NewAge, Inc. announced its fourth quarter and full-year financial results. The company reported its first positive adjusted EBITDA quarter in nearly two years, reaching $2.9 million. Fourth quarter results included a net revenue of $90.4 million.
“2020 was another transformative year for NewAge, whereby we reached nearly half a billion dollars in pro forma revenue and achieved positive adjusted EBITDA in the fourth quarter, and we believe we are just getting started,” said Brent Willis, Chief Executive Officer. “Beyond the scale and profitability benefits that came with ARIIX and the four other companies that merged with us in November, we significantly strengthened our management teams and execution capabilities, and as a result are seeing excellent organic growth momentum in 2021.”
In 2020, the company’s acquisition of ARIIX created nearly $500 million in pro forma revenue, while its divestitures, including BWR, eliminated more than $7 million in losses. The company strengthened its balance sheet through the beginning of 2021 with almost $100 million in cash. The company also identified $20 million in cost synergies and have captured more than half already.
“We believe our social selling focus and direct route-to-market is both pandemic and recession resilient, and we are beginning to see the benefits of our business model,” Willis said. “During the remainder of 2021 we will continue pursuing our key strategies of: converging with ARIIX and reducing costs, enhancing our social selling platform; driving organic growth by focusing on key geographic regions; and pursuing strategic acquisitions and collaboration opportunities that will drive value for all of our stakeholders.”
The company’s international expansion also continues, with the launch of Noni+CBD in Japan.
“We are seeing record growth in Western Europe, the U.S., and Mexico, and are now seeing resurgence in both China and Japan in Q1 2021,” Willis said. “The recently announced letter of intent to acquire Aliven in Japan, will add further momentum in this highly profitable core market for NewAge. We continue to make substantial progress on converging our companies and capturing cost synergies and are ahead of schedule on capturing our $20 million target. This will further add to the bottom line, on top of the benefits that accrue from the disposition of BWR.”