Zevia Reports $23.8 Million Net Loss for Fiscal Year 2024, Sales Decline 6.8%

Zevia PBC reported a net loss of $23.8 million for the fiscal year ending December 31, 2024, a decrease from a loss of $28.3 million in 2023. The company's net sales fell to $155.0 million, down 6.8% from $166.4 million in the previous year, primarily due to a decline in the number of equivalized cases sold, which dropped from 12.7 million to 12.1 million. This decline was attributed to lost distribution in the club and mass channels, as well as the strategic decision to discontinue its Kids and Mixers product lines. Despite these challenges, Zevia's gross profit margin improved to 46.4% from 44.9% in 2023, driven by lower inventory write-downs and a favorable product mix.

In 2024, Zevia initiated a multi-year Productivity Initiative aimed at realigning its cost structure and enhancing operational efficiency. This initiative incurred costs of $2.1 million, primarily related to employee severance and restructuring consulting services, but is expected to yield annualized benefits of approximately $15 million. The company has already begun to see these benefits in the second half of 2024 and plans to continue investing in brand marketing and promotional activities to drive future growth.

Zevia's operational metrics indicate a significant customer base, with over 6.6 million U.S. households purchasing its products across more than 37,000 retail locations. The company has also expanded its distribution network, although it faced challenges in maintaining shelf space due to increased competition and strategic shifts in its product offerings. As of December 31, 2024, Zevia had 104 full-time employees in the U.S. and 4 in Canada, reflecting a commitment to maintaining a lean operational structure while pursuing growth.

Looking ahead, Zevia anticipates continued challenges from macroeconomic factors such as inflation and supply chain disruptions, which may impact its margins and operating results. The company is focused on leveraging its brand awareness and expanding its distribution channels to drive sales growth. Additionally, Zevia plans to enhance its product offerings through innovation and marketing investments, with expectations of improved performance in 2025 as it works to regain lost distribution and capitalize on its market position in the zero-sugar beverage segment.