Third quarter results reflect year over year growth in all strategic brands of TRUBAR, No B.S. Skincare, PureKana, and Vibez, while delivering positive adjusted EBITDA of
2023 THIRD QUARTER KEY COMMERCIAL ACHIEVEMENTS
- TRUBAR Protein Bar: Supporting TRUBAR's continued expansion are four initiatives: confirmed manufacturing capacity expansion, material COGS reduction, continued omni-channel distribution in the Club, Convenience, and Grocery channels, and category expansion into the protein powder category. Q3 2023 represented expansion in Costco with a second item in rotation of a "Mint to be Chip" and "Get in my Belly, PB & Jelly" dual pack, BJ's Wholesale, Sodexo, Andretti Oil and
Circle K . This growth trend continues with planned Q4 expansion into Longo's, Sobey's, and Sheetz. The 2023 revenue forecast is three times more than the previous period at$30 M+ versus$10 M in 2022. - PureKana Wellness: PureKana, a leading plant-based wellness brand, remained focused on its customer acquisition initiative, adding over 60,443 customers during the quarter and replenishing the sales funnel into a subscription model. PureKana's strong D2C models based on review of its publicly traded competitors financial statements earns it the top share position in eCommerce hemp/CBD. To expand beyond human consumption, PureKana commenced its pet offering in the
$196 M hemp-based pet category (perGrandview Research ) with planned offerings in with calming chews, hip & joint chews, and hair & coat drops. As an estimated 60% of PureKana's loyal customers have pets, the growth opportunity is expected to be sizeable. - No B.S. Skincare: Originally, the No B.S. brand was sourced exclusively online at livenobs.com and Amazon. In 2022, the brand entered 3,200 CVS Health stores for a Back-to-School Event and continues to maintain an on shelf presence in CVS's healthy skin section. Initial brick and mortar success enabled the brand to enter TJ Maxx in Q2, a national launch into Walgreen's in Q4 2023 in 3,400 locations, as well as placement on BJs.com. Sources of growth include omni-channel expansion supported by insight-driven innovation with an expanded facial acne patch portfolio (overnight pimple patch and acne patch plus retinol night cream) and a natural deodorant category entry.
- Vibez Wellness: The Vibez Wellness line was launched in
November 2022 to capture incremental millennial consumers on their preventative wellness journey. With an initial keto gummy supplement offering, the new brand has achieved$3.7 M in revenue year-to-date 2023. Vibez's primary focus is non-CBD solutions into the weight management, gut health, calm, focal acuity, and healthy hair consumer need states.
"As our Q3 2023 financial and commercial results illustrate, we are positioned for continued revenue growth, profit optimization, and debt reduction in 2023. Our strategic priorities remain to lead consumer-centric innovation and relentlessly acquire customers to these emerging brands by driving category and omni-channel expansion. Our clean ingredient wellness brands are resonating with our targeting Generation Z and Millennial consumers and retailers as we innovate to solve their daily challenges. This commercial relevancy has all four of strategic brands in growth mode, while focusing on cost reduction to fuel the continued momentum. As we assess all opportunities, our highest priority is keeping up with the relentless demand on the unicorn of TRUBAR." says SBBC CEO,
FINANCIAL HIGHLIGHTS FOR THE THREE MONTHS ENDED
For the three months ended | ||||||
Change | ||||||
expressed in Ms * | $ | % (in terms | $ | % (in terms | $ | % |
Revenue | 19.40 | 100 % | 13.40 | 100 % | 6.00 | 45 % |
Cost of goods sold | (6.70) | (35 %) | (4.60) | (34 %) | (2.10) | 46 % |
Gross profit | 12.70 | 65 % | 8.80 | 66 % | 3.90 | 44 % |
Third Quarter
The Company's revenue is generated by one segment – consumer products and within that segment by four main subsidiaries, PureKana, Tru, BRN (Vibez and Seventh Sense), No BS and other subsidiaries which do not generate material revenue currently. Revenue for the third quarter of 2023 was
SBBC's cost of sales in the third quarter (35%) were comparable to the prior period 2022 (34%). The Company continues to manage its finished goods costs with co-manufacturers with the higher order volumes it has been able to place. Cost of goods sold for online sales (Direct to consumer "DTC") typically range in the low to mid 70's and retailer (Business to Business "B2B") gross margins range in the mid 30's to higher 40's. Cost of goods sold was
Gross profit for the third quarter of 2023 was
Operating costs for the third quarter of 2023 were
Other income for the third quarter 2023 was
The Company incurred a net loss of
Non-IFRS Measures (Earnings before Interest, Taxes, Depreciation, and Amortization ("EBITDA") and Adjusted EBITDA)
EBITDA and Adjusted EBITDA are non-GAAP measures used by management that are not defined by IFRS. EBITDA and Adjusted EBITDA do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Management believes that EBITDA and Adjusted EBITDA provide meaningful and useful financial information as these measures demonstrate the operating performance of a business excluding non-cash charges.
