- Happy Belly Food Group (HBFG) announces second consecutive record quarter and fourth consecutive quarter of QoQ growth
- Q3 2022 saw a 28 per cent increase, delivering $794,460 in revenue vs $620,176 in Q2 2022
- Gross profit increased to 45 per cent for Q3 2022 vs 40 per cent in Q2 2022, signalling growth in operations
- Fast forward to fall, specifically last week, the company announced a binding letter of intent with Pirho Grill Restaurants
- Happy Belly Food Group (HBFG) is up 6.25 per cent, trading at C$0.09
Happy Belly Food Group (HBFG) has released financial results for the three and nine months that ended on September 30.
Happy Belly Food Group offers a growing number of CPG and QSR brands through its portfolio of Holy Crap Foods, YamChops, LumberHeads Food Co., Lettuce Love Café, Pirho Grill, and Heal Wellness.
In Q3 2022, it was a record quarter, delivering $794,460 in revenue vs $620,176 in Q2 2022, an increase of $174,284 28 per cent in sales.
Gross profit increased to 45 per cent for Q3 2022 vs 40 per cent in Q2 2022, signalling growth in operations and efficiencies in manufacturing processes.
The company chalks this up to improving its business models and managing rising labour and ingredient costs throughout the various subsidiary companies.
As of September, the working capital is $1,608,962.
“With our fourth consecutive quarter of QoQ growth, a second consecutive record-setting quarter in sales, plus our Gross Profit improvements and reduction in expenses, we are witnessing a significant indication that Happy Belly is on a solid path to profitability,” said Shawn Moniz, CEO of Happy Belly.
“We will continue to close the gap towards company-wide profitability as we close out 2022,” added Moniz.
During June and July, the company closed an oversubscribed above-market convertible note offering for proceeds of $2 million.
These notes were convertible into common shares at $0.20 each in year one or $0.25 for year two.
In July, the company announced a binding Letter of Intent to acquire 100 per cent of Lettuce Love Quick Serve Restaurant.
The transaction closed in the first week of October.
In August, Happy Belly announced a record quarter and a third consecutive quarter of QoQ growth.
The company’s subsidiary, Lumber Heads Food Co, released news of expanding its distribution with DSM distribution across the GTA and southern Ontario.
While its other subsidiary, Holy Crap Foods, completed a listing in 34 Rabba Fine Foods Locations across Ontario.
Also, in August, the brand Expands Distribution to 69 Metro Locations Across Ontario.
Fast forward to fall, specifically last week, the company announced a binding letter of intent with Pirho Grill Restaurants for its first accretive transaction outside the plant vertical.
The structure of the agreement includes franchising rights, trademark, and IP of the fast-casual Greek restaurant, representing an asset-light approach to our growing portfolio of brands.
Happy Belly Food Group (HBFG) is up 6.25 per cent, trading at C$0.09.