Selected financial and operating information are outlined below and should be read with the Company's consolidated financial statements and related management's discussion and analysis for the year ended
SBBC generated revenue of
"Our 2023 performance was highlighted by the continued robust growth of TRUBARTM which further expanded its distribution footprint across
2023 YEAR KEY COMMERCIAL HIGHLIGHTS
- TRUBARTM Protein Bar: TRUBARTM revenue was
$24.7 million in 2023 compared to$10.6 million in 2022, an increase of$14.1 million . Growth of the brand in 2023 was driven by continued multi-channel distribution expansion to a growing list of major retailers in convenience, grocery, ecommerce and club channels led by Costco.. To support its retail expansion, TRUBARTM signed a strategic agreement with Acosta, a full-service sales agency with deep CPG brand experience and added a second manufacturing facility to its supply chain to meet growing product demand. - No B.S. Skincare: Following its online launch and exclusive sale at livenobs.com and Amazon, the No B.S. brand became available at retail in TJ Maxx locations in Q2 2023 followed by a national launch into Walgreen's in Q4 2023 across 3,400 locations.
FINANCIAL HIGHLIGHTS FOR YEAR ENDED
For the twelve months ended
Operating costs for the twelve months ended
During the twelve months ended
For the three months ended
Operating costs for the three months ended
During the three months ended
Non-IFRS Measures (EBITDA and Adjusted EBITDA)
EBITDA and Adjusted EBITDA are non-IFRS measures used by management that are not defined by IFRS. EBITDA and Adjusted EBITDA do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Management believes that EBITDA and Adjusted EBITDA provide meaningful and useful financial information as these measures demonstrate the operating performance of the business excluding non-cash charges.
"EBITDA" is calculated as earnings before interest, taxes, depreciation, depletion and amortization. "Adjusted EBITDA" is calculated as EBITDA adjusted for non-cash, extraordinary, non-recurring and other items unrelated to the Company's core operating activities.
The most directly comparable measure to EBITDA and Adjusted EBITDA calculated in accordance with IFRS is net loss. The following table presents the EBITDA and Adjusted EBITDA for the twelve months ending
For the years ended | ||||
Change in | ||||
$ | $ | $ | % | |
Net loss | (24.30) | (12.30) | (12.00) | 49 % |
Amortization | 3.80 | 4.70 | (0.90) | (24 %) |
Depreciation | - | 0.10 | (0.10) | 100 % |
Finance costs | 2.30 | 1.40 | 0.90 | 39 % |
Income tax recovery | - | (1.00) | 1.00 | 100 % |
EBITDA | (18.20) | (7.10) | (11.10) | |
Acquisition-related costs | - | 0.20 | (0.20) | 100 % |
Acquisition costs paid by common shares | - | 0.20 | (0.20) | 100 % |
Fair value adjustment of derivative liability | (0.20) | (0.10) | (0.10) | 50 % |
Impairment of intangible assets | 1.00 | 1.60 | (0.60) | (60 %) |
Impairment of goodwill | 10.90 | - | 10.90 | 100 % |
Impairment of inventories | 0.10 | 0.20 | (0.10) | (100 %) |
Impairment of plant and equipment | - | 0.20 | (0.20) | 100 % |
Impairment of receivable | 0.20 | 0.10 | 0.10 | 50 % |
Gain on settlement of the milestone shares | - | (0.40) | 0.40 | 100 % |
Share-based payments | 2.00 | 4.30 | (2.30) | (115 %) |
Consulting fees to be paid by shares | - | 0.30 | (0.30) | 100 % |
Shares issued for services | - | 0.40 | (0.40) | 100 % |
Warrants issued for services | - | 0.10 | (0.10) | 100 % |
Write-off of advance payments | 0.30 | 0.50 | (0.20) | (67 %) |
Non-recurring expenses | 1.20 | - | 1.20 | 100 % |
Adjusted EBITDA | (2.70) | 0.50 | (3.20) |
The Company had an Adjusted EBITDA loss of
The most directly comparable measure to EBITDA and Adjusted EBITDA calculated in accordance with IFRS is net loss. The following table presents the EBITDA and Adjusted EBITDA for the three months ended
For the three months ended | ||||
Change in | ||||
$ | $ | $ | % | |
Net loss | (14.60) | (5.40) | (9.20) | 63 % |
Amortization | 0.70 | 3.30 | (2.60) | (371 %) |
Finance costs | 0.60 | 0.50 | 0.10 | 17 % |
Income tax recovery | - | (1.00) | 1.00 | 100 % |
EBITDA | (13.30) | (2.60) | (10.70) | |
Fair value adjustment of derivative liability | (0.10) | - | (0.10) | 100 % |
Impairment of intangible assets | 0.80 | 1.60 | (0.80) | (100 %) |
Impairment of goodwill | 10.90 | - | 10.90 | 100 % |
Impairment of inventories | (0.10) | 0.20 | (0.30) | 300 % |
Impairment of plant and equipment | - | 0.20 | (0.20) | 100 % |
Share-based payments | 0.40 | 0.80 | (0.40) | (100 %) |
Consulting fees to be paid by shares | - | 0.30 | (0.30) | 100 % |
Shares issued for services | - | (0.10) | 0.10 | 100 % |
Warrants issued for services | - | 0.10 | (0.10) | 100 % |
Write-off of advance payments | 0.20 | 0.10 | 0.10 | 50 % |
Non-recurring expenses | 0.40 | - | 0.40 | 100 % |
Adjusted EBITDA | (0.80) | 0.60 | (1.40) |
The Company had an Adjusted EBITDA loss of
