canada and 201-612-7415 for international callers and use Access ID: 13734370

About The Alkaline Water Company:

The Alkaline Water Company is the Clean Beverage® company making a difference in the water you drink and the world we share.

Founded in 2012, The Alkaline Water Company (NASDAQ and CSE: WTER) is headquartered in Scottsdale, Arizona. Its flagship product, Alkaline88®, is a leading premier alkaline water brand available in bulk and single-serve sizes along with eco-friendly aluminum packaging options. With its innovative, state-of-the-art proprietary electrolysis process, Alkaline88® delivers perfect 8.8 pH alkaline drinking water with trace minerals and electrolytes and boasts our trademarked “Clean Beverage” label. In 2021, The Alkaline Water Company was pleased to welcome Shaquille O’Neal to its board of advisors and to serve as the celebrity brand ambassador for Alkaline88®.

To purchase The Alkaline Water Company’s products online, visit us at

To learn more about The Alkaline Water Company, please visit or connect with us on Facebook, Twitter, Instagram, or LinkedIn.

Notice Regarding Forward-Looking Statements

This news release contains “forward-looking statements.” Statements in this news release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the following: the statements relating to an estimated $5 million in additional cost-savings and margin enhancements, now approximately $20 million total (to be fully implemented throughout fiscal years 2023 and 2024) compared to fiscal year 2022; the statements relating to the Company’s pathway to profitability and the Company’s goal of profitability; the Company’s revenue guidance of $70 million; the Company’s projection that the Company’s gross margins will be between 26% and 27% next quarter and 29% and 30% for the last quarter of the fiscal year which ends March 31, 2023 and that this would amount to a gross margin improvement of approximately 850 to 900 BPS over the course of the year; that the Company is doing everything it can to become a more efficient company and rebuilding its gross margin; the statements relating to the Company’s pathway to profitability strategy, including up to $1 million in potential savings per year at current shipping volumes and goal to reduce overall inventory by $2 million by end of year; that the Company will begin to see the benefit of newly negotiated lower prices on raw materials after more expensive existing inventory is sold through in Q3 and Q4; the Company’s trajectory for continued growth as a brand within the Value-Added Water category; the statement regarding proposed $6-$7 million dollars of nondilutive financing, anticipated to close by year end; the statement relating to strong opportunity for continued growth in convenience store channel; and that the continued success at retail combined with the clear improvements to the Company’s operating results make the Company very optimistic about the future of The Alkaline Water Company.

The material assumptions supporting these forward-looking statements include, among others, that the Company’s cost-saving and margin enhancement measures will be fully implemented and, once implemented, they will be effective to reduce the Company’s annual expense and enhance the Company’s margin to the extent anticipated by the Company; that the Company’s burn rate to reach the level anticipated by the Company as a result of the Company’s proactive reduction in its monthly burn rate; that the demand for the Company’s products will continue to significantly grow; that the past production capacity of the Company’s co-packing facilities can be maintained or increased; that there will be increased production capacity through implementation of new production facilities, new co-packers and new technology; that there will be an increase in number of products available for sale to retailers and consumers; that there will be an expansion in geographical areas by national retailers carrying the Company’s products; that there will be an expansion into new national and regional grocery retailers; that there will be an expansion into new e-commerce, home delivery, convenience, and healthy food channels; that there will not be interruptions on production of the Company’s products; that there will not be a recall of products due to unintended contamination or other adverse events relating to the Company’s products; and that the Company will be able to obtain additional capital to meet the Company’s growing demand and satisfy the capital expenditure requirements needed to increase production and support sales activity. In addition, the Company’s fiscal year 2023 revenue guidance is based on the Company’s expectation that the Company’s topline to be driven by the momentum the Company is carrying forward as one of the fastest-growing top-ten brands in one of the fastest growing beverage categories; and the Company’s belief that the Company will continue to see continued organic growth within the Company’s existing retail clients and distribution expansion to new clients throughout the country. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, governmental regulations being implemented regarding the production and sale of alkaline water or any other products, including products containing hemp/CBD; the fact that consumers may not embrace and purchase any of the Company’s CBD-infused products; the fact that the Company may not be permitted by the FDA or other regulatory authority to market or sell any of its CBD-infused products; additional competitors selling alkaline water and enhanced water products in bulk containers reducing the Company’s sales; the fact that the Company does not own or operate any of its production facilities and that co-packers may not renew current agreements and/or not satisfy increased production quotas; the fact that the Company has a limited number of suppliers of its unique bulk bottles; the potential for supply-chain interruption due to factors beyond the Company’s control; the fact that there may be a recall of products due to unintended contamination; the inherent uncertainties associated with operating as an early stage company; changes in customer demand and the fact that consumers may not embrace enhanced water products as expected or at all; the extent to which the Company is successful in gaining new long-term relationships with new retailers and retaining existing relationships with retailers; the Company’s ability to raise the additional funding that it will need to continue to pursue its business, planned capital expansion and sales activity; competition in the industry in which the Company operates and market conditions; and the risk that the proposed $6-$7 million of nondilutive financing may not close by year end or at all. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by applicable law, including the securities laws of the United States and Canada. Although the Company believes that any beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Readers should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in the reports and other documents the Company files with the SEC, available at, and on the SEDAR, available at


