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Labor Smart, Inc. Shareholder Letter - Q1 2025 From the Office of the CEO

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Labor Smart Inc reported significant Q1 2025 results, marking its transformation from a single-brand DTC business to a diversified beverage and wellness conglomerate. Q1 revenue reached $3.39 million, a remarkable 1300% year-over-year increase. The growth was primarily driven by the acquisition of Creager Mercantile, which expanded the company's presence to over 9,000 retail locations. Despite the revenue surge, the company reported a net loss due to strategic investments in personnel, marketing, legal work, and infrastructure. The company is executing a growth-through-acquisition strategy, focusing on building high-margin brands and developing channel-agnostic distribution strategies across various sectors including retail, school districts, hotels, and on-premise locations.
Labor Smart Inc ha riportato risultati significativi nel primo trimestre del 2025, segnando la sua trasformazione da un'azienda DTC a marchio singolo a un conglomerato diversificato nel settore delle bevande e del benessere. I ricavi del primo trimestre hanno raggiunto 3,39 milioni di dollari, con un notevole aumento del 1300% rispetto all'anno precedente. La crescita è stata principalmente guidata dall'acquisizione di Creager Mercantile, che ha ampliato la presenza dell'azienda a oltre 9.000 punti vendita. Nonostante l'incremento dei ricavi, l'azienda ha riportato una perdita netta a causa di investimenti strategici in personale, marketing, attività legali e infrastrutture. La società sta attuando una strategia di crescita tramite acquisizioni, concentrandosi sulla costruzione di marchi ad alto margine e sullo sviluppo di strategie di distribuzione indipendenti dal canale, in diversi settori tra cui retail, distretti scolastici, hotel e punti vendita on-premise.
Labor Smart Inc reportó resultados significativos en el primer trimestre de 2025, marcando su transformación de un negocio DTC de marca única a un conglomerado diversificado de bebidas y bienestar. Los ingresos del primer trimestre alcanzaron los 3,39 millones de dólares, un notable aumento interanual del 1300%. El crecimiento fue impulsado principalmente por la adquisición de Creager Mercantile, que amplió la presencia de la empresa a más de 9,000 puntos de venta. A pesar del aumento de ingresos, la empresa reportó una pérdida neta debido a inversiones estratégicas en personal, marketing, asuntos legales e infraestructura. La compañía está ejecutando una estrategia de crecimiento mediante adquisiciones, enfocándose en construir marcas de alto margen y desarrollar estrategias de distribución independientes del canal en varios sectores, incluyendo retail, distritos escolares, hoteles y ubicaciones on-premise.
Labor Smart Inc는 2025년 1분기 실적을 발표하며 단일 브랜드 DTC 비즈니스에서 다각화된 음료 및 웰니스 그룹으로의 전환을 알렸습니다. 1분기 매출은 339만 달러에 달했으며, 이는 전년 대비 1300%의 놀라운 증가입니다. 이 성장은 주로 Creager Mercantile 인수에 힘입어 회사의 매장 수가 9,000개 이상의 소매점으로 확대된 데서 비롯되었습니다. 매출 급증에도 불구하고 인력, 마케팅, 법률 업무 및 인프라에 대한 전략적 투자로 인해 순손실을 기록했습니다. 회사는 인수합병을 통한 성장을 추진하며 고마진 브랜드 구축과 소매, 학군, 호텔, 온프레미스 등 다양한 분야에서 채널에 구애받지 않는 유통 전략 개발에 집중하고 있습니다.
Labor Smart Inc a annoncé des résultats significatifs pour le premier trimestre 2025, marquant sa transformation d'une entreprise DTC à marque unique en un conglomérat diversifié dans les secteurs des boissons et du bien-être. Le chiffre d'affaires du premier trimestre a atteint 3,39 millions de dollars, soit une augmentation remarquable de 1300 % par rapport à l'année précédente. Cette croissance a été principalement portée par l'acquisition de Creager Mercantile, qui a étendu la présence de l'entreprise à plus de 9 000 points de vente. Malgré cette hausse du chiffre d'affaires, l'entreprise a enregistré une perte nette en raison d'investissements stratégiques dans le personnel, le marketing, les aspects juridiques et l'infrastructure. La société met en œuvre une stratégie de croissance par acquisitions, en se concentrant sur la construction de marques à forte marge et le développement de stratégies de distribution indépendantes des canaux, dans divers secteurs tels que la vente au détail, les districts scolaires, les hôtels et les sites sur place.
Labor Smart Inc meldete bedeutende Ergebnisse für das erste Quartal 2025 und markierte damit den Wandel von einem DTC-Unternehmen mit einer einzigen Marke zu einem diversifizierten Konzern im Bereich Getränke und Wellness. Der Umsatz im ersten Quartal erreichte 3,39 Millionen US-Dollar, was einem bemerkenswerten 1300%igen Anstieg gegenüber dem Vorjahr entspricht. Das Wachstum wurde hauptsächlich durch die Übernahme von Creager Mercantile vorangetrieben, die die Präsenz des Unternehmens auf über 9.000 Einzelhandelsstandorte ausweitete. Trotz des Umsatzanstiegs meldete das Unternehmen einen Nettoverlust aufgrund strategischer Investitionen in Personal, Marketing, Rechtsangelegenheiten und Infrastruktur. Das Unternehmen verfolgt eine Wachstumsstrategie durch Akquisitionen, mit Fokus auf den Aufbau margenstarker Marken und die Entwicklung kanalunabhängiger Vertriebsstrategien in verschiedenen Sektoren, darunter Einzelhandel, Schulbezirke, Hotels und On-Premise-Standorte.
Positive
  • Revenue surged to $3.39 million in Q1 2025, representing a 1300% YoY growth
  • Strategic acquisition of Creager Mercantile expanded presence to over 9,000 retail locations
  • Enhanced distribution infrastructure through strategic acquisitions
  • Diversification from single-brand DTC to multi-brand, multinational beverage conglomerate
Negative
  • Company reported a net loss in Q1 2025
  • Ongoing dilution due to funding needs for acquisitions
  • Increased expenses from strategic investments impacting profitability
  • Complex balance sheet cleanup still in progress

