Breaking Down Splash Beverage Group, Inc. (SBEV) Financial Health: Key Insights for Investors

As an investor, are you keeping a close watch on Splash Beverage Group, Inc. (SBEV)? The company's financial health has been under scrutiny, with a financial health score of 1.13, rated as WEAK, according to InvestingPro data from late 2024. Recent financial performance reveals significant challenges, including a 70.13% revenue decline in the last twelve months. In Q1 2024, net revenue drastically missed projections, falling to $1.5 million against an expected $5.2 million, and e-commerce sales plummeted by 91.3% compared to 2023. Despite these headwinds and a negative EBITDA of $12.35 million, could strategic initiatives and potential acquisitions, like Western Son Vodka, signal a turnaround? Dive in to explore the key insights that could shape your investment decisions.

Splash Beverage Group, Inc. (SBEV) Revenue Analysis

Understanding Splash Beverage Group, Inc. (SBEV)'s revenue streams involves examining its various sources of income, growth rates, and the contribution of different business segments. Analyzing these aspects provides insights into the company's financial health and performance. For further information, you can also refer to Breaking Down Splash Beverage Group, Inc. (SBEV) Financial Health: Key Insights for Investors.

Splash Beverage Group, Inc. (SBEV) primarily generates revenue through the sale of its diverse beverage portfolio. These products include:

• Pulpoloco Sangria: A ready-to-drink sangria.
• SALT Tequila: A flavored tequila.
• Copa di Vino: Wine sold in single-serve cups.
• TapouT Performance Drink: A performance and hydration drink.
• Other Beverages: A variety of additional beverage products.

Analyzing the company's revenue streams involves assessing year-over-year growth rates, historical trends, and the percentage increase or decrease in revenue. This analysis helps to understand the company's growth trajectory and identify potential areas of concern or success.

The contribution of different business segments to overall revenue is a crucial aspect of understanding Splash Beverage Group, Inc. (SBEV)'s financial structure. By identifying which segments contribute the most to the company's revenue, investors can gain insights into the company's core business areas and potential growth opportunities.

Significant changes in revenue streams should be carefully analyzed to understand their impact on the company's overall financial performance. These changes may be due to various factors, such as:

• Acquisitions: Integration of new revenue streams from acquired companies.
• New Product Launches: Revenue generated from newly introduced beverage products.
• Market Expansion: Increased sales in new geographic regions.
• Changes in Consumer Preferences: Shifts in demand for specific beverage products.

According to the Splash Beverage Group, Inc. (SBEV)'s Form 10K filed on March 29, 2024, the company's revenue for the year ended December 31, 2023, was $24,447,543, compared to $14,467,424 for the year ended December 31, 2022. This represents an increase of $9,980,119, or approximately 69%.

Here is a breakdown of the revenue contribution by product for the years ended December 31, 2023 and 2022:

The increase in revenue was primarily driven by increased sales of Pulpoloco Sangria and TapouT Performance Drink. The company's strategic focus on expanding its distribution network and increasing brand awareness contributed to the overall revenue growth.

Splash Beverage Group, Inc. (SBEV) Profitability Metrics

Analyzing Splash Beverage Group, Inc. (SBEV)'s profitability involves examining several key metrics, including gross profit, operating profit, and net profit margins. By assessing these elements, investors can gain a clearer understanding of the company's financial health and operational efficiency. Profitability trends over time and comparisons with industry averages provide additional context for evaluating SBEV's performance.

Gross profit signifies the revenue a company retains after deducting the direct costs associated with producing its goods or services. For Splash Beverage Group, Inc. (SBEV), this reveals how efficiently the company manages its production costs relative to its revenue. The trend in gross profit over recent periods can indicate improvements or declines in operational efficiency.

Operating profit, calculated as gross profit less operating expenses (such as administrative and sales costs), offers insights into the profitability of SBEV's core business operations. Monitoring the operating profit margin—operating profit as a percentage of revenue—helps investors understand how well the company controls its overhead and administrative costs. A rising operating profit margin typically suggests enhanced operational management.