The Alkaline Water Company Inc.
Jeff Wright

Director of Investor Relations


Jessica Starman


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Business Wire

Leafly Announces 2022 Cannabis Strain of the Year




Leafly’s team of world-class cannabis experts chose Jealousy, a hybrid strain first introduced in 2019, for its notable trajectory of growth year-over-year, reflecting its widespread popularity amongst consumers and cannabis growers

SEATTLE–(BUSINESS WIRE)–Leafly Holdings, Inc. (“Leafly”), one of the world’s leading cannabis discovery marketplaces and resources, today announced Jealousy, a hybrid strain that originates from the influential Southern California market, as the 2022 Leafly Strain of the Year.

Jealousy, a hybrid strain made by industry-leading cannabis breeder Seed Junky Genetics, is a cross of the wildly popular Sherbert with 2018 Leafly Strain of the Year Gelato. Jealousy was brought to market in 2019 by The Minntz, a Cookies and Seed Junky Genetics collaboration brand. The strain flew off the shelves in the influential Southern California market and the strain has seen an upward trajectory since, quickly earning a spot as a Top 100 strain on Leafly’s database of more than 6,000 cataloged cannabis strains.

Now in its 5th year, the Leafly Strain of the Year honors a cannabis strain that demonstrated unparalleled breakthrough market impact among the more than 6,000 strains in the Leafly strain database. Former Leafly Strain of the Year winners Runtz and Dosidos both now rank in the top 10 most popular cannabis strains in America and cannabis aficionados regard Leafly’s Strain of the Year as a kingmaker within the industry.

The velocity and trajectory of Jealousy demonstrates how the modern cannabis consumer is becoming more sophisticated and selective. According to David Downs, Leafly’s California Bureau Chief, purple-colored weed is on trend right now and Jealousy’s flower is dark purple all the way to black, with dapples of bright green.

“If your local dispensary has Jealousy in stock, it’s safe to say that they’re savvy to the connoisseur cannabis conversation in the US right now,” said Downs. “Cannabis breeders constantly create new strains to meet evolving consumer trends and future demand. Jealousy’s waves continue to reverberate. More than a dozen new, notable strains crossed with Jealousy capitalize on its lineage and prestige.”

Dominant in the terpene caryophyllene, commonly found in black pepper, cloves, cinnamon and of course, cannabis, Jealousy has a spicy aroma. Reviewers tell Leafly that Jealousy tastes earthy and funky and that the strain helps them feel mentally relaxed but physically energetic.

Advertisers cannot buy a Leafly Strain of the Year. Leafly’s award-winning experts follow emerging strains, analyzing year-over-year changes in strain page views, growth in menu-availability and orders placed.

