Zevia PBC (NYSE:ZVIA) Q3 2023 Earnings Call Transcript

Amy Taylor : And that’s great question. We are very confident in our expectation that supply chain will not only be stable in 2024, but become more efficient. And when we think about inventory levels, we’ll sell through those and start to get to a closer match between shipments and scan toward the end of the year and early part of next. Scanned that it’s lumpy at the moment. The most stable figures are double-digit velocity growth, which is sales point of distribution. And it’s our perspective that scan data will start to reflect brand health in the coming months maybe not exactly week, as we fix the out-of-stocks on shelf as the fulfillment levels return to the optimum levels that we’ve had in the past. So, more to come on that after our Q4 call to give an outlook on 2024. At which point if you’ll see greater stability in the relationship between shipments and scan.

Alton Stump : Understood. Thanks for that color. And then I guess just as a quick follow-up on the cost front your question touched on this already, but it sounds like it’s a pretty benign commodity cost environment, no one’s packaging or otherwise heading into next year you know is that fair to say?

Amy Taylor : Yes. I do think so. I think, obviously, everyone has an eye on inflation and there are some unknowns. But for the most part we are in a pretty stable environment with our input costs.

Alton Stump : Got it. Thanks, Amy. I’ll hop back in the queue.

Amy Taylor : Thanks, Alton.

Operator: Thank you. This concludes today’s question-and-answer session. I would now like to turn the floor over to Amy Taylor for closing comments.

Amy Taylor : Thank you operator, and thank you everyone for dialing in this morning. We just wanted to quickly say that we appreciate your time and attention. The Zevia brand is very healthy. The business model is strong and continues to experience robust demand, and we’re pleased to see our supply chain course correction efforts returning to optimum level customer fulfillment levels. We’ll realize price the market for delivering improved gross margins, and we’re quickly returning to growth this month and look forward sharing for including a look at an exciting 2024 on our next call. So, wish you all good Tuesday. Thank you.

Operator: Thank you. This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.