US: Reed’s losses narrow in 2009
Reed's reiterated guidance for 2010
US soft drinks maker Reed's saw its losses narrow in 2009 as a drop in costs offset a slight dip in sales.
For the fiscal year ended 31 December Reed’s made losses of US$2.6m, or 28 cents per share, compared with losses of $3.8m, or 43 cents per share, in 2008.
Sales dipped slightly to $15.2m from $15.3m in the prior year. Operating expenses declined 18%.
The firm didn’t announce fourth quarter profits or losses, but said sales rose 21% to $3.5m in the period.
Founder and CEO Chris Reed said the results reflect the firm’s “successful execution” of its strategy for 2009.
“We reduced our expenses, improved our margins and developed a number of new customer relationships that will have an increasing positive impact on our sales. While our sales were flat in 2009, we weathered the recession of 2008-2009 without decreases, which is far ahead of our competitors,” Reed said.
Earlier this month Reed’s made a $9.7m cash-and-stock offer for competitor Jones Soda, but Jones has since confirmed it is considering a bid from an unnamed second company.
Despite this, Reed’s reiterated its guidance for double-digit growth this year. It did not mention the Jones agreement.
“In 2010, we expect to continue to experience strong organic growth from our existing brands, new product lines, and increasing number of private label agreements. Our business is healthy and picking up momentum as we successfully execute on the initiatives we have defined. Therefore, we are reiterating our guidance for double-digit growth in 2010 as we explore new opportunities to build the company and increase shareholder value,” Reed said.
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