Reed's Inc (REED) 2026 Q1 法說會逐字稿

Good morning, and welcome to Reed's first-quarter 2026 earnings conference call for the three months ended March 31, 2026.

早安，歡迎參加 Reed's 2026 會計年度第一季（截至 2026 年 3 月 31 日止三個月）財報電話會議。

My name is Joelle, and I will be your conference call operator for today. Today's call will include prepared remarks from Neal Cohane, Reed's Interim Chief Executive Officer; and Doug McCurdy, Reed's Chief Financial Officer. Following their remarks, we will open the call for questions.

我叫 Joelle，今天將擔任本次電話會議的接線員。今天的電話會議將包含 Reed's 代理執行長 Neal Cohane 先生，以及 Reed's 財務長 Doug McCurdy 先生的事先準備發言。在他們發言後，我們將開放提問。

Before we begin, please take note of the company's cautionary statement. Today's call will include forward-looking statements, including statements about Reed's business plan, growth initiatives, operational improvements, including the company's belief that its first quarter results are not indicative of future performance and the impact of its corrective efforts. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements.

在開始之前，請留意公司之警示性聲明。今天的電話會議將包含前瞻性陳述，包括關於 Reed's 的商業計畫、成長倡議、營運改善的陳述，包括公司認為第一季結果不代表未來表現，以及其矯正措施之影響。這些陳述受風險與不確定性影響，可能導致實際結果與前瞻性陳述所載內容出現重大差異。

Forward-looking statements inherently involve risks and uncertainties and only reflect management's view as of today, May 13, 2026. Reed's assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

前瞻性陳述本質上涉及風險與不確定性，且僅反映管理階層截至今日（2026 年 5 月 13 日）的觀點。除法律要求外，Reed's 不承擔亦無意更新這些前瞻性陳述之義務。

For more information, please refer to the risk factors section of the company's annual report filed with the Securities and Exchange Commission on March 25, 2026, and in other filings that the company makes from time to time with the SEC. When discussing results, the presenters may refer to non-GAAP measures, which exclude certain items from reported results.

如需更多資訊，請參閱公司於 2026 年 3 月 25 日向美國證券交易委員會（SEC）提交之年度報告中的風險因素章節，以及公司不時向 SEC 提交的其他文件。在討論業績時，簡報者可能會提及非 GAAP 衡量指標，其會自已報告結果中排除特定項目。

Please refer to Reed's first quarter 2026 earnings release on Reed's investor website at investor.reedsinc.com and the company's quarterly report on Form 10-Q for the quarter ended March 31, 2026. Expected to be available on the website soon. For definitions and reconciliations of non-GAAP measures and additional information regarding results, including a discussion of factors that could cause actual results to materially differ from forward-looking statements. While we believe the non-GAAP financial measures provide useful information for investors, the presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP.

請參閱 Reed's 投資人網站 investor.reedsinc.com 上的 Reed's 2026 年第一季財報新聞稿，以及公司截至 2026 年 3 月 31 日止季度的 Form 10-Q 季度報告。預計將很快在網站上提供。關於非 GAAP 衡量指標之定義與調節表，以及與業績相關的其他資訊，包括可能導致實際結果與前瞻性陳述出現重大差異之因素討論。雖然我們認為非 GAAP 財務衡量指標可為投資人提供有用資訊，但提供此資訊並非意圖使其被單獨考量，或作為依 GAAP 呈列之財務資訊的替代。

I will now turn the call over to Mr. Cohane.

現在我把電話交給 Cohane 先生。

Thanks, Joelle, and good morning, everyone. I first would like to say the company's operating performance in Q1 should not be viewed as indicative of our expanded performance for the balance of the year. Several factors contributed to the quarter's results, many of which we believe are transitional and are already being addressed through corrective actions initiated early in 2026.

謝謝你，Joelle，各位早安。首先我想說，公司第一季的營運表現不應被視為代表我們在今年其餘期間擴大後的表現。有數項因素影響了本季結果，其中許多我們認為屬於過渡性因素，且已透過 2026 年初啟動的矯正行動著手處理。

We see five factors that impacted our performance in Q1. They are as follows: number one, inventory liquidation and write-offs. The company incurred significant charges related to liquidation of underperforming discontinued and aged SKUs as well as write-offs associated with excess raw material inventory. We have since completed comprehensive physical inventory counts and implemented enhanced inventory controls designed to minimize the likelihood of similar charges recurring.

