New Age Beverages Corporation (NASDAQ:NBEV) Q3 2019 Earnings Conference Call - Final Transcript
Nov 14, 2019 • 08:00 am ET
Ladies and gentlemen thank you for standing by and welcome to the New Age Beverage Corp. Q3 2019 Earnings Call.
[Operator Instructions] I would now like to hand the conference over to Cody Slach to proceed with today's call. Sir you may begin.
Good morning and thank you for joining New Age Beverage Corporation's Third Quarter 2019 Conference Call. I'm Cody Slach with Gateway the IR counsel for New Age. I'd like to welcome you all to the call today and thank you all for joining. On today's call we will have Brent Willis Chief Executive Officer of New Age; and Greg Gould Chief Financial Officer. I'd like to remind everyone this call may contain certain forward-looking statements reflecting management's current expectations regarding future results of operations economic performance financial condition and achievements of the company. Forward-looking statements specifically those concerning future performance are subject to certain risks and uncertainties. The transcript of today's call will be available on the company's website within the Investors section at newagebev.com.
I'd now like to turn the call over to CFO Greg Gould.
Gregory A. Gould
Thank you Cody. For the third quarter 2019 we achieved net revenue of $69.8 million an increase of 427% versus the prior year third quarter of $13.2 million and a sequential 5.3% increase versus our second quarter 2019 which has always historically been our largest quarter. The company continues to expand it's top line and deliver transformative growth. Each quarter now delivers substantially more than what we did previously even compared to the full year of 2018. We know that scale in this section has a huge P&L gearing benefit. And the company's scale now of around $70 million a quarter versus $700000 a quarter which we did just over three years ago is a very different framework. It is actually 100x bigger representing more than a 10000% growth in the past three years which qualifies as a big difference.
Within our divisions the New Age direct store distribution group has delivered all year long and the third quarter was no exception. In the third quarter we added the BWR licensed brands into distribution for a part of the quarter and made the most notable progress in the Illy Ready-to-Drink Coffee brand that came into the company as one of our own brands with the acquisition of BWR. Our snacks distribution including our partnership with Grupo Bimbo the world's largest baking company continues to expand and now comprises almost 30% of our DSD Group's revenue. Morinda had its best quarter of the year. In the month of September for example Japan our largest market was up 15% versus prior year. China also had its best performance all year up 5% versus the same month in the prior year but more importantly up 92% versus August on sales of RMB 54 million which equals approximately USD 7.6 million for the month. Moving to the rest of the P&L. In gross profit the company delivered $40.3 million for the quarter ending September 30