VANCOUVER, British Columbia, July 13, 2022 (GLOBE NEWSWIRE) -- Simply Better Brands Corp. ("SBBC" or the "Company") (TSX Venture: SBBC) (OTCQB: PKANF) is pleased to announce it is raising its 2022 financial outlook based on year-to-date results and business momentum. The sources of growth remain customer, category, channel and geographic expansion. All amounts are expressed in United States dollars unless otherwise noted. Certain metrics, including those expressed on an adjusted basis, are non-International Financial Reporting Standards ("IFRS") measures, see " Non-IFRS Measures " below.
Preliminary June 30, 2022 Quarter to Date 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 or a growth rate of 440%.
Preliminary gross margin for the six months ending June 30, 2022, was margin of 69% compared to 59% for the comparable period.
Preliminary sales for the six months ending June 30, 2022 were $28.9 million compared to $5.6 million for the comparable period or a growth rate of 417%.
Preliminary gross margin for the six months ending June 30, 2022, was margin of 67% compared to 61% for the comparable period.
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.
2022 Outlook
As a result of the strong year to date and quarter to date preliminary results as of June 30, 2022, the Company's guidance is changing as follows:
- Expected consolidated net sales are increased to $50 million-55 million from $40 million-$42 million.
- Expected gross margin as a percentage of net sales is increased to 63%-65% from 58-60%.
- The Company continues its expectation to achieve positive Adjusted EBITDA for fiscal 2022.
2022 Business Drivers
- PureKana (purekana.com) customer acquisition model adding approximately 15,000 new customers per month driving year-to-date growth of 366%% vs. year ago or $22.7 million vs. $4.8 million. According to Brightfield Research Group mid-year 2022 report, this performance makes PureKana a Top 10 brand out of 4,000 brands in the category.
- PureKana expansion of a national salesforce for brick and mortar retail with a differentiated and innovative portfolio.
- TRUBAR’s (truwomen.com) expansion into Costco. By Q3 2022, TRUBAR has secured distribution into 50% of the U.S. based Costco regions with velocities exceeding bar category expectations.
- No B.S. Skincare (livenobs.com) launch into 3,200 CVS stores for Back-to-School migrating to on-shelf presence in September 2022.
- Planned geographic omni-channel expansion into the UK Market in the back half of 2022.
Company Updates
The Company is also providing the updates:
- The Company is making progress in expanding its credit facilities with 2Shores Capital to support growth with its expanding Costco business.
- The Company is holding its Annual General Meeting on July 29, 2022. These materials are available at: https://odysseytrust.com/client/simply/ OR www.sedar.com
- The Company has agreed with CFH to pause work on the potential acquisition due to its current share price and is looking for other ways to achieve some of the benefits identified with this acquisition. These may include a supply arrangement and joint R&D work on new products.