Mene Inc. Reports Preliminary Key Performance Indicators for Fourth Quarter and Fiscal Year 2021

Rhea-AI Summary

Menē Inc. (TSX-V:MENE) (US:MENEF) reported record preliminary Key Performance Indicators for the fiscal year ended December 31, 2021. Fourth-quarter IFRS Revenue was $8.5 million, marking a 20% year-over-year increase. Annual IFRS Revenue reached $26.8 million, up 27%, with a Gross Profit of $6.5 million. The Company achieved its first yearly profit, demonstrating operational resilience during the pandemic. Significant initiatives included the launch of new products and a pre-order system, setting the foundation for future growth and European market expansion.

Positive

• Record fourth-quarter IFRS Revenue of $8.5 million, a 20% YoY increase.
• Annual IFRS Revenue of $26.8 million, up 27% YoY.
• Achieved first yearly profit, demonstrating operational resilience.
• Launched 140 new products and a pre-order system in 2021.

Negative

• None.

TORONTO--(BUSINESS WIRE)-- Menē Inc. (TSX-V:MENE) (US:MENEF) (“Menē” or the “Company”), an online 24 karat jewelry brand, today announced preliminary Key Performance Indicators (“KPIs”) for the fiscal year ended December 31, 2021. All financial figures herein are unaudited, and the Company intends to report its audited 2021 fiscal year-end financial results in April 2022. All amounts expressed herein reflect Canadian dollars unless otherwise noted.

FOURTH QUARTER FINANCIAL HIGHLIGHTS:

• Record IFRS Revenue of $8.5 million and Non-IFRS Adjusted Revenue² of $10.3 million, an increase of 20% and 28% respectively, Year-over-Year (“YoY”).
• Record Gross Profit of $2 million, an increase of 19% YoY.
• Operating income of $0.2 million, an increase of 176% YoY.
• Generated Free Cash Flow of $3.8 million during the quarter
• Sold metal weight of 98 kg and 10,143 Units of Jewelry through, an increase of 29% and 18% respectively, YoY.
• Average Order Value of $1,646, an increase of 6% YoY.

2021 FISCAL YEAR FINANCIAL HIGHLIGHTS

• Record IFRS Annual Revenue of $26.8 million and Non-IFRS Adjusted Revenue² of $31.8 million in Fiscal Year 2021, an increase of 27% and 35% respectively, YoY.
• Record Annual Gross Profit of $6.5 million and Operating Income of $0.3 million, an increase of 25% and 129% respectively, YoY.
• Total Comprehensive Income of $0.4 million and Non-IFRS Adjusted Income³ of $0.9 million, an increase of 111% and 198% respectively, YoY
• Sold 31,512 Units of Jewelry through 20,181 Customer Orders during the fiscal year.

OPERATIONAL HIGHLIGHTS IN 2021:

• Introduced 140 new products over the course of 2021.
• Launched four new product collections: Etruscan, Chess, Good Luck and Wax Seals.
• Launched EUR currency payments for European customers.
• Sales to Returning Customers attributed to 67% of total sales in 2021, due to great customer satisfaction.
• Cumulative units of jewelry sold reached 104,600 as of year-end.
• Featured in HOLA Magazine, Sotheby’s 76 Faubourg, Barron’s Penta, Daniel Féau and Elle Italia.
• Registered nearly 26,000 independent customer reviews on mene.com/reviews.

IFRS Consolidated Income Statement Data & Key Performance Indicators (KPIs) 1	FY 2021				FY 2020
	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Revenue	8,497,769	5,317,842	5,754,156	7,203,492	7,110,188	5,423,320	3,439,038	5,156,994
Gross profit	2,009,201	1,245,908	1,529,690	1,737,688	1,691,750	1,578,417	917,721	1,012,923
Gross profit (%)	24%	23%	27%	24%	24%	29%	27%	20%
Total comprehensive income (loss)	(237,119)	551,723	(769,975)	858,378	(697,478)	(748,216)	(1,448,394)	(808,093)
Non-IFRS Adjusted Revenue2	10,345,196	6,466,242	6,678,006	8,324,174	8,104,915	6,140,871	3,678,069	5,611,286
Non-IFRS Adjusted Income (Loss) 3	311,106	106,889	(276,183)	789,748	23,936	61,777	(367,214)	(666,378)
Customer orders	6,584	4,153	4,377	5,067	5,474	3,464	2,790	4,157
Units of jewelry sold	10,143	6,322	7,197	7,850	8,632	5,958	4,915	6,641
Jewelry weight sold (total kg)	98	62	66	79	76	56	39	69

