Simply Better Brands Reports Adjusted EBITDA Loss In Q2, CEO Confident In Revenue & Profit Growth For 2023

Simply Better Brands Corp. SBBC PKANF reported on Tuesday interim financial results for the three months ended June 30, 2023.

"As our Q2 2023 financial and commercial results illustrate, we are positioned for continued revenue growth, profit improvement, and debt reduction in 2023,"  Kathy Casey, SBBC CEO, said. "Our strategic priorities remain to lead consumer-centric innovation and relentlessly acquire customers to these emerging brands by driving category and channel expansion."

Q2 2023 Financial Highlights

• Revenue totaled $23.6 million, representing an increase of $6.7 million or 40% growth compared to $16.9 million in the second quarter of 2022.
• Gross profit was $13.7 million (58%) compared to $11.7 million (69%) in the second quarter of 2022.
• Gross profit margin was down 11 percentage points over the gross profit in the comparable period of 2022, driven by a higher mix of B2B sales in the second quarter of 2023 compared to the second quarter of 2022
• Operating costs were $18.4 million, an increase of $4.9 million (or 36%), compared to $13.5 million in the second quarter of 2022.
• Other expenses were $1.6 million compared to additional costs of $0.4 million in the second quarter of 2022, or an increase of $1.2 million.
• Net loss amounted to $6.3 million, up by $3.6 million over the loss in the previous period and is primarily related to the increase in operating expenses ($3.6 million) during the quarter.
• Adjusted EBITDA came in negative at $2.4 million, compared to a positive adjusted EBITDA of $900 000 in the same quarter of last year.

2023 Outlook

• Consolidated net sales are expected to exceed $80 million.
• Gross margin as a percentage of net sales to be between 58% and 60%.
• Achieving positive adjusted EBITDA in the range of $3-4 million.

"Even with our marketing and capability investments in Q2, we remain confident in delivering the current 2023 outlook of $80 million in revenue and $3-4 million in adjusted EBITDA at a gross margin target range of 58-60%," Casey said.

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