LOS ANGELES, CA / ACCESSWIRE / August 25, 2021 / Pacific Ventures Group, Inc. (OTC PINK:PACV) (the "Company"), a food and beverage holding company specializing in the distribution of consumer food, beverage and alcohol-related products,today announced the Company's financial results for the second quarter ended June 30, 2021 ("Q2 2021").
Key Financial and Business Highlights During Q2 2021
- Revenue increased 33% to $11.6 million for Q2 2021
- Gross profit increased 35% to 1.4 million for Q2 2021
- Gross margin increased to 11.7% for Q2 2021
- Operating expenses as a percentage of revenue decreased to 18.1% for Q2 2021, reflecting increased efficiency in the business
Management Commentary
Ms. Shannon Masjedi, Pacific Venture Group's Chief Executive Officer, commented, "We witnessed an uptick in business during the quarter as more and more clients are coming back and increasing orders from previous levels, as Seaport takes market share from other suppliers. We are thrilled with our second quarter 2021 results, as we reached our highest monthly revenues to-date. Restaurants are back on their way toward 100% capacity. Petco Park and County Fairs are back and ramping their business and capacities. Over the past year and a half, we have expanded our sourcing, increased our production capacity, improved our efficiencies and vastly enhanced our positioning in order to better serve existing and new customers as we return to normalcy."
Financial Results for the Three Months Ended June 30, 2021:
- Revenue: For the three months ended June 30, 2021, revenue was $11.6 million, an increase of $2.9 million, or 33%, compared with $8.7 million for the three months ended June 30, 2020.
- Gross Profit: For the three months ended June 30, 2021, gross profit was $1.4 million, an increase of $0.4 million, or 35%, compared with $1.0 million for the three months ended June 30, 2020. The resulting gross margin was 11.7%, compared with 11.6% for the same quarter last year.
- Total Operating Expenses: For the three months ended June 30, 2021, total operating expenses were $2.1 million, an increase of $0.8 million, or 26%, compared with $1.3 million for the same quarter last year. Operating expenses as a percentage of revenue decreased to 18.1% from 19.2% for the quarter just ended, reflecting the Company's focus on increasing revenue, reducing expenses, and performing more efficiently. Management believes this ratio will decrease going forward as revenues continue to grow at a higher rate than operating expenses.
Of note, $0.6 million of the Company's operating expenses for the six months ended June 30, 2021, were non-cash expenses, including depreciation, amortization, and capitalized interest or penalty fees.
- Operating Loss: For the three months ended June 30, 2021, operating loss was $0.7 million, an increase of $0.1 million, compared with an operating loss of $0.7 million for the same quarter last year.
- Net Loss: For the three months ended June 30, 2021, net loss was $1.2 million, or ($0.06) per share, compared with a net loss of $1.1 million, or a net loss of ($0.94) per share, for the three months ended June 30, 2020.
- Cash: Cash and cash equivalents totaled $0.4 million as of June 30, 2021.
Financial Results for the Six Months Ended June 30, 2021:
- Revenue: For the six months ended June 30, 2021, revenue was $18.9 million, an increase of $3.5 million, or 22%, compared with $15.4 million for the same period last year.
- Gross Profit: For the six months ended June 30, 2021, gross profit was $2.2 million, an increase of $0.2 million, or 11%, compared with $2.0 million for the same period last year. The resulting gross margin was 11.9%, compared with 13.1% for the same period last year.
- Total Operating Expenses: For the six months ended June 30, 2021, total operating expenses were $3.7 million, an increase of $0.6 million, compared with $3.1 million for the same period last year. Operating expenses as a percentage of revenue decreased to 19.4% from 20.0% for the periods compared.
Of note, $1.3 million of the Company's operating expenses for the six months ended June 30, 2021, were non-cash expenses, including depreciation, amortization, and capitalized interest or penalty fees. - Operating Loss: For the six months ended June 30, 2021, operating loss was $1.4 million, an increase of $0.3 million, compared with an operating loss of $1.1 million for the same period last year.
- Net Loss: For the six months ended June 30, 2021, net loss was $2.3 million, or ($0.13) per share, compared with $1.9 million, or ($1.63) per share, for the same period last year.
The Company filed its Form 10-Q on August 23, 2021, which can be viewed at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0000882800/000149315221020941/form10-q.htm
About Pacific Ventures Group, Inc.
Pacific Ventures Group, Inc. (OTC PINK:PACV) is focused on expansion within the consumer products, food, beverage and alcohol-related industries. For more information on PACV, please visit www.pacvgroup.com. (You need to be at least 21 years of age (legal age to consume alcohol) to visit the section of the web site dedicated to SnöBar.)
Safe Harbor Statement
Forward-Looking Statement: This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Investors are cautioned that such forward-looking statements involve risks and uncertainties, which include but are not limited to, the inability of the company to obtain financing sufficient to maintain its operations and execute its acquisition strategy; the inherent uncertainties associated with smaller reporting companies; and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.
Investors Contact:
ir@pacvgroup.com
SOURCE: Pacific Ventures Group, Inc.
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