The Very Good Food Company Inc. (TSXV: VERY) (OTCQB: VRYYF) (FSE: 0SI) ("VERY GOOD" or the "Company"), a leading plant-based food technology company, is pleased to announce its financial results for its first quarter ended March 31, 2021.
"We have once again reported record quarterly results as a result of growing interest in our brand," said Mr. Scott. "This strong growth trajectory that we have achieved quarter over quarter is driven by our ability to strategically enhance our operational capabilities, optimize our logistics network to meet the increasing demand from our eCommerce channel, and secure new wholesale distribution partnerships to expand our geographical footprint across North America. Overall, sales increased 44% from Q4 2020 supported by production from our Victoria Facility as the Rupert Facility was being commissioned. Our products are expected to be on the shelves of major U.S. retailers starting in October 2021 and in smaller natural chains in August 2021; lockstep with the ramp up of production at our Rupert Facility. We look forward to building upon this success and reaching our 2021 goals, including the capability to fulfill upwards of 5,000 eCommerce orders a week and establishing approximately 15,000 points of distribution in Canada and the U.S. while continuing to build on our position as a leader in the plant-based food industry."
Q1 2021 Financial Highlights
Three months ended March 31, | Three months ended December 31, | Three months ended March 31, | ||||||||||
2021 | 2020 | 2020 | ||||||||||
Revenue by channel | ||||||||||||
eCommerce | $ | 2,185,095 | $ | 1,438,931 | $ | 118,508 | ||||||
Wholesale | 345,905 | 255,276 | 104,912 | |||||||||
Butcher Shop, Restaurant and Other | 112,083 | 142,475 | 115,132 | |||||||||
$ | 2,643,083 | $ | 1,836,682 | $ | 338,552 | |||||||
Gross Profit(1) | $ | 534,120 | $ | 260,472 | $ | (118,500 | ) | |||||
Gross Margin(1) | 20% | 14% | (35%) | |||||||||
Adjusted Gross Profit(1) | $ | 953,372 | $ | 676,709 | $ | (14,986 | ) | |||||
Adjusted Gross Margin(1) | 36% | 37% | (4%) | |||||||||
Adjusted general and administrative expense(1) | $ | 2,422,255 | $ | 2,154,364 | $ | 365,535 | ||||||
Net Loss | $ | (15,028,576 | ) | $ | (5,813,132 | ) | $ | (1,129,986 | ) | |||
Adjusted EBITDA net loss(1) | $ | (5,391,936 | ) | $ | (3,279,266 | ) | $ | (728,443 | ) | |||
Loss per share - basic and diluted | $ | (0.15 | ) | $ | (0.06 | ) | $ | (0.02 | ) | |||
Weighted average number of shares outstanding - basic and diluted | 97,156,969 | 89,689,807 | 45,549,039 |
(1) See "Non-GAAP Measures" below and in our Management's Discussion and Analysis for the three months ended March 31, 2021 and 2020 for further details concerning Gross Profit, Gross Margin, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted general and administrative expense and Adjusted EBITDA including definitions and reconciliations to the relevant reported IFRS measures, which is available under our SEDAR profile at www.sedar.com.
Three months ended March 31, | Three months ended December 31, | Three months ended March 31, | |||||||
2021 | 2020 | 2020 | |||||||
For the period ended: | |||||||||
Production volume sold by channel (units) | |||||||||
eCommerce | 198,170 | 105,874 | 21,558 | ||||||
Wholesale | 67,532 | 44,280 | 21,341 | ||||||
265,702 | 150,154 | 42,899 | |||||||
Number of eCommerce orders | 23,181 | 13,580 | 2,441 | ||||||
As at period end: | |||||||||
Production capacity (lbs) | 20,000 | 20,000 | 8,100 | ||||||
Number of product SKUs manufactured | 19 | 14 | 13 | ||||||
Number of wholesale distribution points | 1,356 | 1,300 | 400 |
Corporate and Operational Highlights
Enhanced Production Capabilities & Scaled Distribution
New Wholesale Retail Distribution Points & Growth Opportunities
Strategic Acquisitions
Strengthened Leadership Team & Advisory Board
Strengthened Brand Awareness & Consumer Engagement
The management's discussion and analysis for the period and the accompanying financial statements and notes are available under the Company's profile on SEDAR at www.sedar.com.
First Quarter 2021 Conference Call Details
VERY GOOD will host a conference call today, Wednesday, May 26, 2021 at 11:00 am Eastern Time/ 8:00 am Pacific Time to discuss the financial results and business outlook.
