Iconic Brands Announces Record Revenues for First Quarter 2022
- Strong demand and sales drove total revenue for Q1 2022 up 538% year-over-year, largely attributed to products of newly acquired TopPop LLC (“TopPop”), which include ready-to-freeze (RTF), ready-to-drink (RTD), alcohol ice pops and flexible pouches
- Iconic Brands has record quarter with over $4 million in revenue, nearly equaling 2021 full-year revenues of $4.9 million
AMITYVILLE, NY, Aug. 03, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire -- Iconic Brands, Inc. (OTC: ICNB) (“Iconic” or the “Company”), a leader in the development, design and delivery of alcohol and non-alcohol beverages, today reported its financial results for the first quarter ended March 31, 2022.
First Quarter 2022 Financial Highlights
- Total revenue for the first quarter ended March 31, 2022 was $4,046,797, an increase of $3,412,264 compared to the same period last year, representing an increase of 538%.
- Gross profit was $1,841,758 for the first quarter ended March 31, 2022, an increase of approximately 483% year-over-year.
- Cash as of March 31, 2022, was $7,589,114, compared to $2,190,814 on December 31, 2021.
- Unaudited pro forma revenue for the quarter ended March 31, 2021, was $3,002,597. On a proforma basis, revenue increased by roughly $1.0 million due to TopPop product demand.
First Quarter 2022 Highlights
- During the quarter, the Company closed the second and final tranche of its previously announced July 2021 financing. Iconic received net proceeds of approximately $10.9 million from the closing of the second tranche, to be used for general working capital purposes that include domestic and international expansion of the Bellissima brand, TopPop facility production and expansion to increase capacity for growing demand, new product launches and marketing.
- Strong demand for TopPop products, which include low-calorie, ready-to-go drinks; RTF; and RTD products since the acquisition was completed in July 2021.
- Iconic held an investor and media unveiling and tour of TopPop’s new 65,000 square foot facility in Pennsauken, New Jersey.
- TopPop reached full-scale production capability of its newest facility at the end of March 2022. Iconic invested approximately $4 million in facility improvements and packaging equipment to meet growing demand with its vertically integrated operations that include high-speed flexible pouch equipment, blending and batching, semi-automatic pack-outs and full-product testing capabilities. The new facility is also FDA-registered, Safety Quality Food (SQF)-certified, Kosher and Organic production-certified, TTB & NJ ABC approved. The facility is expected to produce 80 million units by the end of 2022.
- The Company launched Bellissima Zero, a new line of zero sugar still wines created by Bellissima Prosecco and co-developed by Bellissima brand partner, supermodel, actress and entrepreneur Christie Brinkley. Bellissima Zero is now available in five expressions: Pinot Grigio IGT, Chardonnay IGT, Rosé Wine, Merlot IGT and Cabernet Sauvignon IGT. Bellissima Zero has zero sugar, has approximately one gram of carbohydrates per five ounces, is made with organic grapes and is certified vegan.
- 23,500 cases of Iconic’s recently launched Bellissima Zero Sugar Still Wines arrived into inventory from Italy to meet 2022 demand. Iconic has a total of 85,000 cases available for 2022.
- Iconic bolstered its national product distribution and sales strategy with the appointment of new members to its sales team.
- Sales of Bellissima Prosecco and Sparkling Wines in New York increased by 73% by volume, and the number of distribution points grew by over 250%.
“The first quarter of 2022 was a testament to the strength of our business. We had record revenue for FY 2021 at $4.9 million, and this year we were able to achieve nearly that in just one quarter,” said Iconic Chief Financial Officer Dave Allen. “We closed on the second tranche of financing giving the Company a solid cash balance for production, expansion and other working capital needs. We put together a national sales team of industry experts and are proud to have launched Bellissima Zero, a new line of zero sugar still wines that complement our existing product line and target the very popular zero sugar alcohol segment. We believe this momentum will continue in years ahead as we now have the capabilities to support the growing demand for our unique and popular product categories.”
