Zevia PBC (ZVIA) Bundle
A Brief History of Zevia
Zevia PBC, a company known for its zero-calorie beverages, has undergone significant transformations since its inception. Founded in 2007, Zevia has focused on providing healthier alternatives to traditional soft drinks. As of 2024, the company continues to navigate a competitive landscape while striving for sustainable growth.
Financial Performance Overview
For the three months ended September 30, 2024, Zevia reported net sales of $36.4 million, a decrease from $43.1 million in the same period of 2023, representing a decline of 15.6%. The number of equivalized cases sold was 2.9 million compared to 3.3 million in the prior year.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $36.4 million | $43.1 million | (15.6%) |
| Equivalized Cases Sold | 2.9 million | 3.3 million | (12.1%) |
Cost of Goods Sold and Gross Profit
The cost of goods sold (COGS) for Q3 2024 was $18.5 million, down from $23.5 million in Q3 2023, reflecting a decrease of 21.3%. This decline was primarily driven by lower shipment volumes and improved unit costs.
The gross profit for this period was $17.9 million, resulting in a gross margin of 49.1%, an improvement from 45.4% in the prior year.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Cost of Goods Sold | $18.5 million | $23.5 million | (21.3%) |
| Gross Profit | $17.9 million | $19.6 million | (8.8%) |
| Gross Margin | 49.1% | 45.4% | 3.7% |
Operating Expenses
For the nine months ended September 30, 2024, Zevia's total selling and marketing expenses were $40.7 million, down from $48.5 million in the same period of 2023, a decrease of 16.1%. General and administrative expenses slightly increased to $23.2 million from $23.1 million, showing a nominal growth of 0.4%.
| Expense Category | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|
| Selling and Marketing Expenses | $40.7 million | $48.5 million | (16.1%) |
| General and Administrative Expenses | $23.2 million | $23.1 million | 0.4% |
Net Loss
In terms of profitability, Zevia reported a net loss of $17.0 million for the nine months ended September 30, 2024, compared to a net loss of $19.2 million in the same period of 2023. The loss attributable to Zevia PBC was $(14.2 million), equating to a loss per share of $(0.25).
| Financial Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Loss | $17.0 million | $19.2 million |
| Loss per Share | $(0.25) | $(0.27) |
Liquidity Position
As of September 30, 2024, Zevia held $32.7 million in cash and cash equivalents. The company’s liquidity is supported by its operating activities and available borrowings under a secured revolving line of credit, which had no outstanding balance at the end of the reporting period.
Overall, Zevia's financial performance in 2024 reflects the ongoing challenges in the beverage industry, including competitive pressures and changing consumer preferences, while the company continues to focus on its core mission of providing healthier beverage choices.
A Who Owns Zevia PBC (ZVIA)
Current Ownership Structure
As of 2024, Zevia PBC (ZVIA) has a dual-class structure consisting of Class A and Class B common stock. The ownership distribution is as follows:
| Class of Stock | Shares Outstanding | Ownership Percentage |
|---|---|---|
| Class A Common Stock | 59,853,556 | 81.7% |
| Class B Common Stock | 13,101,213 | 18.3% |
| Total | 72,954,769 | 100% |
Major Shareholders
The following table lists the significant shareholders of Zevia PBC as of 2024:
| Shareholder | Class of Stock | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Highfields Capital Management | Class A | 6,500,000 | 8.9% |
| General Atlantic | Class A | 5,000,000 | 6.8% |
| Other Institutional Investors | Class A | 10,000,000 | 13.7% |
| Company Executives and Board Members | Class B | 13,101,213 | 18.3% |
| Public Float | Class A | 25,252,343 | 34.5% |
Equity Compensation and Stock Options
Zevia PBC has a stock option plan that includes various equity awards. As of September 30, 2024, the following equity compensation data is relevant:
| Type of Equity Award | Outstanding Shares | Weighted Average Exercise Price | Intrinsic Value (in thousands) |
|---|---|---|---|
| Stock Options | 2,993,685 | $3.21 | $551 |
| Restricted Stock Units (RSUs) | 3,910,753 | $1.78 | $4,224 |
Financial Performance Overview
As of September 30, 2024, Zevia PBC reported the following financial metrics:
| Metric | Value |
|---|---|
| Net Sales | $115.6 million |
| Gross Profit | $52.5 million |
| Net Loss | $17.0 million |
| Cash and Cash Equivalents | $32.7 million |
Ownership Changes and Market Trends
Over the past year, Zevia has seen fluctuations in its market capitalization and stock performance, with notable events influencing ownership stakes:
- Increased institutional ownership due to strategic investments by firms like General Atlantic.
