The Alkaline Water Company Reports Record Revenue of $63.8 Million in Fiscal Year 2023, Posts 16% Growth and Makes Significant Strides Toward Profitability - Seite 2

Amidst record revenue, another financial milestone stands out—the substantial decrease in operating expenses relative to our revenue. This fell sharply from 88% to 53%, a year-over-year improvement of 35 percentage points.

The Alkaline Water Company has also managed to decrease net cash used in operating activities by $21.4 million, down from ($31.8MM) last year to ($10.4MM) this year. Furthermore, the company reported that its net loss improved by 31%, and its loss per share (LPS) improved by 50%.

Mr. Chessman added, “The Alkaline Water Company is not only consistently driving top-line growth but also ensuring that we extract maximum value out of every dollar of revenue that we generate as we march on toward profitability. We acknowledge there’s still a ways to go but we made progress in fiscal year 2023 and trends continue in the right direction. We have now identified approximately $22 Million in cost-savings and margin enhancement compared to fiscal year 2022, once all the changes are fully implemented. Our growth in topline sales and these improvements in cost management and operational efficiency all bring us closer to our goal of profitability.”

Key Business and Operational Highlights

• Alkaline88 added over 11,000 new stores to its retail footprint.
  • Adding new clients in fiscal year 2023 was an important driver to the Company’s continued growth. Alkaline88 found new shelf space for the first time in stores across all channels including many large and small regional convenience store chains, drug stores, military exchanges, and whole divisions of large national grocery banners like Whole Foods and Kroger.
• Alkaline88 expanded SKU offerings in over 33,000 existing clients.
  • Another important driver that helped the company maintain double digit sales growth in fiscal year 2023 was the addition of new SKUs in over 33,000 stores including some of the nation’s largest drug store and grocery chains.
  • The introduction of thousands of new distribution points and a variety of size options in stores frequented by millions of shoppers who are already familiar with the brand greatly increases the likelihood of more Alkaline88 making its way into more shopping carts across the country.
• Alkaline88 outpaced category growth in both dollar volume and unit volume and continued its dominance as the leader in bulk-sized Value-Added Water.
  • For the 52-weeks ending 3/25/23 (6 days before the end of the Company’s fiscal year), Nielsen xAOC+Conv. data shows that:
    • Alkaline88 had over $93MM in retail sales, making it one of only 12 brands across the nation with over $90MM in yearly sales (excluding all private labels combined).
    • Alkaline88 grew 19.5% year-over-year across all channels in Dollar Volume, more than double the category’s growth, and second-best amongst the 12 biggest brands.
    • Alkaline88 also had the second-best Unit Volume growth amongst the top-12 brands and was one of only five of these brands to record growth in both Units and Dollars.
    • The Alkaline88 1-Gallon was the 16^th best-selling Value-Added Water product by Dollar Volume in the entire country, regardless of size. It outsold the next closest gallon product in the category by more than 11x.

“The growth we've experienced this past fiscal year reaffirms the strength of our brand, our strategy, and our team,” reiterated Mr. Chessman. “We are optimistic about what the future holds for The Alkaline Water Company as we continue to strive for profitability, improve operational efficiencies, and create value for our shareholders and customers."