MIMI Mimis Rock Corp

TORONTO, Nov. 26, 2021 /CNW/ - Mimi's Rock Corp. (TSXV: MIMI) (OTCQB: MIMNF) (the "Company"), an online dietary supplement and wellness company, today announced its third quarter financial results for the period ending September 30, 2021.

"Our 2021 third quarter saw top line revenues coming in lower than expected due to continued foreign exchange headwinds and some supply chain challenges." commented CEO, David Kohler. "Fortunately, our unit volumes continue to remain strong and we are seeing good returns so far from our new advertising partnership with Teikametrics.  We have solved the supply chain challenges and are anticipating a stronger Q4 as a result."

Third Quarter Highlights

Revenues in Q3 2021 were $8.6 million, compared to $9.8 million in the same period last year.  

Third quarter 2021 revenues were impacted by product availability issues as well as a comparatively lower US dollar relative to the same period a year ago.  While in-market revenues were softer, the impact to reported revenue of the lower US dollar in Q3 2021 was approximately $0.4 million compared to the same period in Q3 2020.  Over the nine months this year, the lower US dollar has impacted revenue by almost $1.9 million compared to 2020.

The Company's skin care businesses continued to perform well in the third quarter of 2021.  Though gross revenues were not as high as in the first two quarters of 2021, total margins remained consistent as lower discounting was applied, resulting in overall higher average selling prices.

Margins remain above 70% for the year and are expected to improve slightly due to modest price increases on key products.  Volumes have remained constant or improved in most products compared to the same period a year ago.  

Gross margin for Q3 2021 was $5.9 million, compared to $6.9 million, in the same period a year ago. 

Advertising spend in Q3 2021 included spend on both legacy campaigns as well as new initiatives in connection with the Company's new advertising partner.  Early indications are positive and sales performance has begun to improve as the various campaigns roll out.

EBITDA for the three months ended September 30, 2021 was $0.1 million, compared to $1.3 million for the three months ended September 30, 2020.

Similarly, Adjusted EBITDA, which adds back non-cash stock-based compensation and foreign exchange losses was $0.2 million for Q3 2021, compared to Adjusted EBITDA of $1.2 million for Q3 2020.

Net loss for Q3 2021 was $0.3 million, compared to net income of $0.5 million for Q3 2020.

Summary of Quarterly Results

Conference Call

Management will host a conference call tomorrow to discuss these results and take questions from investors. Details are as follows:

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

About Mimi's Rock Corp.:

Mimi's Rock Corp. is an online dietary supplement and wellness company which market and sells its products under the Dr. Tobias, All Natural Advice and Maritime Naturals brand names. The Dr. Tobias brand features over 30 products, including the top-selling Colon 14-Day Cleanse and the #1 selling Omega 3 Fish Oil on Amazon.com. All Natural Advice and Maritime Naturals products focus on skin and beauty care. Products sold under the All Natural and Maritime Naturals brand names are made in Canada and registered with Health Canada and under the EU Cosmetics Act. All Natural Advice has been featured on BNN as a top selling skincare brand in Canada, and has been rated the #1 Beauty Brand on Amazon Canada for the past four years.

Forward-Looking Information

This news release contains forward-looking statements and forward looking information within the meaning of applicable securities laws. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Please refer to the 2020 Annual Financial Statements for more details on the Company's calculation of EBITDA and adjusted EBITDA.

All forward-looking statements reflect the Company's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. All of the Company's forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions listed below. Although the Company believes that these assumptions are reasonable, this list is not exhaustive of factors that may affect any of the forward-looking statements.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise, except in accordance with applicable securities laws.

Please visit www.mimisrock.com or www.sedar.com for the Company's recent filings.

SOURCE Mimi's Rock Corp.