Delivra Health Brands Inc. (TSX-V:DHB) has reported a 34% year-over-year increase in revenue for the second quarter of fiscal 2025, driven by strong sales of its Dream Water product in the United States and Canada.
The health and wellness consumer packaged goods company posted net revenue of $2.75 million for the three-month period ending December 31, 2024, an increase of $704,000 compared to the same period last year.
Revenue growth was primarily attributed to the timing of customer orders for Dream Water, offsetting lower sales of LivRelief infused topical creams in Canada.
The company’s gross profit margin declined from 54% to 47% due to a shift in product mix favoring lower-margin items.
"The company's Q2 2025 results, achieving a 34% increase in revenue compared to the same quarter last year, further demonstrates the company's positive growth trajectory,” Delivra Health CEO Gord Davey said in a statement.
“We remain on track to achieve our commercial and financial objectives for the fiscal year.”
Delivra Health increased its marketing efforts in the fiscal second quarter, contributing to a 22% rise in selling, general, and administrative expenses to $1.54 million.
"During Q2 2025, the company increased its marketing spend and invested in consumer promotional programs across all channels,” Davey said. “This complements our strategy of securing new product listings, expanding Delivra's customer base, and launching key initiatives to drive long-term growth."
Higher marketing expenses resulted in a decrease in adjusted EBITDA, which fell to a loss of $194,000 from a loss of $84,000 in the year-ago quarter.
Shares of Delivra were up 2.5% on Thursday morning at C$0.21.