- EnWave (ENW) reported increased margins in the fourth quarter of 2021, leading to record margins and profitability for the year
- NutraDried, the company’s wholly-owned subsidiary, underwent a material restructuring that positively impacted financial results for Q3 and Q4
- Despite lower revenue, EnWave reported a 34 per cent gross margin for Q4 2021 compared to 20 per cent in Q4 2020
- The company continues to advance its plan to penetrate the market in pursuit of consistent profitability
- EnWave is an advanced technology company that has developed the Radiant Energy Vacuum (REV)
- Shares in EnWave Corporation (ENW) are down 9.09 per cent, trading at $0.90 per share
EnWave (ENW) reported increased margins in the fourth quarter of 2021, leading to record margins and profitability for the year.
NutraDried, the company’s wholly-owned subsidiary, struggled during the first two fiscal quarters. Because of this struggle, NutraDried underwent a material restructuring that positively impacted financial results for the third and fourth quarters.
The turnaround at NutraDried is well underway with new leadership, and there are material opportunities to further improve the performance of this business unit in 2022.
NutraDried continues to rebuild distribution for its Moon Cheese product portfolio after eliminating the national buy one, get one Costco promotion that ran in Q4 2020. The subsidiary has confirmed new Costco shipments that are scheduled for Q1 and Q2 of 2022 in Canada and the United States.
Eliminating the Costco promotion led to significantly decreased revenues for the fourth quarter, coming in at just over $3 million compared to $9.1 million in Q4 2020.
The company reported consolidated revenues for Q4 2021 of $6.9 million compared to $7.35 million in Q3 2021 and nearly $10.8 million in Q4 2020.
Despite lower revenue, EnWave successfully advanced the sale of its REV machine in 2021 and reported a 34 per cent gross margin for Q4 2021 compared to 20 per cent in Q4 2020.
Throughout 2021, EnWave successfully redeployed three large-scale REV machines that were not being utilized by two Canadian cannabis partners, generating robust margins in its machine sales business.
Other financial highlights include near-break-even adjusted EBITDA for Q4. The company continues to advance its plan to penetrate the market in pursuit of consistent profitability and has made significant progress towards this target since the restructuring of NutraDried in Q2.
EnWave is an advanced technology company that has developed the Radiant Energy Vacuum (REV), an innovative, proprietary method for the precise dehydration of organic materials.
Shares in EnWave Corporation (ENW) are down 9.09 per cent, trading at $0.90 per share as of 10:53 am EST.