The Alkaline Water Company Reports Record Revenue of $63.8 Million in Fiscal Year 2023, Posts 16% Growth and Makes Significant Strides Toward Profitability

The Alkaline Water Company Inc. (NASDAQ: WTER) (the “Company”), the country’s largest independent Alkaline water company, today announced record-breaking financial results for the fiscal year ending March 31, 2023. The Company reported historic high revenues of $63.8 Million, representing year-over-year growth of 16%. The Company also highlighted substantial progress on its Pathway to Profitability. The corresponding Form 10-K will be filed with the SEC on August 16, 2023, and can be accessed on the investor relations section of the Company's website at ir.theAlkalinewaterco.com.

The Company, the proud producer of Deliciously Smooth Alkaline88, one of the nation’s best-selling alkaline water brands, provided highlights and management commentary on the full fiscal year.

Full-Year Fiscal 2023 Financial Performance (all amounts in U.S. dollars):

• Revenue: Up 16% Year-over-Year (YoY) to $63.8MM.
• Gross Profit Margin: Improved by 111 basis points YoY to 18%.
• Total Operating Expenses (OpEx): Decreased $14.7 million YoY.
• Total Operating Expenses as a Percentage of Revenue: Improved from 88% to 53%, a 35 percentage point reduction YoY.
• Net Loss: Improved more than $12 million YoY from ($39.6 MM) to ($27.4 MM).
• Net Cash Used in Operating Activities: Improved 67% YoY, from ($31.8MM) to ($10.4MM).

“Fiscal Year 2023 marked the highest revenue in our company's history and 16% year-over-year growth, despite a challenging economic environment,” stated Frank Chessman, President and CEO of The Alkaline Water Company. “This achievement reflects the strength of the Alkaline88 brand, the hard work of our team, and the loyalty of our customers.”

Progress on the Pathway to Profitability—$22 Million in Cost Savings and Margin Enhancement Now Identified:

In July of 2022, the Company announced its new Pathway to Profitability, an initiative to increase margins, cut costs, and improve overall operational efficiency.

The company's gross profit margin improved by 111 basis points for the fiscal year. The improvement was a result of more efficient production processes, better pricing on raw materials, and strategic price increases to clients.

“Equally important to driving top-line growth, we've emphasized cost control, margin enhancements, and streamlining operations under our 'Pathway to Profitability' initiative which we announced a year ago,” stated Mr. Chessman. “In that time, we’ve seen an uptrend in our gross profit margin which improved by over 100 basis points year over year.”