NewAge, Inc. announced financial results for the quarter ended June 30, 2020, with net revenue reaching $62.6 million.
The revenue does not include revenues from NewAge’s recently announced combination with ARIIX and four other direct selling companies, which is expected to more than double the size of the company and improve the combined entity’s profitability. The pending merger is expected to close during the third quarter of this year.
The net revenue of $62.6 million compares with $66.3 million for the second quarter of 2019, a 5.5 percent decrease. According to the company, revenue was impacted by COVID-19 in Asia markets. Regionally, results were:
The U.S. delivered revenue growth of 13% in the second quarter versus the same quarter in the prior year. Year to date, the U.S. is up 15% in net revenue.
Revenue was up 2% in Western Europe.
Revenue was up 10% in Latin America.
Revenue in China was down in the second quarter of 2020 but overall year-to-date is down less than 2% from the prior year period as the company continues to implement its new compensation system.
Japan was also down in the quarter compared to the prior year due to the impact of COVID-19, and year-to-date is down 5% in the first six months of 2020 compared to the first half of 2019.
Brent Willis, Chief Executive Officer of NewAge, commented, “We are pleased with how the business is holding up in the current business environment, especially compared to most peer group companies. Despite our Japan and China markets being locked down because of the pandemic for much of the quarter, we are seeing good organic growth in North America, Latin America, Western Europe and recovery in certain Asia Pacific markets as they began to reopen.”
NewAge recently changed its name from New Age Beverages Corporation to NewAge, Inc. to reflect the expanded opportunities in front of the company.
To read the full NewAge, Inc. Q2 2020 report, click here.