In 2010 Monster Beverages was a $5 stock today (NASDAQ: MNST) trades for $96/share. We see SBEV on a potentially similar path. Growth may hurt a bit at first but pays off in the end.
High Revenue Growth at Splash Beverage (SBEV) with a New Ecommerce Platform in Development and their CEO Discusses New Acquisitions on the Horizon
Good day everyone,
We are continuing coverage on Splash Beverage Group, Inc. (NYSE: SBEV), a company engaged in manufacturing, distribution, sales & marketing of various beverages across multiple channels. in both the non-alcoholic and alcoholic beverage segments.
Current price $2.2961/share (at 10:00 AM EDT)
SBEV shares opened lower in the Thursday session at $2.21/share after closing at $2.28 on Wednesday. Today’s trading range as of 10:00 AM has been $2.19 to $2.43/share.
One thing you should know about SBEV and their potential for growth is the history of CEO Robert Nistico. He was the fifth employee hired by Redbull when their sales were zero. He was the VP/General Manager that led the company to over a billion in revenues.
As a part of your due diligence, we’ve added this link to a video interview with CEO Robert Nistico recorded on August 10, 2021.
Just this morning the company issued news of an audio interview with CEO Robert Nistico. The interview discusses the company acquisition strategy as Mr. Nistico states, “We are poised to execute on our overall vision, which is to continue growing our legacy brands organically, but also identifying and executing on the right acquisitions. We will continue to do that this year and for the foreseeable future,” he says. “We are keen on acquisition – not only does it add revenue and ultimately bottom-line growth, and it also adds additional distribution. We’re very excited and are poised extremely well to capitalize on this strategy.”
SBEV has developed an ecommerce platform to facilitate B2B and B2C beverage sales and named it Qplash. The new platform is like Drizly and other direct to consumer beverage alcohol delivery platforms. SBEV has fully integrated operational automation into Qplash, from sales to shipment, with Oracle’s NetSuite software to increase sales margins and power further expansion of nationwide sales footprint.
The Company plans to launch direct-to-consumer sales of Splash’s alcoholic brands through Qplash soon with instant coast to coast coverage in the U.S. As of today, 21 states have passed laws allowing shipments of spirits brands directly to the consumer.
Stay tuned for more information about Splash Beverage tomorrow.
The Traders News Group
original report below
Good day everyone,
Alcohol and sports drinks are well known to be a recession proof sector!
We are initiating coverage on Splash Beverage Group, Inc. (NYSE: SBEV), a company engaged in manufacturing, distribution, sales & marketing of various beverages across multiple channels. in both the non-alcoholic and alcoholic beverage segments.
Current price $2.28/share (at market close 8-18-21)
SBEV caught our eye because they recently uplisted to the NYSE American exchange, and just released their 10-Q for the second quarter ended June 30th indicating a high level of revenue growth.
In June, Splash Beverage Group uplisted to the NYSE American stock exchange and closed on an underwritten public offering of 3.75 million shares of common stock and warrants to purchase up to 3.75 million shares of common stock at a public offering price of $4.00 per share and accompanying warrant. The warrants which trade on the NYSE American under the symbol “SBEV WS” have an exercise price of $4.60 per share and expire five years from issuance.
When we look at the company stock chart, we can see the drop in the share price after the uplist to the NYSE and public offering of shares. SBEV share are trading below their 50 DMA and 200 DMA of $3.34 and $4.19 respectively. The current RSI (14) is at 29.67. These data an indicate shares that may have been oversold.
Let’s look at the SBEV recent revenue growth QoQ:
Q-2 2021 $3.287M (+36%)
Q-1 2021 $2.418M (+95%)
Q-4 2020 $1.242M (+23%)
Q-3 2020 $1.010M (+65%)
Q-2 2020 $ .612M
That’s an impressive growth rate and represents a 225% growth rare for the trailing twelve months. Further, the company has issued guidance for H-2 and FYE 2021 revenues:
With respect to Q3, Splash sees revenue of $4.14 million, implying an increase of 34% sequentially and 310% over its comparative quarter in 2020. The company expects its FY Q4 2021 results to reach $5.78 million, representing a sequential quarterly increase of 39% and a comparative quarterly increase of 366%. Year-end guidance implies for total revenues to reach $15.97 million, implying year-over-year growth of 436%.
Revenues in the first six months of 2021 grew to $5,426,684, an increase of $4,902,132 or 934% over $524,732 in the first six months of 2020.
SBEV is a portfolio style company, meaning they acquire existing beverage brands and develop them rather that creating products.
So, what is SBEV selling to generate that kind of growth? They sell beverages with four different brands:
Tapout – a complete line of high-performance sports drinks. – Tapoutdrinks.com
Salt – naturally flavored 100% blanco agave tequila with a clean and sweet taste in a variety of flavors. – DrinkSaltTequila.com
Copadivino – the leading producer of premium wine by the glass in the United States. – Copadivino.com
Pulpo-Loco – Sangria, crafted and imported from Spain. – Pulpo-Loco.com
According to Fortune Business Insights™, the global sports drink market is projected to grow from $27.22 billion in 2021 to $36.35 billion in 2028 at a CAGR of 4.2%. The Statista Consumer Market Outlook estimates that by 2025 the global market size of alcoholic beverages will increase to over 2.2 trillion U.S. dollars.
SBEV has a very modest share structure with 30.49M shares outstanding and only 18.57M shares in the public float. We note that insiders own 30.2% of the outstanding shares.
Our considerations:
Rapid triple digit revenue growth YoY.
Very small share structure.
Operating in a massive market sector.
Shares are 64% off their May 2021 high of $6.72/share.
We expect SBEV shares could move to the upside as the news (just released Tuesday) of their Q-2 revenues and guidance for 2021 revenue growth get widely distributed.
We will have an updated report on SBEV soon,
The Traders News Group
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