Zevia PBC (ZVIA) Q4 2024 earnings summary

Executive summary

• Q4 2024 net sales grew 4.4% year-over-year to $39.5 million, driven by 11.6% volume growth and expanded Walmart distribution.

• Record Q4 gross margin of 49.2%, up 850 basis points year-over-year, reflecting productivity initiatives and improved inventory management.

• Full year 2024 net sales declined 6.8% to $155.0 million, mainly due to lost distribution in club and mass channels, partially offset by Walmart gains.

• Net loss improved to $6.8 million in Q4 and $23.8 million for the year; adjusted EBITDA loss narrowed to $3.9 million in Q4 and $15.2 million for the year.

• Advanced strategic pillars: amplified marketing, product innovation, and expanded distribution, positioning for long-term growth in the Better For You Soda category.

Financial highlights

• Q4 2024 gross profit was $19.4 million, with gross margin at 49.2%, up from 40.7% in Q4 2023.

• Q4 selling and marketing expenses rose to $16.5 million (41.7% of sales), reflecting increased marketing and freight out.

• Q4 general and administrative expenses fell to $6.8 million (17.3% of sales) due to productivity initiatives.

• Full year gross profit margin improved to 46.4%, up from 44.9% in 2023.

• Operating cash flow improved significantly, with Q4 2024 at $(1.0) million versus $(6.9) million in Q4 2023.

Outlook and guidance

• FY 2025 net sales expected between $158 million and $163 million, reflecting new distribution gains and discontinued lines.

• FY 2025 adjusted EBITDA loss projected at $8 million–$11 million, with gross margins in the high 40% range.

• Q1 2025 net sales guidance of $36–$38 million; adjusted EBITDA loss of $5.6–$6 million, reflecting higher marketing spend.

• Positive adjusted EBITDA targeted for 2026, supported by ongoing cost savings and productivity initiatives.

• Management targets $15 million in annualized savings, with an additional $2 million expected in 2025–2026.