Delivra Health Brands and its Leading Brands Dream Water (R) and LivRelief(TM) Report Financial Results for First Quarter of Fiscal 2025
Delivra Health Brands (TSXV: DHB) (OTCQB: DHBUF) reported financial results for Q1 fiscal 2025. Net revenue decreased 14% to $3,163,000 from $3,671,000 in the same period last year, primarily due to reduced Dream Water sales. Gross profit margin slightly declined to 51% from 52%. The company maintained positive Adjusted EBITDA of $16,000, down from $683,000 last year. Expenses increased 20% to $1,607,000, driven by higher investments in sales and marketing campaigns. The company reported a net loss of $478,000 compared to a profit of $226,000 in the previous year.
Delivra Health Brands (TSXV: DHB) (OTCQB: DHBUF) ha riportato i risultati finanziari per il primo trimestre dell'esercizio fiscale 2025. I ricavi netti sono diminuiti del 14%, passando a $3,163,000 rispetto a $3,671,000 nello stesso periodo dello scorso anno, principalmente a causa della riduzione delle vendite di Dream Water. Il margine di profitto lordo è leggermente calato al 51% dal 52%. L'azienda ha mantenuto un EBITDA rettificato positivo di $16,000, in diminuzione rispetto ai $683,000 dell'anno precedente. Le spese sono aumentate del 20%, raggiungendo $1,607,000, principalmente a causa di investimenti maggiori in campagne di vendita e marketing. L'azienda ha riportato una perdita netta di $478,000 rispetto a un profitto di $226,000 nell'anno precedente.
Delivra Health Brands (TSXV: DHB) (OTCQB: DHBUF) informó sobre los resultados financieros del primer trimestre del año fiscal 2025. Los ingresos netos disminuyeron un 14%, alcanzando $3,163,000, frente a $3,671,000 en el mismo período del año anterior, principalmente debido a la reducción de las ventas de Dream Water. El margen de beneficio bruto cayó ligeramente al 51% desde el 52%. La compañía mantuvo un EBITDA ajustado positivo de $16,000, en comparación con los $683,000 del año anterior. Los gastos aumentaron un 20%, alcanzando los $1,607,000, impulsados por mayores inversiones en campañas de ventas y marketing. La compañía reportó una pérdida neta de $478,000 en comparación con una ganancia de $226,000 en el año anterior.
Delivra Health Brands (TSXV: DHB) (OTCQB: DHBUF)은 2025 회계 연도 1분기 재무 결과를 발표했습니다. 순수익은 작년 같은 기간의 $3,671,000에서 $3,163,000로 14% 감소하였으며, 이는 주로 Dream Water 판매 감소에 기인합니다. 총 이익률은 52%에서 51%로 약간 감소했습니다. 회사는 작년의 $683,000에서 감소한 $16,000의 조정 EBITDA를 유지했습니다. 비용은 판매 및 마케팅 캠페인에 대한 투자가 증가하면서 20% 증가하여 $1,607,000에 도달했습니다. 회사는 작년의 $226,000의 이익에 비해 $478,000의 순손실을 보고했습니다.
Delivra Health Brands (TSXV: DHB) (OTCQB: DHBUF) a annoncé ses résultats financiers pour le premier trimestre de l'exercice fiscal 2025. Les revenus nets ont diminué de 14%, atteignant $3,163,000 contre $3,671,000 durant la même période l'année précédente, principalement en raison de la baisse des ventes de Dream Water. La marge brute de profit a légèrement baissé à 51% contre 52%. L'entreprise a maintenu un EBITDA ajusté positif de $16,000, en baisse par rapport à $683,000 l'année précédente. Les dépenses ont augmenté de 20% pour atteindre $1,607,000, poussées par des investissements accrus dans les campagnes de vente et de marketing. L'entreprise a enregistré une perte nette de $478,000 par rapport à un bénéfice de $226,000 l'année précédente.
Delivra Health Brands (TSXV: DHB) (OTCQB: DHBUF) hat die finanziellen Ergebnisse für das erste Quartal des Geschäftsjahres 2025 bekannt gegeben. Der Nettoumsatz sank um 14% auf $3,163,000 von $3,671,000 im gleichen Zeitraum des Vorjahres, hauptsächlich bedingt durch geringere Dream Water-Verkäufe. Die Bruttomarge ging leicht auf 51% von 52% zurück. Das Unternehmen hielt ein positives bereinigtes EBITDA von $16,000, was einem Rückgang von $683,000 im Vorjahr entspricht. Die Ausgaben stiegen um 20% auf $1,607,000, da die Investitionen in Verkaufs- und Marketingkampagnen zunahmen. Das Unternehmen berichtete über einen Nettoverlust von $478,000, im Vergleich zu einem Gewinn von $226,000 im Vorjahr.