我們看到有五項因素影響了第一季的表現。如下：第一，存貨清算與沖銷。公司因清算表現不佳、已停產及老化的 SKU，以及與過量原物料存貨相關的沖銷，而認列了重大費用。此後我們已完成全面的實體盤點，並導入強化的存貨控管，以降低類似費用再次發生的可能性。

Number two, elevated SG&A expenses. SG&A expenses were not appropriately aligned with the size and current priorities of the business. We have taken action to rightsize the cost structure, and we remain focused on rebuilding trust with retail and distributor partners while reengaging consumers and supporting brand growth initiatives.

第二，SG&A 費用偏高。SG&A 費用未能與業務規模及當前優先事項適當對齊。我們已採取行動調整成本結構至適當規模，並持續專注於重建與零售及經銷夥伴的信任，同時重新吸引消費者並支持品牌成長倡議。

Third, sales execution challenges. Q1 sales performance was negatively impacted by several operational commercial factors, including the discontinuation of our heritage glass bottle packaging. The execution -- two, the execution challenges associated with the transition from sleek cans to standard cans. Three, we had limited promotional trade activity during the quarter. Four, underperformance and evolving strategic focus behind Virgil's Zero platform, which is currently being restaged for future relaunch and growth.

第三，銷售執行挑戰。第一季銷售表現受到多項營運與商業因素的不利影響，包括停止使用我們傳統的玻璃瓶包裝。第二，從細長罐（sleek cans）轉換為標準罐所伴隨的執行挑戰。第三，本季促銷通路活動有限。第四，Virgil's Zero 平台表現不佳且策略重點正在調整，目前正重新整備，以利未來重新上市與成長。

Five, we missed category review windows that resulted in reduced shelf placement for certain Reed's and Virgil's SKUs at key retail accounts, right?

第五，我們錯過了品類審查的時間窗口，導致在關鍵零售客戶中，部分 Reed's 與 Virgil's SKU 的貨架陳列位置減少，對吧？

The fourth (sic - "six"), gross margin pressure. Gross margins were negatively affected by rising input costs and wholesale selling costs on certain packages that were insufficient to optimize margin contribution. Fifth (sic - "seven"), distributor and retail partner engagement. The company experienced inconsistent engagement with certain distributor and retail partners, which contributed to weakened communication, reduced alignment, top-line pressures across portions of the business. So beginning in early Q1 in 2026, management initiated a series of corrective actions intended to stabilize the business, improve execution and position the company for profitable growth in the future.

第四（原文誤稱「六」），毛利率壓力。毛利率受到投入成本上升，以及部分包裝的批發銷售成本影響；這些成本不足以最佳化毛利貢獻。第五（原文誤稱「七」），經銷與零售夥伴互動。公司與部分經銷及零售夥伴的互動不一致，導致溝通弱化、協同降低，並使業務部分領域的營收面臨壓力。因此，自 2026 年第一季初開始，管理階層啟動一系列矯正行動，旨在穩定業務、改善執行，並使公司在未來具備獲利成長的定位。

First thing we did was we reengaged with our retail and distributor partners nationwide to strengthen relationships, secure new SKU placements and develop promotional plans for the remainder of 2026. On the product side of things, we canceled the planned elimination of the Reed's and Virgil's heritage glass bottles and Virgil's Zero Sugar cans. Consumer and retail partner demand contributed to our decision to reverse course on those discontinuations.

我們做的第一件事，是在全國範圍內重新與零售及經銷夥伴接觸，以強化關係、爭取新的 SKU 上架位置，並制定 2026 年其餘期間的促銷計畫。在產品方面，我們取消了原先計畫淘汰 Reed's 與 Virgil's 傳統玻璃瓶，以及 Virgil's Zero Sugar 罐裝產品的安排。消費者與零售夥伴的需求促使我們決定撤回這些停產決策。

We also expanded our retail media and e-commerce support. The company launched sponsored product and retail media initiatives across key e-commerce platforms, including Instacart, Walmart.com, Albertsons.com and Kroger.com, among others.

