Naturally Splendid Enterprises Ltd, the health and wellness group, said it was shifting the focus to growing its NATERA plant-based food line as it reported second-quarter numbers.
The company, which offers brands like Natera Sport, Natera Hemp Foods and various plant-based alternatives to meat, told investors that the three months to June 30 had been busy and seen it reduce its contract manufacturing business to focus on producing more of its own brands, which will mean greater margins.
READ: Naturally Splendid says NATERA plant-based products to launch at Denny’s restaurants across Canada
The company has also established a comprehensive distribution network that covers Canada coast to coast, it said.
"I am pleased to report that we have achieved several significant milestones including securing a ten (10) year exclusive manufacturing and distribution agreement with Australia's largest plant-based food manufacturer and a Canada-wide launch of selected NATERA plant-based entrees with Denny's Restaurants," said CEO Craig Goodwin in a statement.
"The move to manufacturing NATERA Plant Based Foods in Canada has many advantages. Most notably a significant reduction in cost of goods produced, thus creating additional food service and retail opportunities, as well as increased margins," he added.
The company is currently retrofitting its existing Safe Quality Food (SQF) Certified food manufacturing facility in British Columbia.
As reported previously, NATERA Seasoned Chick-Un Tenders and NATERA Chick-Un Nuggets are coming to 71 Denny's restaurants across Canada starting later this fall.
Naturally Splendid has also announced that Bar One, a restaurant under the Denny's Canada brand, will be offering these same NATERA plant-based, meat-alternative entrees at all 13 locations in B.C. and Alberta.
In the three months to June 30, revenue came in at C$216,661 compared to C$305,381 in the same period of 2020, while the net loss was C$1.007 million compared to a loss of C$1.108 million in 2Q, 2020.
Gross profit margins increased by 5% of sales in the six months to end-June, compared to the first six months of 2020, predominately due to increased profit margins in the new plant-based sales, said Naturally Spendid.
Contact the writer at giles@proactiveinveestors.com