Delivra Health Brands Inc. (TSX-V:DHB, OTCQB:DHBUF) earlier this week reported growth in its key brands Dream Water and LivRelief, with CEO Gord Davey providing updates on performance, distribution changes, and profitability.
The company told investors that Dream Water's e-commerce sales increased by 74% in the first quarter, while LivRelief recorded a 16% rise over the same period. Davey said these gains were the result of strategic investments in online platforms, including innovations such as product subscriptions and affiliate marketing programs.
Proactive: Dream Water and LivRelief both posted solid growth for the first quarter, especially online. What's driving that performance and how sustainable is this growth as you look ahead to the second half of the year?
Gord Davey: Yes, we have some really good news with our brands, Dream Water and LivRelief, especially on our e-commerce platform. We'll continue to see that grow and drive results as our quarters continue. It's an investment we're consciously making—driving awareness and incremental sales through subscriptions and added innovation we've been adding for both brands. So, we’ll continue to see growth in quarters to come.
E-commerce sales jumped 74% for Dream Water, 16% for LivRelief. How do you see the balance evolving between digital and retail channels? And also, how are you going to strengthen that online momentum?
Again, with our e-commerce channels, we are investing into this channel. When you invest in that channel, you bring more eyes and awareness onto it. It's a channel we can control a little more than retail. We can control pricing, offers, and programs that we offer to people online. We'll continue to invest in those platforms—keyword searches, awareness campaigns, affiliate programs. These are already in place and will continue to drive Dream Water and LivRelief as we go forward.
You mentioned the temporary drop in LivRelief infused sales during its transition to a new distribution partner. What can investors expect from the planned relaunch in early 2026, and how significant could that be to overall revenue?
Yeah, I think that’s really important. We've had great successes in retail and e-commerce with Dream Water and LivRelief, but we’ve had challenges with LivRelief infused. We're transitioning from our agreement with Canopy Growth to a new contract manufacturer. That will allow us to get more products into the market, both in provincial networks and medical platforms. During this transition, we expect added revenue and gross profit through the year, especially in quarters three and four.
Adjusted EBITDA improved to $56,000 this quarter, marking continued positive performance. How confident are you in maintaining or expanding profitability while still investing in marketing, innovation, and new product launches?
We've been doing this for 12 consecutive quarters. We have our formula set. We're very responsible from an SG&A perspective. We keep our costs in line but continue to reinvest back into the company. As our revenues increase, so does our investment in marketing and awareness programs. From a sustainability perspective, our shareholders can be very comfortable that we’ll continue to grow.
Quotes have been slightly edited for style and clarity