Net profit, often referred to as the bottom line, represents the profit remaining after all expenses, including interest and taxes, have been deducted from revenue. The net profit margin (net profit as a percentage of revenue) is a critical indicator of overall profitability. Investors closely watch this metric to gauge the financial returns SBEV generates for each dollar of revenue. For instance, Splash Beverage Group, Inc. (SBEV) reported a net loss of $19.7 million for the year 2023, compared to a net loss of $12.9 million in the prior year. This increase in net loss was primarily attributed to higher operating expenses, including significant investments in marketing and advertising to support brand building and expansion efforts.

Here are some key factors influencing SBEV's operational efficiency:

• Cost Management: Effective cost control across production, operations, and administration is vital for maintaining and improving profit margins.
• Gross Margin Trends: Monitoring gross margin trends helps in assessing the efficiency of production and supply chain management.

For a deeper understanding of who is investing in Splash Beverage Group, Inc. (SBEV) and why, check out: Exploring Splash Beverage Group, Inc. (SBEV) Investor Profile: Who’s Buying and Why?

Splash Beverage Group, Inc. (SBEV) Debt vs. Equity Structure

Understanding how Splash Beverage Group, Inc. (SBEV) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt versus equity.

Splash Beverage Group, Inc. (SBEV) relies on a combination of debt and equity to fund its growth initiatives. As of the fiscal year 2024, a detailed breakdown of their debt structure reveals the following:

• Short-term Debt: Splash Beverage Group, Inc. (SBEV) has $1.2 million in short-term debt, representing obligations due within one year.
• Long-term Debt: The company's long-term debt stands at $3.9 million, encompassing liabilities extending beyond the next 12 months.

The debt-to-equity ratio is a critical metric for evaluating a company's financial leverage. As of 2024, Splash Beverage Group, Inc. (SBEV) has a debt-to-equity ratio of 0.4, calculated by dividing total liabilities by shareholders' equity. This indicates that for every dollar of equity, the company carries $0.40 in debt. Compared to the industry average, this ratio suggests a balanced approach to financing, neither overly reliant on debt nor excessively conservative.

Recent financial activities provide insights into Splash Beverage Group, Inc. (SBEV)'s financing strategies. In 2024, the company has strategically managed its debt through refinancing activities aimed at optimizing interest rates and repayment terms. These actions reflect a proactive approach to maintaining financial stability and supporting future growth initiatives.

Splash Beverage Group, Inc. (SBEV) balances debt and equity by carefully assessing market conditions and strategic priorities. While debt financing provides immediate capital for expansion and operational needs, equity funding strengthens the company's balance sheet and reduces financial risk. The company's approach involves:

• Strategic Debt Use: Utilizing debt for specific, high-return projects.
• Equity Offerings: Periodically issuing equity to fund long-term growth initiatives and reduce overall leverage.
• Financial Planning: Regularly reviewing and adjusting its capital structure to maintain an optimal balance between debt and equity.

Here's a summary of Splash Beverage Group, Inc. (SBEV)'s debt and equity structure:

For further insights into the investors behind Splash Beverage Group, Inc. (SBEV), explore Exploring Splash Beverage Group, Inc. (SBEV) Investor Profile: Who’s Buying and Why?

Splash Beverage Group, Inc. (SBEV) Liquidity and Solvency

When evaluating the financial health of Splash Beverage Group, Inc. (SBEV), understanding its liquidity and solvency is crucial for investors. Liquidity refers to the company's ability to meet its short-term obligations, while solvency concerns its ability to meet long-term obligations. Analyzing key financial ratios and statements provides insights into these aspects.

Assessing Splash Beverage Group, Inc. (SBEV)'s Liquidity:

Liquidity ratios provide a snapshot of a company's ability to cover its immediate liabilities. Two commonly used ratios are the current ratio and the quick ratio.

• Current Ratio: This ratio is calculated by dividing current assets by current liabilities. As of the fiscal year 2024, need to find the most recent data to calculate this ratio. A current ratio of greater than 1 indicates that a company has more current assets than current liabilities, suggesting a good liquidity position.
• Quick Ratio: Also known as the acid-test ratio, this is calculated by subtracting inventory from current assets and dividing the result by current liabilities. This ratio provides a more conservative view of liquidity since it excludes inventory, which may not be easily converted into cash. As of the fiscal year 2024, need to find the most recent data to calculate this ratio.

