Simply Better Brands Corp. ("SBBC" or the "Company") (TSX Venture:
SBBC) (OTCQB: PKANF) is pleased to announce it is raising its 2022
financial outlook based on year-to-date results and business
momentum. The sources of growth remain customer, category, channel
and geographic expansion. All amounts are expressed in United
States dollars unless otherwise noted. Certain metrics, including
those expressed on an adjusted basis, are non-International
Financial Reporting Standards ("IFRS") measures, see "Non-IFRS
Measures" below.
Preliminary June 30, 2022 Quarter to
Date and Year to Date Results
Preliminary sales for the quarter ending June
30, 2022, were $16.8 million compared to 3.1 million for the
comparable period or a growth rate of 440%.
Preliminary gross margin for the six months
ending June 30, 2022, was margin of 69% compared to 59% for the
comparable period.
Preliminary sales for the six months ending June
30, 2022 were $28.9 million compared to $5.6 million for the
comparable period or a growth rate of 417%.
Preliminary gross margin for the six months
ending June 30, 2022, was margin of 67% compared to 61% for the
comparable period.
The PureKana and TRUBAR brands both achieved
positive adjusted EBITDA margin in the months of April and May.
Full second quarter and six-month results are due to be reported on
August 30, 2022.
2022 Outlook
As a result of the strong year to date and
quarter to date preliminary results as of June 30, 2022, the
Company's guidance is changing as follows:
- Expected
consolidated net sales are increased to $50 million-55 million from
$40 million-$42 million.
- Expected
gross margin as a percentage of net sales is increased to 63%-65%
from 58-60%.
- The
Company continues its expectation to achieve positive Adjusted
EBITDA for fiscal 2022.
2022 Business Drivers
- PureKana
(purekana.com) customer acquisition model adding approximately
15,000 new customers per month driving year-to-date growth of 366%%
vs. year ago or $22.7 million vs. $4.8 million. According to
Brightfield Research Group mid-year 2022 report, this performance
makes PureKana a Top 10 brand out of 4,000 brands in the
category.
- PureKana
expansion of a national salesforce for brick and mortar retail with
a differentiated and innovative portfolio.
- TRUBAR’s
(truwomen.com) expansion into Costco. By Q3 2022, TRUBAR has
secured distribution into 50% of the U.S. based Costco regions with
velocities exceeding bar category expectations.
- No B.S.
Skincare (livenobs.com) launch into 3,200 CVS stores for
Back-to-School migrating to on-shelf presence in September
2022.
- Planned
geographic omni-channel expansion into the UK Market in the back
half of 2022.
Company Updates
The Company is also providing the updates:
- The
Company is making progress in expanding its credit facilities with
2Shores Capital to support growth with its expanding Costco
business.
- The
Company is holding its Annual General Meeting on July 29, 2022.
These materials are available at:
https://odysseytrust.com/client/simply/ OR www.sedar.com
- The
Company has agreed with CFH to pause work on the potential
acquisition due to its current share price and is looking for other
ways to achieve some of the benefits identified with this
acquisition. These may include a supply arrangement and joint
R&D work on new products.
"As our strong first half results illustrate, we
are positioned for sustainable and positive adjusted EBITDA growth
in 2022 driven by our PureKana, TRUBAR, and No B.S. Skincare
brands. Our strategic growth priorities remain to lead
consumer-centric innovation and relentlessly acquire customers to
these emerging brands by driving customer, category, channel and
geographic expansion. In parallel, we look forward to integrating
the recently completed acquisitions of BRN/Seventh Sense and Hervé
into three growth verticals: plant-based wellness, food and
beverage, and health & beauty. Our model to acquire and build
emerging brands in the clean ingredient space is working. We now
have all three of the core brands in growth mode of both
distribution and channel." says SBBC CEO, Kathy Casey.
About Simply Better Brands
Corp.
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 wellness, 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 Simply Better Brands Corp., please visit:
https://www.simplybetterbrands.com/investor-relations.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Contact Information
Simply Better Brands Corp.Brian MeadowsChief Financial Officer+1
(855) 553-7441ir@simplybetterbrands.com
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: expansion of its credit facilities; 2022 guidance and
results of operations; growth of the Company’s brands and business;
new supply or R&D relationship with CFH; and integration of
recent acquisitions completed by the Company, specifically
BRN/Seventh Sense and Hervé.
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 CBD, broader
wellness and consumer packaged goods industries and to the Company,
and as set forth in the Company's annual information form and other
filings available under the Company's profile at www.sedar.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 for the quarter
ended June 30, 2022, and the year ended December 31, 2022,
including net sales, gross margin, and Adjusted EBITDA, all of
which are subject to the same assumptions, risk factors,
limitations, and qualifications as set out under the heading
“Forward-Looking Information”. The actual financial results of the
Company may vary from the amounts set out herein and such variation
may be material. The Company and its management believe that the
financial outlook has been prepared on a reasonable basis,
reflecting management's best estimates and judgments and the FOFI
contained in this press release was approved by management as of
the date hereof. However, because this information is subjective
and subject to numerous risks, it should not be relied on as
necessarily indicative of future results. Except as required by
applicable securities laws, the Company undertakes no obligation to
update such FOFI. FOFI contained in this press release was made as
of the date hereof and was provided for the purpose of providing
further information about the Company’s anticipated future business
operations on a quarterly and annual basis. Readers are cautioned
that the FOFI contained in this press release should not be used
for purposes other than for which it is disclosed herein.
Non-IFRS Financial
Measures
This press release refers to certain non-IFRS
measures. Adjusted EBITDA refers to net earnings from continuing
operations before interest, taxes, depreciation and amortization
and removing certain non-recurring, one-time or irregular items.
Adjusted EBITDA is not an earnings measure recognized by IFRS and
does not have a standardized meaning prescribed by IFRS.
Management believes that Adjusted EBITDA is an alternative measure
in evaluating the Company's business performance. The most
directly comparable measure to Adjusted EBITDA calculated in
accordance with IFRS is net income (loss).
See “Earnings before Interest, Taxes,
Depreciation, and Amortization (“EBITDA”) and Adjusted EBITDA
(Non-GAAP Measures)” in the Company’s most recently available
management’s discussion and analysis available on SEDAR for a
reconciliation of Adjusted EBITDA to net (loss) income.
Readers are cautioned that Adjusted EBITDA
should not be construed as an alternative to net income as
determined under IFRS; nor as an indicator of financial
performance as determined by IFRS; nor a calculation of cash flow
from operating activities as determined under IFRS; nor as a
measure of liquidity and cash flow under IFRS. The Company's
method of calculating Adjusted EBITDA may differ from methods used
by other companies and, accordingly, the Company's Adjusted EBITDA
may not be comparable to similar measures used by any other
company. Except as otherwise indicated, Adjusted EBITDA is
calculated and disclosed by SBBC on a consistent basis from period
to period. Specific adjusting items may only be relevant in certain
periods.
Simply Better Brands (TSXV:SBBC)
Historical Stock Chart
From Aug 2024 to Sep 2024
Simply Better Brands (TSXV:SBBC)
Historical Stock Chart
From Sep 2023 to Sep 2024