VANCOUVER, BC, Jan. 20, 2022 /CNW/ - good natured Products Inc. (the "Company" or "good natured®") (TSX-V: GDNP), a North American leader in plant-based products, today announced preliminary revenue and gross margin estimates for the quarter ending December 31, 2021 ("Q4 2021") and for the year ending December 31, 2021 ("FY2021").
Preliminary revenue for Q4 2021 is anticipated at $21.0 million to $23.0 million, an increase of approximately 300% to 330%, compared to $5.3 million for the three months ended December 31, 2020 ("Q4 2020"). Revenue for FY2021 is expected in the range of $59.3 million and $61.3 million, an increase of approximately 255% to 270%, compared to $16.7 million for the twelve-month period ended December 31, 2020 ("FY2020").
Variable gross margin, a non-GAAP measure1, for Q4 2021 is anticipated to be between 29% and 31% compared to 32.9% for Q4 2020. Variable gross margin for FY2021 is anticipated to be between 30% and 32%, compared to 37.3% for FY2020. Gross margin is estimated to be between 22% and 24% and between 24% and 26% for Q4 2021 and FY2021. The Company plans to release full Q4 2021 results in April 2022.
"We ended 2021 on an extremely positive note by delivering the Company's highest ever quarterly revenue and strongest percentage growth of FY2021. Our preliminary gross margins show an improvement from the third quarter despite supply chain inflation that persisted throughout the remainder of the year," stated Paul Antoniadis, CEO of good natured®. "Our Q4 2021 and FY2021 results are a function of robust demand across our various business segments, driving a strong recurring customer rate, execution on our acquisition strategy, and proactive monitoring and adapting to quickly changing cost structures and supply chain conditions."
Paul further added: "This is a great illustration of our team's unwavering commitment to operational excellence and partnering with customers to deliver timely solutions despite global supply chain disruptions that are critically impacting many peers in our industry. I want to sincerely thank our amazing customers, team members and partners, whose dedication, energy and work ethic helped us end the year on such a high note! We collectively rose to prosper despite macro-economic challenges to deliver a record-setting year of revenue growth and environmental impact. good natured® has a lot of momentum, and I'm very excited for what the future holds!"
1 For more information regarding non-GAAP measures included in this news release, please refer to "Non-GAAP financial measures" below.
The preliminary results set forth above are based on an initial review of the Company's operating and financial results for Q4 2021 and FY2021 and are subject to change. Final reported results could differ from these preliminary results following the completion of quarter-end and year-end accounting procedures, final adjustments and other developments arising between now and the time that the Company's financial results are finalized, and such changes could be material. The Company's independent auditor, Deloitte LLP, has not audited, reviewed, or performed any procedures with respect to the accompanying preliminary financial results and other data, and accordingly does not express an opinion or any other form of assurance with respect thereto. The preliminary results have been prepared by, and are the responsibility of, the Company's management, and were approved by management on January 19, 2022. In addition, these preliminary results are not a comprehensive statement of the Company's financial results for Q4 2021 and FY2021. They should not be viewed as a substitute for audited financial statements prepared in accordance with International Financial Reporting Standards and are not necessarily indicative of the Company's results for any future period.
The good natured® corporate profile can be found at: investor.goodnaturedproducts.com
About good natured Products Inc.
good natured® is passionately pursuing its goal of becoming North America's leading earth-friendly product company by offering the broadest assortment of eco-friendly options made from plants instead of petroleum. We're all about making it easy and affordable for business owners and consumers to switch to better everyday products® made from renewable materials and free from chemicals of concern.
Part of the sustainable consumer goods market, good natured® offers over 400 products and services through wholesale and retail channels, including our own e-commerce stores. From plant-based home organization products to compostable food containers, bioplastic industrial supplies and medical packaging, we're focused on delivering a great customer experience to make more plant-based products readily accessible to more people as the path to deliver meaningful environmental and social impact.
For more information: goodnaturedproducts.com
On behalf of the Company:
Paul Antoniadis – Executive Chair & CEO
1-877-286-0617 ext. 113
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibilities for the adequacy or accuracy of this release.