JACKSON, WY / ACCESS Newswire / May 21, 2025 / Dear Shareholders,

As we close out the first quarter of 2025, I want to take a moment to acknowledge the progress we've made and the path ahead. The transformation of Labor Smart from a single-brand, direct-to-consumer business into a diversified, multinational beverage and wellness conglomerate is well underway. Though the numbers in this quarter may not yet fully reflect the scale of our ambitions, they reveal a company gaining real momentum-built on strategy, structure, and execution.

Turning a Corner

Q1 revenue surged to $3.39 million, representing a year-over-year increase of more than 1300%. This explosive growth didn't happen by accident-it is a direct result of our shift in vision and the disciplined execution of our growth-through-acquisition strategy.

Through the acquisition of Creager Mercantile, we've immediately expanded our footprint into over 9,000 retail locations. This was not just an acquisition of revenue-it was an acquisition of infrastructure, relationships, and access. We now control a critical piece of the supply chain, giving us the distribution backbone needed to build and scale multiple brands under one roof.

From Lockd'In to Go Fast and More!

Our roots as a single-brand, direct-to-consumer company served their purpose. But our future lies in building and acquiring high-margin brands, developing channel-agnostic distribution strategies, and unlocking institutional and B2B revenue across independent stores, chain retail, school districts, hotels, and on-premise locations.

We've paired this innovation with a refreshed marketing push for Go Fast Energy, aligning it with an omnichannel growth strategy. These efforts signal a focused intent: not just to participate in the consumer goods market-but to lead it.

Managing the Growth Curve

We are under no illusions-turnarounds are difficult. Growth comes with complexity, and complexity often comes before profitability. We closed the quarter with a net loss, but it's critical to understand why: our expenses reflect strategic investments in personnel, marketing, legal work, and infrastructure required to scale. We are confident that these short-term costs will yield long-term returns.

At the same time, we have been aggressive in cleaning up our balance sheet. Carefully balancing the cost of expansion with a careful blend of equity and debt, that will be offset by significantly increased revenues and improved margins that will scale with profitability as we strategically attack liabilities and dilution with this transformation of the company. This is all part of a long-term strategy that will make sense in the coming quarters. We remain committed to thoughtful capital deployment. While some dilution is necessary to fund key acquisitions and partnerships, shareholder value remains a top priority. We will create a strategy and eventually execute the plan that will enhance the cap table while improving the value to the shareholder.

Looking Ahead

Labor Smart is no longer just a company with a vision-we are a company with traction. With each quarter, you will see further progress: more revenue, more brands, deeper market penetration, and growing alignment between our operational model and financial performance.

Our north star is sustainable profitability. And while that won't happen overnight, it will happen-with discipline, execution, and your continued support.

Thank you for believing in our transformation. The journey isn't easy-but the destination is worth it.

Sincerely,
Brad Wyatt
Chief Executive Officer
Labor Smart, Inc.

About Labor Smart, Inc.

Labor Smart Inc. (OTC PINK:LTNC) is a forward-thinking brand development and product innovation company specializing in the consumer packaged goods industry. The Company is committed to delivering high-quality products that resonate with consumers while driving growth through strategic partnerships and market expansion. Focused on the snack and beverage sectors, Labor Smart aims to meet the evolving demands of today's consumers with innovative, convenient, and high-quality offerings.

Forward-Looking and Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the federal securities laws. These statements, which include the Company's new name, ticker symbol, and transformation, involve risks and uncertainties that could cause actual results to differ materially from those expressed. These statements are based on current expectations and assumptions, which are subject to various risks. Labor Smart, Inc. assumes no obligation to update or revise any forward-looking statements, except as required by law.

Contact Information
Investor Relations
ir@laborsmartinc.com

SOURCE: Labor Smart, Inc.



View the original press release on ACCESS Newswire

FAQ

What was Labor Smart's (LTNC) revenue in Q1 2025?

Labor Smart reported Q1 2025 revenue of $3.39 million, representing a 1300% year-over-year increase.

How many retail locations does Labor Smart (LTNC) have after acquiring Creager Mercantile?

Through the acquisition of Creager Mercantile, Labor Smart expanded its footprint to over 9,000 retail locations.

Was Labor Smart (LTNC) profitable in Q1 2025?

No, Labor Smart reported a net loss in Q1 2025 due to strategic investments in personnel, marketing, legal work, and infrastructure.

What is Labor Smart's (LTNC) current business transformation strategy?

Labor Smart is transforming from a single-brand direct-to-consumer business into a diversified beverage and wellness conglomerate through acquisitions and development of high-margin brands.

What brands does Labor Smart (LTNC) currently operate?

The company operates brands including Lockd'In and Go Fast Energy, with plans to build and acquire more high-margin brands.
Labor Smart Inc

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20.36M
16.74B
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Beverages - Non-Alcoholic
Consumer Defensive
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United States