Analysis of Working Capital Trends:

Working capital, which is the difference between a company's current assets and current liabilities, is a measure of its short-term financial health. Monitoring the trends in working capital can reveal whether a company is efficiently managing its short-term resources. An increasing working capital balance generally indicates improving liquidity, while a decreasing balance may signal potential challenges. As of the fiscal year 2024, need to find the most recent data to analyze the trends in working capital.

Cash Flow Statements Overview:

The cash flow statement provides a detailed look at all the cash inflows and outflows a company experiences during a reporting period. It is typically divided into three sections:

• Operating Activities: This section reflects the cash generated or used from the company's core business operations, such as sales and expenses.
• Investing Activities: This includes cash flows related to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Activities: This section covers cash flows related to debt, equity, and dividends.

Analyzing the trends in these three sections can provide insights into a company's financial stability and its ability to fund its operations and growth. For example, consistently positive cash flow from operating activities indicates a healthy core business, while significant cash outflows from investing activities may suggest that the company is investing in its future growth. As of the fiscal year 2024, need to find the most recent data to analyze the trends in cash flow statements.

Potential Liquidity Concerns or Strengths:

Based on the analysis of liquidity ratios, working capital trends, and cash flow statements, it's important to identify any potential liquidity concerns or strengths. For instance, a consistently low current ratio or negative cash flow from operating activities may raise concerns about the company's ability to meet its short-term obligations. Conversely, a high current ratio, increasing working capital, and positive cash flow from operating activities would indicate a strong liquidity position. As of the fiscal year 2024, need to find the most recent data to assess potential liquidity concerns or strengths.

Explore more about Splash Beverage Group, Inc. (SBEV) in this detailed investor profile: Exploring Splash Beverage Group, Inc. (SBEV) Investor Profile: Who’s Buying and Why?

Splash Beverage Group, Inc. (SBEV) Valuation Analysis

Determining whether Splash Beverage Group, Inc. (SBEV) is overvalued or undervalued requires a multifaceted approach, considering various financial metrics and market analyses. Let's delve into key valuation indicators to provide a clearer picture for investors.

Currently, comprehensive valuation ratios such as price-to-earnings (P/E) and price-to-book (P/B) for Splash Beverage Group, Inc. (SBEV) cannot be accurately determined due to the company's financial status. These ratios rely on positive earnings and book value, which are presently not available. Similarly, calculating the enterprise value-to-EBITDA (EV/EBITDA) ratio is challenging without consistent EBITDA figures.

Analyzing Splash Beverage Group, Inc. (SBEV)’s stock price trends over the past year offers insights into market sentiment and historical performance. As of April 2025, detailed information on stock performance can be gathered from financial analysis platforms.

Given that Splash Beverage Group, Inc. (SBEV) does not currently offer dividends, dividend yield and payout ratios are not applicable. This is a common characteristic of growth-oriented companies that prioritize reinvesting earnings to fuel expansion rather than distributing dividends.

To gauge market sentiment and potential future performance, it's essential to consider analyst consensus on Splash Beverage Group, Inc. (SBEV). As of April 2025, the consensus is not available. Always refer to the most recent analyst reports from reputable financial analysis platforms for up-to-date recommendations.

For additional insights into the strategic direction and operational focus of Splash Beverage Group, Inc. (SBEV), review their Mission Statement, Vision, & Core Values of Splash Beverage Group, Inc. (SBEV).

Splash Beverage Group, Inc. (SBEV) Risk Factors

Splash Beverage Group, Inc. (SBEV) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, and overall market conditions. Understanding these factors is crucial for investors assessing the company's stability and growth potential.

Here’s a breakdown of key risk areas:

• Industry Competition: The beverage industry is highly competitive, with numerous established players and emerging brands vying for market share. This intense competition can pressure profit margins and limit Splash Beverage Group's ability to grow.
• Regulatory Changes: Changes in regulations related to the production, distribution, and sale of alcoholic and non-alcoholic beverages can create compliance challenges and increase operational costs.
• Market Conditions: Fluctuations in consumer demand, economic downturns, and shifts in consumer preferences can all impact sales and revenue.

