Wildpack report $7m revenue in Q3
Wildpack Beverage Inc. announced its financial results for the third quarter ending September 30, 2021.
The company had revenue of $7.069 million, gross profit margin of 19.7%, positive Adjusted EBITDA of approximately $436,000, normalising expenses of $1.045 million and a net loss of $1.493 million on total can volume of 24.863 million.
Wildpack wholly acquired the outstanding securities of Craftpac, LLC on July 2, 2021 for $1.89 million and Vertical Distilling, LLC on August 20, 2021 for $4.14 million with consideration paid and payable in cash.
Both acquisitions have a history of cash flow positive operations and represent key geographic locations with no overlap of the current network of Wildpack’s facilities.
Regarding these acquisitions, Thomas Walker, CGO said: “We are very pleased with our acquisitions this quarter. Both companies bring a history of successful operations and positive cash flows.
“Their integrations are going smoothly and we are excited to continue to expand our geographic reach. We are already seeing interest from our existing customers looking to make use of our expanded footprint.”
Gross profit margin improvement was driven by a focus on higher margin work and the implementation of substantially more rigorous quality assurance protocols, which result in higher yields and correspondingly more billable product. These improvements were made on budget and ahead of management’s internal key performance milestones.
In the Filling Division, in Las Vegas, the Company continued the commissioning phase with the addition of a second line. Construction and equipment delays were experienced due to COVID-19, however the commissioning phase is now completed with a focus on increasing monthly output.
In Baltimore, continued evaluation of the filling expansion was considered, previously described in the Wildpack Beverage Inc. Second Quarter Fiscal 2021 MD&A, management made the decision to invest resources to reduce labour hours and improve efficiencies. Improved carbonation and heat exchange systems led to a 35% increase in yields from quarter two to quarter three.
In the Decorating Division, the Company has completed the addition of a second decorating line in the Baltimore facility and the installation of the first decorating line in the Las Vegas facility. These additions increase total annual decorating capacity by 48 million cans.
The Company progressed construction of the label printing line in the Las Vegas facility, remaining on schedule for pilot production in Q4 2021.
Chuck Zadlo, COO commented: “The past quarter represented my first full quarter with Wildpack and I am proud of the work the operations team has done in executing on our excellence based strategy to integrate our new acquisitions as well as improve safety, quality, and productivity in our facilities.
“A key component in driving our strategy this past quarter began with the expansion of the operations leadership team and the value they have brought from day one has exceeded expectations. Lastly, a big congratulations is in order to Thomas Walker for his dedication to our most recent acquisition of Land and Sea in November 2021.”