- good natured (GDNP) has released Q3 results highlighted by 286 per cent YOY revenue growth
- The growth can be attributed to increased demand, with emphasis on the B2B channel, as well as contributions from acquisition Ex-Tech Plastics
- The company incurred a net loss of $2.9 million for the quarter compared to a net loss of $1.7 million in Q3 2020
- good natured Products is focused on becoming North America’s leading earth-friendly plant-based products company
- good natured (GDNP) is down by 4.44 per cent and is currently trading at $0.86 per share
good natured (GDNP) has released Q3 results highlighted by 286 per cent YOY revenue growth.
The growth can be attributed to robust market demand, a full fiscal quarter of contributions from acquisition Ex-Tech Plastics, and the addition of a range of new customer accounts. The company’s recurring B2B customer base expanded to over 850 active accounts from 400 in Q3 2020.
Key highlights
- Revenue increased 286 per cent to a record C$18 million compared to $4.7 million in Q3 2020. Revenue YTD increased 236 per cent to $38.3 million compared to $11.4 million for the nine months ended September 30, 2020
- Variable gross margin increased 196 per cent to $5.2 million and 28.8 per cent of sales, compared to $1.75 million and 37.6 per cent of sales in Q3 2020. Variable gross margin YTD increased 183 per cent to $12.7 million and 33.2 per cent of sales, compared to $4.5 million and 39.4 per cent of sales for the nine months ended September 30, 2020
- Gross margin increased 129 per cent to $4 million for Q3 2021 and 130 per cent to $10.3 million YTD
- SG&A was $5.4 million for Q3 2021 and 12.9 million YTD, including acquisition activity and one-time charges, compared to $2.1 million and $5.5 million for the three and nine months ended September 30, 2020
- Adjusted EBITDA for Q3 2021 and YTD showed a loss of $0.6 million, compared to losses of $0.3 million and $0.7 million for the three and nine months ended September 30, 2020, respectively
- The company incurred a net loss of $2.9 million for the quarter compared to a net loss of $1.7 million in Q3 2020. The net loss YTD was $8.5 million compared to a net loss of $4 million during the nine months ended September 30, 2020
- Net working capital increased to $12.4 million compared to $3.8 million at the end of Q3 2020
Subsequent to the quarter, the company closed a convertible debenture offering for gross proceeds of $17.25 million and a $35.8 million senior credit facility with National Bank.
Paul Antoniadis, CEO of good natured, stated,
“The team delivered record-setting revenue growth for Q3 2021 and just under 240 per cent growth for the first nine months of the year. We did see some temporary changes in our Q3 2021 product and customer revenue mix with the recent addition of Ex-Tech, whose business is more heavily weighted to national customers and industrial products with somewhat lower margin rates.
The integration of a first full quarter of Ex-Tech’s financials, combined with sustained increases in inflationary costs, resulted in our variable gross margin rate dipping to the low end of our targeted range at just under 29 per cent for Q3 2021. Variable gross margins for YTD 2021 are holding above 33 per cent, which remains at the upper end of our targeted range.
Based on our growth strategy and business model, we anticipate short-term, quarterly shifts in variable gross margin as part of that process and focus on delivering the optimal range on an annual basis. We’ve also rolled out several price adjustments and shipping surcharges to offset rapidly rising raw material and logistics costs being felt throughout the industry.”
good natured Products is focused on becoming North America’s leading earth-friendly plant-based products company.
good natured (GDNP) is down by 4.44 per cent and is currently trading at $0.86 per share as of 10:06 am EST.