VANCOUVER, BC, Jan. 20, 2022 /CNW/ - good natured Products
Inc. (the "Company" or "good natured®")
(TSX-V: GDNP), a North American leader in plant-based products,
today announced preliminary revenue and gross margin estimates for
the quarter ending December 31, 2021
("Q4 2021") and for the year ending December
31, 2021 ("FY2021").
Preliminary revenue for Q4 2021 is anticipated at $21.0 million to $23.0
million, an increase of approximately 300% to 330%, compared
to $5.3 million for the three months
ended December 31, 2020 ("Q4 2020").
Revenue for FY2021 is expected in the range of $59.3 million and $61.3
million, an increase of approximately 255% to 270%, compared
to $16.7 million for the twelve-month
period ended December 31, 2020
("FY2020").
Variable gross margin, a non-GAAP measure1, for Q4
2021 is anticipated to be between 29% and 31% compared to 32.9% for
Q4 2020. Variable gross margin for FY2021 is anticipated to be
between 30% and 32%, compared to 37.3% for FY2020. Gross margin is
estimated to be between 22% and 24% and between 24% and 26% for Q4
2021 and FY2021. The Company plans to release full Q4 2021 results
in April 2022.
"We ended 2021 on an extremely positive note by delivering the
Company's highest ever quarterly revenue and strongest percentage
growth of FY2021. Our preliminary gross margins show an improvement
from the third quarter despite supply chain inflation that
persisted throughout the remainder of the year," stated Paul
Antoniadis, CEO of good natured®. "Our Q4 2021
and FY2021 results are a function of robust demand across our
various business segments, driving a strong recurring customer
rate, execution on our acquisition strategy, and proactive
monitoring and adapting to quickly changing cost structures and
supply chain conditions."
Paul further added: "This is a great illustration of our team's
unwavering commitment to operational excellence and partnering with
customers to deliver timely solutions despite global supply chain
disruptions that are critically impacting many peers in our
industry. I want to sincerely thank our amazing customers, team
members and partners, whose dedication, energy and work ethic
helped us end the year on such a high note! We collectively rose to
prosper despite macro-economic challenges to deliver a
record-setting year of revenue growth and environmental impact.
good natured® has a lot of momentum, and I'm very
excited for what the future holds!"
1 For more
information regarding non-GAAP measures included in this news
release, please refer to "Non-GAAP financial measures"
below.
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The preliminary results set forth above are based on an initial
review of the Company's operating and financial results for Q4 2021
and FY2021 and are subject to change. Final reported results could
differ from these preliminary results following the completion of
quarter-end and year-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 January 19, 2022. In addition, these preliminary
results are not a comprehensive statement of the Company's
financial results for Q4 2021 and FY2021. 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.
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
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We have included in
this press release a discussion of the Company's variable gross
margin, a non-GAAP measures, for Q4 2021, FY2021, Q4 2020 and
FY2020, to provide, what management believes, is a meaningful
comparison of the Company's performance in Q4 2021 and FY2021. In
this news release, variable gross margin is gross margin excluding
fixed production costs such as depreciation, repairs and
maintenance, utilities and similar overhead items. The use of
variable gross margin by management allows for evaluation of the
core aspects of the Company's profit margin as certain fixed
production costs that are outside the Company's control are
excluded. Variable gross margin does not have a standardized
meaning, and therefore may not be comparable to similar measures
presented by other issuers.
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The following table
provides a reconciliation of preliminary and historic gross margin
to preliminary and historic variable gross margin (expressed in
thousands of dollars)
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Q4 2021
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Q4 2020
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FY2021
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FY2020
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Low end
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Upper end
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Low end
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Upper end
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Cost of product
revenue
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Variable cost of
product
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(15,600)
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(15,200)
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3,397
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(41,600)
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(40,400)
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10,298
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Variable gross
margin
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6,400
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6,800
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1,929
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18,700
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19,900
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6,415
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Factory overhead
and
depreciation
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(1,600)
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(1,500)
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(179)
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(4,200)
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(4,200)
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(179)
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Gross margin
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4,800
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5,300
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1,750
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14,500
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15,700
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6,236
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Cautionary Statement
Regarding Forward-Looking Information
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Information
regarding the release of Q4 2021 and FY2021 results, preliminary
revenue and gross margin results contained in this press release
may constitute forward-looking information within the meaning of
securities laws. 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.
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The financial
outlook provided in this press release is provided to provide early
guidance on the third quarter financial performance of the Company
and readers are cautioned that this information may not be
appropriate for any other purpose. In preparing the financial
outlook, the Company completed an initial review of operations for
the three and twelve months ended December 31, 2021, however actual
results may differ materially from the financial outlook provided
in this press release as the financial outlook has not been audited
or reviewed. 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 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.
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Other than as
required under securities laws, we do not undertake to update this
information at any particular time.
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Forward-looking
information contained in this news release is based on our current
estimates, expectations, and projections, 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.
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SOURCE Good Natured Products