Delivra Health Brands Inc. (TSX-V:DHB) has reported positive adjusted EBITDA for the fiscal third quarter, reflecting continued momentum driven by marketing efforts across its Dream Water and LivRelief brands.
Adjusted EBITDA for the quarter ending March 31 came in at $124,000.
While this marked a decrease from $246,000 in Q3 of fiscal 2024, the company attributed the change to its strategic investment in marketing and changes in product and customer mix.
"Our strategic marketing initiatives are increasing brand awareness and product offerings of our over-the-counter LivRelief brand well beyond expectations,” Delivra Health CEO Gord Davey said in a statement.
“The new campaign, ‘Quiets Chronic Pain,’ generated strong impressions and engagement across multiple platforms, contributing significantly to a 21% year-over-year increase in units sold-rising to approximately 95,000 units this year from 78,000 last year.”
First quarter revenue was $3.1 million, an increase from $3.07 million in the same period last year.
Revenue growth during Q3 was led by a $428,000 rise in Dream Water sales in the United States offset by a decline in Canadian revenue due to reduced activity in the licensed LivRelief Infused channel as the company refined its market strategy.
“The company will continue its efforts in evaluating its licensed LivRelief Infused channel in the fourth quarter of fiscal 2025 with a new go-to-market strategy to be implemented in fiscal 2026,” Davey noted.
Gross profit for the quarter rose slightly to $1.55 million, with gross profit margin steady at 50%.
Delivra Health highlighted that the improvement in gross profit came despite a shift in customer and product mix, supported by fewer inventory write-downs compared to the same period last year.
Additionally, the company has expanded its Dream Water line in Canada with new Sleep Shot flavours and Sleep Gummies in 6- and 60-count packs. The products target multiple retail channels and have been well received by major retailers including Shoppers Drug Mart, Loblaws, Circle K, and airport outlets.