CALGARY,
AB, Feb. 14, 2024 /CNW/ - CE Brands Inc.
(TSXV: CEBI) ("CE Brands", "we", "our", or the
"Company"), a data-driven consumer-electronics company,
today announced its financial results for the three and nine months
ended December 31, 2023 ("Q3
2024"). The related financial statements and accompanying
notes, and Management's Discussion and Analysis for Q3 2024
("MD&A") are available on SEDAR+ at
www.sedarplus.ca and on the CE Brands' website at
www.cebrands.ca.
All dollar amounts in this press release are expressed in the
Canadian dollars.
Q3 2024 Highlights
- Revenue decreased by $1.33
million, reflecting an 87% drop in the three month period
ended December 31, 2023 as compared
to the corresponding period in the prior year. Total revenue
decreased by $4.80 million, or 77%,
in the nine month period ended December 31,
2023 as compared to the same period in the prior year. The
decreases can be attributed to the termination of the trademark
license agreement between Eastman Kodak Company and the Company,
which ended the sales of Kodak products, lower Business to Consumer
("B2C") sales of Motorola watches on e-commerce platforms in the
first fiscal quarter of 2024 (April
2023 to June 2023) and no B2C
sales thereafter.
- Gross profit was $0.03 million in
the three months ended December 31,
2023, a $2.83 million
improvement to the same period in the prior year. The improvement
is due to sales of the Moto 70 and Moto 40 watches during the
three month period ended December 31,
2023, both bearing higher gross profit ratios than compared
to Kodak products, which held a considerable portion of sales
during the three month period ended December
31, 2022.As compared to the gross loss of $1.73 million during the nine months ended
December 31,2023,the entity made a gross profit of $0.57 million. This was driven by the fact that
multiple inventory write offs took place in December, 2022,
whereas, no such write offs took place during the nine month period
ended December 31, 2023.
- There was a net loss of approximately $1.14 million for the three month period ended
December 31, 2023, which represents
an 81% improvement compared to the $6.06
million net loss for the corresponding period in the prior
year. The decrease in net loss was due to lower operating
expenditures and comparative increase in gross profit ratio for the
three months ended December 31,
2023.
"Our improved capital structure and lower debt costs, alongside
strengthened relationships with suppliers and customers, are
driving positive momentum." said Kalvie Legat, Interim Chief
Executive Officer of CE Brands. "With sales picking up and new
product launches on the horizon, we're focused on operational
execution to drive growth and deliver value to our
stakeholders"
About CE Brands
CE Brands Inc. develops products with leading manufacturers and
iconic brand licensors by utilizing proprietary data that
identifies key market opportunities.
Neither the TSX Venture Exchange nor its regulation services
provider (as defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this press
release.
Forward-Looking Information
This press release contains "forward-looking information" within
the meaning of applicable Canadian securities laws. In general,
forward-looking information is disclosure about future conditions,
courses of action, and events, including information about
prospective financial performance or financial position. The use of
any of the words "anticipates", "believes", "expects", "intends",
"plans", "will", "would", and similar expressions are intended to
identify forward-looking information.
By its nature, forward-looking information is subject to various
risks, which could cause the actual results and expectations to
differ materially from the anticipated results or expectations
expressed in this document. Please refer to the Company's
December 31, 2024 Management's
Discussion and Analysis filed on SEDAR+ at
www.sedarplus.ca for a list of potential risks and forward
looking statements.
Readers are cautioned not to place undue reliance on
forward-looking information, which is given as of the date of this
press release, and to not use such forward-looking information
other than for its intended purpose. CE Brands undertakes no
obligation to update publicly or revise any forward-looking
information, whether as a result of new information, future events,
or otherwise, except as required by applicable securities law.
Further Information
For further information about CE Brands or
its principal operating subsidiary, CE Brands International Inc.,
please contact:
Kalvie Legat
Interim Chief
Executive Officer
+1 403
560-9635
ir@cebrands.ca
SOURCE CE Brands Inc.
