Good Natured Products Inc. Announces Update to Cost Reduction Initiative
good natured Products Inc. announces additional corporate cost reductions to achieve annualized savings of approximately $3 million, aiming to manage costs against challenging macroeconomic conditions. The Company has completed reductions in various areas, including wages and administrative expenses, with estimated one-time expenses of $450,000.
Positive
Annualized savings of approximately $3 million expected from corporate cost reductions.
Reductions in wages and administrative expenses to optimize resources.
One-time expenses of around $450,000 associated with the cost reductions.
Efforts to better manage costs in response to challenging macroeconomic conditions.
02/14/2024 - 08:22 AM
Vancouver, British Columbia--(Newsfile Corp. - February 14, 2024) - good natured Products Inc. (TSXV: GDNP) (OTCQB: GDNPF) (the "Company" or "good natured® "), a North American leader in plant-based products, today announced that building on its previously announced Industrial cost reductions, additional steps have been taken by the Company, with further savings to be realized.
The Company has completed corporate cost reductions in a variety of functional areas, including wages and selling, general and administrative expenses, which are expected to result in annualized savings of approximately $1.8 million . When combined with the previously announced Industrial cost reductions, annualized savings in aggregate are expected to total approximately $3 million . The Company has taken these actions to better manage its cost structure against macroeconomic conditions that remain challenging and have impacted demand in the Industrial business sector and led to some volatility in order-flow and timing of new customer onboarding. The Company estimates it will incur approximately $450,000 in one-time expenses associated with these reductions.
"We have carefully reviewed each functional capability to ensure we have the right resources in the right places to effectively serve our customers," stated Paul Antoniadis, CEO of good natured ®. "This capability review will better position the Company to manage its resources and may highlight additional areas for efficiency improvements."
About good natured Products Inc. good natured ® is passionately pursuing its goal of becoming North America's leading earth-friendly product company by offering the broadest assortment of plant-based products made from rapidly renewable resources instead of fossil fuels. The Company is focused on making it easy and affordable for business owners and consumers to shift away from petroleum to better everyday products ® that use more renewable materials, less fossil fuel, and no chemicals of concern.
good natured ® offers over 400 products and services through wholesale, direct to business, and retail channels. From plant-based home organization products to certified compostable food containers, bio-based industrial supplies and medical packaging, the Company is focused on making plant-based products more readily accessible to people to create meaningful environmental and social impact.
For more information: goodnaturedproducts.com
On behalf of the Company:
Investor Contact: invest@goodnaturedproducts.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibilities for the adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
This news release contains certain "forward-looking information" and "forward-looking statements" (collectively, "forward looking information") that are based on expectations, estimates and projections as at the date of this news release. The statements and information in this release regarding expectations for future plans and objectives of the Company are forward-looking information. Any statements that involve 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 information and are intended to identify forward-looking information. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Important factors that could cause actual results and financial conditions to differ materially from those indicated in the forward-looking statements include, among others:
The risk that the anticipated level of cost savings is not achieved Risks relating to general economic, market and business conditions When relying on the Company's forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. For further information concerning these and other risks
and uncertainties, refer to the Company's filings on SEDAR.com. The Company has assumed that the material factors referred to herein will not cause such forward-looking statements and information to differ materially from actual results or events. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
Other than as required under securities laws, we do not undertake to update this information at any particular time. Forward-looking information contained in this news release is based on our current estimates, expectations, and projections, which we believe are reasonable as of the current date. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. All forward-looking information contained in this news release is expressly qualified in its entirety by this cautionary statement.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/197890
What cost reductions has good natured Products Inc. announced?
good natured Products Inc. has announced corporate cost reductions in various functional areas, including wages and administrative expenses.
How much annualized savings are expected from the cost reductions?
The cost reductions are expected to result in annualized savings of approximately $3 million for good natured Products Inc.
What one-time expenses are associated with the reductions?
The Company estimates it will incur around $450,000 in one-time expenses related to the cost reductions.
Why did the Company take these actions?
The Company took these actions to better manage its cost structure against challenging macroeconomic conditions impacting demand in the Industrial business sector.
