Wildpack Beverage Announces Q3 2023 Financial Results

Third Quarter 2023 Highlights (in USD):

• Q3 2023 Sales Revenue grew 80.9% to $14.78 million compared to $8.17 million in Q3 2022.
• Production volume for Q3 2023 grew 96.4% to 34.85 million cans compared to 17.75 million cans in Q3 2022.
• Plant Utilization in Q3 2023 grew to 40.7% from 24.2% in Q3 2022.
• Gross Profit in Q3 2023 was 8.5% compared to a Gross Loss of 6.1% in Q3 2022.
• Confirmed Customer Orders grew 37.5% in Q3 2023 to $14.58 million from $10.60 million Q3 2022.

VANCOUVER, BC / ACCESSWIRE / November 29, 2023 / Wildpack Beverage Inc. (TSXV:CANS)(OTC PINK:WLDPF) ("Wildpack Beverage" or the "Company") a leading US middle market co-packer of canned goods announces unaudited financial results for the third quarter ("Q3") ending September 30, 2023. All currencies referenced herein are US Dollars, unless otherwise indicated.

"In Q3, our year-over-year results are promising. Despite ongoing production challenges in Baltimore due to the line upgrade, we remain optimistic about the overall positive trajectory," commented Mitch Barnard, CEO of Wildpack Beverage. "This period of transformation is a testament to our commitment to constant improvement, and we are confident that overcoming these hurdles will lead to even greater success in the future."

Q3 2023 Condensed Consolidated Interim Statements of Loss & Comprehensive Loss (Unaudited)

						Three months ended September 30,								Nine months ended September 30,
		Note				2023				2022 (Restated, note 21)				2023				2022 (Restated, note 21)
Sales			13			$	14,776			$	8,171			$	42,570			$	25,611
Cost of sales
Production costs			14				12,894				7,662				36,397				23,358
Depreciation and amortization			6, 7, 8				633				1,004				1,796				2,313
Cost of sales							13,527				8,666				38,193				25,671
Gross profit							1,249				(495	)			4,377				(60	)
Operating expenses
Selling							857				673				2,752				1,979
Salaries, wages, and benefits							1,136				1,587				4,561				5,254
Depreciation and amortization			6, 7, 8				1,007				968				2,840				2,858
Office and administrative							613				552				1,796				1,472
Share-based compensation			12				494				116				1,026				297
Professional fees							52				294				939				1,216
Bad debt							350				529				730				655
Other operating							136				199				428				11
Operating expenses							4,645				4,918				15,072				13,742
Other expenses
Bank and finance charges			10				1				4				157				25
Interest on long-term debt			10				2,627				1,233				5,754				3,753
Interest on lease obligations			9				156				177				415				570
Loss on derivative asset			11				-				(2	)			-				151
Foreign exchange loss							2				-				11				-
Other expenses							2,786				1,412				6,337				4,499
Net loss						$	(6,182	)		$	(6,825	)		$	(17,032	)		$	(18,301	)
Other comprehensive income (loss)
Items that may be reclassified to profit or loss:
Foreign currency on translation (loss) gain							588				1,613				(53	)			2,434
TOTAL COMPREHENSIVE LOSS						$	(5,594	)		$	(5,212	)		$	(17,085	)		$	(15,867	)
Weighted average number of common shares outstanding							112,508,461				101,241,490				112,042,214				101,442,205
Loss per share - basic						$	(0.05	)		$	(0.07	)		$	(0.15	)		$	(0.18	)
Loss per share - diluted						$	(0.05	)		$	(0.07	)		$	(0.15	)		$	(0.18	)

Q3 2023 Condensed Consolidated Interim Statement of Cashflows (Unaudited)

						Nine months ended				Nine months ended
						September 30,				September 30,
		Note				2023				2022 (Restated, note 21)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss						$	(17,032	)		$	(18,301	)
Adjustments for items not affecting cash:
Depreciation and amortization							4,534				4,730
Interest expense							6,161				2,397
Share-based compensation			12				1,026				297
Unrealized loss on derivative asset			11				-				301
Changes in non-cash working capital:
Accounts receivable							(6,685	)			(68	)
Sales taxes recoverable							67				(107	)
Inventories							(863	)			3,618
Prepaid expenses and deposits							(1,062	)			109
Other deposits							(30	)			175
Accounts payable and accrued liabilities							(3,396	)			2,924
Deferred revenue							15				1,050
Cash used in operating activities							(17,265	)			(2,875	)
CASH FLOWS FROM FINANCING ACTIVITIES
Line of credit			10				-				(1,016	)
Repayments of long-term debt			10				(7,948	)			(1,305	)
Net proceeds from convertible debentures			10, 11				24,920				4,727
Proceeds from promissory notes			10				-				996
Payments of lease obligations			9				(2,094	)			(2,402	)
Proceeds from long-term debt			10				6,745				2,348
Interest paid							(2,222	)			(2,088	)
Cash generated by financing activities							19,401				1,260
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment							(2,255	)			(136	)
Proceeds from sale of equipment							267				-
Cash used in investing activities							(1,988	)			(136	)
Net increase (decrease) in cash							148				(1,751	)
Cash, beginning of period							943				1,450
Effect of foreign exchange rate changes on cash							(16	)			814
CASH, END OF PERIOD						$	1,075			$	513

