Delivra Health Brands Inc. (TSX-V:DHB) has reported positive adjusted underlying earnings (EBITDA) for a second consecutive quarter and told investors it expects the trend to continue.
The Vancouver-based company, whose brands include LivRelief and Dream Water, reported third-quarter net revenue of $2.35 million, up from $2.34 million in 3Q 2022, supported by higher sales of Dream Water in the US to international distributors.
Gross profit improved to $961,000, with a gross profit margin of 41%, compared to $914,000 and 39% a year earlier, benefitting from the increased higher-margin sales from the US.
Adjusted EBITDA amounted to $23,000, from a $607,000 loss in 3Q 2022, with the improvement attributed to management’s focus on customer mix, gross profit margin improvement and efficient administrative and selling support functions.
"For the second time this year, the company is profitable from an adjusted EBITDA perspective, for the three months ended March 31, 2023, and we are looking to repeat this moving forward by reinvesting in our business in the form of innovation and new distribution channels," president and CEO Gord Davey said in the results statement.
"As indicated when the company reported on its performance for the three and six months ended December 31, 2022, the company increased its investment in further innovation projects, customer programs and marketing campaigns in Q3 2023, and this is now supporting the company's brands and its future prospects.”
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