Delivra Health and its Brands LivRelief(TM) and Dream Water(TM) Report Results for Second Quarter of Fiscal 2025
Rhea-AI Summary
Delivra Health Brands Inc. (TSXV: DHB) (OTCQB: DHBUF) reported its Q2 2025 financial results, showcasing a 34% net revenue growth to $2,754, up $704 from the same quarter last year. The growth was primarily driven by higher sales of Dream Water® in the U.S. and Canada.
Key financial metrics include:
- Gross profit of $1,294 with a 47% margin (down from 54% last year)
- Increased SG&A expenses of $1,544, up 22% year-over-year
- Adjusted EBITDA of $(194) compared to $(84) in the same period last year
The company increased marketing investments and consumer promotional programs across all channels. Six-month results showed total net revenue of $5,917, a 3% increase, while gross profit decreased to $2,891 with a 49% margin. Management remains confident in achieving their commercial and financial objectives for the fiscal year.
Positive
- 34% quarterly revenue growth to $2,754
- Higher Dream Water sales in U.S. and Canada
- Gross profit increased to $1,294
Negative
- Gross profit margin declined from 54% to 47%
- Adjusted EBITDA decreased to $(194) from $(84)
- Marketing expenses increased 22%
- Lower sales of LivRelief infused products in Canada
News Market Reaction – DHBUF
In the trading session that priced this news, DHBUF declined 2.61%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Net revenue growth of
Significantly increased investments in marketing and consumer promotional programs to increase awareness of offered solutions
On track to achieving commercial and financial objectives for fiscal year
Vancouver, British Columbia--(Newsfile Corp. - February 27, 2025) - Delivra Health Brands Inc. (TSXV: DHB) (OTCQB: DHBUF) ("Delivra Health" or the "Company"), a consumer packaged goods company uniquely positioned in the health and wellness sector, is pleased to announce its financial and operating results for the three and six months ended December 31, 2024 ("Q2 2025"). The Delivra Health portfolio features innovative brands Dream Water® and LivRelief™, which deliver relief from common health issues such as sleeplessness, chronic pain and anxiety.
Management Commentary
"The Company's Q2 2025 results, achieving a
Financial Highlights for the Three Months Ended December 31, 2024
(Expressed in thousands of Canadian dollars, except share and per share amounts)
Net revenue: In the three months ended December 31, 2024, the Company reported total net revenue of
Gross profit and gross profit margin: In the three months ended December 31, 2024, the Company reported gross profit of
Expenses including selling, general and administrative ("SG&A") expenses and excluding non-cash items: In the three months ended December 31, 2024, the Company reported expenses of
Adjusted EBITDA(1): In the three months ended December 31, 2024, the Company reported Adjusted EBITDA of
Financial Highlights for the Six Months Ended December 31, 2024
(Expressed in thousands of Canadian dollars, except share and per share amounts)
Net revenue: In the six months ended December 31, 2024, the Company reported total net revenue of
Gross profit and gross profit margin: In the six months ended December 31, 2024, the Company reported year-to-date gross profit of
Expenses including SG&A expenses and excluding non-cash items: In the six months ended December 31, 2024, the Company reported expenses of
Adjusted EBITDA(1): In the six months ended December 31, 2024, the Company reported Adjusted EBITDA of
Summary of Key Financial Results
| For the three months ended December 31 | For the six months ended December 31 | |||
| ( | 2024 | 2023 | 2024 | 2023 |
| Continued operations: | $ | $ | $ | $ |
| Net revenue | 2,754 | 2,050 | 5,917 | 5,722 |
| Cost of sales | 1,404 | 871 | 2,944 | 2,542 |
| Inventory write-down | 56 | 75 | 82 | 153 |
| Gross profit | 1,294 | 1,104 | 2,891 | 3,027 |
| Expenses excluding non-cash expenses | 1,544 | 1,263 | 3,149 | 2,579 |
| Depreciation and amortization and share based compensation | 397 | 327 | 794 | 662 |
| Total expenses | 1,941 | 1,590 | 3,943 | 3,241 |
| Loss from operations | (647) | (486) | (1,052) | (214) |
| Other (expense) income | (165) | (163) | (236) | (207) |
| Net gain (loss) from continued operations | (812) | (649) | (1,288) | (421) |
| Net gain (loss) per share - basic | (0.03) | (0.02) | (0.04) | (0.02) |
Adjusted EBITDA(1) (non-IFRS measure)
| For the three months ended December 31 | For the six months ended December 31 | |||
| ( | 2024 | 2023 | 2024 | 2023 |
| Loss from operations | (647) | (486) | (1,052) | (214) |
| Inventory write-down | 56 | 75 | 82 | 153 |
| Depreciation and amortization | 326 | 326 | 652 | 659 |
| Share-based compensation | 71 | 1 | 142 | 3 |
| Adjusted EBITDA(1) | (194) | (84) | (176) | 601 |
Expenses excluding non-cash items
| For the three months ended December 31 | For the six months ended December 31 | |||
| ( | 2024 | 2023 | 2024 | 2023 |
| General and administration | 969 | 933 | 1,911 | 1,846 |
| Sales and marketing | 575 | 330 | 1,238 | 733 |
| Total | 1,544 | 1,263 | 3,149 | 2,579 |
About Delivra Health Brands Inc.
