Delivra Health Brands Inc V.DHB

HARVEST ONE POSITVE UPDATES & FWD LOOKING VISION

[Humanist]

Harvest One and its Brands LivRelief (TM) and Dream Water (TM) Report Continued Positive Results for Fiscal Q1 2022
 
by @newsfile on 29 Nov 2021, 07:45
   
Ongoing strategic focus on transformation to a health and wellness CPG company that is uniquely positioned in the cannabis space providing well-respected brands and innovative products to the emerging marketplace
Improved net revenue with 12% growth quarter-over-quarter despite on-going COVID travel restrictions
Improved gross profit margin, 33% in fiscal Q1 2022 vs. 29% in fiscal Q1 2021
Selling, general and administrative ("SG&A") expenses reduced by 37% quarter-over-quarter
Improved adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA")⁽¹⁾ by 51% quarter over quarter
Innovative excellence with the successful launch of Dream Water ^TM gummies in the U.S.

Vancouver, British Columbia--(Newsfile Corp. - November 29, 2021) - Harvest One Cannabis Inc. (TSXV: HVT) (OTCQB: HRVOF) ("Harvest One" or the "Company"), a uniquely positioned cannabis-infused health and wellness consumer packaged goods ("CPG") leader, with brands LivRelief ^TM and Dream Water ^TM, is pleased to announce its fiscal Q1 2022 financial and operating results for the three months ended September 30, 2021.

Management Commentary
"Our first quarter results for fiscal 2022 demonstrate that Harvest One continues to be relentless in our objectives to increase revenue while simultaneously reducing operating and overhead expenditures to increase our profitability," said Gord Davey, President and Chief Executive Officer of Harvest One. "Our strategy is working. We are executing on our existing and newly signed sales, distribution and marketing agreements, and continuing to bring new and innovative products to the market. We are pleased to see the positive results of our strategic repositioning of the Company and equally excited with our plans moving forward. We are in the process of negotiating additional agreements that, if and when completed, may result in many new customers, distribution partners, products and channels. Furthermore, we are committed to maintaining rigorous fiscal responsibility."

Financial and Operating Highlights for the Quarter
Expanded Marketing and Distribution Agreements

1. Distribution in the Caribbean, Central America and the Travel Retail/Cruise Channel
   On July 20, 2021, the Company announced that it had signed a three-year renewable marketing and distribution agreement for international market expansion with WB Canna Co. & Wellness, a leading CBD and wellness products distributor in the Caribbean, Central America, and the travel retail/cruise channel. This partnership will enhance the Company's growth and brand expansion and increase it revenues in 2022.
2. Engagement of Marketing Service Provider
   On July 26, 2021, the Company announced that it engaged an arm's length service provider, Jonathan Carroll and his firm, Global Solutions Team, to provide strategic advisory and consulting services to the Company.

Product Development and Licensing

1. Licence Agreement with The Valens Company
   On July 28, 2021, the Company announced that its wholly-owned subsidiary, Delivra Inc., granted Valens Agritech Ltd., a wholly owned subsidiary of The Valens Company, a leading manufacturer of cannabis products, an exclusive two-year licence to manufacture, distribute and sell infused LivRelief™ branded topicals in Canada. The partnership with The Valens Company is expected to accelerate national and global growth opportunities and scale the manufacturing of LivRelief™ branded topicals and future product extensions.
2. Launch of Dream Water ^TM Sleep Gummies
   On August 25, 2021, the Company announced that its Dream Water ^TM brand launched a new line of sleep gummies in the American market. The launch of Dream Water ^TM sleep gummies is expected to increase growth in the Company's traditional distribution and retail channels and improve overall channel penetration by leveraging the Company's expertise in branding, marketing and distribution.

Financial Highlights

• Net revenue: The Company reported total net revenue from continued operations of $2.13 million in fiscal Q1 2022, approximately a 12% increase over the $1.90 million reported in fiscal Q1 2021. The quarter-over-quarter increase in net revenue is driven by higher sales of Dream Water™ in Canada and the US and higher LivRelief™ sales in Canada of non-infused products.

• Gross profit and gross profit margin: The Company reported gross profit of $0.70 million and a gross profit margin of 33% from continued operations in fiscal Q1 2022 as compared to $0.54 million or 29% in fiscal Q1 2021. This increase results from operational improvements, cost alignment projects, and reduction in financial inventory write-downs.

• Expenses including SG&A and excluding non-cash items: The Company reported expenses from continuing operations of $1.48 million in fiscal Q1 2022 as compared to $2.34 million in fiscal Q1 2021, representing a 37% reduction. This decrease was driven by management's actions to reduce costs and overhead to improve profitability.

• Adjusted EBITDA⁽¹⁾: The Company reported Adjusted EBITDA from continued operations of $(0.77) million in fiscal Q1 2022 compared to $(1.60) million in fiscal Q1 2021, representing a $0.83 million or 51% year over year improvement. This increase resulted from an increase in sales, margin improvements and reductions in SG&A and overheads.

Summary of Key Financial Results


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Adjusted EBITDA (non-GAAP measures)  


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Expenses excluding non-cash items


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Outlook
Management anticipates sales volumes, net revenues, and Adjusted EBITDA⁽¹⁾ to improve throughout the next quarter due to continued infused topical sales, expanded distribution coverage, product launch initiatives, branding initiatives, improvements in gross profit, and a continued focus on reducing overhead costs.