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Good Natured Products Inc. Announces Third Quarter 2023 Results

November 28, 2023 — (Vancouver, BC) good natured Products Inc. (the “Company” or “good natured®”) (TSX-V: GDNP) (OTCQX: GDNPF), a North American leader in plant-based products, today announced its financial results for the three months ended September 30, 2023 (“Q3 2023”).

Q3 2023 Highlights

  • Revenue of $19.4 million compared to $26.2 million for the three months ended September 30, 2022 (“Q3 2022”) and $18.3 million for the three months ended June 30, 2023 (“Q2 2023”).
  • Adjusted EBITDA1 of $0.7 million compared to $0.8 million in Q3 2022 and $0.1 million in Q2 2023.
  • Variable gross margin1 of 37% compared to 34% in Q3 2022 and 37% in Q2 2023.
  • SG&A expenses of $3.4 million compared to $4.6 million in Q3 2022 and $3.7 million in Q2 2023.
  • Cash used in operating activities was $1.4 million for the nine months ended September 30, 2023 (“YTD 2023”) compared to $0.5 million generated for the nine months ended September 30, 2022 (“YTD 2022”).
  • Ending cash balance of $11.1 million compared to $11.9 million at December 31, 2022.

Consistent with the Company’s outlook anticipating a slow normalization in its Industrial business group and positive momentum in packaging revenue, Q3 2023 delivered an increase in revenue compared to Q2 2023. The Company’s Packaging business group continued its growth trajectory, although comparisons are less pronounced on a year-over-year basis as the anniversary of the July 2022 FormTex acquisition was lapped and there were some average selling price adjustments amongst the national packaging segment. Revenue declines in the Industrial business group slowed in Q3 2023 compared to Q2 2023, and the Company continues to expect more of its Industrial capacity to be used in its own manufacturing facilities as Packaging business group revenue increases.

“I’m very proud of our team’s unwavering dedication to deliver an increase in revenue this quarter compared to Q2 2023 while also navigating challenging economic conditions,” stated Paul Antoniadis, CEO of good natured®. “Our efforts over the past year to scrutinize and optimize SG&A and other costs are beginning to show results as evidenced by the rebound in EBITDA this quarter. Our outlook remains positive for continued growth in our Packaging business group, with an ongoing pipeline of opportunities taking us into next year.”   

Q3 2023 Financial Overview

Revenue for Q3 2023 decreased 26% to $19.4 million as compared to $26.2 million for Q3 2022. The Packaging business group realized year-over-year revenue growth of 4% driven by organic growth, but with comparisons also reflecting the first full quarter of FormTex contribution and some average selling price adjustments, as mentioned above. Industrial business group revenue declined by 46% compared to Q3 2022 and declined by 9% compared to Q2 2023.

Variable gross margin1 for Q3 2023 increased to 36.6% compared to 34.0% for Q3 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 26.7% for Q3 2023 compared to 27.2% for Q3 2022.  

Selling, general and administrative expenses (“SG&A”) in Q3 2023 decreased by 26% compared to Q3 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. Q3 2023 SG&A excluding acquisition activity and one-time charges, declined 21% on a year-over-year basis. On an annualized basis, Q3 2023 SG&A would total $13.6 million as compared to the $17.9 million in the 2022 fiscal year, representing $4.2 million in run-rate cost savings.

The Company’s Adjusted EBITDA1 declined 11% on a year-over-year basis, but increased as a percentage of revenue to 3.6% from 3.0% in Q2 2023, reflecting the higher rate of expense reduction compared to revenue decline. Compared to Q2 2023, Adjusted EBITDA1 improved almost fifteen-fold, demonstrating strong operating leverage as improved revenue and gross profit contribution were combined with the Company’s efforts to adjust its cost structures, as outlined above.

