Delivra Health Brands Inc. (TSX-V:DHB, OTCQB:DHBUF, FRA:3F0) earlier this week discussed its latest quarterly results, highlighting the impact of geopolitical tensions on operating conditions while pointing to continued growth in key areas of the business.
Speaking with Proactive, chief executive officer Gord Davey said the company's third-quarter and nine-month results reflected broader global challenges, including rising tariffs, increased shipping costs and higher insurance expenses. While those factors weighed on performance, Davey indicated that management remains focused on areas where it can directly influence outcomes.
Proactive: You're out with your three and nine-month financials ending March 31. Looking at the numbers, it's really a snapshot of what the world is facing right now with what's going on in the Middle East. Costs are rising and companies are finding ways to keep up with all of this. That's reflected in your numbers, right?
Gord Davey: I think you're exactly right. Those geopolitical conflicts are out of our control and we have to focus on what we can control. We've experienced increased tariff costs, increased costs of goods and higher costs associated with moving products around the world. Insurance costs have also risen. However, this is a moment in time. It's one quarter within five years of progress that Delivra Health Brands has been making. We recognize the challenges and see a clear pathway forward as the conflict subsides.
You do a lot of business in the Middle East, and many people are not venturing out to stores. One of the positives in the numbers was your e-commerce business. That's something you're pleased to see.
Again, I go back to what we're able to control. Our e-commerce business is an area where we have greater control over content and customer engagement. We've focused on the factors that drive our business. Innovation is also helping because we have more products to sell. More people are ordering online as those trends continue, and Delivra Health Brands is benefiting from that growth.
The company reported a 13% increase year to date and a 32% increase over the same period last year. As you said, it's a moment in time, and you're expecting improvement as the geopolitical situation evolves.
I think that's right. Hope isn't really a strategy, so we have concrete plans in place as the conflict subsides. We have new innovation coming out, new customers coming on board and our North American business is growing. We're focused on the areas we can control, and as the factors outside our control improve, we believe better times are ahead.
Quotes have been lightly edited for style and clarity