我們也擴大了零售媒體與電商支援。公司在多個關鍵電商平台推出贊助商品與零售媒體計畫，包括 Instacart、Walmart.com、Albertsons.com 與 Kroger.com 等。

We also initiated cost reduction. We implemented meaningful reductions in headcount and marketing-related SG&A expenses and postponed a planned brand restage initiative until the business demonstrates sustained growth and momentum. We also -- to expand our retail and consumer reach, we retained one of the nation's largest commission-based sales agencies to present the Reed's portfolio of brands across all channels of business in the US.

我們也啟動了成本削減。我們大幅縮減人力與行銷相關的 SG&A 費用，並將原先規劃的品牌重新整備計畫延後，直到業務展現持續成長與動能。此外——為了擴大我們在零售端與消費者端的觸及，我們聘請了全美規模最大的按佣金計酬銷售代理機構之一，在美國所有業務通路推廣 Reed's 的品牌組合。

This partnership immediately expanded our retail coverage and field presence with more than 80 sales professionals working alongside Reed's sales management. We liquidated tens of thousands of cases of low-margin and nonstrategic inventory to improve working capital efficiency and streamline portfolio.

這項合作夥伴關係立即擴大了我們的零售覆蓋與外勤佈局，超過80位銷售專業人員與Reed's的銷售管理團隊並肩作戰。我們清理了數以萬計箱、低毛利且非策略性的庫存，以提升營運資金效率並精簡產品組合。

We also restructured Amazon. We exited a third-party Amazon fulfillment warehouse arrangement that had been generating approximately $1 million in annual losses and simultaneously partnered with a leading Amazon marketplace operator focused on driving profitable growth. On the gross margin improvement, management conducted a comprehensive review of cost of goods and portfolio level gross profit margins. Following our analysis, we began implementing strategic pricing actions designed to improve profitability and support long-term financial performance.

我們也對Amazon業務進行了重整。我們退出了一項第三方Amazon履約倉庫安排，該安排每年約造成100萬美元的虧損；同時與一家領先的Amazon市集營運商合作，專注於推動具獲利性的成長。在毛利改善方面，管理團隊對銷貨成本與產品組合層級的毛利率進行了全面檢視。在完成分析後，我們開始推動策略性定價措施，旨在提升獲利能力並支撐長期財務表現。

Finally, to support the execution of the above initiatives, we've recently appointed Damian Warshall as Chief Operating Officer. Damian has a history with Reed's, and we believe his operational experience positions him well to lead this next phase of improved operating performance. The team's immediate priority has been to stabilize the business, improve execution, and rebuild confidence across all aspects of the organization. While our first quarter results clearly fell short of expectations, we have moved quickly and decisively to address operational inefficiencies, strengthen customer and distributor relationships, streamline our cost structure and refocus the company down the path of profitability.

最後，為了支持上述各項計畫的落實，我們近期任命Damian Warshall擔任營運長（COO）。Damian過去曾在Reed's任職，我們相信他的營運經驗使他能勝任帶領公司進入下一階段、提升營運績效。團隊當前的首要任務是穩定業務、改善執行力，並在組織各層面重建信心。儘管我們第一季的結果明顯未達預期，我們已迅速且果斷地採取行動，以解決營運效率不彰、強化客戶與經銷商關係、精簡成本結構，並讓公司重新聚焦於邁向獲利的道路。

Reed's and Virgil's remain highly recognizable brands with strong consumer awareness and significant untapped potential in both retail and e-commerce channels. We believe the actions taken over the past several months are laying the foundation for improved execution, stronger margins and renewed top line momentum as we move through 2026.

Reed's與Virgil's仍是高度知名的品牌，具備強勁的消費者認知度，並在零售與電商通路皆有可觀的未開發潛力。我們相信，過去數月所採取的行動正為更佳的執行力、更強的毛利率，以及在邁入2026年期間重啟營收動能奠定基礎。

Although there is still substantial work ahead, I am encouraged by the early progress we are seeing across the business and remain confident in our ability to reposition the company for long-term sustainable growth and shareholder value creation.

