When Will Wildpack Beverage Inc. (CVE:CANS) Become Profitable?

With the business potentially at an important milestone, we thought we'd take a closer look at Wildpack Beverage Inc.'s (CVE:CANS) future prospects. Wildpack Beverage Inc. engages in filling, decorating, and brokering of aluminum cans in Canada and the United States. The CA$6.5m market-cap company posted a loss in its most recent financial year of US$37m and a latest trailing-twelve-month loss of US$35m shrinking the gap between loss and breakeven. As path to profitability is the topic on Wildpack Beverage's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Wildpack Beverage

Wildpack Beverage is bordering on breakeven, according to some Canadian Beverage analysts. They expect the company to post a final loss in 2024, before turning a profit of US$3.1m in 2025. So, the company is predicted to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 95% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Wildpack Beverage given that this is a high-level summary, but, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we would like to bring into light with Wildpack Beverage is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

There are key fundamentals of Wildpack Beverage which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Wildpack Beverage, take a look at Wildpack Beverage's company page on Simply Wall St. We've also put together a list of essential aspects you should further research:

1. Valuation: What is Wildpack Beverage worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Wildpack Beverage is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Wildpack Beverage’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.