The company’s top 10 branded SKUs, which drive almost 70% of its business, grew more than 24% in 2011. Overall, gross profit of 30% remained the same vs. 2010, despite cost increase pressures in 2011.
Sales and marketing costs increased by 7%, to $2.5 million in 2011. As a percentage of revenues, selling and marketing costs decreased to 10% in 2011, compared to 11% in 2010.
General and administrative expenses, before one-time charges of $327,000, decreased by approximately 7% in 2011, as compared to 2010. Earnings before non-cash items and finance costs (modified EBITDA) increased 83% to $834,000 during 2011, as compared to $456,000 in the prior year period.
Net loss for 2011 decreased 28% to $941,000, or $0.09 per share, compared to a loss of $1,310,000 a year earlier. Working capital as of December 31, 2011 increased 44% to $2.6 million, as compared to $1.8 million at December 31, 2010.
"Our multi-front strategies for increasing revenues are paying off," stated Chris Reed, founder, chairman and CEO of Reed's Inc. "We are taking bold steps to capitalize on our many capabilities and to introduce new products and extend the reach of our great brands."
"Our business is accelerating, and all systems are firing," stated James Linesch, Reed's chief financial officer. "Our sales and distribution network is expanding, our production capabilities are increasing and improving, and we have a great pipeline of new products. 2012 will be a pivotal year for our company."
From the March 28, 2012, Prepared Foods’ Daily Update