Vancouver, British Columbia--(Newsfile Corp. - May 26, 2020) - good natured Products Inc. (TSXV: GDNP) (the "Company" or "good natured"), today announced its financial results for the three months ended March 31, 2020 ("Q1 FY20").
Key Highlights:
- Revenues for Q1 FY20 increased 48% to $3,052,087 compared to $2,056,014 for the three months ended March 31, 2019.
- Gross profit for Q1 FY20 was $1,108,240 compared to $772,545 for the three months ended March 31, 2019. Gross profit as a percentage of sales was 36.3% for Q1 FY20 compared to 37.6% for the three months ended March 31, 2019.
- SG&A excluding acquisition activity for Q1 FY20 was $1,294,771, a 30% increase as compared to $995,183 for the three months ended March 31, 2019. SG&A expenditures, minus variable outsourced supply chain and fulfillment costs, increased by 23% for Q1 FY20 compared to the three months ended March 31, 2019.
- The Company's EBITDA, a non-GAAP measure, loss in Q1 FY20 was $307,727 compared to $342,896 for the three months ended March 31, 2019, an improvement of 10%.
- In Q1 FY20, the Company incurred a net loss of $806,325 compared to a net loss of $720,361 for the three months ended March 31, 2019.
"Despite the rapidly changing market conditions in the back end of first quarter, our team's dedication to serving our customers delivered strong organic growth" said Paul Antoniadis, CEO of good natured. "We also positioned the Company for future growth with the expansion of our product portfolio to include takeout food supplies, the recent acquisition of Shepherd from which we will begin to recognize revenues effective May 1, 2020, and the addition of new team members to support our business development activities."
The good natured corporate profile can be found at: investor.goodnaturedproducts.com
The Company's Q1 FY2020 interim financial statements and Management's Discussion and Analysis (MD&A) are available on SEDAR at www.sedar.com.
Singular Research Spring Select Webcall
Paul Antoniadis will be presenting at the Singular Research Spring Select Webcall on Thursday, May 28, 2020 at 10:45am Pacific time/1:45pm Eastern time where he will provide an update on company performance and strategic direction. To register and participate in Q&A, please contact Mike: mike@singularresearch.com.
New Appointment & Change to Board of Directors
The Company also announced today that its board of directors has appointed Joel Marsh to its board of directors effective June 1, 2020 to fill the vacancy left by Salil Munjal who is transitioning from the board of directors to the board advisory team effective June 1, 2020. The Company will be nominating Marsh for election at its 2020 Annual General Meeting of Shareholders. Mr. Munjal will not be standing for re-election.
Mr. Marsh is a Senior Director at Best Buy and brings over 30 years' experience in operations, financial management, sales development, supply chain, standard operations process and scaling new businesses. Beginning in April 2006, Joel led the scaling of Best Buy Mobile in the US to 1,407 store-within-store locations and over 400 free-standing stores within a 3-year period. Mr. Marsh has also overseen the development and implementation of operational efficiencies that have delivered savings of $100s of millions over his tenure. Prior to 2006 as a Sales Development Director at Best Buy, Joel led Best Buy's US Sales Development team to 47 straight months of positive like-for-like sales growth while improving gross margin rates by 500 basis points.
"We would like to express our sincere thanks to Salil for his tremendous contribution over the past 8 years as a board member and fully support his desire to take on a different role going forward," said Paul Antoniadis, Executive Chair & CEO of good natured. We're also very pleased to welcome Joel, whose extensive experience in scaling operations and business development complements our board of directors' skills and experience for the upcoming growth stages of the Company."
The Company's other independent directors include Jim Zadra, CFO of Great Panther Mining Limited and Michael Thomson, President of Independent Capital Partners Inc. The good natured board is composed of four directors, three of whom are independent. The Company intends to complete its search and nomination for a fifth board director by the end of 2020.
About good natured Products Inc.
good natured is producing and distributing one of North America's widest assortments of better everyday products made with the highest possible percentage of renewable, plant-based materials and no BPAs, phthalates or other chemicals of concern potentially harmful to human health and the environment.
With a growing assortment of over 385 products and services, good natured creates eco-friendly home and business products, food packaging, restaurant/take-out containers, medical and industrial supplies designed to do good for the planet, good for human health and good for business by driving incremental sales, minimizing waste and reducing environmental impact, all bundled up in a fresh and approachable brand.
For more information: goodnaturedproducts.com
On behalf of the Company:
Paul Antoniadis - Executive Chair & CEO
Contact: 1-604-566-8466
Investor Contact:
Andy Phillips
Investor Relations
1-877-286-0617 ext. 113
invest@goodnaturedproducts.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibilities for the adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
Information in this news release regarding the search and nomination of an additional board director constitutes forward-looking information within the meaning of securities laws. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Such factors include, among others, the risk that the Company may not identify a suitable board director candidate or that a suitable candidate may not be willing to stand for nomination to the board of directors.
When relying on the Company's forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed that the material factors referred to in the previous paragraph will not cause such forward-looking statements and information to differ materially from actual results or events. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
Other than as required under securities laws, we do not undertake to update this information at any particular time.
Forward-looking information contained in this news release is based on our current estimates, expectations and projections regarding, among other things, sales volume and pricing which we believe are reasonable as of the current date. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. All forward-looking information contained in this news release is expressly qualified in its entirety by this cautionary statement.
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