- Maintained positive Adjusted EBITDA of $16,000
- Sustained healthy gross profit margin of 51%
- Strategic investment in marketing initiatives for future growth
- 14% decrease in net revenue to $3,163,000
- 97.7% decline in Adjusted EBITDA from $683,000 to $16,000
- Net loss of $478,000 compared to previous year's profit of $226,000
- 20% increase in expenses to $1,607,000
Vancouver, British Columbia--(Newsfile Corp. - November 25, 2024) - Delivra Health Brands Inc. (TSXV: DHB) (OTCQB: DHBUF) ("Delivra Health" or the "Company"), a consumer packaged goods company in the health and wellness sector, is pleased to announce its financial and operating results for the three months ended September 30, 2024. The Delivra Health portfolio features innovative brands Dream Water® and LivRelief™, which deliver relief from common health issues such as sleeplessness, chronic pain and anxiety.
Management Commentary
Gord Davey, President and Chief Executive Officer of Delivra Health, commented: "We are committed to delivering increased value to Delivra Health shareholders by strategically reinvesting in our brands, Dream Water®, LivRelief™ and LivRelief™ Infused, while ensuring we maintain a positive adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") position for fiscal 2025. This balanced approach enables us to support our growth initiatives and keep pace with our strategic goals for fiscal 2025. The Company's latest marketing campaigns, 'Shush Your Mind' for Dream Water® and 'Quiets Chronic Pain' for LivRelief™, demonstrate our dedication to expanding brand visibility and accessibility across all distribution channels."
Financial Highlights for the Three months Ended September 30, 2024
(Expressed in thousands of Canadian dollars, except share and per share amounts)
In the first quarter of fiscal 2025, Delivra Health invested significantly in marketing initiatives to expand brand awareness and recognition while maintaining a positive Adjusted EBITDA(1) for fiscal 2025. The Company reported
- Net revenue: For the three months ended September 30, 2024, net revenue was
$3,163 compared to$3,671 in the same period in the prior year. The$508 or14% reduction in net revenue was primarily due to a reduction in sales of Dream Water®, which was largely influenced by the unfavorable timing of quarter over quarter purchase order activity.
- Gross profit and gross profit margin: For the three months ended September 30, 2024, the Company reported gross profit of
$1,598 and a51% gross profit margin compared to$1,922 and a52% gross profit margin in same period last year. The reduction in gross profit is the result of a reduction in sales volume. The reduction in gross profit margin is attributed to higher sales fees related to Company's online sales due to increased investment in advertising and marketing initiatives.
- Expenses including selling, general and administrative expenses and excluding non-cash items: For the three months ended September 30, 2024, the Company reported expenses of
$1,607 compared to$1,317 in the same period last year, representing a20% increase. The increase is primarily driven by higher investments in sales and marketing campaigns and outreach to support branding and distribution initiatives.
- Adjusted EBITDA(1): For the three months ended September 30, 2024, the Company reported a positive Adjusted EBITDA of
$16 compared to$683 in the same period last year, representing a$667 year-over-year reduction in Adjusted EBITDA. The reduction in Adjusted EBITDA is driven by a reduction in sales volume, which in turn, resulted in a reduction in gross profit in addition to greater marketing investment.