The Company incurred a net loss of $3.2 million in Q3 2023 compared to a net loss of $2.1 million in Q3 2022. Excluding changes in non-cash expenses such as share-based compensation, depreciation and amortization, 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 YTD 2023 was $1.4 million compared to $0.5 million generated by operating activities for YTD 2022. The Company generated positive cash flow from its operations YTD 2023 excluding financing costs, which increased 55% YTD 2023. The Company generated $3.0 million in net cash from financing activities for YTD 2023 and used $2.3 million in investing activities for YTD 2023.

Cash balance as at September 30, 2023 was $11.1 million, compared to $11.9 million as at December 31, 2022 and $13.2 million as at June 30, 2023. As at September 30, 2023, net working capital was $6.9 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 at September 30, 2023, the Company’s total asset to liability ratio was 1.17 compared to 1.22 as at December 31, 2022.

The Company’s Q3 2023 financial statements and Management’s Discussion and Analysis are available on SEDAR at and on the Company’s investor website at

Q3 2023 Results Conference Call

The Company will hold a conference call to discuss its financial results for Q2 2023, hosted by Paul Antoniadis, Executive Chair & CEO, and Kerry Biggs, Chief Financial Officer, on November 28, 2023 at 11:00 AM Eastern / 8:00 AM Pacific time.

Date: November 28, 2023

Time: 11:00 AM ET / 8:00 AM PT

Toll-Free: 1-888-886-7786  International: +1-416-764-8658

Conference ID: 22010070

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 December 12, 2023. The replay will be available by dialing 1-877-674-7070 or +1-416-764-8692 and by using the passcode 010070.

The good natured® corporate profile can be found at:

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 plant-based products made from rapidly renewable resources instead of fossil fuels. The Company is focused on making it easy and affordable for business owners and consumers to shift away from petroleum to better everyday products® that use more renewable materials, less fossil fuel, and no chemicals of concern.

good natured® offers over 400 products and services through wholesale, direct to business, and retail channels. From plant-based home organization products to certified compostable food containers, bio-based industrial supplies and medical packaging, the Company is focused on making plant-based products more readily accessible to people as a means to create meaningful environmental and social impact.

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 Q1 2023, Q2 2023, H1 2023, Q2 2022 and H1 2022 to provide, what management believes, is a meaningful comparison of the Company’s performance in Q2 2023 and H1 2023. 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 Q2 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


Cautionary Statement Regarding Forward-Looking Information
This news release contains forward-looking information within the meaning of securities laws including statements related to Company plans and focuses for 2023, the upcoming results conference call and management’s outlook for 2023.

By their nature, forward-looking statements involve known and unknown risks, uncertainties, changes in circumstances and other factors that are difficult to predict and many of which are outside of the Company’s control 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.

Forward-looking information contained in this news release is based on our current estimates, expectations and projections regarding, among other things, future plans and strategies, projections, future market and operating conditions, supply conditions, end customer demand conditions, anticipated events and trends, general market conditions, the economy, financial conditions, sales volume and pricing, expenses and costs, and other future conditions which we believe are reasonable as of the current date. Important factors that could cause actual results and financial conditions to differ materially from those indicated in the forward-looking statements include, but are not limited to: future capital needs and uncertainty of additional financing, risks relating to general economic, market and business conditions and unforeseen delays in the realization of the Company’s plans, risks related to the loss of key manufacturing equipment, capability or facilities, the performance of plant-based materials and the ability of the Company’s products and packaging to meet significant technical requirements, changes in raw material supply and costs, labour availability and labour costs, fluctuations in operating results, and other related risks as more fully set out in the Annual Information Form of the Company and other documents disclosed under the Company’s filings at The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date.

If 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 herein 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.

All forward-looking information contained in this news release is expressly qualified in its entirety by this cautionary statement.

1. A non-GAAP financing measure. Please refer to the “Non-GAAP Financial Measures” above for an explanation of these measures and reconciliation to the Company’s financial results reported in accordance with GAAP.