儘管前方仍有大量工作要做，我對我們在整體業務上所看到的初步進展感到鼓舞，並對我們重新定位公司、以實現長期可持續成長與股東價值創造的能力仍充滿信心。

Thanks to all today. Appreciate your time. Our CFO, Doug, will now cover the financial highlights for the quarter in more detail. Doug?

感謝各位今天的參與。感謝您撥冗。接下來我們的財務長Doug將更詳細說明本季的財務重點。Doug？

Thank you, Neal. Turning to our results. All variance commentary is on a year-over-year basis, unless otherwise noted. Net sales for the first quarter of 2026 were $7.1 million compared to $10.0 million in the prior year period. The decrease was primarily driven by lower volumes with recurring national customers and higher promotional and other allowances.

謝謝你，Neal。接著看我們的業績表現。除非另有說明，所有差異說明皆以年對年為基礎。2026年第一季淨銷售額為710萬美元，較去年同期的1,000萬美元下降。下降主要由於與既有全國性客戶的出貨量較低，以及促銷與其他折讓增加所致。

Gross profit for the first quarter of 2026 was $0.7 million compared to $3.4 million in the prior year period. Gross margin was 10% compared to 34% in the prior year period. The decrease in gross margin was primarily driven by liquidation of select slow-moving product and inventory write-offs related to changes in product portfolio optimization.

2026年第一季毛利為70萬美元，較去年同期的340萬美元下降。毛利率為10%，去年同期為34%。毛利率下滑主要由於清理部分滯銷產品，以及因產品組合最佳化調整而產生的存貨沖銷。

Delivery and handling costs decreased by 31% to $1.1 million during the first quarter of 2026 compared to $1.6 million in the first quarter of 2025, primarily driven by continued improvements in logistics efficiency and freight optimization. Delivery and handling costs were 16% of net sales or $2.57 per case compared to 16% of net sales or $3.17 per case during the same period last year. Selling, general and administrative expenses were $5.8 million compared to $3.5 million in the prior year period. The increase was primarily driven by investments in personnel, marketing and related services to support our Asia growth initiative.

2026年第一季配送與處理成本下降31%至110萬美元，去年第一季為160萬美元，主要受惠於物流效率持續改善與運費最佳化。配送與處理成本占淨銷售額16%，或每箱2.57美元；去年同期亦為淨銷售額16%，但每箱為3.17美元。銷售、一般及行政費用為580萬美元，去年同期為350萬美元。增加主要來自於為支持我們的亞洲成長計畫而在人員、行銷及相關服務上的投資。

Net loss during the first quarter of 2026 was $6.5 million or negative $0.55 per share compared to a net loss of $2.0 million or negative $0.27 per share in the prior year period. EBITDA was negative $6.2 million in the first quarter of 2026 compared to negative $1.7 million in the year ago period. For the first quarter of 2026, cash used in operations was $5.8 million compared to cash used of $5.4 million in the year ago period.

2026年第一季淨損為650萬美元，或每股虧損0.55美元；去年同期淨損為200萬美元，或每股虧損0.27美元。2026年第一季EBITDA為負620萬美元，去年同期為負170萬美元。2026年第一季營運活動使用現金為580萬美元，去年同期使用現金為540萬美元。

As of March 31, 2026, Reed's had approximately $4.6 million of cash and $9.2 million of total debt net of deferred financing fees. This compares to $10.4 million of cash and $9.2 million of total debt net of deferred financing fees at December 31, 2025.

截至2026年3月31日，Reed's約有460萬美元現金，以及扣除遞延融資費用後的總負債920萬美元。相較之下，截至2025年12月31日，現金為1,040萬美元，扣除遞延融資費用後的總負債同為920萬美元。

I will now turn the call back to Neal for closing remarks.

我現在把電話交回Neal作結語。

Thanks, Doug. Obviously, Q1 was challenging and our results reflect that. But it was also a real important quarter, one in which we made deliberate investments in building a stronger foundation for the business. We believe that the work will serve us well as we move through the year. We look forward to showing you that progress in the quarters ahead.

謝謝，Doug。顯然，第一季充滿挑戰，我們的結果也反映了這一點。但這同時也是非常重要的一季，我們在此期間有意識地投入資源，為業務建立更強健的基礎。我們相信，這些工作將在我們接下來一整年推進時發揮效益。我們期待在未來幾季向各位展現這些進展。

With that, operator, we're ready to open the call for some questions.

