The company exhibits extreme margin instability, with gross margins fluctuating between 6.1% and 72.1% while operating margins remain deeply negative at -122.0% as of 2025Q2.
| Sales/Revenue | 4.33M | 2.93M | 3.15M | 4.53M | 3.75M | 2.18M |
| Revenue Growth % | -34.33% | -6.88% | -30.52% | 20.87% | 71.8% | - |
| Cost of Goods Sold | 4.03M | 699.33K | 1.09M | 2.12M | 1.26M | 441.71K |
| COGS % of Revenue | - | 23.86% | 34.73% | 46.9% | 33.51% | 20.25% |
| Gross Profit | 1.1M | 2.23M | 2.05M | 2.41M | 2.49M | 1.74M |
| Gross Margin % | 25.47% | 76.14% | 65.27% | 53.1% | 66.49% | 79.75% |
| Gross Profit Growth % | - | 8.64% | -14.6% | -3.48% | 43.24% | - |
| Operating Expenses | 5.45M | 5.43M | 4.19M | 5.74M | 2.44M | 1.05M |
| OpEx % of Revenue | - | 185.21% | 133.22% | 126.75% | 65.05% | 48.34% |
| Selling, General & Admin | 5.04M | 3.34M | 3.41M | 4.57M | 2.14M | 871.34K |
| SG&A % of Revenue | - | 114.09% | 108.27% | 100.98% | 56.97% | 39.94% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | 412.25K | 2.08M | 785.34K | 1.17M | 302.74K | 183.42K |
| Operating Income | -4.35M | -3.2M | -2.14M | -3.34M | 54.17K | 685.29K |
| Operating Margin % | -100.65% | -109.07% | -67.96% | -73.65% | 1.45% | 31.41% |
| Operating Income Growth % | - | -49.46% | 35.89% | -6259.81% | -92.1% | - |
| EBITDA | -3.8M | -2.75M | -1.89M | -3.09M | 212.41K | 731.56K |
| EBITDA Margin % | -87.82% | -93.72% | -59.94% | -68.24% | 5.67% | 33.53% |
| EBITDA Growth % | 15.98% | -45.59% | 38.97% | -1555.54% | -70.97% | - |
| D&A (Non-Cash Add-back) | 555.25K | 449.91K | 252.17K | 244.88K | 158.24K | 46.27K |
| EBIT | -3.92M | -2.81M | -1.99M | -4.27M | 120.84K | 831.98K |
| Net Interest Income | -290.53K | -180.48K | -206.71K | -171.58K | 39.9K | 30.73K |
| Interest Income | 116.08K | 63.69K | 53.76K | 31.32K | 72.45K | 36.88K |
| Interest Expense | 322.27K | 244.17K | 260.47K | 202.9K | 32.55K | 6.14K |
| Other Income/Expense | 55.36K | 139.43K | -115.99K | -1.14M | 34.12K | 140.54K |
| Pretax Income | -3.96M | -3.06M | -2.26M | -4.48M | 88.29K | 825.83K |
| Pretax Margin % | -91.52% | -104.31% | -71.64% | -98.84% | 2.36% | 37.85% |
| Income Tax | -119.05K | -486.28K | -241.11K | -350.06K | 56.53K | 230.07K |
| Effective Tax Rate % | 3.01% | 15.9% | 10.69% | 7.82% | 64.02% | 27.86% |
| Net Income | -3.94M | -2.57M | -2.01M | -4.13M | 31.76K | 595.77K |
| Net Margin % | -91.05% | -87.72% | -63.98% | -91.11% | 0.85% | 27.31% |
| Net Income Growth % | 28.63% | -27.68% | 51.21% | -13095.53% | -94.67% | - |
| Net Income (Continuing) | -3.94M | -2.57M | -2.01M | -4.13M | 31.76K | 595.77K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -10.93 | -7.75 | -6.65 | -13.75 | 0.08 | 1.50 |
| EPS Growth % | 35.12% | -16.54% | 51.64% | -18433.33% | -95% | - |
| EPS (Basic) | - | -7.75 | -6.65 | -13.75 | 0.08 | 1.50 |
| Diluted Shares Outstanding | 360.3K | 332.06K | 302.49K | 300.47K | 400.9K | 400.9K |
| Basic Shares Outstanding | 360.3K | 332.06K | 302.49K | 300.47K | 400.9K | 400.9K |
| Dividend Payout Ratio | - | - | - | - | - | - |
Imminent liquidity and solvency risk
As indicated by the most recent financial disclosures, Innovation Beverage Group has experienced significant top-line volatility, with quarterly revenue figures frequently oscillating and failing to establish a consistent growth trajectory, ultimately culminating in a contraction that highlights the difficulty of scaling their niche beverage portfolio.
The erratic revenue performance suggests that the company's reliance on transactional DTC sales and wholesale distribution lacks the stability of a recurring revenue model. Investors should monitor whether the inability to sustain growth is a function of market saturation in the Australian bitters segment or an ineffective expansion strategy into the U.S. market.
According to the provided income statement data, IBG's gross margins have demonstrated extreme instability, fluctuating from as low as 6.1% to as high as 72.1%, which suggests that the company's product mix and pricing power are highly sensitive to operational inefficiencies and shifting sales channels.
This wide variance in gross profitability implies that the company may be struggling with inconsistent production costs or heavy discounting to move inventory. The lack of a stable margin floor makes it difficult to forecast long-term profitability, as the core bitters business appears unable to consistently offset the lower-margin retail activities.
Based on reported figures, IBG's operating margin has remained deeply negative, reaching -122.0% in the most recent quarter, which indicates that the company has yet to achieve the necessary scale to cover its substantial fixed overhead and digital customer acquisition costs effectively.
The persistent operating losses suggest that the current business model is not yet self-sustaining, as SG&A expenses continue to outpace gross profit generation. Without a significant inflection in revenue volume, the company appears to be trapped in a cycle of high operating leverage that exacerbates losses during periods of stagnant growth.
As reported in financial statements, the company's SG&A expenses consistently dwarf gross profit, with recent quarterly overhead reaching $1.8 million against a gross profit of only $276.3 thousand, signaling a critical misalignment between operational spending and the company's current ability to monetize its brand portfolio.
The high level of SG&A relative to revenue suggests that the company is likely over-investing in customer acquisition or corporate infrastructure relative to its current market footprint. This cost structure warrants further investigation into whether management can successfully rationalize expenses without further damaging the brand's market presence.
Data from the latest filings reveals a precarious cash position of approximately $620,000, which, when measured against ongoing quarterly operating losses exceeding $1.5 million, suggests that the company faces an imminent risk of insolvency unless it secures additional capital or undergoes a drastic restructuring.
Short-sellers would likely focus on the widening gap between cash reserves and the burn rate, which implies that the company may be forced into highly dilutive financing. The lack of a clear path to break-even suggests that the current valuation may not fully account for the existential risk posed by the company's limited liquidity.
Quick answers to the most common questions about buying IBG stock.
For fiscal year 2024, Innovation Beverage Group Limited (IBG) reported total revenue of $2.9M. This represents a 34.4% increase compared to $2.2M in 2020.
Innovation Beverage Group Limited (IBG) reported a net loss of $2.6M for the fiscal year ending 2024.
Innovation Beverage Group Limited (IBG) reported an operating income of $-3.2M, resulting in an operating profit margin of -109.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Innovation Beverage Group Limited (IBG) generated $2.2M in gross profit for the year, representing a gross profit margin of 76.1%. This demonstrates the company's core pricing power and production efficiency.