Happy Belly Food Group Announces 6th Consecutive Record Qtr Toronto, Ontario--(Newsfile Corp. - November 28, 2023) - Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: VGANF) ("Happy Belly" or the "Company"), a leading consolidator of emerging food brands is pleased to announce its financial results and corporate update for the three months ended September 30th, 2023.
Financial Highlights
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The Company recorded total revenue of $3.8 million for the nine-month period end and $1.5 million for the quarter. The Company is on target to exceed $5 million in revenue for the year. Gross profit continues to improve due to cost control measures, reporting $0.8 million for the quarter and $2.0 million year to date.
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Q3 2023 was the sixth consecutive record quarter for the company delivering $1,507,229 in total revenue vs $1,322,508 in Q2 2023, an increase of $184,721 (+14%) in revenue quarter over quarter (QoQ).
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Q3 2023 represents the eight consecutive quarter of QoQ growth and gross profit has improved by almost 10%.
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The Company delivered strong quarterly and year to date operating results from its Quick Service Restaurant ("QSR") and the Consumer Product Goods ("CPG") divisions.
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QSR division had revenue increases from $550,313 in Q3 2022 to $1,116,000 in Q3 2023 and from $1,047,044 to $2,828,531 for the three quarters year to date period (+103% and +170% respectively).
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QSR division reported EBITDA(1) of $47,252 for the quarter ended September 30, 2023 compared to a loss of $19,048 in the same period Q3 2022. For the nine months ended September 30, 2023, the Company had segment EBITDA of $281,442 compared to a loss of $108,695 for the period ended September 30, 2022. The QSR segment of Happy Belly is demonstrating strong EBITDA growth year over year.
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Our CPG division had revenue increases from $244,147 in Q3 2022 to $364,186 in Q3 2023 and from $692,274 to $1,013,039 for the three quarters year to date period (+49% and +46% respectively).
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The CPG division reported EBITDA(1) of $48,834 for the quarter ended September 30, 2023 compared to a loss of $33,010 in the same period Q3 2022.
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The QSR division demonstrated a robust EBITDA increase of $390,137 for the year over year period and the CPG division demonstrated an increase of $66,300 over the same period.
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For the three and nine months ended September 30, 2023, revenue increased 85% and 121% respectively over the corresponding periods of 2022.
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Total Net Operating Loss for the Company after removal of non-cash items for Q3 2023 was $272,166 compared to a loss of $467,587 in the same period in 2022. One-time costs of building the Joey Turks restaurant, increased labour for training and launching of two corporate locations for Heal Wellness and increased legal for M&A activities played a factor.
- The Company's cash position as of September 30, 2023 is $1,410,325
"With our 8th consecutive quarter of QoQ growth, and 6th consecutive record setting quarter in revenue, you can see our continued commitment to shareholders as we continue to execute our plans and improve company wide performance", said Shawn Moniz, Chief Executive Officer of Happy Belly.
"We are once again witnessing the consistent and repeatable pattern of Happy Belly's operations staying financially disciplined while achieving organic and inorganic growth. I'm extremely proud of the positive progress that our management team, alongside our brand partners, have been able to achieve in the first nine months of 2023. Each quarter has resulted in significant quarter-over-quarter growth while continuing to improve operations within our businesses and deliver consistent record quarters."
"Franchising revenue for all our QSR brands is a key component to our future quarters of growth. Happy Belly's performance will continue to improve as we remain disciplined, and work to continue to close the gap towards company-wide profitability. We have a great team with the patience and experience to continue building our stable of emerging brands, and the funding to continue accelerating growth organically and through accretive M&A opportunities."
Q3 Corporate Highlights
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On September 13th, 2023, the Issuer announces that its PIRHO Fresh Greek Grill Enters Greater Toronto Area with Signed Franchisee for Oakville, Ontario
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On September 8th, 2023, the Issuer announces Signing of First Franchised Location in the Beaches, Toronto, for its Heal Wellness QSR
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On August 25th, 2023 the Issuer Announced its 5th Consecutive Record Quarter, and 7th Consecutive Quarter of QoQ Growth
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On July 31st, 2023 the issuer announced Expanded CPG Distribution While Receiving Record Purchase Orders for Both LumberHeads Popcorn And Holy Cap Cereals and Oatmeal's
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On July 24, 2023, the Issuer announced that it has closed its non-brokered private placement issuing 645 unsecured convertible debentures for gross proceeds of $645,000.
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On July 20, 2023, the Issuer announced that it has signed an area development agreement for the province of British Columbia for the opening of 30 franchise restaurants of HEAL Wellness, a fresh smoothie bowls, acai bowls, smoothies, and delicious breakfast waffles quick serve restaurant.
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On July 18, 2023, the Issuer announced that it has signed an area development agreement for the province of British Columbia for the opening of 20 franchise restaurants of Pirho Fresh Greek Grill, a gourmet bowls, wraps, and pitas fast casual Greek restaurant with the fresh wholesome tastes of Greece and its delicious traditional foods.
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On July 7, 2023, the Company announced that it has entered the Caribbean fast casual sector with the launch of its 100% wholly owned subsidiary brand, Joey Turks Island Grill.