January 12, 2021 — (Vancouver, BC) good natured Products Inc. (the “Company” or “good natured®”) (TSX-V: GDNP), a North American leader in plant-based products and packaging, today announced preliminary revenue and gross margin estimates for the fiscal quarter ending December 31, 2020 (“Q4 2020”) and for the fiscal year ending December 31, 2020 (“FY2020”).
Preliminary revenue for FY2020 is anticipated at $16.4 million to $16.7 million, an increase of 62% to 65% compared with the year ended December 31, 2019. Gross margins for FY2020 are estimated between 35.5% and 37.5% compared to 34.4% for the year ended December 31, 2019. The Company expects to release its audited FY2020 financial results in April 2021.
Reported revenue for Q4 2020 is expected to be between $5.0 million to $5.3 million, an increase of 98% to 110% compared with the fiscal quarter ended December 31, 2019. Gross margin for Q4 2020 is estimated between 34% and 36% compared to 33.1% for the fiscal quarter ended December 31, 2019.
“We ended 2020 on a very strong note, with revenues doubling year-over-year in Q4 2020 and gross margins remaining strong,” stated Paul Antoniadis, CEO of good natured®. “Our team and partners demonstrated their commitment and executed extremely well. We completed two highly strategic and accretive acquisitions, delivered material organic growth from net new customers and added to our product assortment to drive cross-selling opportunities to our existing customer base. These accomplishments, amidst unprecedented macro-economic conditions, shows the value creation inherent in our business model and positions the Company for strong growth in 2021 and beyond.”
The preliminary results set forth above are based on an initial review of the Company’s operating and financial results for the fourth quarter and fiscal year ended December 31, 2020 and are subject to change. Final reported results could differ from these preliminary results following the completion of 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 8, 2021. In addition, these preliminary results are not a comprehensive statement of the Company’s financial results for the quarter and fiscal year ended December 31, 2020. 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 producing and distributing one of North America’s widest assortments of better everyday products® made with the highest possible percentage of renewable, plant-based materials and no BPAs, phthalates or other chemicals of concern potentially harmful to human health and the environment.
With a growing assortment of over 385 products and services, good natured® creates eco-friendly home and business products, food packaging, restaurant/take-out containers, medical and industrial supplies designed to do good for the planet, good for human health and good for business by driving incremental sales, minimizing waste and reducing environmental impact, all bundled up in a fresh and approachable brand.
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.
Cautionary Statement Regarding Forward-Looking Information
Information regarding preliminary revenue results contained in this press release may constitute forward-looking information within the meaning of securities laws. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement.
The financial outlook provided in this press release is provided to provide early guidance on the fourth quarter and fiscal year financial performance of the Company and readers are cautioned that this information may not be appropriate for any other purpose. In preparing the financial outlook, the Company completed an initial review of operations for the quarter and fiscal year ended December 31, 2020, however actual results may differ materially from the financial outlook provided in this press release as the financial outlook has not been audited or reviewed. When relying on the Company’s forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed that the material factors referred to herein will not cause such forward-looking statements and information to differ materially from actual results or events. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
Other than as required under securities laws, we do not undertake to update this information at any particular time.
Forward-looking information contained in this news release is based on our current estimates, expectations and projections, which we believe are reasonable as of the current date. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. All forward-looking information contained in this news release is expressly qualified in its entirety by this cautionary statement.