VANCOUVER, BC, July 20, 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 preliminary revenue and gross margin
estimates for the three ("Q2 2021") and six ("H1 2021") months
ending June 30, 2021.
good natured® expects to report revenue
for Q2 2021 in the range of $12.0
million to $12.4 million, an
increase of approximately 225% to 240%, compared to $3.7 million for the fiscal quarter ended
June 30, 2020. Reported revenue for
H1 2021 is expected in the range of $19.9
million and $20.3 million
compared to $6.7 million for the
six-month period ended June 30,
2020.
Variable gross margin, a non-GAAP measure, for Q2 2021 are
expected to be reported between 31% and 34% compared to variable
gross margin of 44.3% for the fiscal quarter ended June 30, 2020, which included a higher product
mix of COVID-19 medical face shields & packaging at
higher-than-average product gross margin. Variable gross margin for
H1 2021 is expected to be reported between 34% and 37% compared to
40.7% for the six-month period ended June
30, 2020. Gross margin for Q2 2021 is expected to be
reported between 25% and 28% and between 28% and 31% for H1 2021.
The Company plans to release full Q2 2021 results in August 2021.
"We are extremely pleased to report another very strong quarter
of revenue growth, which included June revenues from our recent
acquisition of Ex-Tech," stated Paul
Antoniadis, CEO of good natured®. "Our
team and partners continue to execute on our strategic direction to
provide our customers with North
America's leading assortment of plant-based products. The
addition of new team members this quarter positions the company to
support our ambitious growth plan that is centered on delivering
robust revenue growth both organically and through acquisition. Our
announcement regarding the capacity expansion at our IPF facility
and the acquisition of Ex-Tech are both prime examples of execution
on our growth plan and we remain very optimistic on the
outlook."
The preliminary results set forth above are based on an initial
review of the Company's operating and financial results for the
quarter ended June 30, 2021 and are
subject to change. 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 July 19, 2021. In addition, these preliminary
results are not a comprehensive statement of the Company's
financial results for the quarter ended June
30, 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.
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 margin, a non-GAAP measures, for Q2 FY21,
H1 FY21, Q2 FY20 and H1 FY20 to provide, what management believes,
is a meaningful comparison of the Company's performance in Q2 FY21
and H1 FY21. 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.
The following table provides a reconciliation of preliminary
gross margin to variable gross margin:
|
|
|
Q2 2021
|
|
H1 2021
|
|
|
|
Low end
|
Upper end
|
|
Low end
|
Upper end
|
Cost of product
revenue
|
|
|
|
|
|
|
Variable cost of
product
|
-69%
|
-66%
|
|
-66%
|
-63%
|
Variable gross
margin
|
31%
|
34%
|
|
34%
|
37%
|
|
Factory overhead and
depreciation
|
-6%
|
-6%
|
|
-9%
|
-9%
|
Gross
margin
|
|
25%
|
28%
|
|
25%
|
28%
|
Cautionary Statement Regarding Forward-Looking
Information
Information regarding the release of Q2 2021 and H1 2021
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.
The financial outlook provided in this press release is
provided to provide early guidance on the second 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 six months ended
June 30, 2121, 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.
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,
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