Helping people take control of their health with alternative wellness solutions is what energizes the Delivra Health team! The Delivra Health portfolio features innovative brands like Dream Water® and LivRelief™, which deliver relief from common everyday issues like chronic pain, anxiety, and sleeplessness. Delivra Health products have allowed millions of customers to reclaim their mobility, energy, and in turn, quality of life. The websites of the Company's two subsidiaries are Dream Water® and LivReliefTM. For more information, please visit www.delivrahealthbrands.com.
Non-IFRS Measures, Reconciliation and Discussion
This press release contains references to "Adjusted EBITDA" which is a non-International Financial Reporting Standards ("IFRS") financial measure. Adjusted EBITDA is a measure of the Company's loss from operations before interest, taxes, depreciation, and amortization and adjusted for share-based compensation, common shares issued for services, fair value effects of accounting for biological assets and inventories, asset impairment and write-downs, and other non-cash items, and is a non-IFRS measure.
This measure can be used to analyze and compare profitability among companies and industries, as it eliminates the effects of financing and capital expenditures. It is often used in valuation ratios and can be compared to enterprise value and revenue. This measure does not have any standardized meaning according to IFRS and, therefore, may not be comparable to similar measures presented by other companies.
There are no comparable IFRS financial measures presented in Delivra Health's financial statements. Reconciliations of the supplemental non-IFRS measure are presented in the Company's management discussion and analysis for the three and six months ended December 31, 2024 (the "Q2 2025 MD&A"). This non-IFRS financial measure is presented because management has evaluated the financial results both including and excluding the adjusted items and believes that the non-IFRS financial measure presented provides additional perspective and insights when analyzing the core operating performance of the business. The Company believes that the supplemental measure provides information which is useful to shareholders and investors in understanding the Company's performance and may assist in the evaluation of the Company's business relative to that of its peers.
The non-IFRS financial measure should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with the IFRS financial measures presented in the Company's financial statements. For more information, please see "Adjusted EBITDA (non-IFRS measure)" and "Non-IFRS Measures" in the Q2 2025 MD&A, which is available under the Company's SEDAR+ profile on www.sedarplus.ca.
Notes:
- This is a non-IFRS reporting measure. For a reconciliation of this measure to the nearest IFRS measure, see "Adjusted EBITDA (non-IFRS measure)" and "Non-IFRS Measures" in the Q2 2025 MD&A.
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates, and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements include, among other things, statements with respect to the Company's products offering relief from chronic pain, anxiety, and sleeplessness, impacts of the Company's latest marketing campaigns, expectations regarding increases in the Company's revenues and profitability, the Company's growth objectives, growth in new markets, and new distribution channels.
These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to materially differ from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: fluctuations in general macroeconomic conditions; fluctuations in securities markets; expectations regarding the size of the cannabis markets where the Company operates; changing consumer habits; the ability of the Company to successfully achieve its business objectives; plans for expansion; political and social uncertainties; inability to obtain adequate insurance to cover risks and hazards; employee relations and the presence of laws and regulations that may impose restrictions on cultivation, production, distribution, and sale of cannabis and cannabis-related products in the markets where the Company operates. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
Additional information regarding this and other risks and uncertainties relating to the Company's business are contained under the heading "Risk Factors" in the Company's annual information form dated March 2, 2021, and under the heading "Risks and Uncertainties" in the Q2 2025 MD&A filed under the Company's profile on SEDAR+ at www.sedarplus.ca.
Neither TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accept responsibility for the adequacy or accuracy of this release.
Investor Relations:
Jack Tasse
Chief Financial Officer
IR@delivrahealth.com
1-877-915-7934
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/242592