SCOTTSDALE, Ariz.–(BUSINESS WIRE)–The Alkaline Water Company Inc. (NASDAQ and CSE: WTER) (the “Company”), the country’s largest independent alkaline water company, today announced record results for the full fiscal year ending March 31, 2021 with revenue of $46 million.
“Fiscal 2021 was another record year for The Alkaline Water Company continuing our streak of never having a down or a flat year,” said Richard A. Wright, President and CEO of The Alkaline Water Company. “Our employees and business partners rose to the occasion throughout last year and we have seen significant sales acceleration into fiscal 2022. We delivered to our customers and consumers when they needed us most. The trust and appreciation we earned from our strong performance throughout the pandemic allowed us to continue to see more organic and new-store growth, and an expanding presence in more key channels. Our guidance for the full fiscal year 2022 is $62 million which would represent year-over-year growth of 35%.”
Fiscal 2021 Full Year Financial Overview (all amounts in U.S. dollars)(unaudited)
- Record revenue of approximately $46 million, an increase of approximately 20% over fiscal 2020.
- Compound Annual Growth Rate of 52% for revenue since fiscal 2015.
- Cost of Goods sold equal to approximately $29.6 million, a 17% increase over $25 million in fiscal 2020.
- Gross Profit of approximately $16.4 million, a 25% increase over $13.1 million in fiscal 2020.
- Net loss of $16.4 million compared to $14.8 million in fiscal 2020.
- Earnings per share: ($0.24)
- Cash or Cash Equivalents of $9,130,956
Fiscal 2021 Key Operational Highlights-
Market Penetration and Channel Expansion:
- Alkaline88® water is now available in over 75,000 stores across all trades in the U.S.
- Launched Direct Store Delivery (DSD) strategy with Mahaska, Nevada Beverage Company, and Hensley Beverage Company who serve a combined 16,000 clients in five states.
- Began first international partnership with Tiendas Sindicales in Mexico who sells to approximately 6 million customers a month in the Mexican Free Trade Zone.
Expanded into multi-billion-dollar Hospitality and Foodservice channel.
- Added Dot Foods Inc., the largest food redistributor in the U.S., to present our Alkaline88®, A88 Infused™, and eco-friendly aluminum bottles to its 4,300 customers nationwide.
- Added Independent Broker Alliance (IBA Foodservice), an alliance of 30 independently owned and operated foodservice sales agencies.
- Expanded e-commerce and brick and mortar channels for A88CBD™ portfolio of products.
- Alkaline88® growth +11.3% over the category in dollar volume and +15.5% over the category in unit volume according to Nielsen data for 52 weeks ending 3/27/21.
“During Fiscal 2021, we tightened our supply lines, met production demands, and added talented employees to our mix,” continued Mr. Wright. “Recently one of our top customers told us we were rated ‘the best of the best’ last year and have maintained that rating into fiscal 2022.
“While the hospitality industry as a whole was disrupted last year, we made significant strides to position ourselves well for channel penetration. We partnered with the largest food redistribution company in the U.S., Dot Foods, and national broker IBA Foodservice. We expect these partnerships to bear fruit in fiscal 2022 as the hospitality industry opens up and on-premise consumption makes a significant comeback.
“In fiscal 2021, we received new export certificates from the FDA and now have three co-packers that are certified to export. We expanded into our first international market, with Tiendas Sindicales in Mexico, who serves approximately six million customers a month in the Mexican Free Trade Zone. We’re excited for what this means for The Alkaline Water Company, as Mexico has one of the highest per capita bottled water consumption rates in the world. Expansion into the Caribbean and Puerto Rico is already underway in fiscal 2022 and we are confident that Canada can be our next international market.
“In fiscal 2021, to accelerate our convenience store presence we partnered with direct store delivery (DSD) distributors, Mahaska, Nevada Beverage Company, and Hensley Beverage Company. Together they service over 16,000 retail stores in five states. We plan to enter the Northeast and Mid-Atlantic regions with major DSD partnerships in the near future.”
Innovation and Product Portfolio Expansion
- Launched single-serve 500ml eco-friendly aluminum bottles.
- Launched new 2-liter six-packs, targeting high volume shoppers, including the club market.
- Developed functional CBD waters to be released in fiscal 2022.
- Expanded A88CBD™ ingestible product lineup; includes lemon-lime water, gummies, and powder packs made with high-quality, lab-tested hemp extract.
- Expanded topical product lineup; includes bath bombs and deep-relief cream made with high-quality, lab-tested hemp extract.
“In Fiscal 2021, we continued to innovate our A88CBD™ line. Despite the challenges of last year, we made moves to continue to grow our brick-and-mortar presence through strategic partnerships with distributors and brokers like KeHE, BettermentRS, and UNFI. Our A88CBD products are also available through several online retailers including our own e-commerce site, a88cbd.com. In fiscal 2021, our CBD portfolio expanded with new water flavors, powders, gummies, and additional topicals. Products are available in hundreds of locations across the country now and we have gained great momentum for A88CBD going into fiscal 2022. We’re most looking forward to the functional CBD waters which we developed in fiscal 2021 to make it to market this year,” continued Mr. Wright.
- Listed on the Canadian Securities Exchange and delisted from the TSX Venture Exchange.
- Appointed Retail Industry Veteran Frank Lazaran to its Board of Directors.
- Grew E-Commerce water and CBD sales.
- Added critical personnel, including a new Director of Operations and Director of Marketing
Featured and showcased the A88 family of products at various national expos and tradeshows.
- Ranked #1 best selling national brand by units sold at the 2020 KeHE Holidays of Hope show and the KeHE Winter Virtual show.
“In fiscal 2021, we doubled our employee count and strengthened the company in virtually every area. Together we responded to unprecedented demand and unique challenges and, as a result, our production capacity has never been greater and our sales opportunities have never been stronger,” said Mr. Wright.
- Had largest sampling program in Company’s history with tens of thousands of new families trying Alkaline88 for the first time.
- Alkaline88® remains the #1 selling bulk alkaline water nationally.
- Independent research shows that almost 50% of sales are from customers buying Alkaline88 for at least the fourth time.
“Our reliable shelf presence in early fiscal 2021 resulted in the largest sampling program in our company’s history,” continued Mr. Wright. “In one retailer alone, 135,000 new households tried Alkaline88 for the first time.
“We’re incredibly pleased with our growth relative to the value-added water category. Multiple industry-backed third-party data sources highlight how strong we are as a brand and how positive our growth trajectory has been and continues to be.
“According to Nielsen, during the 52-week period ending March 27, 2021, Alkaline88’s growth was 11.3% over category in dollar volume and 15.5% over category in unit volume.
“According to IRi’s Multi Outlet data for the total US over 52 weeks ending May 6th, 2021, our one-gallon is the third-best selling SKU amongst all branded one-gallon waters, not just value-added. In fact, Alkaline88 is the only value-added water brand in the top-ten one-gallon SKUs in the country.
“According to SPINS, which tracks the natural food…