SOURCE: KonaRed Corporation

April 10, 2014 08:50 ET

KonaRed Corporation Reports Strong Q1 2014 Product Sales Growth With Q1 Sales Up 106% From Q1 2013

KOLOA, HI--(Marketwired - Apr 10, 2014) - KonaRed Corporation (OTCBB: KRED) (www.KonaRed.com), today announced strong growth in sales of its exclusive Hawaiian CoffeeBerry® products during the first quarter of 2014.

Q1 2014 (January 1 - March 31) vs. Q1 2013:
Product sales for KonaRed's first quarter of 2014 were robust and increased by 106% to $413,513 versus $200,818 for the same three month period ended March 31, 2013.

Q1 2014 vs. Q4 2013 (Oct. 1-Dec. 31 2013):
When compared to product sales of $76,917 for the three months ended December 31, 2013, product sales showed an increase of 438%. Additionally, KonaRed's first quarter product sales for 2014 represented 46% of total product sales of $889,932 for all of fiscal 2013.

Commenting on the Q1 results, KonaRed's CEO Mr. Shaun Roberts said: "We're pleased with our sales numbers during the first quarter of 2014. Our efforts to get our products in front of consumers are working and the Q1 results indicate we're successfully establishing our brand in well known retailers across the United States and Canada. Successes in the last six months have included acquiring Walmart and Speedee Mart as major clients and we aim to capitalize on our sales momentum in the second quarter by continuing to expand our distribution channels."

Mr. Roberts continued, "We also feel it's notable that first quarter sales during 2014 are nearly half the sales we achieved for all of fiscal 2013. Going forward, our goals are to continue sales expansion and translate sales growth into profitability by further tightening costs controls."

Comparatively, due primarily to additional costs associated with our quick sales growth, cost of goods sold for Q1 2014 increased by 204% to $340,305 from $111,903 in Q1 2013; and our gross margin decreased to 25%, or $104,912 for Q1 2014, versus 71%, or $142,167 for Q1 2013. 

The Company's net loss for Q1 2014 is estimated to be approximately $(995,000), or $(0.02) per share, versus $149,848, or $nil per share for Q1 2013. When the net loss for Q1 2014 is adjusted to exclude non-cash options grant expenses totalling $601,434, the net loss for QI 2014 decreases to $(393,566), or $(0.01) per share. A total of 750,000 options were granted to a director as compensation for services during the first quarter and these options vested immediately. The options have a 5 year term and are exercisable at $0.81 per share.

About KonaRed Corporation
KonaRed Corporation is in the business of producing health and wellness nutritional products including beverages and supplements, which bring the attributes of Hawaiian Coffee fruit to an international consumer market. Our underlying business was established on August 22, 2008 and our first sales were achieved in February 2009. KonaRed became publicly traded through a merger with an existing listed company on October 4, 2013 and trades on the OTCBB and OTCQB under the symbol: KRED. KonaRed and its partner VDF FutureCeuticals, Inc. have developed innovative, state of the art, proprietary processes that produce antioxidant extracts and powders from Hawaiian Coffee Fruit which are used to produce KonaRed's Antioxidant Juices, Organic Green Teas, and On-the-Go Packs. KonaRed Corporation is headquartered in Koloa, Hawaii, and its distribution is centered in San Clemente California. KonaRed products are sold in select Whole Foods, Safeway, Sprouts, Walmart, 7-Eleven, and many other retail outlets throughout the US and Canada.

Forward Looking Statements

Certain information contained in this press release, including any information as to our strategy, plans or future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Action of 1934. All statements, other than statements of historical fact, are forward-looking statements. The words "believe," "expect," "will," "anticipate," "contemplate," "target," "plan," "continue," "budget," "may," "intend," "estimate," "project" and similar expressions identify forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to its plans or operations. Our actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, without limitation those set forth as "Risk Factors" in our filings with the SEC which can be found at www.sec.gov. There may be other factors not mentioned above or included in the Company's SEC filings that may cause actual results to differ materially from those projected in any forward-looking statement. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

Contact Information

  • Contact:

    For Investor and Media Inquiries, please contact:
    KonaRed Corporation Investor Relations
    E and E Communications
    Paul Knopick
    Email: pknopick@eandecommunications.com
    Tel 940.262.3584