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Good Natured Products Inc. Announces Fourth Quarter 2023 Results

April 30, 2024 — (Vancouver, BC) good natured Products Inc. (the “Company” or “good natured®”) (TSX-V: GDNP) (OTCQB: GDNPF), a North American leader in eco-friendly food packaging, bio-based plastic extrusion and plant-based products, today announced its financial results for the three months ended December 31, 2023 (“Q4 2023”).

Q4 2023 Highlights

  • Revenue of $18.6 million compared to $23.3 million for the three months ended December 31, 2022 (“Q4 2022”) and $19.4 million for the three months ended September 30, 2023 (“Q3 2023”).
  • Adjusted EBITDA of $0.1 million compared to nil in Q4 2022 and $0.7 million in Q3 2023.
  • Variable Gross Margin of 35% compared to 33% in Q4 2022 and 37% in Q3 2023.
  • SG&A expenses of $3.8 million compared to $4.9 million in Q4 2022 and $3.4 million in Q3 2023.
  • Cash used in operating activities was $2.5 million for the twelve months ended December 31, 2023 (“FY2023”) compared to $4.6 million generated for the twelve months ended December 31, 2022 (“FY2022”).
  • Ending cash balance of $7.3 million compared to $11.9 million at December 31, 2022.

Revenue in Q4 2023 declined by 4% compared to Q3 2023, primarily due to two factors: 1) revenue declines by lower third-party sales in the Company’s industrial business group as a result of lower average selling prices and market demand levels that led to increased competitiveness and volatility. This was  further exacerbated industry-wide by a return of low-priced offshore commodity products to the North American market, along with order volatility in the Company’s Packaging business group, including the large US food producer previously announced (the “ US Food Producer”), that supplies major grocery retailers, who are aggressively reassessing product assortments and renegotiating vendor agreements to safeguard margins amid food inflation and shifting consumer spending patterns.

During Q4 2023, the Company took actions to reduce its cost structure considering the above-mentioned changes in operating conditions and continued to do so subsequent to quarter end as overall market competitiveness and volatility is expected to continue in the coming year.

“Our Q4 2023 results have reinforced the strategic importance of driving a robust, profitable, and purposefully differentiated product and customer mix to be resilient against any one factor disproportionately impacting our results,” stated Paul Antoniadis, CEO of good natured®. “Coupled with this, we continued the transformation into a lower operating cost structure. Given the factors encountered in Q4 2023, the team did a tremendous job managing costs to deliver positive Adjusted EBITDA1 for the ninth consecutive quarter."

Q4 2023 Financial Overview
Revenue for Q4 2023 decreased 20% to $18.6 million as compared to $23.3 million for Q4 2022. The Packaging business group realized a year-over-year revenue decline of 4% driven by the addition of new customers, cross selling new products to existing customers, offset by order volatility, a reduction in US Food Producer shipments, and lower blended average selling prices amongst National packaging customers. Industrial business group revenue declined by 34% compared to Q4 2022.

Variable gross margin for Q4 2023 increased to 34.7% compared to 32.8% for Q4 2022. The increase in variable gross margin reflects the higher mix of revenue from the Packaging business group and productivity enhancements in the variable cost of products. Gross margin was 24.7% for Q4 2023 compared to 24.9% for Q3 2022.  

Selling, general and administrative expenses (“SG&A”) in Q4 2023 decreased by 22% compared to Q4 2022. The decrease in SG&A expenses reflects the Company’s ongoing efforts to reduce costs through headcount reductions over the past 12 months, renegotiating terms across the Company’s service providers and suppliers, and through process improvements designed to reduce costs and/or improve productivity. Q4 2023 SG&A, excluding acquisition activity and one-time charges, declined 19% on a year-over-year basis.

The Company’s Adjusted EBITDA increased to $0.1 million in Q4 2023 from nil in Q4 2022, as the decline in gross profit contribution was more than offset by the decline in SG&A and fulfilment and logistics expenses.

The Company incurred a net loss of $6.1 million in Q4 2023 compared to a net loss of $4.9 million in Q4 2022. Excluding changes in non-cash expenses such as share-based compensation, depreciation and amortization, one-time charges and gains, and foreign exchange, an increase in financing costs was the primary reason for the year-over-year increase in net loss.

Cash Flow & Balance Sheet Overview
Cash used by operating activities for FY2023 was $2.5 million compared to $4.6 million generated by operating activities for FY2022. The Company generated positive cash flow from its operations for FY2023 excluding financing expenses, which increased 38% compared to FY2022. The Company generated $0.8 million in net cash from financing activities for FY2023 and used $2.7 million in investing activities for FY2023.

Cash balance as at December 31, 2023 was $7.3 million, compared to $11.9 million as at December 31, 2022 and $11.1 million as at September 30, 2023. As at December 31, 2023, net working capital (deficit) was ($1.4) million compared to $10.0 million as at December 31, 2022.

The Company remains committed to exploring options that will enhance its ability to execute on strategic growth over the long term. This includes a focus on ways to restructure and renegotiate its debt obligations to reduce leverage and cash interest payments. As part of this process, the Company announced a proposal to amend the terms of its 7.0% convertible unsecured subordinated debentures and called a meeting for debenture holders to vote on the proposed amendments on April 30, 2024. If passed, the amendments are expected to improve the Company’s financial flexibility, lower finance costs, and strengthen its balance sheet. Further details are included in the press release dated April 11, 2024.

As at December 31, 2023, the Company’s total asset to liability ratio was 1.10 compared to 1.22 as at December 31, 2022.

The Company’s Q4 2023 financial statements and Management’s Discussion and Analysis are available on SEDAR+ at and on the Company’s website at

The good natured® corporate profile can be found at:

About good natured Products Inc.
good natured® is at the forefront of North America's shift toward sustainability, showcasing over 90 plant-based packaging designs and an extensive portfolio of more than 400 products and services. These offerings are purposefully designed to reduce environmental impact by using more renewable materials, less fossil fuel, and eliminating chemicals of concern.

Manufactured locally in the US and Canada, good natured® engineers and distributes a diverse range of bio-based products across various sectors, including grocery, restaurant, electronics, automotive, and pharmaceutical via both wholesale and direct channels.

The Company is dedicated to providing an industry-leading customer experience in order to encourage the transition to renewable alternatives. By making it easy and affordable for businesses to adopt bio-based products and packaging, good natured® aims to empower them to reach their sustainability objectives.

For more information:

On behalf of the Company:
Paul Antoniadis – Executive Chair & CEO
Contact: 1-604-566-8466

Investor Contact:  
Spencer Churchill
Investor Relations
1-877-286-0617 ext. 113

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.

Non-GAAP Financial Measures
We have included in this press release a discussion of the Company’s variable gross profit, variable gross margin, SG&A excluding acquisition activity and one-time charges, and adjusted EBITDA all non-GAAP measures, for Q3 2023, Q4 2023, FY2023, Q4 2022 and FY2022 to provide, what management believes, is a meaningful comparison of the Company’s performance in Q4 2023 and FY2023. These non-GAAP measures do not have standardized meanings, and therefore may not be comparable to similar measures presented by other issuers. Variable gross profit, variable gross margin, SG&A excluding acquisition activity and one-time charges, and adjusted EBITDA are more fully defined and discussed in the Company’s Q4 2023 Management’s Discussion and Analysis under the heading “non-IFRS financial measures”, which is available on the Company’s SEDAR profile at and on the Company’s investor website at