Summary of Key Financial Results
| For the three months ended September 30 | ||
| ( | 2024 | 2023 |
| Net revenue | | |
| Cost of sales | 1,540 | 1,671 |
| Inventory write-down | 25 | 78 |
| Gross profit | 1,598 | 1,922 |
| Gross profit margin | ||
| Expenses excluding non-cash expenses | 1,607 | 1,317 |
| Depreciation and amortization and share-based compensation | 397 | 335 |
| Profit (loss) from operations before other (expense) income | (406) | 270 |
| Other (expense) income | (72) | (44) |
| Net profit (loss) | (478) | 226 |
| Net profit (loss) per share - basic and diluted | (0.002) | 0.001 |
| Net cash provided from operating activities | (354) | 187 |
Expenses excluding non-cash items
| For the three months ended September 30 | ||
| ( | 2024 | 2023 |
| General and administration | | |
| Sales and marketing | 662 | 403 |
| Total | 1,607 | 1,317 |
Adjusted EBITDA (non-IFRS measure)(1)
| For the three months ended September 30 | ||
| ( | 2024 | 2023 |
| Profit (loss) from operations | ||
| Inventory write-down | 25 | 78 |
| Depreciation and amortization | 326 | 334 |
| Share-based compensation | 71 | 1 |
| Adjusted EBITDA(1) | 16 | 683 |
About Delivra Health Brands Inc.
Helping people take control of their health with alternative wellness solutions is what energizes the Delivra Health team! The Delivra Health portfolio features innovative brands like Dream Water® and LivRelief™, which deliver relief from common everyday issues like chronic pain, anxiety, and sleeplessness. Delivra Health products have allowed millions of customers to reclaim their mobility, energy, and in turn, quality of life. The websites of the Company's two subsidiaries are Dream Water® and LivReliefTM. For more information, please visit www.delivrahealthbrands.com.
Non-IFRS Measures, Reconciliation and Discussion
This press release contains references to "Adjusted EBITDA" which is a non-International Financial Reporting Standards ("IFRS") financial measure. Adjusted EBITDA is a measure of the Company's loss from operations before interest, taxes, depreciation, and amortization and adjusted for share-based compensation, common shares issued for services, fair value effects of accounting for biological assets and inventories, asset impairment and write-downs, and other non-cash items, and is a non-IFRS measure.
This measure can be used to analyze and compare profitability among companies and industries, as it eliminates the effects of financing and capital expenditures. It is often used in valuation ratios and can be compared to enterprise value and revenue. This measure does not have any standardized meaning according to IFRS and, therefore, may not be comparable to similar measures presented by other companies.
There are no comparable IFRS financial measures presented in Delivra Health's financial statements. Reconciliations of the supplemental non-IFRS measure are presented in the Company's management discussion and analysis for the three months ended September 30, 2024 (the "Q1 2025 MD&A"). This non-IFRS financial measure is presented because management has evaluated the financial results both including and excluding the adjusted items and believes that the non-IFRS financial measure presented provides additional perspective and insights when analyzing the core operating performance of the business. The Company believes that the supplemental measure provides information which is useful to shareholders and investors in understanding the Company's performance and may assist in the evaluation of the Company's business relative to that of its peers.
The non-IFRS financial measure should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with the IFRS financial measures presented in the Company's financial statements. For more information, please see "Adjusted EBITDA (non-IFRS measure)" and "Non-IFRS Measures" in the Q1 2025 MD&A, which is available under the Company's SEDAR+ profile on www.sedarplus.ca.
Notes:
- This is a non-IFRS reporting measure. For a reconciliation of this measure to the nearest IFRS measure, see "Adjusted EBITDA (non-IFRS measure)" and "Non-IFRS Measures" in the Q1 2025 MD&A.
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates, and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements include, among other things, statements with respect to the Company's products offering relief from chronic pain, anxiety, and sleeplessness, impacts of the Company's latest marketing campaigns, expectations regarding increases in the Company's revenues and profitability, the Company's growth objectives, growth in new markets, and new distribution channels.
These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to materially differ from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: fluctuations in general macroeconomic conditions; fluctuations in securities markets; expectations regarding the size of the cannabis markets where the Company operates; changing consumer habits; the ability of the Company to successfully achieve its business objectives; plans for expansion; political and social uncertainties; inability to obtain adequate insurance to cover risks and hazards; employee relations and the presence of laws and regulations that may impose restrictions on cultivation, production, distribution, and sale of cannabis and cannabis-related products in the markets where the Company operates. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
Additional information regarding this and other risks and uncertainties relating to the Company's business are contained under the heading "Risk Factors" in the Company's annual information form dated March 2, 2021, and under the heading "Risks and Uncertainties" in the Q1 2025 MD&A filed under the Company's profile on SEDAR+ at www.sedarplus.ca.
Neither TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accept responsibility for the adequacy or accuracy of this release.
Investor Relations:
Jack Tasse
Chief Financial Officer
IR@delivrahealth.com
1-877-915-7934
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/231143
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