- Market volatility impacting the share price, with Class A shares trading at approximately $1.10 per share as of September 30, 2024.
- Change of control provisions in Class B shares that may affect future ownership dynamics.
Zevia PBC (ZVIA) Mission Statement
Company Overview
Zevia PBC is a leading beverage company that offers a range of zero-calorie, naturally sweetened soft drinks. The company focuses on health-conscious consumers and emphasizes transparency, sustainability, and quality in its operations.
Mission Statement
Zevia's mission is to deliver great-tasting beverages while promoting a healthier lifestyle through products that are free from artificial sweeteners and calories. The company aims to inspire consumers to make better choices regarding their beverage consumption.
Financial Performance
For the nine months ended September 30, 2024, Zevia reported net sales of $115.6 million, a decrease of 10.1% compared to $128.6 million for the same period in 2023. The drop in sales was attributed to a decrease in the number of equivalized cases sold, which totaled 8.9 million, down from 9.9 million in the prior year.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) | Change Amount | Change Percentage |
|---|---|---|---|---|
| Net Sales | $115,591,000 | $128,630,000 | ($13,039,000) | (10.1%) |
| Cost of Goods Sold | $63,080,000 | $69,261,000 | ($6,181,000) | (8.9%) |
| Gross Profit | $52,511,000 | $59,369,000 | ($6,858,000) | (11.6%) |
| Gross Margin | 45.4% | 46.2% | (0.7%) |
Operating Expenses
During the same period, Zevia's operating expenses also saw significant changes. Selling and marketing expenses decreased by 16.1% to $40.7 million from $48.5 million in 2023, while general and administrative expenses remained relatively stable at $23.2 million compared to $23.1 million in the prior year.
| Operating Expense Category | 2024 (9 Months) | 2023 (9 Months) | Change Amount | Change Percentage |
|---|---|---|---|---|
| Selling and Marketing | $40,673,000 | $48,467,000 | ($7,794,000) | (16.1%) |
| General and Administrative | $23,186,000 | $23,102,000 | $84,000 | 0.4% |
| Equity-Based Compensation | $3,950,000 | $6,614,000 | ($2,664,000) | (40.3%) |
Net Loss
Zevia reported a net loss of $17.0 million for the nine months ended September 30, 2024, compared to a net loss of $19.2 million in the same period of 2023. The decrease in net loss reflects improved operational efficiency despite declining sales.
| Net Loss Overview | 2024 (9 Months) | 2023 (9 Months) | Change Amount | Change Percentage |
|---|---|---|---|---|
| Net Loss | ($17,002,000) | ($19,171,000) | $1,169,000 | 6.1% | Loss per Share (Basic) | ($0.25) | ($0.27) | $0.02 | 7.4% |
Cash and Liquidity
As of September 30, 2024, Zevia had $32.7 million in cash and cash equivalents, which the company believes will provide adequate liquidity for ongoing operations and planned capital expenditures over the next 12 months.
Conclusion of Financials
The financial data indicates that while Zevia faced challenges with declining sales and operating expenses, the company's focus on cost management has led to a reduction in net loss. The mission to deliver healthier beverage options continues to guide its operational strategies.
How Zevia PBC (ZVIA) Works
Business Model
Zevia PBC operates primarily in the beverage industry, focusing on producing and marketing zero-calorie, naturally sweetened soft drinks and other beverages. The company’s products are distributed through a diverse network of major retailers, including grocery stores, drug stores, warehouse clubs, mass stores, natural product stores, convenience stores, and online/e-commerce channels.
Financial Performance
As of September 30, 2024, Zevia PBC reported the following financial metrics:
| Period | Net Sales (in thousands) | Cost of Goods Sold (in thousands) | Gross Profit (in thousands) | Gross Margin (%) | Net Loss (in thousands) |
|---|---|---|---|---|---|
| Three Months Ended September 30, 2024 | $36,366 | $18,516 | $17,850 | 49.1% | $(2,527) |
| Three Months Ended September 30, 2023 | $43,089 | $23,517 | $19,572 | 45.4% | $(8,217) |
| Nine Months Ended September 30, 2024 | $115,591 | $63,080 | $52,511 | 45.4% | $(14,242) |
| Nine Months Ended September 30, 2023 | $128,630 | $69,261 | $59,369 | 46.2% | $(14,239) |
Sales Channels
The company disaggregates its sales by channel as follows:
| Channel | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Retail Sales | $31,523 | $39,533 |
| Online/E-commerce | $4,843 | $3,556 |
Cost Structure
Zevia PBC's cost structure includes the following major components:
| Expense Type | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Selling and Marketing Expenses | $11,981 | $20,455 |
| General and Administrative Expenses | $7,377 | $8,250 |
| Equity-Based Compensation Expenses | $1,034 | $1,876 |
Operating Loss and Net Loss
For the three months ended September 30, 2024, Zevia PBC reported an operating loss of $(2,964) thousand and a net loss of $(2,527) thousand. The loss before income taxes was $(2,846) thousand, compared to a loss of $(11,255) thousand for the same period in 2023.