Readers are cautioned that EBITDA and Adjusted EBITDA should not be construed as an alternative to net income as determined under IFRS; nor as an indicator of financial performance as determined by IFRS; nor a calculation of cash flow from operating activities as determined under IFRS; nor as a measure of liquidity and cash flow under IFRS. The Company's method of calculating EBITDA and Adjusted EBITDA may differ from methods used by other companies and, accordingly, the Company's EBITDA and Adjusted EBITDA may not be comparable to similar measures used by any other company. Except as otherwise indicated, EBITDA and Adjusted EBITDA are calculated and disclosed by SBBC on a consistent basis from period to period. Specific adjusting items may only be relevant in certain periods.
See also Earnings before Interest, Taxes, Depreciation, and Amortization ("EBITDA") and Adjusted EBITDA (Non-GAAP Measures) in the Company's management discussion and analysis for the year ended
Liquidity and Capital Resources
The Company's primary liquidity and capital requirements are for inventory and general corporate working capital purposes. The Company had a cash balance of
The Company continues to focus on improving its working capital position through a number of initiatives including equity and convertible debt private placements, issuance of promissory notes and establishment of lines of credit for its subsidiaries.
Private Placements
In
The Company also announced on
Convertible Debentures
The Company paid down
Line of Credit Facilities
Additionally, the Company has secured several lines of credit facilities for three of its subsidiaries to support the financing of purchase orders from key customers. These lines of credit have been critical to finance the large retail purchase orders the Company's subsidiaries have successfully generated during the twelve months ended
Promissory Notes
During the three months ended
The Company's ability to fund operating expenses will depend on its future operating performance which will be affected by general economic, financial, regulatory, and other factors including factors beyond the Company's control (See "Risk and Uncertainties").
Management continually assesses liquidity in terms of the ability to generate sufficient cash flow to fund the business. Net cash flow is affected by the following items: (i) operating activities, including the level of accounts receivable, other receivable, accounts payable, accrued liabilities and unearned revenue and deposits; (ii) investing activities (iii) financing activities.
About
Simply Better Brands Corp. is an international omni-channel platform with a portfolio of diversified assets in the rapidly growing plant-based, natural, and clean ingredient space. The Company targets informed, health conscious Millennial and Generation Z consumers with a focus opportunities for expansion into high-growth consumer product categories. For more information on
Neither the
Forward-Looking Information
Certain statements contained in this news release constitute "forward-looking information" and "forward looking statements" as such terms are used in applicable Canadian securities laws. Forward-looking statements and information are based on plans, expectations and estimates of management at the date the information is provided and are subject to certain factors and assumptions, including, among others, that the Company's financial condition and development plans do not change as a result of unforeseen events, the regulatory climate in which the Company operates, and the Company's ability to execute on its business plans. Specifically, this news release contains forward-looking statements relating to, but not limited to: expansion plans for TRU Brands products, and success of the Company's marketing efforts.
Forward-looking statements and information are subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking statements and information. Factors that could cause the forward-looking statements and information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions referred to prove not to be valid or reliable, that occurrences such as those referred to above are realized and result in delays, or cessation in planned work, that the Company's financial condition and development plans change, ability to obtain necessary regulatory approvals for proposed transactions, as well as the other risks and uncertainties applicable to the plant-based food, clean ingredient skincare and plant-based wellness or broader wellness industries and to the Company, and as set forth in the Company's management's discussion and analysis available under the Company's SEDAR+ profile at www.sedarplus.com.
The above summary of assumptions and risks related to forward-looking statements in this news release has been provided in order to provide shareholders and potential investors with a more complete perspective on the Company's current and future operations and such information may not be appropriate for other purposes. There is no representation by the Company that actual results achieved will be the same in whole or in part as those referenced in the forward-looking statements and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.
SOURCE
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