接下來，接線員，我們準備開放提問。

(Operator Instructions)

(接線員指示)

Aaron Grey, Alliance Global Partners.

Aaron Grey，Alliance Global Partners。

First question for me, just -- I guess, how do we think -- you talked some of the remedies before. How do we think about the progress and how long it will take for the remediation to take force? And are you already seeing some improvement in 2Q about halfway through the quarter? Any type of KPIs that you can help provide us to show there's been some progress in that?

我這邊第一個問題是——我想，你之前談到了一些補救措施。我們該如何看待目前的進度，以及這些補救措施需要多久才會開始發揮效果？另外，在第二季進行到一半左右時，你們是否已經看到一些改善？是否有任何KPI可以提供，幫助我們看出確實已有一些進展？

Yes. Aaron, thanks for the question. Yes, we absolutely -- we got on this very early in Q1. So we've been working on all those fronts that I just went through and covered. So we -- obviously, we've reduced and restructured our inventory and got the majority of the inventory situation cleaned up.

是的。Aaron，謝謝你的提問。是的，我們確實——我們在第一季非常早期就著手處理。因此，我們一直在我剛才逐一說明的各個面向同步推進。所以我們——顯然，我們已降低並重整了庫存，並已將大部分的庫存問題清理完成。

We're seeing margin improvement immediately and early. And we are -- we did a very deep analysis on what we were charging customers, what we were charging our distributors for wholesale costs. We needed to rightsize that. So we've taken immediate action on that.

我們立即且在早期就看到毛利率改善。而且我們——我們對向客戶收取的費用、以及向經銷商收取的批發成本做了非常深入的分析。我們需要把規模與定價調整到合理水準。因此我們已就此採取了立即行動。

We're starting to see some early syndicated data that says some of our kind of, we'll call it, Instacart and Walmart.com and places where we're investing, we're starting to see a good return on ad spend on that, and that's reflecting in some of the syndicated data. But on all fronts, we're making very quick, swift progress. It's going to take a little while, but it's not going to take -- by the end of this quarter we're in, we will have gotten ourselves back on the right track.

我們開始看到一些早期的第三方彙整數據顯示，在我們投入的幾個渠道——我們姑且稱之為 Instacart、Walmart.com 等——我們開始看到不錯的廣告投放報酬率（ROAS），而這也反映在部分彙整數據中。但在各個面向，我們都在非常快速、迅速地取得進展。這需要一點時間，但不會需要——在我們目前這一季結束前，我們就會讓自己回到正確的軌道上。

Yes, Aaron, just a couple of quick notes. Obviously, first quarter was a transition quarter as we get into and continue through second quarter, our expectation is that we'll get back on the path of sequential improvement quarter-to-quarter, and we expect to see that in net sales, gross margin and net loss.

是的，Aaron，補充幾點簡短說明。顯然，第一季是過渡季度；隨著我們進入並持續走過第二季，我們的預期是將回到逐季改善的軌道，我們也預期會在淨銷售額、毛利率與淨虧損上看到這點。

Okay. I appreciate that. More specifically, just on the missed category review windows with some of the national retailers. I know shelf resets are very important. So given that window was missed, like how hard is it to get back that shelf space that might have been lost?

好的。我很感謝。更具體來說，關於與一些全國性零售商錯過品類審查（category review）的時間窗口。我知道貨架重置（shelf reset）非常重要。所以既然錯過了那個窗口，要把可能流失的貨架空間拿回來有多難？

Do you need to wait another year or until fall shelf reset? Just give us some color in terms of the progress and how potentially you win back some shelf space with those national retailers.

你們是否得再等一年或等到秋季的貨架重置？請就進展情況提供一些說明，以及你們可能如何從那些全國性零售商手中贏回部分貨架空間。

Yes. So Aaron, we're going back and I have a long-standing relationship with lots of retailers, lots of distributors. We're going back immediately to where we can, where we can affect change. That's the first places we're going to now, where we can affect change now, and we're having success. But the other really good point that has happened is we've kind of unleashed a large national sales broker agency with, as I said in the script, the 80 people, and they're all engaging right now.