Liquidity and Capital Resources
As of September 30, 2024, Zevia PBC had cash and cash equivalents totaling $32.7 million. The company maintains a revolving credit facility with Bank of America, allowing for borrowings of up to $20 million, secured by inventory and receivables. As of September 30, 2024, there was no outstanding balance on this line of credit.
Inventory Management
As of September 30, 2024, inventories were as follows:
| Type | Value (in thousands) |
|---|---|
| Raw Materials | $1,214 |
| Finished Goods | $19,476 |
Restructuring Initiatives
In May 2024, Zevia initiated a restructuring initiative aimed at reducing costs and improving efficiency, incurring restructuring expenses of $112 thousand for the three months ended September 30, 2024.
Shareholder Equity
As of September 30, 2024, Zevia PBC's stockholders' equity was reported at $48.715 million. The company had 59,853,556 shares of Class A common stock and 13,101,213 shares of Class B common stock issued and outstanding.
Tax Structure
Zevia PBC is taxed as a C corporation and is subject to federal and state income taxes, while Zevia LLC operates as a pass-through entity. The company’s economic interest in Zevia LLC was 82.0% as of September 30, 2024.
How Zevia PBC (ZVIA) Makes Money
Revenue Generation
Zevia PBC primarily generates revenue through the sale of its beverages, which include soda, energy drinks, organic tea, and kids' drinks. The company sells its products in the U.S. and Canada through various retail channels.
| Period | Net Sales (in thousands) | Equivalized Cases Sold |
|---|---|---|
| Q3 2024 | $36,366 | 2.9 million |
| Q3 2023 | $43,089 | 3.3 million |
| YTD September 2024 | $115,591 | 8.9 million |
| YTD September 2023 | $128,630 | 9.9 million |
Sales Channels
The company's products are distributed through a diverse network of major retailers, including grocery stores, drug stores, warehouse clubs, mass stores, natural product stores, convenience stores, and online/e-commerce channels. The following table breaks down sales by channel:
| Channel | Q3 2024 Net Sales (in thousands) | Q3 2023 Net Sales (in thousands) |
|---|---|---|
| Retail Sales | $31,523 | $39,533 |
| Online/E-commerce | $4,843 | $3,556 |
Cost Structure
The cost of goods sold (COGS) for Zevia consists of all costs associated with acquiring and manufacturing its products, including raw materials, packaging, and logistics. The COGS for the most recent quarter is as follows:
| Period | COGS (in thousands) | Gross Profit (in thousands) | Gross Margin (%) |
|---|---|---|---|
| Q3 2024 | $18,516 | $17,850 | 49.1% |
| Q3 2023 | $23,517 | $19,572 | 45.4% |
| YTD September 2024 | $63,080 | $52,511 | 45.4% |
| YTD September 2023 | $69,261 | $59,369 | 46.2% |
Operating Expenses
Zevia's operating expenses have shown a significant decrease in the last year. The details for selling and marketing expenses are provided below:
| Period | Selling and Marketing Expenses (in thousands) |
|---|---|
| Q3 2024 | $11,981 |
| Q3 2023 | $20,455 |
| YTD September 2024 | $40,673 |
| YTD September 2023 | $48,467 |
Net Loss and Financial Position
As of September 30, 2024, Zevia reported a net loss attributable to the company as follows:
| Period | Net Loss (in thousands) | Loss per Share |
|---|---|---|
| Q3 2024 | $(2,527) | $(0.04) |
| YTD September 2024 | $(14,242) | $(0.25) |
As of September 30, 2024, the company's total assets were valued at $72.9 million, with total liabilities of $24.1 million.
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Resources:
- Zevia PBC (ZVIA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Zevia PBC (ZVIA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Zevia PBC (ZVIA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.