Iconic Brands Reported Financial Results for Third Quarter 2022
AMITYVILLE, NY, Dec. 06, 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, reported financial results for the third quarter ended September 30, 2022.
Third Quarter 2022 Financial Highlights:
- Total revenue for the quarter ended September 30, 2022, was $3,162,422, an increase of $315,985, compared to $2,846,437 for the three months ended September 30, 2021.
- Cash as of September 30, 2022, was $2,798,401, compared to $2,190,814 on December 31, 2021.
Third Quarter and Recent 2022 Highlights:
- The Company introduced a newly launched product, Pop Top Naturals, in October 2022. Pop Top Naturals Juice Pouches are a healthy, portion-controlled solution to the kid’s juice box market for major retailers and distributors.
- Interim Chief Executive Officer Tom Martin continued to direct the Company into its next stages of growth. The Company now has the capacity to produce 80 million units of frozen ice pops, various stand-up flexible pouches, single-serve shots, organic juice pops, and dog treats in 2022. This was double the capacity from 40 million units in 2021.
- In October, Bellissima Zero Still Wines were premiered and featured on QVC; the feature led to on-air inventory of its Pinot Grigio being completely sold out.
- The Company is seeing continued growth in its Bellissima still wines.
“Historically, TopPop’s second half of the year has represented our ‘softest’ from a revenue perspective, since the traditional frozen cocktail market is highly seasonal. It is also the part of the year that we typically book new business and prepare to manufacture for deliveries in the first quarter. Because we are a fast-growing business, this has an effect on our operations as we develop new product categories and broaden our customer base to even out this inconsistency in our quarterly results. I was displeased with our operating results for the quarter. I believe these results were the result of unanticipated difficulties in licensing and ordering equipment, and of cost increases in labor and goods as we moved into our new plant. Additionally, some of the Company’s still wines took longer to be placed into anticipated new markets. However, our bookings are strong, and our business is expanding into new areas while we continue to demonstrate our growth trajectory and commitment to building a platform of solutions within the industry. We believe that during this quarter, the fruits of our labor and investments began to pay off, as our production facilities made great progress with the ready to freeze, ready to drink ice pops and pouches. As sustainability remains on the forefront of corporate missions worldwide, we believe that demand for our products and innovative packaging remains solid. Recently we added a new non-alcohol-based healthy kid’s juice pouch, Pop Top Naturals, which we expect to release into the retail market in the fourth quarter of 2022. We believe this demonstrates our ability to put Iconic’s brand into the marketplace and to provide an additional source of revenue to its beverage product portfolio. We also believe this product will begin to smooth out the seasonality of our business going forward. As we near the end of the year, we are excited for 2023 and what it will bring,” commented Tom Martin, interim Chief Executive Officer of Iconic.
Third Quarter 2022 Financial Results
Iconic reported revenue of $3,162,422 for the three months ended September 30, 2022, an increase of $315,985, compared to $2,846,437 for the three months ended September 30, 2021. Sales comprised of Bellissima Prosecco, Sparkling Wine and still wines, and the Company’s ready to freeze (“RTF”) TopPop products.
On an unaudited pro forma basis for the quarter ended September 30, 2022, revenue was $3,162,422, compared to 4,515,648 for the same period in 2021, a decrease of roughly $1,353,226.
Cost of sales was $2,546,965, or approximately 81% of sales, for the three months ended September 30, 2022, compared to $2,151,088, or approximately 76% of sales, for the three months ended September 30, 2021.
Total operating expenses were $4,641,457 for the three months ended September 30, 2022, compared to $2,612,226 for the three months ended September 30, 2021, an increase of $2,029,231 or approximately 78%.
Net operating loss was $4,026,000 for the three months ended September 30, 2022, compared to $1,916,877 for the three months ended September 30, 2021, an increase of $2,109,123 or approximately 110%.
The net loss was further offset by noncash transactions of $12,984,661 gain related to change in fair value of contingent consideration, $10,694,448 related to loss on impairment of goodwill, $2,389,853 of amortization of intangibles and $744,557 of stock based compensation.
Iconic Brands, Inc (OTC: ICNB) together with its wholly-owned subsidiary, TopPop, develops brands, innovates products, and creates sustainable packaging solutions for the alcohol and non-alcohol beverage market. Iconic offers a collection of brands in the wine & spirits, ready-to-drink cocktail, ready-to-freeze ice pop, and pre-mixed ready-to-go categories. In addition, TopPop offers turnkey solutions, from design to delivery, in sustainable packaging for major alcohol and non-alcohol beverage and frozen food brands. Iconic prides itself on its commitment to brand expansion and to delivering purpose-driven brands that strive to lead the change in the “Better-for-you” and “Better-for-the-planet” categories. In July, Iconic announced its intention to change its name to “TopPop Innovative Brands” to better reflect the focus and fundamental drivers of the business. Iconic operates in multiple states, with worldwide distribution and a number of Fortune 500 customers, including some of the world’s largest alcohol beverage companies and brands.
Please visit Iconic’s websites, and follow us on social media.
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 Reports on Form 10-Q.
Released December 6, 2022