Mene Inc. Reports Financial Results for the First Quarter 2024
Menē Inc. (TSX-V: MENE, US: MENEF), a 24 karat online jewelry brand, announced its Q1 2024 financial results. Revenue fell by 32% YoY to $4.8 million, and the company reported a gross profit of $1.1 million with a 24% margin. However, it experienced a comprehensive loss of $0.7 million, a $0.2 million increase YoY. Menē sold 45 kg of jewelry, totaling 4,979 units. Operationally, 13 new designs were launched, and 71% of sales came from returning customers. The company’s total gold held by customers surpassed CAD$100 million, and cumulative jewelry units sold reached 147,000.
- Gross profit of $1.1 million with a consistent 24% margin.
- 71% of sales from returning customers, indicating strong customer loyalty.
- Surpassed CAD$100 million in gold held by customers.
- Launched 13 new product designs, showing innovation and expansion.
- Revenue decreased by 32% YoY to $4.8 million.
- Comprehensive loss increased by $0.2 million YoY to $0.7 million.
- Units of jewelry sold decreased from 7,342 in Q4 2023 to 4,979 in Q1 2024.
- Total orders dropped from 4,797 in Q4 2023 to 3,758 in Q1 2024.
FINANCIAL HIGHLIGHTS
-
IFRS Revenue of
$4.8 million $2.3 million 32% ) Year-over-Year (“YoY”). -
Gross Profit of
$1.1 million 24% YoY. -
Total comprehensive loss of
$0.7 million $0.2 million - Total metal weight of 45 kilograms was sold during the quarter, consisting of 4,979 units of jewelry.
OPERATIONAL HIGHLIGHTS
- Introduced 13 new product designs during the quarter.
-
Sales to Returning Customers accounted for
71% of total sales during the quarter. - Cumulative units of jewelry sold reached 147,000 as of quarter end.
-
Menē surpassed the
CAD milestone of total gold held by customers.$100 million - Featured Vogue, L'OFFICIEL Paris, Grazia, Challenges.fr, and Stylist
- Registered over 40,000 independent customer reviews on mene.com/reviews since inception.
IFRS Consolidated Income Statement Data &
|
FY 2024 |
FY 2023 |
FY 2022 |
|||||
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
Q4 |
Q3 |
Q2 |
|
Revenue |
4,828,705 |
6,862,070 |
4,292,870 |
4,982,901 |
7,152,013 |
8,664,734 |
5,049,992 |
5,850,574 |
Gross profit |
1,135,878 |
1,667,134 |
949,989 |
1,489,700 |
1,722,642 |
2,036,909 |
1,123,083 |
1,529,649 |
Gross profit (%) |
|
|
|
|
|
|
|
|
Net income (loss) |
(918,867) |
(1,400,171) |
(653,131) |
699,620 |
(634,056) |
(1,019,380) |
(247,861) |
67,421 |
Total comprehensive income (loss) |
(702,669) |
(1,747,813) |
(218,993) |
254,343 |
(516,921) |
(1,240,274) |
1,019,930 |
36,892 |
Non-IFRS Adjusted Revenue2 |
6,804,256 |
7,934,769 |
5,211,229 |
6,076,399 |
8,518,875 |
9,924,352 |
6,729,702 |
6,396,695 |
Non-IFRS Adjusted Income (Loss) 3 |
(334,243) |
(56,108) |
(547,978) |
130,915 |
504,728 |
(37,683) |
(330,262) |
(893,729) |
Total Shareholders' Equity |
15,815,544 |
15,981,748 |
17,189,674 |
17,256,569 |
16,982,599 |
17,469,126 |
18,138,403 |
17,049,081 |
Inventory balance (kg of gold)4 |
91 |
87 |
235 |
233 |
189 |
188 |
238 |
164 |
Customer orders |
3,758 |
4,797 |
3,445 |
3,650 |
4,938 |
6,495 |
4,175 |
3,947 |
Units of jewelry sold |
4,979 |
7,342 |
4,991 |
5,261 |
7,872 |
10,280 |
6,225 |
6,939 |
Jewelry weight sold (total kg) |
45 |
69 |
45 |
48 |
73 |
97 |
56 |
65 |
- The Company’s financial statements for fiscal year 2023 and 2022 were audited by an external assurance firm.
- The Company adjusts its revenue by adding back the value of jewelry that was returned by customers, revenue from orders for which fulfillment is under process, and discounts given to customers. These adjustments are made to assess the gross revenue before deducting these items from revenue per IFRS. See Non-IFRS Measures for a full reconciliation.
- The Company adjusts its total comprehensive income (loss) by removing the impact of non-cash expenses, consisting of depreciation and amortization, stock-based compensation, accretion, revaluation of metal loan and translation gain or loss. See Non-IFRS Measures for a full reconciliation.
- Inventory balances in kilograms of gold are calculated by taking the total Canadian Dollar (CAD) inventory value at each quarter-end date and dividing the value by the CAD gold spot price per gram.
