VANCOUVER, BC, April 30, 2021 /CNW/ - good natured Products Inc.
(the "Company" or "good natured®") (TSXV:
GDNP), a North American leader in earth-friendly plant-based
products, today announced its audited financial results for the
year ended December 31, 2020 (or
"FY2020"). The Company also announced that it will host a webcast
investor presentation on May 5, 2021
at 2:00 PM Eastern / 11:00 AM Pacific time.
Key Highlights:
- Revenues for FY2020 increased 65% to $16,713,190 compared to $10,098,675 for the year ended December 31, 2019 (or "FY2019").
- Gross profit for FY2020 increased 80% to $6,236,218 compared to $3,473,665 for FY2019. Gross profit as a
percentage of sales increased to 37.3% compared to 34.4% for
FY2019.
- Selling, general and administrative expenses (otherwise
referred to as operating expenses), excluding acquisition activity,
for FY2020 were $7,355,234 compared
to $4,457,791 for FY2019,
representing an increase of 65%.
- The Company's adjusted EBITDA, a non-GAAP measure, loss in for
FY2020 was $1,520,865 compared to
$1,446,100 for FY2019.
- The Company's net loss in FY2020 was $7,186,972 compared to $3,473,821 for FY2019.
"2020 was a transformational year for the Company as we
delivered organic growth and completed two strategic acquisitions
in the face of challenging COVID-19 business conditions," stated
Paul Antoniadis, CEO of good natured®. "In the
fourth quarter our logistics and warehousing expenses increased due
to a planned plant-based resin inventory build we executed ahead of
capacity increases, new product launches and customer material
transition at Integrated Packaging Films. These were purposeful
decisions made to support our future growth initiatives." Paul
Antoniadis continued to state, "We also saw external cost inflation
in our logistics and fulfillment operations and anticipate
continued pressures here through the end of 2021. We have
initiated some changes in our business to deal with the logistics
and fulfillment cost inflation facing the industry. We remain
confident in the outlook for growth in the 2021 financial year,
with our preliminary and unaudited Q1 2021 results expected to show
revenue growth of over 150%. Our new customer activity remains
strong as is our pipeline of potential acquisitions."
The Company's FY2020 audited financial statements and
Management's Discussion and Analysis (MD&A) are available on
SEDAR at sedar.com.
Investor Webcast on May 5,
2021
The Company also today announced that it will
host a webcast investor presentation on May
5, 2021 at 2:00 PM Eastern /
11:00 AM Pacific time.
During the webcast, Paul Antoniadis, Chief Executive Officer,
will provide a presentation that will cover key areas of the
good natured® business. After the formal
presentation, investors will have an opportunity to ask questions
through an interactive Q&A portal.
To attend the webcast, please pre-register at the following
link:
https://event.webcasts.com/starthere.jsp?ei=1450751&tp_key=687c134702
An archived version of the webcast and presentation will be
available on the Company's website,
https://investor.goodnaturedproducts.com
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 385 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 adjusted EBITDA, a
non-GAAP measure, for FY2020 and FY2019 to provide, what management
believes, is a meaningful comparison of the Company's performance
in FY 2020. In this news release, adjusted EBITDA is earnings
before interest and finance costs, taxes, depreciation and
amortization, other non–cash items and one–time gains and losses.
Adjusted EBITDA does not have a standardized meaning, 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 net loss, as
disclosed in the Company's FY2020 audited financial statements to
adjusted EBITDA:
|
|
|
|
|
|
|
Three months
ended
|
|
Year ended
|
|
|
Dec. 2020
|
|
Dec. 2019
|
|
Dec. 2020
|
|
Dec. 2019
|
Income (loss) for the
period:
|
$
|
(3,154,012)
|
$
|
(846,747)
|
$
|
(7,186,972)
|
$
|
(3,473,821)
|
Share-based
compensation
|
|
98,838
|
|
11,194
|
|
262,480
|
|
59,904
|
Depreciation and
amortization
|
|
223,309
|
|
42,171
|
|
515,489
|
|
325,695
|
Financing
costs
|
|
762,827
|
|
555,064
|
|
3,440,325
|
|
1,767,921
|
Foreign exchange
gain
|
|
295,790
|
|
-
|
|
(117,614)
|
|
-
|
Loss on convertible
debenture redemption
|
|
250,343
|
|
-
|
|
413,055
|
|
-
|
Loss (Gain) on
interest-free loan
|
|
(16,235)
|
|
(6,498)
|
|
(82,663)
|
|
(46,144)
|
Acquisition related
activity
|
|
700,470
|
|
197,407
|
|
1,315,495
|
|
197,407
|
Deferred income
taxes
|
|
-
|
|
(340,041)
|
|
(80,460)
|
|
(277,062)
|
Adjusted
EBITDA
|
$
|
(838,670)
|
$
|
(387,450)
|
$
|
(1,520,865)
|
$
|
(1,446,100)
|
Preliminary Results
The preliminary results set forth above are made as of the
date of this news release and are based on an initial review of the
Company's operating and financial results for the quarter ended
March 31, 2021 and are subject to
change. These preliminary results are provided for the purpose of
providing the readers with further context to the Company's FY2020
results. Final reported results could differ from these
preliminary results following the completion of quarter-end
accounting procedures, final adjustments and other developments
arising between now and the time that the Company's financial
results are finalized, and such changes could be material. The
Company's independent auditor, Deloitte LLP, has not audited,
reviewed or performed any procedures with respect to the
accompanying preliminary financial results and other data, and
accordingly does not express an opinion or any other form of
assurance with respect thereto. The preliminary results have been
prepared by, and are the responsibility of, the Company's
management, and were approved by management on April 12, 2021. In addition, these preliminary
results are not a comprehensive statement of the Company's
financial results for the quarter ended March 31, 2021. They should not be viewed as a
substitute for audited financial statements prepared in accordance
with International Financial Reporting Standards and are not
necessarily indicative of the Company's results for any future
period.
Cautionary Statement Regarding Forward-Looking
Information
This news release contains forward-looking information within
the meaning of securities laws including statements related to
preliminary revenue results, 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.
SOURCE Good Natured Products