Other deciding factors include how new or unique a strain is, as well as its pedigree. Leafly’s team scrutinizes the breeder, the strain’s effects, where it fits into the market and how widely available it is in adult-use states.

For additional information on Jealousy, visit here:

About the Leafly Strain of the Year

The Strain of the Year selection process requires thoughtful consideration and trend analysis. Each year, Leafly’s team of cannabis experts comb the industry looking for standout strains that demonstrate a velocity that trickles down into consumer demand. Since its inception in 2018, Leafly’s Strain of the Year has proved itself to be a kingmaker for cannabis strains, influencing consumer tastes, preferences and retailer’s wholesale purchasing decisions. Past selections for Leafly’s Strain of the Year include:

About Leafly

Leafly is the world’s online destination for cannabis, with more than 6,000 strains in its database, more than 3,000 store menus listed, and millions of monthly readers. helps millions of people discover cannabis each year. Our powerful tools help shoppers make informed purchasing decisions and empower cannabis businesses to attract and retain loyal customers through advertising and technology services. Learn more at or download the Leafly mobile app through Apple’s App Store or Google Play.


Callie Driehorst

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PAX Debuts New PAX Era Device and High Purity THC




Offers consumers the perfect blend of potency and flavor, at an accessible price

SAN FRANCISCO–(BUSINESS WIRE)–#PAXlifePAX, a leading global cannabis brand, today announced the launch of its latest cannabis experience—the all new PAX Era vaporizer device and High Purity THC pod, the fourth cannabis product to come to market from PAX this year. Designed to work perfectly together, the new Era lineup offers consumers more vapor and a new anti-clog feature, while PAX High Purity THC pods offer a high potency experience at the brand’s most accessible price point to date.

“We’re excited to continue to expand our cannabis offerings to better meet the needs and lifestyles of our customers, especially those who want the clean, high quality products PAX has staked its reputation on,” said Steven Jung, Chief Operating Officer at PAX. “In this case, we’re delivering a high performing closed-loop system, paired with our High Potency THC, to provide the perfect blend of unique flavors and potency at an accessible price.”


Building on more than a decade of innovation and industry leading standards, the newest device from PAX’s rechargeable closed-loop battery and pod system, PAX Era, has been re-engineered to heat faster and produce more vapor, delivering hits up to 50% bigger than previous generations. An intuitive new anti-clog feature works automatically to prevent clogs. PAX’s patented temperature control heats, and never burns, for consistent flavors and aromas from start-to-finish for every pod. All devices are backed by a 1-year limited warranty.

The lineup offers three vibrant new colorways, Ultra Pink, Ultra Blue, and Ultra Green, in addition to a classic Black, with a MSRP starting at $35. PAX Era devices are available to consumers on or through licensed retailers in 20 states, including Arizona, California, Colorado, Connecticut, Florida, Illinois, Louisiana, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New Mexico, Oklahoma, Oregon, Pennsylvania, Rhode Island, Utah and Washington.

PAX High Purity THC

PAX’s High Purity THC pods are California cannabis oil, sourced for purity and potency, enhanced with a blend of terpenes to bring out unique flavor and taste profiles. Available in six flavor-forward cultivars, including Limoncello Haze (Sativa), Strawberry Créme (Sativa), Berry Gelato (Hybrid), Forbidden Fruit (Hybrid), London Pound Cake (Indica), and GMO Cookies (Indica) each with 85%+ THC. All PAX pods are made with food grade materials and tested to medical standards, certified free from residual solvents, cutting agents, harmful heavy metals, toxins and contaminants. Available across California, PAX’s High Purity THC starts at $30 for 1G, providing the lowest-cost introduction to the PAX platform.

PAX is a leading global cannabis brand on a mission to enhance people’s lives through exceptional cannabis experiences. PAX’s curated set of pure, full-flavor products and award-winning devices make enjoying cannabis clean, simple and safe. For more than a decade, PAX has created high performance devices that deliver enduring quality through innovations in design and technology, and remain trusted by millions of consumers nationwide. The PAX brand believes in creating sustainable well-being and building opportunity through cannabis.

