Odd Burger Files Q1 Financials, Management Discussion and Analysis

Rhea-AI Summary

Odd Burger Corporation reported its Q1 financial results for the fiscal year ending September 30, 2023, showing a 12% revenue increase to $785,511 and a gross margin improvement of $41,150 compared to last year. Despite challenges from Winter Storm Elliot affecting December revenue, the company's underlying performance was strong, highlighted by a 30% sales increase in its food manufacturing division and a 179% rise in franchise fee revenue. Odd Burger is expanding its asset-light franchising strategy with 13 additional units planned and has completed its U.S. Franchise Agreements, preparing to enter the U.S. market in 2023.

Positive

• Revenue increased by 12% to $785,511.
• Gross margin improved by $41,150 compared to the previous year.
• 30% increase in sales from Preposterous Foods, the food manufacturing division.
• Franchise fee revenue rose by 179% for the quarter.
• 13 additional franchise units are under development.
• Completed U.S. Franchise Agreements, preparing for market entry.

Negative

• Net loss was $(1,257,979), an increase from previous quarters.
• Continued negative cash flow and lack of earnings history.

LONDON, ON, March 2, 2023 /PRNewswire/ - Odd Burger Corporation (TSXV: ODD) (OTCQB: ODDAF) (FSE: IA9) ("Odd Burger" or the "Company") is pleased to announce its financial results for the first quarter of the fiscal year ended September 30, 2023 have been posted with Canadian securities regulatory authorities at www.sedar.com.

"We had an exciting first quarter with two new franchise openings and our first franchise location opening outside of Ontario in Calgary, Alberta," says James McInnes, CEO and Co-Founder of Odd Burger. "Our financial performance has improved from last year with revenue increasing 12% and our gross margin increasing $41,150 compared to the corresponding period in the previous year. Winter storm Elliot impacted our December 2022 performance, resulting in weather related store closures which dragged down revenue for the month. Our underlying performance remained strong however, with an increase of 30% in Preposterous Foods' sales (the Company's food manufacturing division) and franchise fee revenue increasing 179% for the quarter. We continue to expand our asset-light franchising strategy with 13 additional units under active development in Canada, which are expected to open throughout the year. Furthermore, we completed our U.S. Franchise and Area Representative Agreements in the first quarter as we prepare to launch into the U.S. market in 2023. We are very pleased with our positioning as one of the fastest growing vegan fast-food chains in the sector and look forward to bringing our delicious and sustainable food to new markets".

SUMMARY OF QUARTERLY RESULTS 

The following table sets forth unaudited selected financial information for each of the last eight quarters. 

Quarter Ended	Dec 31, 2022	Sept 30, 2022	June 30, 2022	March 31, 2022
Revenue	$785,511	$835,779	$787,585	$641,508
Net and Comprehensive Loss	$(1,257,979)	$(1,135,848)	$(938,552)	$(1,002,704)
Net Loss Per Share	$(0.01)	$(0.01)	$(0.01)	$(0.01)
Quarter Ended	Dec 31, 2021	Sept 30, 2021	June 30, 2021	March 31, 2021
Revenue	$687,156	$384,745	$257,401	$258,839
Net and Comprehensive Loss	$(1,208,632)	$(1,113,144)	$(3,541,281)	$(384,276)
Net Loss Per Share	$(0.01)	$(0.02)	$(0.04)	$(0.01)

About Odd Burger Corporation

Odd Burger Corporation is a chain of company-owned and franchised vegan fast-food restaurants as well as a food technology company that manufactures and distributes a proprietary line of plant-based protein and dairy alternatives to its locations. Odd Burger restaurants operate as smart kitchens, which use state-of-the art cooking technology and automation solutions to deliver a delicious food experience to customers craving healthier and more sustainable fast food. With small store footprints optimized for delivery and takeout, advanced cooking technology, competitive pricing, a vertically integrated supply chain along with healthier ingredients, Odd Burger is revolutionizing the fast-food industry by creating guilt-free fast food. Odd Burger Corporation is traded on the TSX Venture Exchange under the symbol ODD and on the OTCQB under the symbol ODDAF. For more information visit https://www.oddburger.com.

Forward-Looking Information
This news release contains forward-looking information for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Any such forward-looking information may be identified by words such as "proposed", "expects", "intends", "may", "will", and similar expressions. Forward looking information contained or referred to in this news release includes statements relating to future restaurant openings, potential franchisees, demand for our products and other similar statements. Forward-looking information is based on several factors and assumptions which have been used to develop such information, but which may prove to be incorrect including, but not limited to material assumptions with respect to the continued strong demand for the Company's products, the availability of sufficient financing on reasonable terms to fund the Company's capital requirements and the ability to obtain necessary equipment, production inputs and labour. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because the Company can give no assurance that such expectations will prove to be correct. Risks and uncertainties that could cause actual results, performance or achievements of the Company to differ materially from those expressed or implied in such forward-looking information include, among others, negative cash flow and future financing requirements to sustain and grow operations, limited history of operations and revenues and no history of earnings or dividends, expansion of facilities, competition, availability of raw materials, dependence on senior management and key personnel, general business risk and liability, regulation of the food industry, change in laws, regulations and guidelines, compliance with laws, unfavourable publicity or consumer perception, product liability and product recalls, risks related to intellectual property, difficulties with forecasts, management of growth and litigation, as well as the impact of, uncertainties and risks associated with the ongoing COVID-19 pandemic, many of which are beyond the control of the Company. For a more comprehensive discussion of the risks faced by the Company, please refer to the Company's Annual Information Form filed with Canadian securities regulatory authorities at www.sedar.com . The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available. Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.

Non-GAAP Measures
This news release may refer to certain non-GAAP measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. The TSX Venture Exchange has neither approved nor disapproved the contents of this news release. Neither the 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 news release

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SOURCE Odd Burger Corporation

FAQ

What are Odd Burger Corporation's recent financial results for Q1 2023?

Odd Burger reported a revenue increase of 12% to $785,511 for Q1 2023.

How did Odd Burger's gross margin change in Q1 2023?

The gross margin improved by $41,150 compared to the same period last year.

What were the franchise fee revenue figures for Odd Burger in Q1 2023?

Franchise fee revenue increased by 179% in Q1 2023.

What challenges did Odd Burger face in December 2022?

Winter Storm Elliot impacted performance, leading to weather-related store closures.

How many new franchise units is Odd Burger developing?

Odd Burger is developing 13 additional franchise units.

When does Odd Burger plan to enter the U.S. market?

Odd Burger plans to enter the U.S. market in 2023.

What was Odd Burger's net loss in Q1 2023?

Odd Burger reported a net loss of $(1,257,979) for Q1 2023.