Second Quarter 2022 Gross Profit Increased 13% to $1.5 Million Driven by Operational Improvements
LOS ANGELES, CA / ACCESSWIRE / August 25, 2022 / Pacific Ventures Group, Inc. (OTC PINK:PACV) ("Pacific Ventures" or the "Company"), a consumer-centric holding company specializing in the distribution of food, beverage and alcohol-related products, provided financial results for the second quarter ended June 30, 2022.
- Revenues in the six months ended June 30, 2022 increased 11% to $21.0 million, compared to $18.8 million in the same year-ago period
- Gross profit in the second quarter of 2022 increased 13% to $1.5 million, compared to $1.4 million in the same year-ago quarter
- Gross profit margin was 14.6% in the second quarter of 2022, an improvement from 11.7% in the same year-ago quarter
"Our momentum has continued to build through the first half of 2022 as we continue to capitalize on strong consumer demand for quality food products," said Shannon Masjedi, President and CEO of Pacific Ventures Group. "During the second quarter, we focused on strengthening our balance sheet to prepare our business for our next phase of growth. We were able to execute on this strategy while continuing to drive margin improvement across our operations. We are optimistic that the steps we have taken to position our company for long-term success will increasingly be reflected in our operational results as we strive to build sustainable value for our shareholders."
Financial Results for the Second Quarter Ended June 30, 2022
Revenues in the second quarter of 2022 decreased 9% to $10.5 million, compared to $11.6 million in the same year-ago quarter.
Gross profit in the second quarter of 2022 increased 13% to $1.5 million, compared to $1.4 million in the same year-ago quarter. The resulting gross margin was 14.6% for the second quarter of 2022, an increase from 11.7% for the same year-ago quarter.
Operating expenses in the second quarter of 2022 were $2.4 million, compared to $2.1 million in the same year-ago quarter. The increase in operating expense was due to an increase in operating activities.
Net loss in the second quarter of 2022 was $2.3 million, or $(0.01) per share, compared to a net loss of $1.2 million, or $(0.30) per share in the same year-ago quarter. The increase in net loss was attributed to an increase in financing expenses.
Cash and cash equivalents totaled $0.5 million at June 30, 2022.
Financial Results for the Six Months Ended June 30, 2022
Revenues in the six months ended June 30, 2022 increased 11% to $20.9 million, compared to $18.8 million in the same year-ago period. The significant increase in revenue was primarily the result of marked increase in demand for our products.
Gross profit in the six months ended June 30, 2022 increased 44% to $3.2 million, compared to $2.2 million in the same year-ago period. The resulting gross margin was 15.4% for the six month period, an increase from 11.9% for the same year-ago period.
Operating expenses in the six months ended June 30, 2022 were $4.2 million, compared to $3.7 million in the same year-ago period. The increase in operating expense was due to an increase in operating activities.
Net loss in the six months ended June 30, 2022 was $3.4 million, or $(0.02) per share, compared to a net loss of $2.3 million, or $(0.07) per share in the same year-ago period.
The full text of the Company's Annual Report on Form 10-Q for the quarter ended June 30, 2022 was filed with the SEC on August 22, 2022 and can be found here.
About Pacific Ventures Group, Inc.
Pacific Ventures Group, Inc. (OTC:PACV) is a consumer-centric distribution company focused on food, beverage, and alcohol-related products. Through its portfolio of operating subsidiaries, Pacific Ventures delivers specialty groceries, top quality proteins and produce, and innovative products to consumers through wholesale, retail, and direct-to-consumer channels. For more information on Pacific Ventures Group, please visit www.pacvgroup.com.
Forward Looking Statements
This press release contains "forward-looking statements." Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) market acceptance of our existing and new products, (ii) delays in bringing products to key markets, (iii) an inability to secure regulatory approvals for the ability to sell our products in certain markets, (iv) intense competition in the industry from much larger, multinational companies, (v) product liability claims, (vi) product malfunctions, (vii) our limited manufacturing capabilities and reliance on subcontractors for assistance, (viii) our efforts to successfully obtain and maintain intellectual property protection covering our products, which may not be successful, (ix) our reliance on single suppliers for certain product components, (x) the fact that we will need to raise additional capital to meet our business requirements in the future and that such capital raising may be costly, dilutive or difficult to obtain and (xi) the fact that we conduct business in multiple foreign jurisdictions, exposing us to foreign currency exchange rate fluctuations, logistical and communications challenges, burdens and costs of compliance with foreign laws and political and economic instability in each jurisdiction. More detailed information about the Company and the risk factors that may affect the realization of forward looking statements is set forth in the Company's filings with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
SOURCE: Pacific Ventures Group, Inc.