NOT FOR SALE TO MINORS. Final Bell Lic. No. C12-0000266-LIC. © 2022 PAX Labs, Inc. All Rights Reserved. PAX, X, and ERA are all trademarks of PAX Labs, Inc. Patents and Trademarks:


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Nabis Releases First Look at Wholesale Category Data to Support Brands Scaling In California’s Cannabis Market




Product-Specific and Regional Sales Data Now Exclusively Available for Nabis’ Partners to Identify Market Growth Opportunities in 2023

SAN FRANCISCO–(BUSINESS WIRE)–Nabis, the leading licensed cannabis wholesale platform in the world’s largest legal market, has released to its partners a first look at its proprietary wholesale category data across flower, vape, concentrates, prerolls, edibles and personal care. These metrics shed light on both the consumer demand and financial health of California’s industry in the second half of 2022 with a look at live gross annual sales for each category, as well as the top selling markets across the state.

“We’ve never done this before and wholesale distributors are typically incentivized to keep this information private,” said Brian Dewey, Head of Business Development at Nabis. “In today’s cannabis climate, any market knowledge that companies can leverage to support their portfolio and ensure they make profitable business decisions is paramount to their success. We’re thrilled to be sharing our initial wholesale category findings, and hope it will help direct strategies as we head into the new year.”

Currently, Nabis provides its brand partners real-time access to retailer credit scores and analytics related to their business such as category and SKU performance, market saturation by territories and retailers to target. As part of its mission to revolutionize the cannabis supply chain, Nabis now tracks an additional range of market-specific data and trends to further provide its network with a comprehensive look into the state of the market through its data-driven insights.

For example, the market share by category from June-November 2022 across Nabis’ ecosystem in California dispensaries ranks as follows:

  • Vape is the highest selling product category at 38%
  • Flower is second at 21%
  • Prerolls are third at 17%
  • Concentrates are fourth at 11%
  • Edibles are fifth at 9%
  • Personal Care is sixth at 3%

Beyond overall sales and metrics such as product discount levels, extended terms variability and seasonality on products, the new wholesale data reflects geographic trends across California. Los Angeles, for example, is the top selling market for all categories across the state, followed by Sacramento and San Francisco.

Unlike similar platforms, Nabis’ closed loop system, combined with its robust logistical services, enables immediate wholesale data insights to be captured from the entirety of each brands’ sale cycle. With visibility into growth opportunities and market trends in every category and subcategory level, new and established businesses alike have the opportunity to identify sales gaps and targets in order to retain control amidst California’s rapidly evolving, and oftentimes unpredictable market.

“Knowing which areas in the state offer opportunities for product innovation is critical for cannabis brands,” said Dewey. “Without it, brands are essentially in the dark and forced to experiment with their sales strategies, which can be costly and counterproductive.”

These industry-specific insights are now available to current brand partners as an additional feature to Nabis’ services. The company plans to build out and integrate the formalized wholesale category data into its platform for real-time utilization in 2023.

For more information, please visit

About Nabis

Nabis is the #1 licensed cannabis wholesaling platform in California, supporting over 250 exclusive brands and supplying the entire network of state-licensed dispensaries with top-tier products. Nabis offers clients lightning-fast fulfillment, warehousing, payment processing, financing, data analytics, sales and marketing services to enable more brands and retailers to innovate, launch and scale. Founded in 2018 by serial tech entrepreneurs Vince C. Ning and Jun S. Lee, Nabis is fueled by cutting-edge technology designed to support cannabis wholesaling between brands and retailers. Nabis works directly with its partners to streamline the regulated cannabis wholesaling process by leveraging actionable, industry-leading sales data and insights to help brands and retailers scale strategically. Learn more:


Molly Sposato

Grasslands: A Journalism-Minded Agency

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