FORT LAUDERDALE - Splash Beverage Group, Inc. (NYSE American: SBEV), a diversified portfolio company of beverage brands, today addressed its going concern opinion, emphasizing its commitment to sustainable growth and long-term viability.
The statement comes after the going concern status was noted in its recent 10-K filing for the fiscal year ended December 31, 2023, but without any amendments to its financial statements or annual report.
CEO Robert Nistico reassured stakeholders that despite limited operating capital, the company is confident in its business model and workforce. He expressed belief in the company's ability to secure additional resources in time to execute its growth and acquisition strategy.
President and CMO Bill Meissner underscored the company's progress in securing new business for its beverage brands during this period of constrained liquidity.
Splash Beverage Group's portfolio includes alcoholic and non-alcoholic brands such as Copa di Vino wine by the glass, SALT flavored tequilas, Pulpoloco sangria, and hydration and energy drinks. The company's strategy focuses on developing early-stage brands and acquiring and accelerating high-visibility or innovative brands.
The management team, with a track record of building and managing top brands in the industry, is steering Splash through expansion and global distribution efforts. The company has promised to keep stakeholders updated on its progress and is dedicated to delivering value.
The press release also contained forward-looking statements, cautioning that actual results could materially differ from those projected. The risks associated with these projections and the company's financial outlook have been disclosed in its filings with the SEC.
This article is based on a press release statement from Splash Beverage Group, Inc.
InvestingPro Insights
Splash Beverage Group, Inc. (SBEV) has been navigating a challenging financial landscape, as evidenced by its recent 10-K filing. With a commitment to sustainable growth and securing additional resources, the company's financial health is a focal point for investors and stakeholders. To provide a deeper understanding of Splash Beverage Group's current financial position, we turn to real-time data and insights from InvestingPro.
InvestingPro Data metrics reveal a market capitalization of $14.89 million, suggesting a relatively small player in the beverage industry. The company's revenue for the last twelve months as of Q4 2023 stood at $18.85 million, indicating some level of operational activity, albeit with a revenue growth of -43.89% in Q4 2023, which shows a substantial quarterly decline.
Moreover, the company's stock price closed at $0.34, nearing its 52-week low and reflecting the market's response to its financial challenges.
An InvestingPro Tip highlights that Splash Beverage Group operates with a significant debt burden and may have trouble making interest payments on its debt. This is particularly relevant given the company's current focus on securing additional resources to support its growth and acquisition strategy.
Another tip points out that the company is quickly burning through cash, which aligns with the CEO's acknowledgment of constrained liquidity.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips on Splash Beverage Group, including insights on sales growth projections for the current year and the company's stock price volatility. Potential investors can access these tips and more by visiting https://www.investing.com/pro/SBEV.
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In summary, while Splash Beverage Group's leadership expresses confidence in the company's business model and the potential for securing necessary capital, the InvestingPro data and tips underscore the financial hurdles the company faces. These insights are crucial for stakeholders to consider as they evaluate the company's prospects for sustainable growth and long-term viability.
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