Shares in Reed’s Inc. added 6 percent Wednesday morning after the drink maker posted strong sales for its first quarter.

However, Reed’s posted a loss of $2 million (-28 cents per share) compared to a loss of $487,946 for the same period a year earlier, due to increased costs of production, packaging and ingredients, the company said in a statement.

The Los Angeles-based company posted an 18 percent hike in sales to $3 million primarily driven by increases in the its Virgil’s brand root beer and cream soda line as well as its ginger brews product line.

Reed’s has not posted a quarterly profit in more than two years.

Shares in Reed’s were up 6 percent to $2.50 in early trading Wednesday.