Breaking Down Zevia PBC (ZVIA) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments in the beverage sector? Have you been following the journey of Zevia PBC (ZVIA) and wondering about its financial stability? In 2024, the company faced challenges with net sales declining by $11.4 million to $155.0 million. However, it also demonstrated resilience through an improved gross profit margin of 46.4% and a reduced net loss of $23.8 million. Want to delve deeper into these figures and understand what they mean for the company's future? Keep reading to uncover key insights into Zevia's financial health and what it signals for investors.

Zevia PBC (ZVIA) Revenue Analysis

Zevia PBC's financial performance can be understood through an analysis of its revenue streams, growth rates, and segment contributions. Examining these elements provides investors with key insights into the company's financial health and operational efficiency. For further details, you can refer to: Breaking Down Zevia PBC (ZVIA) Financial Health: Key Insights for Investors.

To understand where Zevia PBC's income comes from, it's important to look at a breakdown of their main revenue sources. These typically include sales from various product lines, such as different flavors and types of beverages, and potentially, revenue from different geographical regions where the products are sold.

Year-over-year revenue growth is a critical indicator of a company's performance. By examining historical trends and calculating the percentage increase or decrease in revenue each year, investors can assess Zevia PBC's ability to expand its market presence and increase sales. For example, in 2024, Zevia PBC reported net sales of $206.3 million, reflecting an increase of 13.9% compared to $181.1 million in 2023. This growth was primarily driven by an 11.7% increase in volume and a 2.2% increase in net revenue per case.

Understanding the contribution of different business segments to Zevia PBC's overall revenue is essential. This involves analyzing which product categories or geographic regions are the most significant revenue drivers. For instance, the carbonated soft drinks segment might contribute a larger portion of revenue compared to energy drinks or other beverage types.

Significant changes in revenue streams can indicate shifts in consumer preferences, market dynamics, or the company's strategic initiatives. Analyzing these changes helps investors understand the factors influencing Zevia PBC's financial performance and future growth prospects. In 2024, Zevia's revenue growth was positively impacted by effective net revenue management strategies and brand strength, while challenges such as warehouse consolidation affected gross margins.

Here's a summary of Zevia PBC's revenue performance:

• Primary Revenue Sources: Sales from various product lines (e.g., carbonated soft drinks, energy drinks) and different geographical regions.
• Year-over-Year Revenue Growth Rate: 13.9% increase in net sales in 2024, reaching $206.3 million.
• Contribution of Business Segments: Analysis of revenue contribution by product category and geographic region.
• Significant Changes in Revenue Streams: Impact of net revenue management strategies and warehouse consolidation on financial performance.

To provide a clearer picture, consider the following hypothetical table illustrating revenue contributions from different segments (note that this is an example and not actual data):

Zevia PBC (ZVIA) Profitability Metrics

Analyzing Zevia PBC (ZVIA)'s financial health requires a close look at its profitability metrics. Key indicators include gross profit, operating profit, and net profit margins. Also important are trends in these metrics over time, comparisons to industry averages, and analysis of operational efficiency.

For the full year 2024, Zevia reported:

• Net sales of $155.0 million, a decrease of $11.4 million year-over-year.
• Gross profit margin was 46.4%, an increase of 1.5 percentage points year-over-year.
• Net loss was $23.8 million, which included $5.0 million of non-cash equity-based compensation expense, showing an improvement of $4.5 million year-over-year.
• Adjusted EBITDA loss was $15.2 million, an improvement of $3.8 million year-over-year.
• Loss per share was $0.34 to Zevia's Class A Common stockholders, an improvement of $0.07 year-over-year.

The company's fourth quarter 2024 results showed positive momentum:

• Net sales increased 4.4% year-over-year to $39.5 million, driven by an 11.6% increase in volume.
• Gross profit margin reached a record 49.2%, up 8.5 percentage points from the previous year. This was driven by lower inventory write-downs and favorable unit costs, which were partially offset by higher promotional levels.
• Net loss improved by $4.5M in 2024.
• The company's cash position remained strong at $30.7M with no debt.

Here's a summary of Zevia's financial performance in 2024:

Even with a challenging year, Zevia has made strides in improving its financial performance. The gross profit margin saw an increase to 46.4% for the full year, driven by factors such as reduced inventory write-downs and a favorable product mix.

For more detailed insights, you can check out: Breaking Down Zevia PBC (ZVIA) Financial Health: Key Insights for Investors

Zevia PBC (ZVIA) Debt vs. Equity Structure

Understanding how Zevia PBC (ZVIA) 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 and equity to fund its initiatives. Let's delve into these key aspects to provide a clear picture of Zevia's financial health.

As of the fiscal year 2024, Zevia PBC's approach to managing its debt and equity is a reflection of its growth strategy and financial positioning within the competitive beverage industry. Here’s a breakdown:

Overview of Debt Levels

Analyzing Zevia's debt involves looking at both its short-term and long-term obligations. Short-term debt includes liabilities due within a year, while long-term debt consists of obligations extending beyond a year. These figures are essential for understanding the company's immediate and future financial commitments.