Tom Martin, interim Chief Executive Officer of Iconic, added, “On the execution front, we have been very aggressive and have rapidly seen our team hit multiple milestones. Our innovative and sustainable flexible packaging solutions have always been a priority, and as such, we have one facility already running on 100% solar power and expect the same for our Pennsauken facility in the near future. We were pleased that we brought our new 65,000 square foot packaging facility to full capacity and were able to give investors and members of the press a tour of the facility. Renovating, configuring and setting up a facility of this size is a large task, and our staff did an excellent job doing so. We believe we are off to a great start in 2022 with record sales; we continue to work with some of the largest alcohol beverage companies and brands, and we are committed to becoming a premier beverage manufacturer and product developer.”
First Quarter 2022 Financial Results
Iconic reported revenue of $4,046,797 for the three months ended March 31, 2022, an increase of $3,412,264 or 538% compared to $634,533 for the three months ended March 31, 2021. Sales are comprised of Bellissima Prosecco and Sparkling Wine, the line of Hooters brand products and the Company’s RTF TopPop products.
Cost of sales was $2,205,039 or approximately 54% of sales, for the three months ended March 31, 2022 and $318,633, or approximately 50% of sales, for the three months ended March 31, 2021. The increase in cost of goods as a percentage of sales, year-over-year, is due to the change in product mix in 2021 as a result of our TopPop acquisition. Cost of goods for the three months ended March 31, 2022 for our alcohol sales was approximately 40%, which is similar to the same period in the prior year, while the costs associated with our TopPop acquisition were approximately 51% during the three months ended March 31, 2022.
Total operating expenses were $4,810,364 for the three months ended March 31, 2022, an increase of $3,815,226 or approximately 383% compared to $995,138 for the three months ended March 31, 2021.
Net operating loss was $2,968,606 for the three months ended March 31, 2022, an increase of $2,289,368 or approximately 337% compared to $679,238 for the three months ended March 31, 2021.
On January 5, 2022, the Company closed the second tranche of its equity financing and sold 12,258 shares of Series A-2 Convertible Preferred Stock, 4,301,004 shares of common stock and warrants to purchase 40,018,583 shares of common stock for gross proceeds of approximately $12.2 million and net proceeds of approximately $10.9 million after deduction of placement agent commissions and expenses of the offering. Net proceeds are expected to be used by the Company for domestic and international expansion of its Bellissima brand, the expansion of the production facilities of the Company’s TopPop subsidiary, new product launches, marketing and other general working capital purposes.
Iconic Brands, Inc. (OTC: ICNB) is a leader in the development, design and delivery of alcohol and non-alcohol beverages. TopPop, Iconic’s wholly owned subsidiary, is a leader in the innovation of low-calorie, “ready to go” drinks and ready-to-freeze (RTF) and ready-to-drink (RTD) products in sustainable, flexible and stand-up pouch packaging, and in the alcohol ice-pop and “cocktails-to-go” market. Iconic’s brands include “Bellissima” by Christie Brinkley, a premium better-for-you and better-for-the-planet collection of prosecco, sparkling wines and still wines, all of which are certified vegan and made with organic grapes. Bellissima is strategically positioned with its zero sugar wines in the zero sugar beverage category. Iconic operates in multiple states, distributes around the globe and has Fortune 500 customers that include some of the world’s largest alcohol beverage companies and brands.
Please visit Iconic’s websites and follow us on social media.
Websites: Iconicbrandsusa.com;bellissimaprosecco.com; toppoppkg.com; sonjasangria.com
Twitter: @iconicbrandsus; @Sonja_Sangria
Instagram: @IconicBrandsUSA; @BellissimaProsecco; @sonja_sangria
LinkedIn: Iconic Brands USA; TopPop Packaging
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of management, are not guarantees of performance, and are subject to significant risks and uncertainties. These forward-looking statements should, therefore, be considered in light of various risks, including those set forth in Iconic’s reports that it files from time to time with the U.S. Securities and Exchange Commission and which you should review, including those statements under “Item 1A – Risk Factors” in Iconic’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q.
Released August 3, 2022