NewAge, Inc. reported record financial results for the first quarter of 2021, nearly doubling net sales from the previous year’s quarter to $125.5 million, with a gross profit rise of 111 percent to $87.4 million. The acquisition of ARIIX had a major effect on these figures.
“We concentrated on converging ARIIX and driving organic growth within our direct/social sale division in the first quarter, which saw accelerated top and bottom-line results,” said Brent Willis, Chief Executive Officer.
“Our hundreds of thousands of unique global Brand Partners are leading this on-trend, direct-to-consumer path to market, disrupting the industry with our social selling technology.
In the third quarter, our direct/social selling sector saw a 128 percent rise in revenue year over year, fueled by record growth in Western Europe, Mexico, and the United States.”
The company’s net operating loss improved, and the $17.8 million loss was attributed to a non-cash loss related to the reduction in fair value of the derivative liability associated with the ARIIX acquisition.
“We believe we are well-positioned financially to undertake further market consolidation that will favor our shareholders, in addition to the double-digit organic growth we are experiencing,” Willis said.
“We have signed a letter of intent to acquire Aliven in Japan, which will help us maintain our momentum and quickly return positive EBITDA in this key market for NewAgE,” says the company. We assume that the NewAge Social Selling NetworkTM, combined with our direct route-to-consumer market, is the winning model in the consumer packaged goods (CPG) industry, given the global shift in consumer behavior. We intend to keep expanding the model through 2021, delivering further cost synergies from the ARIIX acquisition, and pursuing strategic acquisitions and partnership opportunities that will benefit all of our value-added stakeholders.”
The organization finished the first quarter with $102 million in cash on hand and $33 million in debt. For the first quarter, adjusted EBITDA was $2.9 million, compared to a negative $6.8 million in the same quarter last year”. Wills said.
“With differentiated health and wellness products and an on-trend direct route-to-market, led by an army of more than 400,000 micro-influencers and Brand Partners, we believe we are stronger and better positioned than we have ever been.”