Annual report pursuant to Section 13 and 15(d)

BUSINESS SEGMENTS

v3.22.4
BUSINESS SEGMENTS
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
BUSINESS SEGMENTS
NOTE 18: BUSINESS SEGMENTS
The Company has two reportable segments: Branded CPG and Flavors & Ingredients. In addition, the Company’s corporate office functions are reported and included under Corporate. Corporate is not a reportable or operating segment but is included for reconciliation purposes and includes the costs for the corporate office administrative activities as well as transaction-related and other costs. Certain prior year amounts have been reclassified to conform to the current presentation. The Company does not present assets by reportable segments as they are not reviewed by the Chief Operating Decision Maker for purposes of assessing segment performance and allocating resources.
The following table presents selected financial information relating to the Company’s business segments (in thousands):
(Successor) (Predecessor)
Year Ended December 31, 2022 Year Ended December 31, 2021 From June 26, 2020 to December 31, 2020 From January 1, 2020 to
June 25, 2020
Product revenues, net
Branded CPG $ 422,638  $ 389,174  $ 96,857  $ 80,749 
Flavors & Ingredients 115,634  104,799  50,311  47,579 
Total product revenues, net $ 538,272  $ 493,973  $ 147,168  $ 128,328 
Operating (loss) income
Branded CPG $ (30,182) $ 34,918  $ 13,463  $ (5,055)
Flavors & Ingredients 32,505  21,860  (2,645) (23,718)
2,323  56,778  10,818  (28,773)
Corporate (26,969) (33,962) (16,924) (9,408)
Total operating (loss) income $ (24,646) $ 22,816  $ (6,106) $ (38,181)
The following table presents geographic information based upon revenues of the Company’s major geographic markets (in thousands):
(Successor) (Predecessor)
Year Ended December 31, 2022 Year Ended December 31, 2021 From June 26, 2020 to December 31, 2020 From January 1, 2020 to
June 25, 2020
North America $ 357,175  $ 318,958  $ 63,386  $ 54,253 
Europe 92,272  96,013  45,608  42,776 
India, Middle East and Africa 19,940  14,801  6,996  3,959 
Asia-Pacific 53,300  51,598  24,350  20,834 
Latin America 15,585  12,603  6,828  6,506 
Total product revenues, net $ 538,272  $ 493,973  $ 147,168  $ 128,328 
The Company has a large and diverse customer base, which includes numerous customers located in foreign countries. Branded CPG’s combined sales to a single customer accounted for 14.1% and 10.6% of total sales in 2022 and 2021, respectively. No single customer accounted for more than 10% of total sales in 2020. With the exception of the United States, no one country represented more than 10% of the Company’s net sales.
The Company has an exclusive supply contract to purchase the output of licorice extract and certain licorice derivatives from a manufacturer with facilities in Central Asia. For the year ended December 31, 2022, the Company’s purchases from this supplier totaled approximately $9.1 million, representing 23.4% of the Company’s licorice raw material purchases for the year.
Long-lived assets are as follows (in thousands):
December 31, 2022 December 31, 2021
Long-Lived Assets*
United States $ 24,516  $ 24,327 
China 14,805  15,620 
Czech Republic 6,451  6,074 
France 10,960  11,353 
Other Foreign Countries 1,360  1,129 
Total $ 58,092  $ 58,503 
*Long-lived assets consist of property, plant and equipment, net