Naturally Splendid Reports First Quarter Results for 2022
Naturally Splendid Enterprises Ltd. (OTC PINK: NSPDF) reported a net loss of $747,787 for Q1 2022, slightly down from $767,478 in Q1 2021. Sales fell to $93,453, a decrease of approximately $160,000, primarily due to impacts from COVID-19. Despite these challenges, gross profits increased to $38,990, with gross margins rising to 41.7% of sales. The company is shifting its focus towards plant-based products, having established a long-term partnership with Flexitarian Foods, which is expected to enhance product margins in the future.
- Increased gross profit to $38,990 (41.7% of sales) compared to $31,791 (13% of sales) in Q1 2021.
- Long-term agreement with Flexitarian Foods supports growth in plant-based product lines.
- Reduced selling and distribution expenses by approximately $35,000.
- Net loss of $747,787 in Q1 2022 compared to $767,478 in Q1 2021.
- Sales decreased by approximately $160,000 from the previous year, with significant declines in private-label bars and bites.
VANCOUVER, BC / ACCESSWIRE / July 8, 2022 / Naturally Splendid Enterprises Ltd. ("Naturally Splendid", "NSE" or "the Company") (FRANKFURT:50N)(TSXV:NSP)(OTC PINK:NSPDF) announces its unaudited financial results for the three months ended March 31, 2022. All amounts are in Canadian dollars and are prepared in accordance with International Financial Reporting Standards.
During this reporting period, Covid-19 uncertainty negatively affected sales of existing product lines as well as impaired launches of new product lines. On March 11, 2020, the World Health Organization declared the outbreak of the novel coronavirus ("COVID-19") a global pandemic resulting in governments worldwide, including the Canadian government, enacting extensive measures in an effort to limit the spread of the virus. These measures, which include social distancing, travel restrictions, outright travel bans, and closures of non-essential businesses including restaurants, created a challenging period for the Company.
Naturally Splendid CFO Mr. George Ragogna stated "We are continuing to implement our strategic plan focused on plant-based opportunities. The Company is evolving the manufacturing capabilities and capacities of our existing certified food manufacturing facility as our product mix shifts to more plant-based entrees and appetizers from bars and bites. We have shifted our product mix due in large part to the ten (10) year Canadian exclusive manufacturing and distribution agreement that we executed with Australia's largest plant-based manufacturer, Flexitarian Foods. This agreement is renewable for a further ten (10) years. Naturally Splendid has also secured licensing rights from Flexitarian Foods for the exclusive use of the PlanteinTM trademark in Canada. With the PlanteinTM trademark now secured, we have completed all retail packaging and websites to support this brand. The Company has attended several trade shows recently to promote the launch of the PlanteinTM retail line and national distribution relationships have been formed with Canada's two largest distributors, Sysco Canada and Gordon Food Services (GFS)."
Mr. Ragogna adds, "The Company has completed the design and begun the re-purposing of our existing certified food manufacturing facility in Pitt Meadows, BC. All manufacturing equipment required to produce our plant-based entrees has been ordered with many significant components of the manufacturing line having already arrived at the Pitt Meadows facility. However, there have been delays in receiving some components required to complete the full build-out of the new production lines due to ongoing logistics challenges that much of the manufacturing industry continues to experience. We will continue to receive our plant-based inventories from Flexitarian Foods while the manufacturing lines are still being set up in our own facility. Once the new manufacturing lines in our facility are commissioned, the Company will see an almost immediate return by way of reducing product costs, and improved inventory control, resulting in an anticipated increase in margins. We look forward to providing updates in a timely manner." Naturally Splendid recorded a net loss and comprehensive loss of
Administrative expenses increased in 2022 compared to 2021 by
Naturally Splendid recorded sales of
The cost of Sales during the three months ended March 31, 2022, was
The Company continues to focus on its higher-margin products and new commercial opportunities for its new plant-based products. The bulk hemp seeds sold at a lower gross margin percentage than compared to plant-based products and private label sales. The Company is now focused. Gross profits for the three months ended March 31, 2022, were
For the Three Months Ended March 31, 2022 | For the Three Months Ended March 31, 2021 | |||||||
$ | $ | |||||||
Statements of Loss Data | ||||||||
Revenue | 93,453 | 253,378 | ||||||
Cost of sales | (54,463 | ) | (221,587 | ) | ||||
Gross Profit | 38,990 | 31,791 | ||||||
Selling and distribution expenses | (105,246 | ) | (140,166 | ) | ||||
Administrative expenses | (681,531 | ) | (659,103 | ) | ||||
Net income (loss) | (747,892 | ) | (743,636 | ) | ||||
Basic and Diluted Earnings (Loss) | ||||||||
Per Share | (0.00) | (0.00) |
About Naturally Splendid Enterprises Ltd.
Founded in 2010, NSE operates a food manufacturing facility just outside Vancouver, BC in Canada. The Company has established numerous healthy, functional foods under recognized brands such as Natera Sport™, Natera Hemp Foods, CHII, Elevate Me™ and Woods Wild Bar™, and most recently Natera Plant Based Foods, a line of delicious plant-based meat alternatives for the rapidly growing plant-based market segment. The Company has a myriad of new products and line extensions under development that are approaching launch. NSE, through its joint venture Plasm Pharmaceutical, has been approved for conducting a phase 2 clinical trial approved by Health Canada for treatment of COVID-19. NSE has also developed proprietary technologies for the extraction of high-demand, healthy omega 3 and 6 oils from hemp.
NSE contract manufacturers for healthy, functional food products and ingredients focusing on plant-based ingredients. The Company provides contract manufacturing services for many healthy food companies, private labeling a wide variety of nutritional food products destined for global healthy food markets.
For more information e-mail info@naturallysplendid.com or call Investor Relations at 604-5700902 (ext. 101)
On Behalf of the Board of Directors
Mr. J. Craig Goodwin
CEO, Director
Contact Information
Naturally Splendid Enterprises Ltd.
(NSP - TSX Venture; NSPDF - OTCQB; 50N - Frankfurt)
#108-19100 Airport Way
Pitt Meadows, BC, V3Y 0E2
Office: (604) 570-0902
Fax: (604) 465-1128
E-mail : info@naturallysplendid.com
Website: www.naturallysplendid.com
Forward-Looking Statements
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Naturally Splendid cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond Naturally Splendid's control including, Naturally Splendid's ability to compete with large food and beverage companies; sales of any potential products developed will be profitable; sales of shelled hemp seed will continue at existing rates or increase; the ability to complete the sales of all bulk hemp seed purchase orders; and the risk that any of the potential applications may not receive all required regulatory or legal approval. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, Naturally Splendid undertakes no obligation to publicly update or revise forward-looking information.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE: Naturally Splendid Enterprises Ltd.
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