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Arcadia has leveraged its history as a leader in science-based approaches to develop high value products and drive innovation in the consumer goods industry. Since acquiring the assets of Zola in May 2021, Arcadia has provided consumers with a way to rehydrate, reset, and reenergize with Zola coconut water products.
The business is unprofitable at the operating level (-51.46% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue declined 3.7% YoY. The question is whether this is cyclical or a structural shift.
ROIC dropped from -28.50% to -37.55%, capital efficiency is deteriorating. Negative free cash flow of -$5M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$5M
▼ -3.7% YoY
Net Income (TTM)
-$9M
▲ +66.8% YoY
Op. Margin
-80.05%
▲ +20.8pp YoY
ROIC
-70.75%
▼ -9.1pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$4M
▲ +50.9% YoY
Op. Cash Flow (TTM)
-$4M
▲ +50.8% YoY
Net Debt
-$4M
Net Cash Position
Cash & Equiv.
$4M
5Y CAGR: -9.6%
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