(1)	The Company’s financial statements for fiscal year 2020 are audited by an external assurance firm. The figures for fiscal year 2021 are unaudited. The figures for Q4 2021 are preliminary.
(2)	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 from revenue per IFRS. See Non-IFRS Measures for a full reconciliation.
(3)	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.

STATEMENT FROM FOUNDER & CEO ROY SEBAG:

Menē concluded its fourth year in business with strong results. We sold over 31,000 units of jewelry to customers in 35 countries worldwide, registering $31.8 million in Non-IFRS revenue. Furthermore, we achieved our first yearly profit according to both IFRS and Non-IFRS measures. Metal weight, customer orders and margins all produced record results.

More importantly, during this year we established the foundations for future growth by beginning to implement long-term infrastructure which will allow us to reach more consumers and answer consumer demands more readily. This was achieved specifically through (1) the introduction of our pre-order system; (2) our ongoing integration into the British and European markets; and (3) our proposed acquisition of a manufacturing facility in the United States. The pre-order system was launched in 2021 and proved to be a valuable contributor to operating margins and inventory management while allowing us to keep abreast with current consumer demands. This was a highly technical endeavour which was executed by our software engineers and operations team with great alacrity and skill. The pre-order system is, in part, responsible for reporting of the IFRS and Non-IFRS revenue figures. On the operational side of the business, our team withstood the worst of the global pandemic by maintaining manufacturing throughput. In addition, we have launched shipping in the United Kingdom and payment processing in Euros in preparation for our plans to reach the European markets with the establishment of a European distribution facility in Fiscal Year 2022. Finally, towards the end of the year, we reached an agreement with a US-based jewelry manufacturing facility to acquire their operations with an expected closing date in 2022. We strongly believe that this facility will allow us to scale operations to $75 million in annual run rate without the need for additional capex. The purchase price will be funded primarily from shareholder equity.

The creativity of Sunjoo Moon and Diana Picasso has flourished beautifully this year, with over 140 new products offered to our clients. Their ability to reunite the timeless and the modern by molding pure gold into wearable yet cutting-edge designs has continued to be well received in the fashion and art communities.

As an entrepreneur who has founded several successful ventures, it appears to me that 2021 was the year in which Menē transitioned from a start-up to a sustainable business. We have moved from our modest raft floating along the river to the shore of stable ground, and now there is a whole frontier of new territory opened before us. We feel that it is our duty to explore this new land and expand our staying power while remaining faithful to our mission, which is to empower the modern consumer with jewelry that is a store of enduring value. I would like to thank our team for their exceptional performance in 2021 and our clients for their continual patronage and passion for our unique brand.

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 Revenue² 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)³ 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, revaluation of metal loan, loss on debt retirement and translation gain or loss. The closest comparable IFRS measure is total comprehensive income (loss).

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 September 30, 2021.

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.

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; an inability to predict and counteract the effects of COVID-19 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 on 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 on 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/20220203005283/en/

Media and Investor Relations Inquiries:

Adil Sheikh

Chief Financial Officer

Menē Inc.

ir@mene.com

+1 289 748 3702

Source: Menē Inc.

FAQ

What are Menē's fourth quarter financial results for 2021?

Menē reported fourth-quarter IFRS Revenue of $8.5 million, a 20% increase from the previous year, with Gross Profit at $2 million.

How did Menē perform in fiscal year 2021?

Menē achieved record annual IFRS Revenue of $26.8 million, a 27% increase YoY, and reported its first yearly profit.

What initiatives did Menē implement for growth in 2021?

Menē introduced 140 new products, launched a pre-order system, and expanded into European markets.

What is the significance of the pre-order system for Menē?

The pre-order system enhanced operating margins and inventory management, contributing to increased revenue.