Sativa Wellness Publishes 2020 Financial Statements
Sativa Wellness Group reported a 38% increase in turnover to £1,994K (C$3,478K) for 2020, alongside a 4% rise in gross profit margin to 56%. Despite a net deficit of £4,505K, which included significant costs from the reverse takeover of StillCanna, the company adapted by reducing costs and pivoting to produce hand sanitiser during the pandemic. The acquisition of StillCanna enhanced their asset base with a new CBD manufacturing facility in Poland. Looking ahead, Sativa aims to leverage its Novel Foods accreditation and expand its wellness clinics.
- Turnover for 2020 increased by 38% to £1,994K.
- Gross profit margin improved by 4% to 56%.
- Successful reverse takeover of StillCanna expanded asset base with a new CBD manufacturing facility in Poland.
- Innovation in products and services to drive growth in 2021.
- Net deficit remained high at £4,505K, increasing from £3,797K in 2019.
- The pandemic caused significant operational disruptions, leading to temporary closure of retail shops.
VANCOUVER, BC / ACCESSWIRE / May 3, 2021 / Sativa Wellness Group Inc. (CSE:SWEL) ("Sativa Wellness" or the "Company") wishes to announce the publication of its Financial Statements and Management, Discussion and Analysis report for year ended December 31, 2020.
The key highlights of 2020 can be summarised as follows:
2020 Financial Results
The turnover for 2020 was £1,994K (C
The net deficit of £4,505K (2019: £3,797k) although still high, included a significant amount of transaction and consolidation costs that would otherwise not have been incurred given the reverse takeover of StillCanna Inc. ("StillCanna").
Quarter 1 and 2
The Company had only just launched its business plan for 2020 when the pandemic struck and everything came to a halt as the group had to close the Goodbody Wellness retail shops and many customers stopped trading so stopped buying our products. The Company responded by:
- Reducing staffing levels and cutting costs across the business;
- Utilising the UK production facility to produce hand sanitiser under the Goodbody brand and white label products for restaurants and businesses leading to record month to date in June followed by July, after some really lean months
The Company continued to drive forwards and launched the UK FSA Novel foods accreditation process in order to submit the product range for approval by March 31, 2021. This submission has since taken place.
Quarter 3 and 4
The Company brought together the various websites under one upgraded platform as the site goodbodystore.com and the new Vitamin D CBD range was launched
Most significantly the group completed the reverse takeover (the "Reverse Takeover") of StillCanna creating a vertically integrated European extraction to consumer cannabidiol ("CBD") company protecting the CBD supply chain and securing assets. The StillCanna acquisition added a CBD manufacturing facility in Poland, producing high quality CBD isolate and distillate, to the Company's asset base as well as other significant assets and cash. There followed a successful period of integration across the group.
Following completion of the Reverse Takeover, the resulting issuer was renamed Sativa Wellness Group Inc. and the Company's main trading market the CSE in Canada. The Company relisted on the AQSE in London as a secondary market as well as the Frankfurt and OTC exchanges.
Goodbody Botanicals Ltd, another group company, launched the Company's wellness clinics under the name of Goodbody Wellness starting with COVID testing using the companies shops in Bath and then Bristol. This was a huge success with December then becoming the best month to date.
Phytovista Laboratories Ltd, the groups CBD testing laboratory was given provisional ISO 17025 accreditation, since completing the process and achieving full accreditation in April 2021
Outlook
The most important aspect is that 2020 saw innovation to expand products and services in the wellness sector which will all contribute to growth in 2021. The clinics have grown to 30 as planned and the range of tests are increasing. The model is working well.
Novel food status should assist us to be seen as the supplier of choice in the CBD market for both raw oil and end products.
The ISO 17025 status of Phytovista laboratory and the combining of the UK and Polish laboratories will allow for the opportunity to expand both in the UK and into Europe.
The 2020 Financial Statements and Management Discussion and Analysis and further information regarding the Company can be found under the Company's profile on www.sedar.com.
The directors of the Company accept responsibility for the contents of this announcement.
On behalf of the Board of Directors,
Geremy Thomas Executive Chairman Sativa Wellness Group Inc. +44 (0) 20 7971 1255 | Anne Tew Chief Financial Officer Sativa Wellness Group Inc. +44 (0) 20 7971 1255 |
Neither the Canadian Securities Exchange nor its Market Regulator (as defined in the policies of the Canadian Securities Exchange) accept responsibility for the adequacy or accuracy of this release. This news release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Sativa's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" "plan is" or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur", "will be achieved" or "shortly". The forward-looking information and forward-looking statements contained herein include, but are not limited to information concerning the Outlook, the expansion of product lines, the success of the clinics and the novel foods accreditation process, the expansion in the UK and Europe, and the supply of CBD.
Although Sativa believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. In particular, there is no guarantee that any sales, profits or revenues relating to the plans detailed in this press release, that the Company will achieve novel foods accreditation, that the Company will achieve positive free cash flow in any operating companies, that the Company will be able to execute or capitalize on any opportunities noted in this press release, that the Company will be able to grow sales or expand testing facilities, that the Company will be able to expand the business or the product lines or launch products and websites in the EU, , or that a number of competitors will not attain novel foods accreditation. The forward-looking information and forward-looking statements contained in this news release are made as of the date of this press release, and Sativa does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities.
SOURCE: Sativa Wellness Group Inc.
View source version on accesswire.com:
https://www.accesswire.com/643820/Sativa-Wellness-Publishes-2020-Financial-Statements
FAQ
What were Sativa Wellness Group's financial results for 2020?
How did the pandemic affect Sativa Wellness Group's operations in 2020?
What significant business change occurred for Sativa Wellness Group in 2020?
What is the outlook for Sativa Wellness Group following the 2020 financial results?
What was Sativa Wellness Group's net deficit for 2020?