是的。所以 Aaron，我們正在回頭推進；我與許多零售商、許多經銷商都有長期合作關係。我們會立刻回到我們能夠著手、能夠帶來改變的地方。這些是我們現在就先去的第一站——我們能立刻影響改變的地方——而且我們已經取得成效。另外一個很好的進展是，我們某種程度上已經啟動了一家大型全國性銷售經紀代理機構；正如我在講稿中提到的，他們有 80 人，而且現在都在積極投入。

We're going for the low-hanging fruit now. There are some that are -- there are some retailers that are dead set on their category reviews happening at a certain period of time. But we're already speaking with them. It doesn't hold us up from speaking with them about the future and upcoming new business. So we're moving forward on it.

我們現在先從最容易摘取的果實著手。有些——有些零售商非常堅持他們的品類審查必須在特定期間進行。但我們已經在與他們溝通。這不會妨礙我們與他們討論未來以及即將到來的新業務。所以我們會持續推進。

Okay. Great. That's helpful. And my third question was going to be on that in terms of the new commission-based sales force that you brought online. So first quick question.

好的。很好。這很有幫助。我的第三個問題會是關於你們新上線、以佣金為基礎的銷售團隊。先問一個很快的問題。

So the 80, how does that compare to the number that you guys had internally? And then secondly, do you feel like the inventory is in the right position to kind of, as you said, unleash this type of sales force and that you have the product available to complement the gunpowder, if you will, of the increased sales force base?

這 80 人，和你們先前內部的數量相比如何？第二，你們是否覺得庫存位置已經到位，能夠如你所說「釋放」這類型的銷售團隊，也就是你們有足夠的產品可供應，來配合（如果可以這麼說）擴大的銷售人力火力？

Yes. Yes. Inventory, we're very confident that we're going to be secure in inventory. So that is not a worry of mine at this moment. As far as where we were, we were -- when I came into the company in January, it was probably about 12 sales -- field sales folks.

是的。是的。在庫存方面，我們非常有信心能確保供應無虞。所以目前這不是我擔心的問題。至於我們之前的狀況——我在一月加入公司時，大概只有約 12 位外勤銷售人員。

And now we have what I call them, I call them we have field sales generals out there now that are aligned and attached to the hip with our field brokers. So it's -- the only thing we're doing right now, Aaron, is we're creating KPIs, right, key performance indicators for all in the company for the -- for our broker partner. So that we're hitting milestones and we're measuring success and fixing things that we need to fix as we move along.

而現在，我稱他們——我稱我們現在在外面有「外勤銷售將領」，他們與我們的外勤經紀夥伴緊密對齊、形影不離。所以——我們現在唯一在做的事，Aaron，就是為公司內所有人以及我們的經紀夥伴建立 KPI，也就是關鍵績效指標。如此一來，我們能達成里程碑、衡量成效，並在推進過程中修正需要修正的地方。

Yes, Aaron, just a note on the inventory piece and having product available to support. We continue to have short ships be essentially zero. And we're managing inventory probably more efficiently than the company has managed in many years, but we have the inventory to support the growth.

是的，Aaron，補充一下庫存部分以及是否有產品可支援。我們持續將短出貨（short ships）維持在幾乎為零。我們管理庫存的效率可能比公司過去多年都更好，而且我們有足夠的庫存來支援成長。

There are no further questions at this time. I will now turn the call over to Neal for closing remarks.

目前沒有其他問題。我現在把電話會議交回 Neal 作結語。

Thank you. Thank you for joining us today. We appreciate everybody's continued support, right? We look forward to updating you on our progress. We'll be completely transparent as we move forward.

謝謝。感謝各位今天加入我們。我們感謝大家持續的支持，對吧？我們期待向各位更新我們的進展。在往前推進的過程中，我們會完全透明。

But we're looking forward to nothing but success in the future. So thank you.

但我們期待未來只有成功。所以謝謝。

Ladies and gentlemen, this concludes the conference call for today. We thank you for participating and ask that you please disconnect your lines.

各位女士、先生，今天的電話會議到此結束。感謝各位參與，並請掛斷您的電話線。