Smart for Life Announces FY 2021 Financial Results
Company Achieves
Completed Three Material Acquisitions in Last Six Months of the Year
Currently Operating at a
MIAMI, April 01, 2022 (GLOBE NEWSWIRE) -- Smart for Life, Inc. (Nasdaq: SMFL) (“Smart for Life” or the “Company”), a global leading developer, marketer, and manufacturer of nutritional and related products, today announced financial results and provided a business update for the year ended December 31, 2021.
“2021 was a transformational year for the Company as revenue increased more than four-fold mainly as the result of acquisitions that closed in 2021, in addition to significantly expanding our product lines, production capabilities, distribution and marketing capabilities,” stated A.J. Cervantes, Jr., Smart for Life’s Executive Chairman. “Most notably, we have now completed four major acquisitions since our formation, which not only validates our ability to acquire accretive businesses at attractive multiples, but also our ability to successfully integrate these companies within our organization.”
“It is notable that three of our acquisitions closed toward the end of 2021. Consequently, our above results only include partial year results for some of our subsidiaries,” commented Mr. Cervantes. “For example, the acquisitions of Nexus and GSP Nutrition both closed after November 1, 2021, and thus only include a partial quarter of operations in our consolidated results. Taking this into account, we are now currently at a
As a company in the health and wellness sector, Smart for Life is benefiting from the overall nutraceutical industry, which is projected to grow from approximately
Smart for Life’s first major acquisition was Bonne Santé Natural Manufacturing (BSNM), completed in March of 2018, a nutraceutical contract manufacturer. This acquisition includes a state-of-the-art, FDA-certified facility, which provides in-house manufacturing capabilities to scale the business more rapidly. BSNM specializes in a wide variety of products, from the private labeling of vitamins, dietary supplements, nutraceuticals, sport nutrition and broad-spectrum nutritional supplements, and sells them throughout the United States and around the world, including South America, Central America and Europe.
Smart for Life’s next acquisition was Doctors Scientific Organica (DSO), completed in July of 2021. DSO sells and owns the Smart for Life brand of natural health and wellness meal replacement products. The Company plans to leverage DSO’s established retail distribution channels across our other product lines, which includes big box retailers such as Costco, Walmart, BJs Sam’s Club and others. This acquisition also further enhances the Company’s in-house manufacturing capacity, while providing predictable, high margin revenue from contract manufacturing for third-party brands. Smart for Life’s third acquisition of Nexus Offers, Inc., completed in November 2021, provides a first-class digital marketing platform to accelerate the Company’s growth. This network consists of hundreds of digital marketers, which the Company can leverage along with Nexus’ technology and marketing expertise, to drive awareness and revenues across all of the Company’s product lines. Rounding out Smart for Life’s acquisitions in 2021, the Company acquired GSP Nutrition in December, which has the exclusive license to the Sports Illustrated Nutrition™ brand (excluding the Sports Illustrated Swimsuit brand for which it has a right of first offer under the license) for certain dietary and nutritional supplements, in each case to be sold through certain approved accounts in the United States and Canada. GSP’s growing product line consists of whey protein powder, joint health, pre- and post-workout blends, omega-3 supplements, and other targeted formulations for athletes and health-conscious consumers alike.
“As an illustration of our constant growth through M&A, earlier this month we announced a definitive agreement to acquire yet another company, Ceautamed Worldwide, owner of the Greens First line of nutritional products, including antioxidant rich supplements, plant-based protein, alkalizing nutrients and products designed for weight management,” continued Mr. Cervantes. “Our strategy is to migrate their manufacturing to our wholly owned, state-of-the-art manufacturing facility, which will result in immediate cost savings. We plan to leverage our relationships with big box retailers, our global distribution channels, as well as our digital marketing platform to further accelerate Ceautamed’s growth.”
Mr. Cervantes concluded, “Overall, we are executing on a carefully orchestrated strategy and each of the pieces is falling into place. Moreover, our balance sheet is stronger than ever, as we raised gross proceeds of
Financial Results
Revenues increased to
About Smart for Life, Inc.
Smart for Life, Inc. (Nasdaq: SMFL) is engaged in the development, marketing, manufacturing, acquisition, operation and sale of a broad spectrum of nutritional and related products with an emphasis on health and wellness. Structured as a global holding company, the Company is executing a buy-and-build strategy with serial accretive acquisitions creating a vertically integrated company with an objective of aggregating companies generating a minimum of
Video regarding the Company’s manufacturing facility at Bonne Santé Natural Manufacturing is available at: www.bonnesantemanufacturing.com/video.
Investor material and a Fact Sheet with additional information about Smart for Life is available at: www.smartforlifecorp.com/investor-center.
Forward-Looking Statements
This press release may contain information about our views of future expectations, plans and prospects that constitute forward-looking statements. All forward-looking statements are based on management’s beliefs, assumptions and expectations of Smart for Life’s future economic performance, taking into account the information currently available to it. These statements are not statements of historical fact. Although Smart for Life believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Smart for Life does not undertake any duty to update any statements contained herein (including any forward-looking statements), except as required by law. No assurances can be made that Smart for Life will successfully acquire its acquisition targets. Forward-looking statements are subject to a number of factors, risks and uncertainties, some of which are not currently known to us, that may cause Smart for Life’s actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial position. Actual results may differ materially from the expectations discussed in forward-looking statements. Factors that could cause actual results to differ materially from expectations include general industry considerations, regulatory changes, changes in local or national economic conditions and other risks set forth in “Risk Factors” included in our filings with the Securities and Exchange Commission.
Disclaimer
The information provided in this press release is intended for general knowledge only and is not a substitute for professional medical advice or treatment for specific medical conditions. Always seek the advice of your physician or other qualified health care provider with any questions you may have regarding a medical condition. This information is not intended to diagnose, treat, cure or prevent any disease.
Investor Relations Contact
Crescendo Communications, LLC
Tel: (212) 671-1021
SMFL@crescendo-ir.com