NewAge, Inc. (Nasdaq: NBEV) today announced net revenue of $62.7 million for the quarter ended September 30, 2020.
The amount includes the reduction in revenue associated with the sale of the BWR retail brands during the quarter, but does not include revenues from its recently announced combination with ARIIX and four other e-commerce/direct selling companies, which is expected to more than double the size of the company and significantly improve the combined entity’s profitability.
The $62.7 million for the quarter compares with $69.8 million for the third quarter of 2019. According to the company, the year-over-year variance is primarily due to the impact of COVID-19 and the timing of significant qualification events in the company’s Asia markets. Positively, the U.S. had revenue growth of 11 percent in the third quarter versus the same quarter in the prior year
“We continue to make substantial progress on integrating the five companies that are part of this game-changing merger to create a leading social selling company,” said Brent Willis, chief executive officer of NewAge. “We had major achievements in the past few quarters in disposing of the BWR brands which had a negative impact of more than $15 million in EBITDA in fiscal 2019, capturing cost synergies of approximately $10 million in NewAge , and in achieving growth in the U.S., Latin America and Western European markets. We expect the merger between NewAge and ARIIX will close this month. As we come together, we expect to generate accelerated growth and profit contribution, and are extremely well positioned to do so.”
NewAge signed a definitive agreement to acquire ARIIX and four other e-commerce/direct selling companies on July 20, 2020. The definitive agreement was amended and restated on September 30, 2020. The transaction is expected to close by November 30, 2020. The combination creates a company with expected annual revenues of more than $500 million, a blended gross margin of 70 percent and expected annual EBITDA of more than $30 million.
To read the full NewAge Q3 2020 report, click here.