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ALKALINE WATER Co INC [WTER], a leading manufacturer and distributor of premium bottled alkaline drinking water, has announced its financial results for the second quarter of fiscal year 2023. The company reported a net loss of $2.84 million for the quarter, compared to a net loss of $7.49 million in the same period last year. The company generated a total revenue of $14.93 million during the quarter, down from $16.32 million in the second quarter of 2022.
Despite the decrease in revenue, Alkaline Water Co managed to improve its gross profit margin, which stood at 25.25% compared to 17.88% in the prior year quarter. This improvement can be attributed to the company's focus on cost management and operational efficiency. However, the company's operating expenses remained high, with sales and marketing expenses amounting to $4.61 million and general and administrative expenses totaling $1.57 million. As a result, the company recorded an operating loss of $2.42 million for the quarter.
The decline in revenue can be attributed to various factors, including increased competition in the bottled water industry and the ongoing supply chain challenges faced by many businesses. Despite these headwinds, Alkaline Water Co remains optimistic about its long-term growth prospects as it continues to expand its distribution network and introduce innovative products to meet the changing consumer preferences.
Alkaline Water Co's balance sheet indicates a mixed financial stability. The company's current assets decreased to $13.38 million from $15.95 million in the previous quarter, primarily due to a decrease in cash and accounts receivable. At the same time, the company's current liabilities remained high at $23.26 million, driven by accounts payable and accrued expenses. The company's stockholders' equity also decreased to -$8.07 million, compared to -$5.34 million in the previous quarter.
In terms of earnings per share, Alkaline Water Co reported a loss of $0.28 per share on both a basic and diluted basis. This is in line with the company's focus on investing in growth opportunities and expanding its market presence. However, it is important to note that the company's weighted average shares outstanding increased to 10.29 million, up from 7.84 million in the prior year quarter.
Looking ahead, Alkaline Water Co remains committed to executing its strategic initiatives aimed at driving growth and enhancing shareholder value. The company will continue to invest in marketing and advertising efforts to increase brand awareness and expand its customer base. Additionally, the company will focus on optimizing its supply chain and reducing operating expenses to improve profitability. Alkaline Water Co also aims to leverage its strong balance sheet to explore potential acquisitions and partnerships that align with its long-term growth objectives.
Despite the challenges faced during the second quarter, Alkaline Water Co remains confident in its ability to navigate the evolving market landscape and deliver long-term value to its shareholders. The company will continue to adapt to changing consumer preferences and invest in innovation to maintain its competitive edge. With a strong focus on operational efficiency and strategic growth initiatives, Alkaline Water Co is well-positioned to capitalize on the growing demand for healthy and sustainable beverages.