Second Quarter Financial Performance

·       Net revenues for the second quarter period ending June 30, 2023, were $5.2 million compared to $4.5 million in the prior year period, an increase of 15% over the prior year period.  For the six-month period, revenues reached $11.0 million compared to $8.4 million in the prior year period and an increase of 31%. The increase in revenue was primarily due to increased sales from our B2B and B2C e-commerce platform, Qplash, which reflected an increase in territory coverage, new products and larger purchases per customer.  In the six-month period, overall e-commerce sales increased 43% over the prior year period and the beverage business increased 7%.

·       Gross profit for the second quarter period ending June 30, 2023, was $1.7 million compared to $1.3 million in the prior year period.  Gross margin in the second quarter of 32% was a 90-basis point improvement over the prior year period, with cost efficiencies and product mix driving the improvements.   Six-month gross profit was $3.5 million compared to $2.6 million in the prior year period, a 34.6% increase.

·       TapouT Energy Drink launched towards the end of the second quarter as the Company eyes second half impact.

·       The second quarter net loss was $5.6 million compared to $5.7 million in the prior year period. Increases in freight cost, amazon fees, marketing expenses and salary and wages in 2023 to support the revenue growth impact loses in the quarter. 

·       As of June 30, 2023, the company had total cash and cash equivalents of $903,235, compared with $4.4 million at December 31, 2022

·       Subsequently the Company has raised additional $2.7 Million from legacy investors and entered into a favorable credit facility agreement for $10 million.

Robert Nistico, Splash Beverage Group’s Chairman and CEO, commented, “Our 2023 second quarter results reflect the strengths that we are developing as we grow the business as well as some of the challenges that inevitably emerge in growth businesses.  Our Qplash platform, which has increased 43% in the first half of the year compared to last year, is developing very nicely on both a B2B and B2C basis and is now expanding to select international markets.  We look for continued contributions from that business.  Our quarterly beverage revenues were down slightly in the second quarter, but we attribute that to buying patterns of distributors which can have an impact of timing of sales.  The first half beverage sales increased modestly at 7% overall, so we expect a greater upward trend the second half of the year. The beverage business generally “stair steps” it’s way to growth … you focus on distribution, support those new placements with marketing and the cycle starts over again. In total, we are where we believe we are supposed to be.”

“Subsequent to the second quarter reporting period,” Nistico continued, “We disclosed an additional $2.7 million raise from existing investors and a $10 million credit facility which will not only provide us with needed growth capital, but also allows us to withdraw the much larger $200 million shelf offering which has been the source of some investor concern.  We remain committed to executing a business plan that relies on 4 key pillars for success.  We have a strong management team, we have a diverse portfolio of brands that match consumer trends, our marketing strategy continues to yield new distribution agreements and retail authorizations, and we have the financial flexibility we need.  We look forward to the second half of 2023.”

About Splash Beverage Group, Inc.

Splash Beverage Group, an innovator in the beverage industry, owns a growing portfolio of alcoholic and non-alcoholic beverage brands including Copa di Vino wine by the glass, SALT flavored tequilas, Pulpoloco sangria, and TapouT performance hydration and recovery drink. Splash’s strategy is to rapidly develop early-stage brands already in its portfolio as well as acquire and then accelerate brands that have high visibility or are innovators in their categories. Led by a management team that has built and managed some of the top brands in the beverage industry and led sales from product launch into the billions, Splash is rapidly expanding its brand portfolio and global distribution. 

For more information visit:

www.SplashBeverageGroup.com

www.copadivino.com

www.drinksalttequila.com

www.pulpo-loco.com

www.tapoutdrinks.com

Forward-Looking Statement

This press release includes “forward-looking statements” within the meaning of U.S. federal securities laws. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results and, consequently, you should not rely on these forward-looking statements as predictions of future events. These forward-looking statements and factors that may cause such differences include, without limitation, the risks disclosed in the Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2022, and in the Company’s other filings with the SEC. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release.

Contact Information:

Splash Beverage Group

Info@SplashBeverageGroup.com

954-745-5815

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