Debt-to-Equity Ratio

The debt-to-equity ratio is a key metric for assessing a company's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. A high ratio suggests the company relies more on debt, which can increase financial risk, while a lower ratio indicates a greater reliance on equity. The ideal ratio varies by industry, so it's important to compare Zevia's ratio against industry standards to gauge its financial risk profile.

Recent information regarding Zevia PBC’s debt-to-equity ratio is essential for an accurate assessment. Investors should consult the company's latest financial statements for the most up-to-date figures. Here are factors that can influence the ratio:

• Operational Performance: Consistent profitability can improve the equity portion, thus lowering the ratio.
• Strategic Decisions: Decisions to take on debt for expansion or acquisitions can significantly alter the ratio.
• Market Conditions: Favorable equity markets can make it attractive to issue stock, affecting the equity component.

Recent Debt Issuances, Credit Ratings, or Refinancing Activity

Monitoring any recent debt issuances, changes in credit ratings, or refinancing activities provides insights into Zevia’s financial management and investor confidence. For example:

• New Debt Issuances: Significant debt issuances might signal expansion plans or the need to cover operational costs.
• Credit Rating Adjustments: Upgrades or downgrades by credit rating agencies reflect changes in the company's creditworthiness.
• Refinancing Activities: Refinancing debt can improve the company’s interest rate terms and overall debt structure.

Balancing Debt Financing and Equity Funding

Zevia must strategically balance debt and equity financing to optimize its capital structure. Debt financing can provide capital without diluting ownership, but it comes with interest expenses and repayment obligations. Equity funding, on the other hand, doesn't require repayment but dilutes existing shareholders' ownership.

Here’s how Zevia might approach this balance:

• Growth Phase: During rapid expansion, a company might leverage more debt to fund initiatives quickly.
• Market Conditions: Favorable equity markets may encourage equity offerings to strengthen the balance sheet.
• Financial Stability: Maintaining a mix that ensures financial flexibility and reduces risk is a priority.

For detailed insights into Zevia PBC's mission, vision, and core values, you can explore Mission Statement, Vision, & Core Values of Zevia PBC (ZVIA).

Zevia PBC (ZVIA) Liquidity and Solvency

Understanding a company's financial health requires a close look at its liquidity and solvency. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations. For Zevia PBC (ZVIA), assessing these aspects provides insights into its operational efficiency and financial stability. You might also be interested in: Mission Statement, Vision, & Core Values of Zevia PBC (ZVIA).

Assessing Zevia PBC's Liquidity:

Analyzing Zevia PBC's liquidity involves examining key ratios and working capital trends. Here’s a breakdown:

• Current and Quick Ratios: These ratios measure a company's ability to cover its short-term liabilities with its short-term assets.
• Analysis of Working Capital Trends: Working capital, the difference between current assets and current liabilities, indicates the company's operational liquidity.

Cash Flow Statements Overview:

Cash flow statements provide a clear picture of how Zevia PBC generates and uses cash. The three main sections are:

• Operating Cash Flow: This indicates the cash generated from the company's core business operations.
• Investing Cash Flow: This section covers cash used for investments in assets like property, plant, and equipment (PP&E).
• Financing Cash Flow: This includes cash flow from debt, equity, and dividends.

For the fiscal year 2023, Zevia PBC reported the following cash flow activities:

These figures suggest that Zevia PBC's core operations are generating positive cash flow, which is a healthy sign. Investing activities used a relatively small amount of cash, indicating controlled capital expenditures. Financing activities also used cash, likely due to debt repayments or stock repurchases.

Potential Liquidity Concerns or Strengths:

Based on available data, here’s an overview of Zevia PBC's liquidity position:

• Strengths: Positive operating cash flow indicates a solid ability to generate cash from core business activities.
• Potential Concerns: Monitoring trends in working capital is essential to ensure the company maintains sufficient liquidity to meet its short-term obligations.

Keeping an eye on these metrics helps investors understand Zevia PBC's financial flexibility and its capacity to handle financial challenges.

Zevia PBC (ZVIA) Valuation Analysis

Assessing whether Zevia PBC (ZVIA) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment.

To determine Zevia PBC (ZVIA)'s valuation, consider the following metrics:

• Price-to-earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share (EPS). A higher P/E ratio might suggest overvaluation, while a lower one could indicate undervaluation, relative to industry peers.
• Price-to-book (P/B) Ratio: The P/B ratio measures the market capitalization of a company against its book value of equity. It can help investors determine if they are paying too much for the net assets of Zevia PBC (ZVIA).
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares the total value of the company (market cap plus debt minus cash) to its earnings before interest, taxes, depreciation, and amortization. It provides a more comprehensive valuation measure, especially when comparing companies with different capital structures.

Analyzing Zevia PBC (ZVIA)’s stock price trends over the last 12 months, or longer, provides insight into market sentiment and company performance. Recent stock performance data can be found on financial websites such as Yahoo Finance and Google Finance.

As of April 2025, Zevia PBC (ZVIA) does not offer a dividend yield, so dividend payout ratios are not applicable. For companies that do offer dividends, the yield and payout ratio are important indicators of financial health and stability.

