Debra Borchardt
Simply Better Brands Corp. (TSXV: SBBC) (OTCQB: SBBCF) reported its interim financial results for the third quarter ended Sep. 30, during which revenue grew 45% to $19.4 million.
The company noted that the revenue growth was achieved while simultaneously reducing operating expenses by $4.3 million compared to the previous quarter. Simply Better‘s year-to-date revenue of $67.6 million already exceeds the full year 2022 at $65.4 million.
Simply Better delivered a net loss of $600,000 for the third quarter, down $5.7 million from the loss in the second quarter. The improvement in the loss was primarily attributed to the sequential decrease in operating expenses ($4.2 million).
The decrease in operating expenses was driven by a decrease in marketing expenses of $3.6 million on the PureKana and TRUBAR brands, a decrease in impairment of inventories and A/R of $300,000, and a decrease in amortization costs of $200,000.
“As our Q3 2023 financial and commercial results illustrate, we are positioned for continued revenue growth, profit optimization, and debt reduction in 2023,” CEO Kathy Casey said. “Our strategic priorities remain to lead consumer-centric innovation and relentlessly acquire customers to these emerging brands by driving category and omnichannel expansion.”
Casey noted that the company’s “clean ingredient wellness brands” resonated with Generation Z and millennial consumers, with the highest focus being placed on “keeping up with the relentless demand on the unicorn of TRUBAR.”
Revenue Drill Down
Simply Better noted that its revenue is generated by one segment, consumer products, through four main subsidiaries:
- PureKana
- Tru
- BRN (Vibez and Seventh Sense)
- No BS Skincare
The company’s other subsidiaries do not generate material revenue currently.
PureKana’s third-quarter revenue grew to $13 million from last year’s $9.3 million, driven by its marketing investments in the later part of the second quarter to increase new sales and subscriptions.
TRUBAR Protein Bar’s third-quarter revenue jumped to $4.5 million over last year’s $2.8 million. Tru expanded its product line into several additional retailers during the quarter and plans to continue that strategy in the fourth quarter. The 2023 revenue forecast is three times more than the previous period at more than $30 million versus $10 million in 2022.
No BS’ third quarter revenue was $800,000 compared to $700,000.
