Delivra Health Brands Q3 Revenue Declines 19% YoY, What About Adjusted EBITDA?

Delivra Health Brands Inc. DHBUF DHB (formerly, Harvest One Cannabis Inc.) , released its financial and operating results for the three months ended September 30, 2022, revealing net revenue of CA$1.73 million ($1.28 million) compared to CA$2.13 million in the same period in the prior year. The CA$400,000 or 19% reduction in net revenue was mainly due to a reduction in the sales of Dream Water in the US, which was driven by the timing of customer ordering patterns.

Q3 Financial Highlights

• Gross profit of CA$880,000 and a 51% gross profit margin compared to CA$710,000 and a 33% gross profit margin from continued operations in same period last year.

• Net loss from continuing operations was CA$381,000 compared to net loss of CA$1.45 million in Q3 2021.

• Adjusted EBITDA of CA$154,000 compared to CA$778,000 in the same period last year, representing a CA$0.63 million or 80% year over year improvement from continued operations.

"The first quarter of fiscal 2023 reflects our continued progress of executing on our key objectives and creating shareholder value as we work towards achieving profitability. Despite a reduction in revenue this quarter due to the timing of customer ordering patterns, we improved our gross profit margin to 51% from 33%, in the comparable quarter last year. We also reduced selling, general and administrative expenses by 30% and further improved our adjusted earnings before interest, taxes, depreciation and amortization to CA$154,000 from CA$778,000 in the same period last year, bringing our financial results closer to a breakeven position which is a milestone for a health and wellness company operating in a very competitive environment," stated Gord Davey, president and CEO of Delivra Health.

Davey continued, "Furthermore, our team has increased the distribution of our Dream Water products by partnering with over 2,400 Casey's General Stores CASY, as well as launching our new innovative six count gummies and Dream Water Immunity shots. We expect these initiatives to strengthen the company's business in the coming quarters."

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