FY 2022 Financial Guidance and Outlook
Reed’s expects 2022 net sales to range between approximately $56-59 million, reflecting growth of approximately 13-19% from 2021. The Company also expects gross margin in 2022 to be approximately 25% compared to 27.4% in 2021.
Management remains committed to executing on cost savings initiatives to further reduce production and shipping costs, including prioritizing direct shipments, reducing raw material costs of cans and bottles, revisiting third-party logistics agreements, and optimizing distribution centers. These cost saving initiatives are calculated to result in improved modified EBITDA in fiscal 2022, with the Company turning modified EBITDA and cash flow positive in 2023.
