Home Bistro, Inc. Reports Financial Results for Third Quarter Ended July 31, 2022

Rhea-AI Summary

Home Bistro (HBIS) reported its financial results for Q3 ended July 31, 2022. The company experienced a modest revenue decrease, attributed to consolidating West Coast operations into South Florida. Despite this, initiatives such as reduced royalty payments, product costs, and administrative expenses are expected to enhance gross margins. CEO Zalmi Duchman emphasized plans for a Nasdaq up-listing and equity offering to support growth and shareholder value. Home Bistro continues to expand its celebrity chef meal offerings and branding through its platform.

Positive

• Reduced royalty payments to chefs may improve profit margins.
• Cost-saving measures implemented, including lowered product costs.
• Reduced administrative expenses may enhance profitability.
• Plans for Nasdaq up-listing could increase liquidity and market profile.

Negative

• Modest revenue decline due to operational consolidation.
• Short-term revenue loss expected from facility consolidation.

MIAMI BEACH, FL / ACCESSWIRE / September 15, 2022 / Home Bistro, Inc. (OTC PINK:HBIS), ("Home Bistro" or the "Company") a leading online meal delivery platform that offers celebrity chef-inspired, gourmet and lifestyle ready-made meals, today reported its financial results for its third quarter ended July 31, 2022. The entire report can be viewed by visiting: https://www.sec.gov/ix?doc=/Archives/edgar/data/0001489588/000121390022055934/f10q0722_homebistro.htm.

Zalmi Duchman, Home Bistro CEO, stated, "In addition to our ongoing menu expansion of celebrity chef meals over the past several quarters, we have also undertaken the following initiatives, which we expect to have a net positive effect on gross margin growth moving forward:

• Reduced royalty payments to newly added celebrity chefs
• Reduced product costs
• Established new multi-tier pricing
• Commenced charging a fee for shipping
• Reduced product promotions"

Mr. Duchman further continued, "We've significantly reduced our administrative expenses and general reliance on costly outside consultants and service providers. In addition, while we experienced a modest decrease in revenue due to the consolidation of our West Coast operations into our main facility in South Florida, the cost savings benefit of which over the long-term is expected to far outweigh any recoverable short-term revenue loss."

He added, "As our business has grown over the past several years, we've also gained valuable insight into and experience regarding, dynamic changes within the expanding overall meal delivery sector. This experience, combined with our status as a publicly-traded company, should provide us with a competitive advantage within the fragmented "heat-to-eat" segment in which we compete, when considering its consolidation potential. In that regard, we are continuing to work toward attaining a potential Nasdaq up-listing and qualified equity offering that if successful, should provide us with the essential capital needed to achieve the level of growth, both organic and through acquisition, necessary to maximize value and increase liquidity for our shareholders."

About Home Bistro, Inc.

Home Bistro is a leading direct-to-consumer online platform, www.homebistro.com, that creates and distributes ready-made, celebrity chef-inspired gourmet meals, which currently includes culinary offerings by "Iron Chef" Cat Cora, TV Host and Best-Selling Cookbook Author Ayesha Curry, "Hungry Fan" Chef Daina Falk, "Master Chef" Claudia Sandoval, "Top-Chef All-Star" Richard Blais, "Vegan + Sustainable" Chef Priyanka Naik, Celebrity Pastry and Dessert Chef Melanie Moss, and soon to launch celebrity chef Roblé Ali.

Home Bistro's Model Meals lifestyle brand www.modelmeals.com is a Whole30 and Paleo approved, ready-to-eat, meal prep service, offering a weekly rotating menu that is prepared by professional chefs, using only the highest quality ingredients available, sourced responsibly and locally, and delivered in sustainable, eco-friendly packaging.

Forward-Looking Information

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward-looking statements or information. Generally, forward-looking statements and information may be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "proposed", "is expected", "budgets", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. More particularly and without limitation, this news release contains forward-looking statements and information concerning the Company's growth objectives and industry outlook (as described herein). Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. These forward-looking statements include, among others, statements about the Company's future financial performance, the impact of management changes, any organizational restructuring and the sufficiency of capital resources to fund its ongoing operating requirements; statements about the Company's expectations regarding the capitalization, resources and ownership structure; and any other statements other than statements of historical fact. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that the Company makes due to a number of important factors, including (i) risks related to the combined entity's access to existing capital and fundraising prospects to fund its ongoing operations, and (ii) other business effects, including the effects of industry, market, economic, political or regulatory conditions, future exchange and interest rates, and changes in tax and other laws, regulations, rates and policies, including the impact of COVID-19 on the broader market. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions, or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific that contribute to the possibility that the predictions, estimates, forecasts, projections and other forward-looking statements will not occur.

The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Detailed information regarding factors that may cause actual results to differ materially from the results expressed or implied by statements in this press release relating to the Company may be found in the Company's periodic filings with the Securities and Exchange Commission, including the factors described in the sections entitled "Risk Factors", copies of which may be obtained from the SEC's website at www.sec.gov. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.

Contact:

Zalmi Duchman, CEO
zalmi@homebistro.com
Ph: 631.694.1111

SOURCE: Home Bistro, Inc.

View source version on accesswire.com:
https://www.accesswire.com/716118/Home-Bistro-Inc-Reports-Financial-Results-for-Third-Quarter-Ended-July-31-2022

FAQ

What were Home Bistro's financial results for Q3 2022?

Home Bistro reported a modest decrease in revenue for Q3 2022 due to consolidating operations, but anticipates long-term benefits from cost-saving measures.

What initiatives is Home Bistro implementing to improve margins?

The company is reducing royalty payments, lowering product costs, and cutting administrative expenses.

What is Home Bistro's future growth plan?

Home Bistro is working towards a Nasdaq up-listing and an equity offering to support further growth and enhance shareholder value.

How is Home Bistro expanding its meal offerings?

Home Bistro continues to expand its menu with new celebrity chef-inspired meals.

What impact did operational consolidation have on revenue?

Consolidation of operations led to a modest decrease in revenue, but it is expected to save costs in the long run.