Good Natured Products Inc. Announces Second Quarter 2024 Results
good natured Products Inc. (TSXV: GDNP) (OTC Pink: GDNPF) announced its Q2 2024 financial results. Revenue was $16.0 million, down from $18.3 million in Q2 2023 but up 14% from Q1 2024. Adjusted EBITDA improved to $0.5 million from $0.1 million in Q2 2023. The company entered CCAA proceedings to restructure its financial affairs, with a stay of proceedings extended to October 25, 2024. A sale and investment solicitation process (SISP) is underway. The company's Packaging business saw a 14% year-over-year decline, while the Industrial business grew 6% excluding discontinued product lines. Variable gross margin remained stable at 37%, and SG&A expenses decreased by 10% year-over-year. The company reported a net loss of $1.0 million, an improvement from a $3.6 million loss in Q2 2023.
good natured Products Inc. (TSXV: GDNP) (OTC Pink: GDNPF) ha annunciato i risultati finanziari per il secondo trimestre del 2024. Il fatturato è stato di 16,0 milioni di dollari, in calo rispetto ai 18,3 milioni di dollari nel Q2 2023, ma in aumento del 14% rispetto al Q1 2024. L'EBITDA rettificato è migliorato a 0,5 milioni di dollari rispetto a 0,1 milioni di dollari nel Q2 2023. L'azienda ha avviato procedure CCAA per ristrutturare le proprie finanze, con un'estensione della sospensione delle procedure fino al 25 ottobre 2024. È in corso un processo di sollecitazione di vendita e investimento (SISP). La divisione Packaging ha registrato un calo del 14% rispetto all'anno precedente, mentre la divisione Industriale è cresciuta del 6% escludendo le linee di prodotto dismesse. Il margine lordo variabile è rimasto stabile al 37%, e le spese SG&A hanno registrato una diminuzione del 10% rispetto all'anno precedente. L'azienda ha riportato una perdita netta di 1,0 milioni di dollari, migliorando rispetto alla perdita di 3,6 milioni di dollari nel Q2 2023.
good natured Products Inc. (TSXV: GDNP) (OTC Pink: GDNPF) anunció sus resultados financieros del segundo trimestre de 2024. Los ingresos fueron de 16.0 millones de dólares, en comparación con 18.3 millones de dólares en el Q2 2023, pero un aumento del 14% respecto al Q1 2024. El EBITDA ajustado mejoró a 0.5 millones de dólares desde 0.1 millones de dólares en el Q2 2023. La empresa inició procedimientos CCAA para reestructurar sus asuntos financieros, con una prórroga de los procedimientos extendida hasta el 25 de octubre de 2024. Se está llevando a cabo un proceso de solicitud de venta e inversión (SISP). El negocio de envases vio una disminución del 14% interanual, mientras que el negocio industrial creció un 6% excluyendo las líneas de productos descontinuados. El margen bruto variable se mantuvo estable en 37%, y los gastos SG&A disminuyeron en un 10% interanual. La empresa reportó una pérdida neta de 1.0 millones de dólares, una mejora respecto a una pérdida de 3.6 millones de dólares en el Q2 2023.
good natured Products Inc. (TSXV: GDNP) (OTC Pink: GDNPF)가 2024년 2분기 재무 결과를 발표했습니다. 수익은 1,600만 달러로, 2023년 2분기의 1,830만 달러에서 감소했으나, 2024년 1분기 대비 14% 증가했습니다. 조정된 EBITDA는 2023년 2분기의 10만 달러에서 50만 달러로 개선되었습니다. 회사는 재정 문제를 재구성하기 위해 CCAA 절차를 시작했으며, 절차 중단이 2024년 10월 25일까지 연장되었습니다. 현재 판매 및 투자 요청 프로세스(SISP)가 진행 중입니다. 회사의 포장 사업은 전년 대비 14% 감소했으며, 산업 사업은 단종된 제품 라인을 제외하고 6% 성장했습니다. 가변 총 마진은 37%로 안정적으로 유지되었고, SG&A 비용은 전년 대비 10% 감소했습니다. 회사는 100만 달러의 순손실을 보고했으며, 이는 2023년 2분기의 360만 달러에서 개선된 수치입니다.
