- Simply Better Brands Corp. (SBBC) increases its financial outlook for 2022 due to preliminary results exceeding expectations for the year to date
- Quarterly sales grew by 440 per cent
- PureKana is adding 15,000 new customers per month
- Expansion with 2Shores Capital and Costco are underway
- Simply Better Brands is an omnichannel platform with diverse assets in the emerging plant-based and holistic wellness consumer product categories
- Simply Better Brands Corp. (SBBC) is currently up 48.6 per cent, trading at C$0.26 per share at 4pm ET
Simply Better Brands Corp. (SBBC) has increased its financial outlook for 2022 due to preliminary results exceeding expectations for the year.
All amounts are expressed in U.S. dollars unless otherwise noted.
As a result of business momentum, customer acquisition is high and the distribution footprint is expanding at a high rate. The company has raised its expected annual outlook to $50-$55 million and positively adjusting their EBITDA.
Preliminary quarter and year to date results:
Preliminary sales for the quarter ending June 30, 2022, were $16.8 million compared to $3.1 million for the comparable period in 2021 – a growth rate of 440 per cent.
Preliminary gross margin for the six months ending June 30, 2022, was 69 per cent compared to 59 per cent for the comparable period last year.
Preliminary sales for the six months ending June 30, 2022 were $28.9 million compared to $5.6 million for the comparable period last year – a growth rate of 417 per cent.
Preliminary gross margin for the six months ending June 30, 2022, was 67 per cent compared to 61 per cent for the comparable period last year.
The PureKana and TRUBAR brands both achieved positive adjusted EBITDA margin in the months of April and May. Full second quarter and six-month results are due to be reported on August 30, 2022.
As a result of the strong year to date and quarter to date preliminary results as of June 30, 2022, the company’s guidance for expected consolidated net sales is increasing from $40-$42 million to $50-$55 million. The expected gross margin as a percentage of net sales is increasing from 58-60 per cent to 63-65 per cent. The company continues its expectation to achieve positive adjusted EBITDA for fiscal 2022.
Business drivers:
PureKana is adding approximately 15,000 new customers per month, driving year-to-date growth of 366 per cent vs. a year ago or $22.7 million vs. $4.8 million.
The company is making progress in expanding its credit facilities with 2Shores Capital to support growth with its expanding Costco business.
Simply Better Brands (SBBC) is an omni-channel platform with diverse assets in the emerging plant-based and holistic wellness consumer product categories.
Simply Better Brands Corp. (SBBC) is currently up 48.6 per cent, trading at C$0.26 per share at 4pm ET.