Tickers: PINX:NSPDF, XTSX:NSP
Tags: #Biotechnology, #MedicinalMarijuana
Vancouver, British Columbia - TheNewswire - August 28, 2019 - Naturally Splendid Enterprises Ltd. ("Naturally Splendid", "NSE" or "the Company") (FRANKFURT:50N) (TSXV:NSP) (OTC:NSPDF) announces its unaudited financial results for the six months ended June 30, 2019. All amounts are in Canadian dollars and are prepared in accordance with International Financial
Reporting Standards.
Naturally Splendid recorded sales of $1,723,541 during the six months ended June 30, 2019, compared to $804,502 for the six months ended June 30, 2018. The Company's sales increased by approximately $919,000 representing a 114% increase over the same period last year. The Company continued to experience increases in branded product sales such as Natera Sport(TM), which accounted for approximately $316,000 in increased sales, and Prosnack business accounting for approximately $603,000 in increased sales compared to the six months ended June 30, 2018.
Revenues more than doubled over the same period last year and Gross Profit Margins are approximately 31% of sales. Selling and distribution costs of $705,363 increased due to the increase in sales and inventory write-downs. Administrative expenses decreased to $2,449,138. The increase in sales is mainly due to growth in the Prosnack private label bars and bites business.
Naturally Splendid recorded a net loss from continuing operations of $1,581,077 for the six months ended June 30, 2019, compared to a net loss from continuing operations of $3,069,704 during the six months ended June 30, 2018. The decrease in net loss was mainly due to the Share-based payments of $66,852 issued for the six months ended June 30, 2019, compared to the Black-Sholes value of Share-based payments for the six months ended June 30, 2018 of $776,902.
Gross profits increased by approximately 106% for the six months ended June 30, 2019 at $531,496 (30.8% of sales) compared to $257,741 (32.0%) for the six months ended June 30, 2018. Cost of Sales during the six months ended June 30, 2019 was $1,192,045 compared to $546,761 in the six months ended June 30, 2018. The Company continues to maintain an approximate 31% gross margin for the six months ended June 30, 2019.
The Company's manufacturing facility in Pitt Meadows, which focuses on developing and manufacturing nutritional bars and bites, has received Safe Quality Food Level 2 (SQF2) certification. SQF2 certification is required by certain major retailers as well as is a designation that many Contract Manufacturing Clients require. The certifications attained and additional manufacturing equipment commissioned at Naturally Splendid's Pitt Meadows facility allows the Company to focus on higher margin product opportunities.
Statements of Loss Data | For the Three Months Ended June 30, 2019 | For the Three Months Ended June 30, 2018 $ | For the Six Months Ended June 30, 2019 | For the Six Months Ended June 30, 2018 $ |
Revenue | 950,738 | 483,675 | 1,723,541 | 804,502 |
Cost of sales | 668,776 | 329,238 | 1,192,045 | 546,761 |
Gross profit | 281,962 | 154,437 | 531,496 | 257,741 |
Selling and distribution expenses | (429,421) | (199,746) | (705,363) | (428,468) |
Administrative Expenses | (1,363,522) | (1,510,393) | (2,449,138) | (2,898,550) |
Other Income (loss) and taxes | 1,033,869 | 4,001 | 1,041,928 | (427) |
Discontinued Operations | - | - | - | 5,071,223 |
Net Income (Loss) | (477,112) | (1,551,701) | (1,581,077) | 2,001,519 |
Basic and Diluted Earnings (Loss) Per Share | (0.00) | (0.02) | (0.01) | .02 |
Market opportunities remain strong for Company Branded Products domestically with a vision to expand international distribution. Naturally Splendid's recently launched Natera(TM) Sport Key-to-Life Keto Bars were strong contributors to the increase in sales for the quarter. It is expected that new company branded products under development and scheduled for launch soon, are expected to positively impact revenue. Products such as Natera(TM) Sport Bites are already gaining notoriety having appeared in an international sporting publication and are indicative of the growing roster of NSE branded products that are adding to the sales of the Company.
The Company continues to pursue Processor Licensing approval under the Cannabis Act
for its Pitt Meadows facility. Once fully licensed, this will allow NSE to
increase food manufacturing capabilities to include infused foods within the evolving cannabis edible regulations. This, in combination with the reputation the Company is earning in the market as a premium food manufacturer, positions the Company as an early mover as CBD (cannabidiol) regulations continuously evolve in Canada, and in many regions throughout the world.
Naturally Splendid CEO Mr. Craig Goodwin states, "The Company continues to position itself as a premium food manufacturer having recently received our SQF Level 2 certification in Pitt Meadows. We continue to scale up operations to accommodate increased demand in Contract Manufacturing, as well as for our Company Branded products. This strategy of diverse, yet complimentary revenue streams, has led to a significant increase in top line revenue. Given that SQF2 certification was only just received this past July, we are well positioned to continue our growth as seen in the last two quarters".
Naturally Splendid's financial statements can be viewed at: www.SEDAR.com
About Naturally Splendid Enterprises Ltd.
Naturally Splendid is a biotechnology and consumer products company that is developing, producing, commercializing, and licensing an entirely new generation of plant-derived, bioactive ingredients, nutrient-dense foods, and related products. Naturally Splendid is focused on the commercial uses of industrial hemp, and once regulations allow, in permitting jurisdictions, this will include CBD (cannabidiol), and other cannabinoid compounds in a broad spectrum of applications.
For more information e-mail info@naturallysplendid.com or call Investor Relations at 604-673-9573
On Behalf of the Board of Directors
Mr. Craig Goodwin
CEO, President, Director
Contact Information
Naturally Splendid Enterprises Ltd.
(NSP - TSX Venture; NSPDF - OTCQB; 50N Frankfurt)
#108-19100 Airport Way
Pitt Meadows, BC, V3Y 0E2
Office: (604) 465-0548
Fax: (604) 465-1128
E-mail: info@naturallysplendid.com
Website: www.naturallysplendid.com
Forward-Looking Statements
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Naturally Splendid cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond Naturally Splendid's control including, Naturally Splendid's ability to compete with large food and beverage companies; sales of any potential products developed will be profitable; sales of shelled hemp seed will continue at existing rates or increase; the ability to complete the sales of all bulk hemp seed purchase orders; and the risk that any of the potential applications, including its application to become a Licensed Dealer, may not receive all required regulatory or legal approval. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, Naturally Splendid undertakes no obligation to publicly update or revise forward-looking information.
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