good natured Products Inc. (TSXV: GDNP) (OTC Pink: GDNPF) a annoncé ses résultats financiers pour le deuxième trimestre de 2024. Le chiffre d'affaires était de 16,0 millions de dollars, en baisse par rapport à 18,3 millions de dollars au T2 2023, mais en hausse de 14 % par rapport au T1 2024. L'EBITDA ajusté s'est amélioré à 0,5 million de dollars, contre 0,1 million de dollars au T2 2023. L'entreprise a engagé des procédures CCAA pour réorganiser ses affaires financières, avec une suspension des procédures prolongée jusqu'au 25 octobre 2024. Un processus de sollicitation de vente et d'investissement (SISP) est en cours. Le secteur de l'emballage de l'entreprise a connu un déclin de 14 % d'une année sur l'autre, tandis que le secteur industriel a connu une croissance de 6 %, sauf pour les lignes de produits discontinuées. La marge brute variable est restée stable à 37 %, et les dépenses SG&A ont diminué de 10 % par rapport à l'année précédente. L'entreprise a déclaré une perte nette de 1,0 million de dollars, une amélioration par rapport à une perte de 3,6 millions de dollars au T2 2023.
good natured Products Inc. (TSXV: GDNP) (OTC Pink: GDNPF) hat seine finanziellen Ergebnisse für das 2. Quartal 2024 bekannt gegeben. Der Umsatz betrug 16,0 Millionen Dollar, ein Rückgang von 18,3 Millionen Dollar im Q2 2023, aber ein Anstieg von 14% im Vergleich zum Q1 2024. Das bereinigte EBITDA verbesserte sich auf 0,5 Millionen Dollar von 0,1 Millionen Dollar im Q2 2023. Das Unternehmen hat CCAA-Verfahren eingeleitet, um seine finanziellen Angelegenheiten umzustrukturieren, wobei die Verfahren bis zum 25. Oktober 2024 verlängert wurden. Ein Verkaufs- und Investitionsverfahrensprozess (SISP) ist im Gange. Das Verpackungsgeschäft des Unternehmens verzeichnete einen Rückgang von 14% im Jahresvergleich, während das Industriegeschäft um 6% wuchs, ohne die eingestellten Produktlinien zu berücksichtigen. Die variable Bruttomarge blieb stabil bei 37%, und die SG&A-Ausgaben sanken um 10% im Jahresvergleich. Das Unternehmen berichtete von einem Nettoverlust von 1,0 Millionen Dollar, das eine Verbesserung gegenüber einem Verlust von 3,6 Millionen Dollar im Q2 2023 darstellt.
- Adjusted EBITDA improved to $0.5 million from $0.1 million in Q2 2023
- Revenue increased 14% compared to Q1 2024
- Packaging business revenue, excluding a major US Food Producer, increased by 14% year-over-year
- Industrial business group revenue, excluding discontinued product lines, increased by 6% year-over-year
- SG&A expenses decreased by 10% compared to Q2 2023
- Net loss improved to $1.0 million from $3.6 million in Q2 2023
- Overall revenue decreased by 13% year-over-year to $15.97 million
- Cash used in operating activities was $2.5 million compared to $0.1 million generated in Q2 2023
- Net working capital deficit increased to $57.8 million from $1.4 million at end of 2023
- Company entered CCAA proceedings to restructure financial affairs
- Cash balance decreased to $1.4 million from $7.3 million at end of 2023
Vancouver, British Columbia--(Newsfile Corp. - August 29, 2024) - good natured Products Inc. (TSXV: GDNP) (OTC Pink: GDNPF) (the "Company" or "good natured®"), a North American leader in eco-friendly food packaging, bio-based plastic extrusion and plant-based products, today announced its financial results for the three months ended June 30, 2024 ("Q2 2024").
Q2 2024 Highlights
- Revenue of
$16.0 million compared to$18.3 million for the three months ended June 30, 2023 ("Q2 2023") and$14.1 million for the three months ended March 31, 2024 ("Q1 2024"). - Adjusted EBITDA1 of
$0.5 million compared to$0.1 million in Q2 2023 and$0.2 million in Q1 2024. - Variable gross margin1 of
37% compared to37% in Q2 2023 and40% in Q1 2024. - SG&A expenses excluding one-time and acquisition related costs of
$2.8 million compared to$3.4 million in Q2 2023 and$2.7 million in Q1 2024. - Cash used in operating activities of
$2.5 million compared to$0.1 million generated in Q2 2023. - Ending cash balance of
$1.4 million compared to$4.3 million at March 31, 2024.
