KonaRed reports strong sales growth for 2014
Company marks first full year as public company
Kalaheo, Hawaii-based KonaRed Corp. reported an 80 percent increase in consumer product sales plus delivery revenues to nearly $1.1 million for 2014, compared with nearly $605,000 the previous year. Net sales for the company, which includes consumer product sales, delivery fees and raw material ingredient sales, increased 39 percent to nearly $1.3 million, compared with nearly $906 million in 2013.
"Our first full year as a public company ended strongly, and we are pleased with what we've accomplished thus far,” said Chief Executive Officer Shaun Roberts in a statement. “Sales growth continued and led to a 39 percent growth in overall revenue year-over-year, and consumer product related revenues [were] up at an impressive rate of 80 percent. An example of the work done to increase sales is the entry of our nutritional supplement products into select Whole Foods Markets. Another example is the achievement of gaining placement of our three flavors of delicious beverages at 978 Kroger family stores throughout the United States, including Kroger, Food 4 Less, Ralphs and Fred Meyer, and other nationally recognized brands.
“Kroger is one of the world's largest grocery retailers with close to $100 billion in sales in 2013,” he continued. “We view Kroger's selection of KonaRed products as a major milestone and anticipate continued expansion of our distribution network in 2015.
"2014 also saw us secure placement of our products into thousands of other stores including Walmart, and we expanded our distribution into the New York Metro area as well as many other top metro areas throughout the country, adding 30 new distribution points to our network,” he added. “It has been a solid year, but we're not taking our eye off the ball and are pushing hard on new initiatives to further increase sales throughout 2015."
Cost of goods sold for 2014 increased by 144 percent to $1.09 million, up from nearly $448,000 in 2013. This was primarily due to additional costs associated with KonaRed’s quick sales growth, the company says. Gross margin decreased to just more than $160,000, versus just more than $458,000 in 2013.
Some revenue items were reclassified during preparation of the company's 2014 fiscal year-end financial statements and, as a result, full-year sales were less than the estimate of $1.49 million reported on Jan. 27, 2015, and were a total of $1.25 million.
The company's net loss for 2014 was $4.6 million, or $0.06 a share, versus a net loss of $3.9 million, still $0.06 a share, for 2013. Net working capital increased to approximately $495,000, compared with nearly $364,000 in 2013.