Zero-sugar beverages maker Zevia beats Q3 sales expectations

Reuters
Nov 06
Zero-sugar beverages maker Zevia beats Q3 sales expectations

Overview

  • Zevia Q3 net sales grow 12.3%, beating analysts' expectations

  • Adjusted EBITDA loss beats analyst estimates, reflecting strategic growth efforts

  • Company reports Q3 net loss of $2.8 mln, flat from last year

Outlook

  • Company expects Q4 net sales between $39.0 mln and $41.0 mln

  • Zevia projects 2025 net sales between $162 mln and $164 mln

  • Company anticipates Q4 adjusted EBITDA loss between $0.25 mln and $0.75 mln

Result Drivers

  • VOLUME GROWTH - Sales volume increased 12.6% driven by expanded distribution at Walmart and Club channel

  • PACKAGING REFRESH - Gross profit margin declined to 45.6% from 49.1% due to higher inventory losses from packaging refresh and tariffs

  • COST SAVINGS - Selling expenses decreased due to savings in warehousing and freight transfer costs from Productivity Initiative

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Beat

$40.84 mln

$39.33 mln (4 Analysts)

Q3 EPS

-$0.04

Q3 Adjusted EBITDA

Beat

-$1.72 mln

-$3.54 mln (4 Analysts)

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the non-alcoholic beverages peer group is "buy"

  • Wall Street's median 12-month price target for Zevia PBC is $5.00, about 53.8% above its November 4 closing price of $2.31

Press Release: ID:nBw83T5W2a

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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