NewAge, Inc. announced its third quarter financial results, including a 59% increase in revenue from the third quarter of 2020, totaling $100 million. Gross profit for the company also increased to $66 million, compared to $37 million during last year’s quarter. Gross margin was up 6.5 points, reaching 66.3% of net revenue and net income improved $11.4 million.
“We continue to build NewAge into a leading social selling machine, and I am encouraged by the operational progress we made during the quarter, setting us up well for the rest of the year and beyond,” said Brent Willis, Chief Executive Officer of NewAge. “This quarter we made investments in our systems, launched new products, and unveiled new social selling tools and technology, all of which are critical foundational components and will act as a springboard for growth. Our results in the third quarter for revenue, gross margin, net income and adjusted EBITDA all improved year over year, and we expect our future results to benefit substantially from all the actions we have taken in the quarter and earlier in the year.”
Selling, general and administrative expense for the third quarter totaled $39 million, or 39.2% of revenue, compared to 44.6% of revenue during the prior-year’s period. The company believes this SG&A boost is primarily due to the benefits of a growing business and elimination of redundant positions and offices.
Operating loss was $30.4 million for the quarter, a significant increase from the $13.1 million during the third quarter of 2020. Adjusted EBITDA improved $4 million to a loss of $4.4 million.
“Our healthy products portfolio is on trend and we continue to strengthen our offerings and our systems around the world, supported by a robust supply chain,” Willis said. “Our inventory levels and our D2C route to market help to alleviate many of the supply chain concerns plaguing the wider consumer goods market. We have a lot of confidence in our direct-to-consumer and social selling business model, and are excited as our proposition and financial results begin to unfold.”