STATEMENT FROM CEO VINCENT GLADU:
This quarter, Menē experienced a reduction in top-line revenue Year over Year, predominantly driven by a reduction in volume of orders which was offset by a relatively smaller increase in our Average Order Value.
Beyond any possible macro-economic effects, this reduction was partially the result of having adopted a different approach to our product promotions which favours healthy margins and inventory management over pure top-line growth, and is better aligned with our long-term brand and market positioning.
As we continue to employ all available resources at our disposal in sales and marketing, we also continue to focus our efforts on our strategic plan and our transition to a much leaner and scalable operating model that will deliver long-term, sustainable, and profitable growth. In short, despite the vagaries of the market, the organization remains focused on its objectives and continues to exercise prudent operational discipline as it transforms itself.
Non-IFRS Measures
This news release contains non-IFRS financial measures; the Company believes that these measures provide investors with useful supplemental information about the financial performance of its business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating its business. Although management believes these financial measures are important in evaluating the Company's performance, they are not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with IFRS. These non-IFRS financial measures do not have any standardized meaning and may not be comparable with similar measures used by other companies. For certain non-IFRS financial measures, there are no directly comparable amounts under IFRS. These non-IFRS financial measures should not be viewed as alternatives to measures of financial performance determined in accordance with IFRS. Moreover, presentation of certain of these measures is provided for year-over-year comparison purposes, and investors should be cautioned that the effect of the adjustments thereto provided herein have an actual effect on the Company's operating results.
Non-IFRS Adjusted Revenue is a non-IFRS measure. The Company adjusts its revenue by adding back the value of jewelry that was returned by customers, revenue from orders not yet delivered, and discounts given to customers. These adjustments are made to assess the gross revenue before deducting these items per IFRS revenue. The closest comparable IFRS measure is revenue.
Non-IFRS Adjusted Income (loss) is a non-IFRS measure. Non-IFRS Adjusted Income (Loss) is a non-IFRS measure, calculated as total comprehensive income (loss), excluding depreciation and amortization, stock-based compensation, accretion, loss on debt retirement, revaluation of metal loan, translation gain or loss, unrealized foreign exchange gains or losses and other non-recurring expenses. The closest comparable IFRS measure is total comprehensive income (loss).
Adjusted EBITDA, calculated as total operating income (loss), excluding depreciation and amortization, stock-based compensation, other non-recurring expenses. The closest comparable IFRS measure is total operating income (loss).
Tangible Common Equity is a non-IFRS measure. It is calculated as total shareholder’s equity excluding intangible assets.
For a full definition of non-IFRS financial measures used herein to their nearest IFRS equivalents, please see the section entitled "Non-IFRS Financial Measures" in the Company's MD&A for the quarter ended March 31, 2024.
About Menē Inc.
Menē crafts pure 24 karat gold and platinum jewelry that is transparently sold by gram weight. Through mene.com, customers may buy jewelry, monitor the value of their collection over time, and sell or exchange their pieces by gram weight at prevailing market prices. Menē was founded by Roy Sebag and Diana Widmaier-Picasso with a mission to restore the relationship between jewelry and savings. Menē empowers consumers by marrying innovative technology, timeless design, and pure precious metals to create pieces which endure as a store of value.
For more information about Menē, visit mene.com.
Forward-Looking Statements
This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities laws that are based on expectations, estimates and projections as at the date of this news release. Any statements that involve 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 information and are intended to identify forward-looking information. In particular, but without limiting the foregoing, this news release contains forward-looking information pertaining to its future business plans and goals.
This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the time it was made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others: the inability to successfully acquire and/or develop jewelry manufacturing facilities; an inability to predict and counteract the effects of COVID-19 or other pandemics on the business of the Company, including but not limited to the effects of COVID-19 and other infectious diseases presenting as major health issues and impacting the price of precious metals, capital market conditions, restriction on labour and international travel and supply chains; failure to comply with environmental and health and safety laws and regulations; operating or technical difficulties in connection with the manufacture, sale and distribution of jewelry; actual audited results differing from reported unaudited results; global economic climate; dilution of the Company’s shares; the Company’s limited operating history; future capital needs and uncertainty of raising capital; the competitive nature of the jewelry industry; currency exchange risks; the need for the Company to manage its planned growth and expansion; the effects of product development and need for continued technology and manufacturing change; protection of proprietary rights; the effect of government regulation and compliance on the Company and the industry; network security risks; the ability of the Company to maintain properly working systems; theft and risk of physical harm to personnel; reliance and availability of key personnel; global economic and financial market deterioration impeding access to capital or increasing the cost of capital; and volatile securities markets impacting security pricing unrelated to operating performance. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such 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 information. The Company undertakes no obligation to revise or update any forward-looking information other than as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240527467533/en/
Media and Investor Relations Inquiries:
Gavin Johnson
Chief Financial Officer
Menē Inc.
ir@mene.com
+1 289 748 3702
Source: Mene Inc.
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