Delivra Health Brands Reports Continued Revenue Growth and Positive Adjusted EBITDA(1) in FY2025

Rhea-AI Summary

Delivra Health Brands (OTCQB: DHBUF) reported fiscal 2025 results for the 12 months ended June 30, 2025, showing net revenue of $13,370k, up 8% year-over-year from $12,378k. Gross profit rose to $6,778k with a 51% gross margin (vs. 52% in 2024). Adjusted EBITDA was $643k, down from $871k in fiscal 2024, reflecting higher marketing and e-commerce costs.

Brand performance: Dream Water USA & Canada and LivRelief Canada delivered double-digit revenue growth in e-commerce and retail channels, partially offset by lower licensed LivRelief Infused revenues. Fiscal 2025 showed a net loss from continuing operations of $1,190k and operating cash use of $754k.

Positive

• Net revenue +8% YoY to $13,370k
• Gross profit $6,778k (51% margin)
• Dream Water (USA & Canada) achieved double-digit e-commerce and retail growth
• LivRelief Canada posted double-digit e-commerce growth

Negative

• Adjusted EBITDA down to $643k from $871k
• Net loss from continuing operations of $1,190k
• Operating cash used $754k vs. provided $756k prior year
• Expenses (ex non-cash) rose 5% to $6,071k due to higher marketing spend

Dream Water® USA and Dream Water® Canada achieve double digit revenue growth in e-commerce and retail channels

LivRelief™ Canada achieves double-digit revenue growth in ecommerce

Strong Dream Water and LivRelief results partially offset by reduced revenues in LivRelief Infused business. Management implementing new route-to-market strategy to recapture growth

Continued overall net revenue growth of 8% year over year

Increased year over year gross profit in fiscal 2025 vs. fiscal 2024

Vancouver, British Columbia--(Newsfile Corp. - October 6, 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 12 months ended June 30, 2025 ("fiscal 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

"Delivra Health Brands is pleased to report double-digit revenue growth for Dream Water® USA and Dream Water® Canada in our e-commerce and retail channels," said Gord Davey, President and CEO of the Company. "LivRelief™ also finished the year with double-digit growth in our e-commerce channel. These results highlight the growing strength of our brands and the effectiveness of our marketing investments. These strong results were partially offset by a reduction in revenue in our licensed LivRelief™ Infused business, however, we are revising its route-to-market strategy to capitalize on strong consumer demand in both the medical and recreational segments."

Mr. Davey continued, "Looking forward, strong traction with major retail customers, opportunities for global expansion, and a pipeline of innovative of new products give us confidence that we can achieve significantly improved top line and bottom-line results for the Company in the coming year. Our commitment remains clear — delivering breakthrough solutions for consumers while creating sustainable, long-term value for our shareholders."

Financial Highlights

• Net revenue: The Company reported total net revenue of $13,370 in fiscal 2025 as compared to $12,378 in the twelve months ended June 30, 2024 ("fiscal 2024") from continued operations. This 8% increase in net revenue is mainly driven by higher net sales in the USA of $1,535 offset by a decline of $543 in Canada due to reduced activity related to licensed LivRelief™ Infused products and by higher sales activity in LivRelief™ Non-Infused and Dream Water Canada products.

• Gross profit and gross profit margin: The Company reported gross profit of $6,778 and a 51% gross profit margin in fiscal 2025 compared to $6,399 and a 52% gross profit margin in fiscal 2024. The increase in gross profit was the result of increased sales volume and the slight decrease in gross profit margin was the result of change in customer, channel and product mix in addition to higher third-party costs associated with the Company's e-commerce operations and advertising initiatives.

• Expenses including sales, marketing, general, and administrative costs and excluding non-cash items: The Company reported expenses of $6,071 in fiscal 2025 compared to $5,774 in fiscal 2024, representing a $297 or 5% increase for the year. General and administration costs were slightly lower by $110 offset by an increase in sales and marketing costs by $407 and this was mainly driven by the implementation of new marketing campaigns and digital marketing strategies. For example, in November 2024, the Company launched two major campaigns: "Shush Your Mind" for Dream Water® and "Quiets Chronic Pain" for LivRelief™, supporting both short-term sales objectives and long-term brand-building efforts.

• Adjusted EBITDA⁽¹⁾: The Company reported adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") of $643 in fiscal 2025 compared to $871 in fiscal 2024. This decline in Adjusted EBITDA resulted from making additional investments in marketing, innovation and sales programs to support existing product innovation and future sales initiatives.

Summary of Key Financial Results

	For the year ended June 30
($000's, except share and per share amounts)	2025	2024
Continued operations:
Net revenue	$13,370	$12,378
Cost of sales	6,656	5,733
Inventory (recovery) write-down	(64)	246
Gross profit	6,778	6,399
Gross profit margin	51%	52%
Expenses excluding non-cash expenses	6,071	5,774
Depreciation and amortization and share-based compensation	(1,548)	(1,335)
Loss from operations before other (expense) income	(841)	(710)
Other (expense) income	(349)	1,586
Net profit (loss) from continuing operations	(1,190)	876
Net cash provided (used) in operating activities	(754)	756

 

Expenses excluding non-cash items

	For the year ended June 30
($000's, except share and per share amounts)	2025	2024
General and administration	$4,115	$4,225
Sales and marketing	1,956	1,549
Total	6,071	5,774

 

Adjusted EBITDA (non-IFRS measure)⁽¹⁾

	For the year ended June 30
($000's, except share and per share amounts)	2025	2024
Loss from operations	$(841)	$(710)
Inventory (recovery) write-down	(64)	246
Depreciation and amortization	1,268	1,309
Share-based compensation	280	26
Adjusted EBITDA(1)	643	871

 

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  LivRelief^TM. 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 profit or 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 inventories, asset impairment, write-downs and reversals of write-downs, discontinued operations 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 fiscal 2025 dated October 6, 2025 (the "Fiscal 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 Fiscal 2025 MD&A, which is available under the Company's SEDAR+ profile on www.sedarplus.ca.

Notes:

1. 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 Fiscal 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, expectations for improved top line and bottom-line results, traction with major retail customers, opportunities for global expansion, new products and growth of the Company, and creation of sustainable, long-term value for shareholders.

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; consumer demand; the Company's ability to capitalize on consumer demand; 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 Company's Fiscal 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/269159

FAQ

What were Delivra Health (DHBUF) net revenues for fiscal 2025?

Delivra reported $13,370k in net revenue for the 12 months ended June 30, 2025, an 8% increase year-over-year.

Did Delivra Health (DHBUF) report positive EBITDA in fiscal 2025?

Yes. Adjusted EBITDA was $643k in fiscal 2025, down from $871k in fiscal 2024.

How did Dream Water sales perform in fiscal 2025 for DHBUF?

Dream Water USA and Canada achieved double-digit revenue growth in e-commerce and retail channels in fiscal 2025.

Why did Delivra Health's net profit decline in fiscal 2025?

The company reported a $1,190k net loss from continuing operations partly due to increased marketing and e-commerce costs and reduced licensed LivRelief Infused revenues.

What was Delivra Health's operating cash flow in fiscal 2025?

Operating activities used $754k of cash in fiscal 2025, versus providing $756k in fiscal 2024.

How did Delivra Health (DHBUF) expenses change in fiscal 2025?

Expenses excluding non-cash items increased by 5% to $6,071k, driven by higher sales and marketing spend.