Analyst consensus on Zevia PBC (ZVIA)'s stock valuation typically includes ratings such as buy, hold, or sell. These ratings represent the collective opinion of financial analysts regarding the stock's potential performance. These ratings and price targets are frequently updated and available through financial news and analysis platforms.

For further insights into Zevia PBC (ZVIA) and its investors, explore Exploring Zevia PBC (ZVIA) Investor Profile: Who’s Buying and Why?

Zevia PBC (ZVIA) Risk Factors

Understanding the risks facing Zevia PBC (ZVIA) is crucial for investors. These risks can be categorized into internal and external factors that may impact the company's financial health and future performance. Breaking Down Zevia PBC (ZVIA) Financial Health: Key Insights for Investors

Overview of Key Risks:

• Industry Competition: The beverage industry is highly competitive, with rapid changes in consumer demand. Failure to adapt to these changes could result in a loss of market share.
• Regulatory Changes: Zevia and its manufacturers are subject to extensive governmental regulations regarding product safety, labeling, and marketing. Non-compliance can lead to enforcement actions and harm the company's image.
• Market Conditions: Changes in consumer preferences, economic conditions, and the retail landscape can impact product demand and sales.

Discussion of Specific Risks:

• Operational Risks:
  • Supply Chain Disruptions: Zevia relies on a limited number of suppliers for key ingredients like stevia. Disruptions in the supply chain or the inability to maintain service levels could adversely affect operations.
  • Manufacturing Reliance: Using third-party manufacturers poses a risk of those manufacturers mimicking Zevia's products.
  • Inventory Management: If inventory held by distributors and retailers is too low, Zevia could lose shelf space, impacting future sales.
• Financial Risks:
  • Cost of Raw Materials: The price of stevia, Zevia's main ingredient, can impact product costs. The expiration of raw material contracts introduces uncertainty regarding future pricing conditions.
  • Cash Burn Rate: As of March 2024, Zevia had a cash runway of approximately 12 months, indicating a need to either reduce cash burn or replenish cash reserves.
  • NYSE Compliance: Zevia has faced challenges in maintaining compliance with the NYSE's continued listing requirements, including minimum stock price standards. Failure to maintain compliance could lead to reduced liquidity and loss of stakeholder confidence.
• Strategic Risks:
  • Brand Recognition: Failure to promote the brand effectively and maintain customer confidence in product quality and safety can harm the company's image and operational results.
  • Growth Assumptions: The company's financial results could differ materially from expectations if assumptions about market growth, product demand, or the ability to streamline manufacturing capacity prove incorrect.
  • Competition: The company faces strong competition in the beverage industry, where brand recognition is essential.

Mitigation Strategies and Plans:

• Supply Chain Diversification: Zevia has initiated efforts to diversify its supply base to reduce dependency on a limited number of suppliers.
• Cost Reduction Initiatives: The company's Productivity Initiative aims to achieve annualized benefits of approximately $15 million, including reduced sourcing costs.
• Marketing and Promotional Activities: Zevia invests in marketing to drive brand recognition and customer retention, focusing on cost-effective digital campaigns. In Q3 2024, selling and marketing expenses amounted to $12.0 million.

Financial Performance and Outlook:

Zevia's recent financial results and future guidance provide additional context for understanding these risks:

For the full year 2025, the company expects net sales to be in the range of $158 million to $163 million, with an adjusted EBITDA loss between $8 million and $11 million. This guidance reflects planned reinvestment in marketing spend, particularly in the first and third quarters of 2025.

Zevia's Q4 2024 EPS of -$0.09 missed forecast, revenue of $39.5M fell short; stock dropped 15.32% to $2.7606 in pre-market trading. Record gross margin of 49.2% achieved despite 6.8% full-year net sales decline; company maintains strong liquidity with 2.85 current ratio.

Zevia is going to release the next earnings report on May 7, 2025. Keep track of upcoming events with our Earnings Calendar.

Despite these challenges, Zevia is implementing strategies to mitigate risks and improve its financial performance. The company's focus on better-for-you beverages and expansion into new markets, such as Walmart, may drive future success.

Zevia PBC (ZVIA) Growth Opportunities

Zevia PBC (ZVIA) is poised for future growth, driven by several key factors. These include product innovations, strategic market expansions, and developing competitive advantages.

Here's a detailed look at these growth drivers:

• Product Innovations: Zevia consistently introduces new flavors and product lines to cater to evolving consumer preferences for healthier beverage options.
• Market Expansions: Expanding into new geographic markets and distribution channels, including partnerships with major retailers, increases accessibility to Zevia products.
• Strategic Initiatives: Implementing various strategic initiatives to strengthen its market position and brand recognition.
• Competitive Advantages: Zevia's focus on zero-calorie, naturally sweetened beverages provides a strong position in the health-conscious market.

To gain more insights into Zevia PBC (ZVIA) financial health, you can explore this resource: Breaking Down Zevia PBC (ZVIA) Financial Health: Key Insights for Investors