John Schroyer
Canada-based health and wellness company Delivra Health Brands Inc. (TSXV: DHB) (OTCQB: DHBUF) turned a modest profit of C$226,000 in its first fiscal quarter of 2024, which ended Sept. 30 this year, the company reported this week.
That already beats the company’s entire 2023 fiscal year, in which it lost C$184,000, inching Delivra into the black in its first three months of fiscal 2024.
Revenue more than doubled year-over-year, up 112% to C$3.6 million from C$1.7 million in Delivra’s first fiscal quarter for 2023, which brought Delivra’s bottom line from a loss of C$381,000 a year ago into profitable territory.
“Our commitment to Delivra Health shareholders to increase revenue has been achieved with a substantial increase in net revenue of 112% year over year and a strong margin of 52%,” CEO Gord Davey said in a statement. “Delivra will continue to invest in customer-specific programs and its e-commerce strategy, launching innovation products and improving distribution across several channels.”
The Delivra portfolio primarily relies on its non-cannabis product lines Dream Water and LivRelief, along with an infused topical line under the LivRelief brand name, with products that have CBD and THC. The company’s focus is on “relief from common health issues such as sleeplessness, chronic pain, and anxiety.”
U.S. sales of Dream Water – which utilizes melatonin and other non-cannabis-based ingredients – drove the revenue increase year-over-year, Delivra reported.
But as sales went up, so did expenses. Delivra reported operating expenses of C$1.3 million, up from C$1 million a year prior.
As of Sept. 30, Delivra had C$10.8 million in total assets, including C$2.9 million in cash, against C$7.1 million in total liabilities.
