good natured Products Inc. Announces Quarterly Results for the Three Months Ended March 31, 2021
May 27, 2021 — (Vancouver, BC) good natured Products Inc. (the “Company” or “good natured®”) (TSX-V: GDNP), a North American leader in earth-friendly plant-based products, today announced its financial results for the three months ended March 31, 2021 (or “Q1 FY21”).
Key Highlights:
- Revenues for Q1 FY21 increased 159% to $7.9 million compared to $3.1 million for the three months ended March 31, 2020 (or “Q1 FY20”).
- Variable gross profit, a non-GAAP measure, for Q1 FY21 increased 191% to $3.2 million, 40.8% of sales, compared to $1.1 million, 36.3% of sales in Q1 FY20. Gross profit increased to $2.8 million, 35.3% of sales, in Q1 FY21, compared to $1.1 million, 36.3% of sales, in Q1 FY20.
- Selling, general and administrative expenses (“SG&A”), excluding acquisition activity, a non-GAAP measure, for Q1 FY21 were $2.7 million compared to $1.3 million for Q1 FY20, representing an increase of 106%.
- The Company’s adjusted EBITDA, a non-GAAP measure, for Q1 FY21 was a gain of $155,000 compared to a loss of $308,000 for Q1 FY20.
- In Q1 FY21, the Company incurred a net loss of $1.9 million compared to a net loss of $0.8 million in Q1 FY20.
“Our first quarter revenue growth of just under 160% sets the stage for our recently announced acquisition of Ex-Tech Plastics Inc. This highly strategic and accretive acquisition of Ex-Tech Plastics Inc. positions good natured® for further strong revenue growth and improved profitability,” stated Paul Antoniadis, CEO. “We are also extremely pleased to report our first ever positive EBITDA quarter, as our team members and partners worked hard through disruptions in key markets from COVID-19 variants, extreme weather-related events in the southern US, and the external cost inflation in our logistic and fulfillment operations. In addition, new customer activity remains strong, and we are confident in our outlook for organic growth, highlighted by our recent launch of Canada’s first compostable and Microwavable To Go Containers. These growth drivers are expected to mitigate the logistic inflationary cost pressures we are seeing which could continue through the rest of 2021”
The Company’s Q1 FY21 audited financial statements and Management’s Discussion and Analysis (MD&A) are available on SEDAR at sedar.com.
Q1 FY21 Results Conference Call
The Company is pleased to host a conference call to discuss its financial results for Q1 FY21, hosted by Paul Antoniadis, Executive Chair & CEO, and Kevin Leong, Chief Financial Officer, on May 27, 2021 at 11:00 AM Eastern / 9:00 AM Pacific time.
Date: May 27, 2021
Time: 11:00 AM EST / 8:00 AM PST
Toll-Free: 1-833-900-2239 International: +1 (236) 712-2470
Conference ID: 6694338
Participants are asked to dial in 10 minutes prior to the start of the call.
A replay of the call will be available approximately two hours after its completion through to June 23, 2021. The replay will be available by dialing 1-800-585-8367 or +1 (416) 621-4642.
The good natured® corporate profile can be found at: investor.goodnaturedproducts.com
About good natured Products Inc.
good natured® is passionately pursuing its goal of becoming North America’s leading earth-friendly product company by offering the broadest assortment of eco-friendly options made from plants instead of petroleum. We’re all about making it easy and affordable for business owners and consumers to switch to better everyday products® made from renewable materials and free from chemicals of concern.
Part of the sustainable consumer goods market, good natured® offers over 400 products and services through wholesale and retail channels, including our own e-commerce stores. From plant-based home organization products to compostable food containers, bioplastic industrial supplies and medical packaging, we’re focused on delivering a great customer experience to make more plant-based products readily accessible to more people as the path to deliver meaningful environmental and social impact.
For more information: goodnaturedproducts.com
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
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.
Non-GAAP financial measures
We have included in this press release a discussion of the Company’s variable gross profit, SG&A excluding acquisition costs, and adjusted EBITDA, all non-GAAP measures, for Q1 FY21 and Q1 FY20 to provide, what management believes, is a meaningful comparison of the Company’s performance in Q1 FY21. In this news release, variable gross profit is gross profit excluding fixed production costs such as depreciation, repairs and maintenance, utilities and similar overhead items and adjusted EBITDA is earnings before interest and finance costs, taxes, depreciation and amortization, other non‐cash items and one‐time gains and losses. Variable gross profit, SG&A excluding acquisition costs and Adjusted EBITDA do not have standardized meanings, and therefore may not be comparable to similar measures presented by other issuers. The use of the adjusted EBITDA by management allows for evaluation of the Company’s principal business activities as certain non‐core items such as interest and finance costs, taxes, depreciation and amortization, and other non‐cash items and one‐time gains and losses are removed.
The following table provides a reconciliation of gross profit, as disclosed in the Company’s Q1 FY21 financial statements to variable gross profit:
The following table provides a reconciliation of net loss, as disclosed in the Company’s Q1 FY21 financial statements to adjusted EBITDA:
Cautionary Statement Regarding Forward-Looking Information
This news release contains forward-looking information within the meaning of securities laws including statements related to expected benefits from the acquisition of Ex-Tech Plastics Inc., Company plans for 2021 and managements outlook for 2021. 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.
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.