Operational, financial, and strategic risks are often highlighted in earnings reports and filings. These include:

• Operational Risks: These risks involve the day-to-day challenges of managing the supply chain, production, and distribution networks. Disruptions in any of these areas can lead to increased costs and decreased revenue.
• Financial Risks: Financial risks include the company's ability to manage its debt, secure financing for growth, and maintain adequate cash flow. These factors are critical for sustaining operations and funding expansion plans.
• Strategic Risks: Strategic risks relate to the company's ability to adapt to changing market conditions, innovate its product offerings, and effectively execute its long-term business strategy.

Mitigation strategies and plans are essential for addressing these risks. While specific details may vary, typical strategies include:

• Diversification: Expanding the product portfolio to include a variety of beverages can reduce reliance on any single product line and mitigate the impact of changing consumer preferences.
• Strategic Partnerships: Forming alliances with distributors, retailers, and other industry players can enhance market reach and reduce distribution costs.
• Cost Management: Implementing efficient cost control measures can improve profit margins and ensure financial stability, even in the face of competitive pressures.

Understanding the mission, vision, and core values can provide additional insight into the long-term strategy of Splash Beverage Group, Inc. (SBEV): Mission Statement, Vision, & Core Values of Splash Beverage Group, Inc. (SBEV).

For example, let's consider a hypothetical scenario based on available information. Suppose Splash Beverage Group faces increased competition in the flavored water segment. To mitigate this, they might:

1. Invest in marketing to strengthen brand recognition.
2. Introduce new flavors or product variations to differentiate themselves.
3. Explore partnerships with retailers to secure prominent shelf space.

Effective risk management is crucial for Splash Beverage Group to navigate the challenges of the beverage industry and achieve sustainable growth.

Splash Beverage Group, Inc. (SBEV) Growth Opportunities

Splash Beverage Group, Inc. (SBEV) faces a dynamic future shaped by several growth catalysts. These include product innovation, strategic market expansion, targeted acquisitions, and unique competitive advantages. By capitalizing on these factors, SBEV aims to increase its market presence and financial performance.

Key growth drivers for Splash Beverage Group, Inc. (SBEV) include:

• Product Innovations: Developing new and appealing beverage products to meet changing consumer preferences.
• Market Expansions: Extending the distribution network to new geographic areas and demographics.
• Acquisitions: Acquiring complementary brands or businesses to broaden the product portfolio and market reach.

To learn more about the company's direction, check out Mission Statement, Vision, & Core Values of Splash Beverage Group, Inc. (SBEV).

Future revenue growth projections and earnings estimates are critical for assessing SBEV's potential. While specific figures require up-to-date financial analysis, monitoring the company's quarterly and annual reports will provide insights into their financial trajectory. Investors should pay close attention to trends in sales, gross margins, and net income to evaluate the effectiveness of SBEV's growth strategies.

Strategic initiatives and partnerships are also vital for driving future growth. These may include:

• Distribution Agreements: Partnering with major distributors to expand product availability.
• Marketing Campaigns: Implementing innovative marketing strategies to increase brand awareness and consumer engagement.
• New Product Launches: Introducing new products that cater to emerging market trends.

Competitive advantages that position Splash Beverage Group, Inc. (SBEV) for growth may include:

• Unique Product Offerings: Differentiating products through unique formulations or branding.
• Efficient Supply Chain: Maintaining a cost-effective and reliable supply chain to ensure product availability.
• Strong Brand Reputation: Building a strong brand image that resonates with consumers.

A SWOT analysis can provide a structured view of SBEV's growth prospects. A SWOT analysis helps identify the internal strengths and weaknesses, as well as external opportunities and threats that can affect the company’s strategic decisions and future growth.

Below is a general example of a SWOT analysis; however, a current and comprehensive analysis would be needed to ensure accuracy.

By leveraging its strengths, addressing its weaknesses, capitalizing on opportunities, and mitigating threats, Splash Beverage Group, Inc. (SBEV) can strategically position itself for sustained growth and success in the competitive beverage market.