Revenue in Q2 2024 increased by
On June 28, 2024, the Company obtained an order from the Supreme Court of British Columbia (the "Court") under the Companies' Creditors Arrangement Act ("CCAA"), in order to restructure its financial affairs (the "Initial Order"). The Initial Order provides for, among other things: (i) a stay of proceedings in favor of the Company and (ii) the appointment of Alvarez & Marsal Canada Inc. as monitor of the Company (the "Monitor").
At a follow-up hearing on July 11, 2024, the stay of proceedings associated with the Initial Order was extended up to and including October 25, 2024 (the "Stay Extension"). The Stay Extension is intended to allow the Company to operate in the ordinary course under the protection of the Initial Order and implement a sale and investment solicitation process (a "SISP"). The Company's board of directors selected Capital West Partners (the "Sales Agent") to assist with the SISP, under the oversight of the Monitor, with a view to completing an investment or sale transaction as contemplated by the SISP (a "Transaction") for the benefit of the Company's stakeholders.
As part of the overall restructuring and as outlined in the Company's Q1 2024 press release dated May 30, 2024, good natured® intends to continue the prioritization of its most growth-oriented and profitable business groups and rigorously review operating capabilities and processes to identify transformative initiatives.
"Our Q2 2024 revenue results reflect our team's concentrated efforts to further diversify our customer mix to drive volume and progress on cost savings after one-time charges, and those savings now add up to
Q2 2024 Financial Overview
Revenue for Q2 2024 decreased by
The Company's Packaging business group year-over-year revenue declined by
Industrial business group revenue declined by
Variable gross margin1 for Q2 2024 at
Selling, general and administrative expenses ("SG&A") in Q2 2024 decreased by
The Company's Adjusted EBITDA1 increased to
The Company incurred a net loss of
Cash Flow & Balance Sheet Overview
Cash used by operating activities in Q2 2024 was
Cash balance as at June 30, 2024 was
As at June 30, 2024, the Company's total asset to liability ratio was 1.12 compared to 1.10 as at December 31, 2023.
The Company's Q2 2024 financial statements and Management's Discussion and Analysis are available on SEDAR+ at sedarplus.ca and on the Company's website at goodnaturedproducts.com/pages/investor.
As part of its strict focus on cost containment and during the CCAA proceedings, the Company has made the decision to not hold quarterly conference calls until further notice. Management is available to discuss these results or any general inquiry, with contact information listed below.
Additional information regarding the CCAA proceedings - including all of the Court materials filed in the CCAA proceedings - may be found at the Monitor's website: https://www.alvarezandmarsal.com/goodnatured.
Since the date of the Company's press release announcing the Initial Order on June 28, 2024, there have been no changes to the Company's transfer agent or to its board of directors, and the Company continues to comply with all of the disclosure requirements under the NEX Policy.
The good natured® corporate profile can be found at:
goodnaturedproducts.com/pages/investor
About good natured Products Inc.
good natured® is at the forefront of North America's shift toward sustainability, showcasing over 90 plant-based packaging designs and an extensive portfolio of more than 400 products and services. These offerings are purposefully designed to reduce environmental impact by using more renewable materials, less fossil fuel, and eliminating chemicals of concern.
Manufactured locally in the US and Canada, good natured® engineers and distributes a diverse range of bio-based products across various sectors, including grocery, restaurant, electronics, automotive, and pharmaceutical via both wholesale and direct channels.
The Company is dedicated to providing an industry-leading customer experience in order to encourage the transition to renewable alternatives. By making it easy and affordable for businesses to adopt bio-based products and packaging, good natured® aims to empower them to reach their sustainability objectives.
For more information: goodnaturedproducts.com
On behalf of the Company:
Paul Antoniadis - Executive Chair & CEO
Contact: 1-604-566-8466
Investor Relations:
1-877-286-0617
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 profit, variable gross margin, SG&A excluding acquisition activity and one-time charges, and adjusted EBITDA all non-GAAP measures, for Q2 2024, Q2 2023, and Q1 2024 to provide, what management believes, is a meaningful comparison of the Company's performance in Q2 2024. These non-GAAP measures do not have standardized meanings, and therefore may not be comparable to similar measures presented by other issuers. Variable gross profit, variable gross margin, SG&A excluding acquisition activity and one-time charges, and adjusted EBITDA are more fully defined and discussed in the Company's Q2 2024 Management's Discussion and Analysis under the heading "non-IFRS financial measures", which is available on the Company's SEDAR+ profile at sedarplus.ca and on the Company's investor website at goodnaturedproducts.com/pages/investor.
