Vancouver, British Columbia--(Newsfile Corp. - March 4, 2025) - Purebread Brands Inc. (TSXV: BRED) ("Purebread" or the "Company") is pleased to announce that it has filed its unaudited Q3 2025 financial results, the highlights of which are included in this news release. The unaudited Condensed Consolidated Interim Financial Statements and Management Discussion and Analysis ("MD&A") for the three and nine months ended December 31, 2024, can be viewed on the Company's website at www.purebreadbrands.com or on its profile at SEDAR+ (www.sedarplus.ca).
Financial Highlights for the Quarter Ending December 31, 2024
- Total operating expenses were reduced by 33% compared to Q3 2024 and by 17% compared to Q2 2025, aligning with management's cost-reduction efforts and continued focus on streamlining the business.
- The Company reported its second consecutive positive adjusted EBITDA (1) of $266,321 in Q3 2025, compared to $(489,896) in the same period last year, representing a $756,217 YoY improvement. The increase in adjusted EBITDA was attributed to: (i) consistently strong performance from Purebread's operations, and (ii) the Company's continued focus on streamlining administrative functions and reducing operating expenses.
- Revenue declined by 10% YoY, from $4.1 million in Q3 2024 to $3.7 million this quarter. The reduction in revenue is directly attributable to the closure of underperforming and unprofitable Coho Commissary locations.
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Notes:
(1) Defined as net loss, less interest, taxes, depreciation and amortization, adjusted for share based compensation, accretion and loss on provision for facility related obligations.
Management Commentary
"Purebread delivered significant year-over-year profitability growth in Q3, with consistent performance as we focused on strengthening our foundation," said Amrit Maharaj, Interim Chief Executive Officer. "This quarter, we prioritized improving internal operations, reducing expenses, and enhancing cash flow to position the business for long-term stability. As we move forward, our focus will be on sustainable growth and disciplined capital management to ensure we continue delivering value to our customers and stakeholders."
Operating Highlights for the Quarter
- Purebread Bakery Performance
- Strong Online Sales: Digital ordering remained a key revenue driver, contributing to consistent growth.
- Operational Cost Reduction: Focused cost-control measures improved efficiency and strengthened margins.
- Record December Revenue & Traffic: The holiday season saw the highest-ever sales and foot traffic across locations.
- Average Check Value Decline: Economic conditions led to a slight reduction in per-transaction spending, though overall volume remained strong.
- Coho Commissary Operations
- Closure of Underperforming Assets: The Company successfully completed the transition of non-core locations to streamline operations.
- Strong Vancouver Performance: The two remaining Vancouver commissaries continue to operate well, with high demand and stable occupancy.
- Staff Cost Reductions: Simplified operations led to lower staffing costs while maintaining service levels.
Certain information provided in this news release is extracted from the unaudited Condensed Consolidated Interim Financial Statements and MD&A of the Company for the three and nine months ended December 31, 2024, and should be read in conjunction with them. It is only in the context of the fulsome information and disclosures contained in the unaudited Condensed Consolidated Interim Financial Statements and MD&A that an investor can properly analyze this information.
About Purebread
Purebread Brands Inc. is a leader in fast-casual cafe / bakeries in British Columbia, driving retail expansion in vibrant communities across Canada and beyond. Purebread is committed to crafting exceptional food experiences and making a positive impact on the communities it serves.
For more information and updated investor presentation, please visit www.purebreadbrands.com.
For more information, please visit purebreadbrands.com or contact:
Amrit Maharaj, Interim Chief Executive Officer
Purebread Brands Inc.
amrit@cohocommissary.com
(604) 889-5865
Non-IFRS Measures, Reconciliation and Discussion
This press release contains references to "Adjusted EBITDA" that is a non-IFRS financial measures. Adjusted EBITDA is defined as earnings (or loss) from operations before interest, taxes, depreciation and amortization, adjusted for share based compensation, accretion and non-recurring transaction costs, and is a non-IFRS measure.
For Adjusted EBITDA: This measure can be used to analyze and compare profitability among companies and industries, as it eliminates the effects of financing and capital expenditures. It is often used in valuation ratios and can be compared to enterprise value and revenue. This measure does not have any standardized meaning according to IFRS and, therefore, may not be comparable to similar measures presented by other companies.
There are no comparable IFRS financial measures presented in Coho's financial statements. Reconciliations of the supplemental non-IFRS measure are presented in the Company's MD&A for the three and nine months ended December 31, 2024 ("Q3 2024 MD&A"). This non-IFRS financial measure is presented because management has evaluated the financial results both including and excluding the adjusted items and believes that the non-IFRS financial measure presented provides additional perspective and insights when analyzing the core operating performance of the business. The Company believes that the supplemental measure provides information which is useful to shareholders and investors in understanding the Company's performance and may assist in the evaluation of the Company's business relative to that of its peers.
The non-IFRS financial measure should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with the IFRS financial measures presented in the Company's financial statements. For more information, please see "Adjusted EBITDA (non-IFRS measure)" in the Company's Q3 2024 MD&A, which is available under the Company's System for Electronic Document Analysis and Retrieval ("SEDAR+") profile on www.sedarplus.ca.
Forward-Looking Information
This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflect management's current expectations regarding future events. Forward-Looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, Coho's ability to open the locations described in this press release substantially in accordance with the timelines indicated above, the ability of the Company to execute on its strategy, the growth and performance of the ghost kitchen industry globally and in Canada; risks inherent in the ghost-kitchen, retail bakery, or coffeehouse sectors in general; that future results may vary from historical results; and competition in the markets where Coho operates. Except as required by securities law, Coho does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.
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.
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SOURCE: Purebread Brands Inc.
