Kona Gold Beverage Inc. (OTC:KGKG) Stock Takes a Hit: Here is Why

There were a number of companies that had come into the news cycle on Tuesday in a big way, and one of those was Kona Gold Beverage Inc. (OTC:KGKG). The company came into focus after it announced its financial results for the first fiscal quarter of 2024. The holding company, which is a specialist in the development of innovative functional and healthy beverages, reported the biggest quarterly revenue figure in its history since its establishment in 2015.

The holding company announced that Covert LLC, its fully owned subsidiary unit, recorded revenues of more than $1.5 million in the quarter. In the news release, the company also noted that it was on course to cross the entirety of around $3 million in revenues in the first two quarters of 2024 that it had posted in the whole of 2023. Additionally, Kona Gold Beverage also announced that it had a number of other revenue streams that would boost its revenues for the second quarter. That would also include the sales from Kona Gold Energy Drinks and the newly launched HighDrate D9 Seltzer Energy Drink.

In this context, the company also announced that its fully owned subsidiary unit, Covert LLC, had also started performing strongly as the busy spring and summer seasons came into play. Those are the seasons in which sales have historically climbed higher. The company also announced that it was locked in negotiations with regards to the acquisition of a beverage company that had hit revenues of $700,000 in the first fiscal quarter.

Kona Gold Beverage also noted that the acquisition target had also shown growth from one month to the next over the past five months. It was revealed that the acquisition could lead to the addition of around $1 million in revenues for the second fiscal quarter.