The following table provides a reconciliation of net loss to adjusted EBITDA for the periods ended:
| 3 Mon Ended June 30 | |||||||||||||
| 2024 | 2023 | +/- | |||||||||||
| Net loss for the period | $ | (966 | ) | $ | (3,582 | ) | - | ||||||
| Share-based compensation | 390 | 394 | - | ||||||||||
| Depreciation | 570 | 613 | - | ||||||||||
| Depreciation in COGS & SG&A | 538 | 530 | |||||||||||
| Financing costs | 1,983 | 1,796 | |||||||||||
| Foreign exchange loss (gain) | 275 | 143 | |||||||||||
| Loss due to restructuring | 1,566 | - | -% | ||||||||||
| Gain on debenture conversion | (4,219 | ) | - | -% | |||||||||
| Acquisition related expenses & one-time charges | 529 | 278 | |||||||||||
| Deferred income taxes recovery | (125 | ) | (125 | ) | -% | ||||||||
| Adjusted EBITDA1 | 541 | 47 | |||||||||||
The following table provides a reconciliation of variable gross profit to gross profit and variable gross margin to gross margin for the periods ended:
| 3 months ended June 30 | ||||||||||
| 2024 | 2023 | +/- | ||||||||
| Revenue | 15,970 | 18,282 | - | |||||||
| Variable cost of product | 10,132 | 11,602 | - | |||||||
| Variable Gross Profit1 | 5,838 | 6,680 | - | |||||||
| Variable Gross Margin % | ||||||||||
| Fixed factory overhead | 1,589 | 2,012 | - | |||||||
| Gross profit | 4,249 | 4,668 | - | |||||||
| Gross margin % | ||||||||||
The following table provides a reconciliation of selling, general and administrative expense excluding acquisition activity and one-time charges:
| 3 Mon Ended June 30 | ||||||||||
| 2024 | 2023 | +/- | ||||||||
| SG&A Wages | $ | 1,911 | $ | 2,262 | - | |||||
| SG&A Other | 881 | 1,038 | - | |||||||
| Product Development expense | 37 | 142 | - | |||||||
| Acquisition related expenses & one-time charges1 | 529 | 278 | ||||||||
| SG&A | 3,358 | 3,720 | - | |||||||
| SG&A % of Revenue | ||||||||||
| SG&A Excluding Acquisition Activity & One-Time Charges1 | 2,829 | 3,442 | - | |||||||
| SG&A % of Revenue Excluding Acquisition Activity & One-Time Charges1 | ||||||||||
| SG&A Wages % of Revenues | ||||||||||
Cautionary Statement Regarding Forward-Looking Information
This news release contains forward-looking information within the meaning of securities laws including statements related to Company plans, focuses and outlook for 2024.
By their nature, forward-looking statements involve known and unknown risks, uncertainties, changes in circumstances and other factors that are difficult to predict and many of which are outside of the Company's control 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.
Forward-Looking information contained in this news release is based on our current estimates, expectations and projections regarding, among other things, future plans and strategies, projections, future market and operating conditions, supply conditions, end customer demand conditions, anticipated events and trends, general market conditions, the economy, financial conditions, sales volume and pricing, expenses and costs, and other future conditions which we believe are reasonable as of the current date. Important factors that could cause actual results and financial conditions to differ materially from those indicated in the forward-looking statements include, but are not limited to: future capital needs and uncertainty of additional financing, risks relating to general economic, market and business conditions and unforeseen delays in the realization of the Company's plans, risks related to the loss of key manufacturing equipment, capability or facilities, the performance of plant-based materials and the ability of the Company's products and packaging to meet significant technical requirements, changes in raw material supply and costs, labour availability and labour costs, fluctuations in operating results, and other related risks as more fully set out in the Annual Information Form of the Company and other documents disclosed under the Company's filings at sedarplus.ca. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date.
If 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.
All forward-looking information contained in this news release is expressly qualified in its entirety by this cautionary statement.
1 A non-GAAP financing measure. Please refer to the "Non-GAAP Financial Measures" below for an explanation of these measures and reconciliation to the Company's financial results reported in accordance with GAAP.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/221474
FAQ
What was good natured Products Inc's (GDNPF) revenue in Q2 2024?
How did good natured Products Inc's (GDNPF) Adjusted EBITDA perform in Q2 2024?
What restructuring process did good natured Products Inc (GDNPF) enter in Q2 2024?
How did good natured Products Inc's (GDNPF) Packaging business perform in Q2 2024?