Conference Call Dial-in Numbers and Webcast Details
* Participants should request The Very Good Food Company Earnings Call.
The call will be available via webcast on the investor page of VERY GOOD's website at www.verygoodfood.com/investors or at this link.
Please visit the website at least 15 minutes before the call to register, download, and install any necessary audio software. A replay of the call will be available on VERY GOOD's investor page approximately two hours after the conference call has ended.
Social Media
VERY GOOD today also announced that it has retained Onefluent Inc., a leader in social based advertising headquartered in Calgary, Alberta, to provide us with investor relations services focused on various social media channels. Onefluent will receive $6,950 per month for their services. The initial term of the engagement runs until July 15, 2021 with optional renewals thereafter. VERY GOOD has the right to terminate the relationship with Onefluent upon 15 days' notice.
About Onefluent Inc.
Onefluent utilizes its proprietary 2-Target Data System, which includes artificial intelligence algorithms and global engagement teams across leading social platforms, to help clients achieve goals from global brand awareness and e-commerce conversions to investor outreach.
About The Very Good Food Company Inc.
The Very Good Food Company Inc. is an emerging plant-based food technology company that produces plant-based meat and other food products that are delicious while maintaining a wholesome nutritional profile. To date we have developed a core product line under The Very Good Butchers brand.
OUR MISSION IS LOFTY, BADASS BUT BEAUTIFULLY SIMPLE: GET MILLIONS TO RETHINK THEIR FOOD CHOICES WHILE HELPING THEM DO THE WORLD A WORLD OF GOOD. BY OFFERING PLANT-BASED FOOD OPTIONS SO DELICIOUS AND NUTRITIOUS, WE'RE HELPING THIS KIND OF DIET BECOME THE NORM.
Forward-Looking Information
This news release contains forward-looking information for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Any such forward-looking information may be identified by words such as "proposed", "expects", "intends", "may", "will", and similar expressions. Forward looking information contained or referred to in this news release includes statements relating to: VERY GOOD's products becoming available on the shelves of major U.S. retailers and in smaller natural chains and the expected timing therefor; VERY GOOD's 2021 goals including the capability to fullfill upwards of 5,000 eCommerce orders a week and establishing 15,000 points of distribution in Canada and in the U.S.; the planned timing for the start of food production on the second line at the Rupert Facility and the numbers of SKUs expected to be produced thereon; the status of VERY GOOD's conversations with U.S. retailers; management's belief that VERY GOOD is well positioned for scalable growth in the U.S.; and the timing for the eCommerce and retail launch of The Very Good Cheese Co. products. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information, but which may prove to be incorrect including, but not limited to, material assumptions with respect to the continued strong demand for VERY GOOD's products, the successful placement of VERY GOOD's products in retail stores, the availability of sufficient financing on reasonable terms to fund the Company's capital requirements and the ability to obtain necessary equipment, production inputs and labour. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because VERY GOOD can give no assurance that such expectations will prove to be correct. Risks and uncertainties that could cause actual results, performance or achievements of VERY GOOD to differ materially from those expressed or implied in such forward-looking information include, among others, negative cash flow and future financing requirements to sustain and grow operations, limited history of operations and revenues and no history of earnings or dividends, expansion of facilities, competition, availability of raw materials, dependence on senior management and key personnel, general business risk and liability, regulation of the food industry, change in laws, regulations and guidelines, compliance with laws, unfavourable publicity or consumer perception, product liability and product recalls, risks related to intellectual property, difficulties with forecasts, management of growth and litigation, as well as the impact of, uncertainties and risks associated with the ongoing COVID-19 pandemic, many of which are beyond the control of VERY GOOD. For a more comprehensive discussion of the risks faced by VERY GOOD, please refer to VERY GOOD's Management's Discussion & Analysis for the fiscal years ended December 31, 2020 and 2019 filed with Canadian securities regulatory authorities at www.sedar.com. The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of VERY GOOD based on information currently available. Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, VERY GOOD disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.
The TSX Venture Exchange has neither approved nor disapproved the contents of this news release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
The Very Good Food Company
Mitchell Scott
Chief Executive Officer and Director
Investor Contact:
Kevan Matheson
Corporate Communications and Investor Relations
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Phone: +1 855-472-9841
Phil Carlson / Erika Kay
KCSA Strategic Communications
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Phone: 212-896-1233
Media Contact:
Anne Donohoe
KCSA Strategic Communications
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Phone: 212-896-1265
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