Shares of Zevia PBC experienced a drop in post-market trading on Monday following the company’s announcement of a reduction in its full year 2023 guidance.
- At 5:22 p.m. ET, Zevia’s stock fell by 14% to reach $3.65 per share.
- Throughout the regular session, the shares had gained 0.9% and closed at $4.23.
Revised Sales Outlook
Zevia informed investors that it now anticipates net sales for 2023 to be in the range of $163 million to $168 million, which is lower than the previous guidance of $180 million to $190 million. Additionally, the company expects second-quarter net sales to reach approximately $42 million, down from the initial forecast of $48 million to $51 million.
Supply Chain Challenges
Amy Taylor, President and CEO of Zevia, explained that the lower-than-expected second quarter net sales were attributed to unforeseen disruptions in the supply chain, negatively impacting service levels. Taylor emphasized that customer demand has remained strong but highlighted a decline in customer fulfillment rates during the latter part of the quarter.
Zevia is scheduled to release its second-quarter results before the market opens on August 8.