Simply Better Brands FY22 Revenue Grows 319%, What About Profit?

Simply Better Brands Corp. PKANF SBBC released its unaudited financial results for the year ended December 31, 2022, revealing revenue of $65.4 million, an increase of 319% compared to to $15.6 million in 2021.

FY 2022 Financial Highlights

• Gross profit of $44.6 million compared to $9.7 million in 2021.

• Gross profit margin of 68% compared to 62% in 2021.

• Net loss of $11.1 million compared to a net loss of $12.8 million for the twelve months ended December 31, 2021.

• Adjusted EBITDA of $1.2 million, an increase of $4.5 million over the adjusted EBITDA loss for the comparable period in 2021.

Q4 2022 Financial Highlights

• Revenue of $23.0 million, an increase of 254% compared to $6.5 million in Q4 2021.

• Gross profit of $16.1 million compared to $4.3 million in Q4 2021.

• Gross profit maring of 70% compared to 66% in Q4 2021.

• Net loss of $4.2 million compared to a net loss of $4.2 million for the three months ended December 31, 2021.

• Positive adjusted EBITDA of $600,000, an increase of $1.7 million over the adjusted EBITDA loss for the comparable period in 2021.

2023 Outlook

1. The company's expectation for consolidated net sales to exceed $80 million.

2. The company expects gross margin as a percentage of net sales to be between 58% and 60%.

3. The company expects to achieve positive adjusted EBITDA in the range of $3-4 million.

The company reported preliminary sales for the first quarter of fiscal 2023 of $24.8 million compared to $12.1 million in Q1 2022 or a 205% increase. Preliminary gross profit for the first quarter of 2023 is 55% compared to 66% in the first quarter of 2022. The lower gross margin is due to sales channel mix as a larger portion of sales to retailers compared to the prior year's predominantly online sales delivery.

Photo by Tim Foster on Unsplash

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