The most directly comparable measure to EBITDA and Adjusted EBITDA calculated in accordance with IFRS is net loss. The following table presents the EBITDA and Adjusted EBITDA for the three months ended
For the three months ended | ||||
Change in | ||||
$ | $ | $ | % | |
Net loss | (0.60) | (1.50) | 0.90 | (150 %) |
Amortization | 0.80 | 0.60 | 0.20 | 25 % |
Finance costs | 0.50 | 0.40 | 0.10 | 20 % |
EBITDA | 0.70 | (0.50) | 1.20 | (105 %) |
Fair value adjustment of derivative liability | (0.30) | (0.20) | (0.10) | 33 % |
Impairment of receivable | - | 0.20 | (0.20) | 100 % |
Gain on settlement of the milestone shares | - | (0.40) | 0.40 | 100 % |
Loss on remeasurement of warrant liabilities | (1.30) | - | (1.30) | 100 % |
Share-based payments | 0.50 | 0.80 | (0.30) | (60 %) |
Shares issued for services | - | 0.10 | (0.10) | 100 % |
Write-off of advance payments | 0.10 | - | 0.10 | 100 % |
Non-recurring expenses | 0.40 | - | 0.40 | 100 % |
Adjusted EBITDA | 0.10 | 0.00 | 0.10 | 468 % |
The Company generated positive adjusted EBITDA of
CONFERENCE DETAILS
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About
Simply Better Brands Corp. leads an international omni-channel platform with diversified assets in the emerging plant-based and holistic wellness consumer product categories. The Company's mission is focused on leading innovation for the informed Millennial and Generation Z generations in the rapidly growing plant-based, natural, and clean ingredient space. The Company continues to focus on expansion into high-growth consumer product categories including plant-based food, clean ingredient skincare and plant-based wellness. For more information on
https://www.simplybetterbrands.com/investor-relations.
Neither the
Forward-Looking Information
Certain statements contained in this news release constitute "forward-looking information" and "forward looking statements" as such terms are used in applicable Canadian securities laws. Forward-looking statements and information are based on plans, expectations and estimates of management at the date the information is provided and are subject to certain factors and assumptions, including, among others, that the Company's financial condition and development plans do not change as a result of unforeseen events, the impact of the COVID-19 pandemic, the regulatory climate in which the Company operates, and the Company's ability to execute on its business plans. Specifically, this news release contains forward-looking statements relating to, but not limited to: planned Q4 expansion into Longo's, Sobey's, and Sheetz, size of the growth opportunity in the hemp-based pet category, No BS's planned launch in Walgreens in Q4 and expansion of its facial acne patch portfolio (overnight pimple patch and acne patch plus retinol night cream) and a natural deodorant category entry, 2023 guidance and results of operations, growth of the Company's brands, and, success of the Company's marketing efforts.
Forward-looking statements and information are subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking statements and information. Factors that could cause the forward-looking statements and information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions referred to prove not to be valid or reliable, that occurrences such as those referred to above are realized and result in delays, or cessation in planned work, that the Company's financial condition and development plans change, ability to obtain necessary regulatory approvals for proposed transactions, as well as the other risks and uncertainties applicable to the plant-based food, clean ingredient skincare and plant-based wellness or broader wellness industries and to the Company, and as set forth in the Company's annual information form available under the Company's profile at www.sedarplus.com.
The above summary of assumptions and risks related to forward-looking statements in this news release has been provided in order to provide shareholders and potential investors with a more complete perspective on the Company's current and future operations and such information may not be appropriate for other purposes. There is no representation by the Company that actual results achieved will be the same in whole or in part as those referenced in the forward-looking statements and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.
Financial Outlook
This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about the financial results the quarter ended
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