Q3 2023 Condensed Consolidated Interim Statement of Financial Position

						September 30,				December 31,
		Note				2023				2022
ASSETS
Current assets
Cash						$	1,075			$	943
Cash held in trust							658				658
Accounts receivable			17				11,823				5,138
Sales taxes recoverable							237				302
Inventories			5				5,715				4,852
Prepaid expenses and deposits							1,202				140
						$	20,710			$	12,033
Property, plant, and equipment			6				9,914				6,375
Right of use assets			8				8,047				9,503
Derivative asset			11				12				12
Intangible assets			7				18,875				20,498
Goodwill			7				4,965				4,965
Other deposits							347				317
TOTAL ASSETS						$	62,870			$	53,703
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities							15,168				16,002
Deferred revenue							2,015				2,000
Current portion of lease obligations			9				1,929				2,107
Current portion of long-term debt			10				4,916				7,422
						$	24,028			$	27,531
Lease obligations			9				6,974				8,168
Long term debt			10				46,964				26,228
TOTAL LIABILITIES						$	77,966			$	61,927
SHAREHOLDERS' EQUITY
Share capital			12				38,024				37,853
Equity reserve							17,809				8,765
Contributed surplus							5,074				4,076
Accumulated deficit							(77,054	)			(60,022	)
Accumulated other comprehensive loss							1,051				1,104
TOTAL SHAREHOLDERS' EQUITY (DEFICIENCY)						$	(15,096	)		$	(8,224	)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY)						$	62,870			$	53,703
			11920

The accompanying notes are an integral part of these condensed consolidated interim financial statements (unaudited), please refer to the full condensed consolidated interim financial statements (unaudited) for the three and nine months ended September 30, 2023 and September 30, 2022, and the Management's Discussion and Analysis of the Financial Condition and Results of Operations for the three and nine months ended September 30, 2023, as filed on SEDAR on November 29, 2023.

Per: "Mitch Barnard"

Mitch Barnard
Chief Executive Officer and Board Director

For further information, please contact us at:

[e-mail]

or

Elijah Clare
Vice President, Investor Relations
[e-mail]

Advisors

Fasken Martineau DuMoulin LLP is the legal advisor to Wildpack Beverage Inc.

Visit our investor website at:

https://investor.wildpackbev.com

About Wildpack Beverage

Wildpack Beverage provides beverage manufacturing and packaging to the middle market by providing sustainable aluminum can filling, decorating, packaging, brokering, sleeve/label printing services, and logistics to brands throughout the United States. Wildpack Beverage currently operates indirectly through its wholly owned subsidiaries and out of five facilities in Baltimore, Maryland; Grand Rapids, Michigan; Atlanta, Georgia; Sacramento, California; and Las Vegas, Nevada with a focus on digital innovation and green ready-to-drink packaging. Wildpack Beverage commenced trading on the TSX Venture Exchange under the symbol "CANS" on May 19, 2021.

Cautionary Statement on Forward Looking Information

This news release may contain "forward-looking statements" within the meaning of applicable Canadian securities laws, including, but not limited to, statements with respect to the timing, review, completion and filing of the Required Filings, Wildpack Beverage's plans, investments, anticipated revenue from manufacturing agreements, plans to build additional facilities, financial performance and operating performance, anticipated growth in co-packing business, the estimation of revenue, the timing and targets of M&A activity, costs, future capital expenditures, and the success of scaling up production. Forward-looking statements are based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive risks including but not limited to: the risk of the Company not filing the Required Filings on time, risks related to the successful integration of acquisitions; risks related to operations; risks related to general economic conditions and credit availability, ability to obtain sufficient and suitable financing, actual results of current production and decorating, fluctuations in prices of aluminum; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the co-packaging industry; delays in the completion of capex activities, changes in national and local government regulation of manufacturing operations and labour laws particularly in light of the COVID pandemic, tax rules and regulations, and political and economic developments where Wildpack Beverage operates. These statements generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe", or "continue", or the negative thereof or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, or achievements of Wildpack Beverage to be materially different from any future results, performance, or achievements expressed, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. Forward-looking statements expressed or implied by Wildpack Beverage are subject to a number of risks, uncertainties, and conditions, many of which are outside of Wildpack Beverage's control, and undue reliance should not be placed on such statements. Although Wildpack Beverage has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Forward-looking statements are qualified in their entirety by the inherent risks and uncertainties related to Wildpack's business, including that Wildpack Beverage's assumptions in making forward-looking statements may prove to be incorrect; delays in filing of financial information; adverse market conditions; risks inherent in the beverage manufacturing and packaging sector in general; that future results may vary from historical results; and competition in the markets where Wildpack Beverage operates. Except as required by securities law, Wildpack Beverage does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Wildpack Beverage Inc.

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The Wildpack Beverage Stock at the time of publication of the news with a fall of -7,14 % to 0,065CAD on TSX Venture stock exchange (29. November 2023, 23:00 Uhr).