Delivra Health Brands Inc. (TSX-V:DHB), formerly Harvest One Cannabis, has posted results for the first quarter of fiscal 2023 that saw sustained improvements in its adjusted earnings before interest, taxes, depreciation, and amortization (EBIDTA).
For the period ending September 30, 2022, the Vancouver, British Columbia-based company, reported an adjusted EBITDA loss of $0.15 million, compared to a loss of $0.78 million in the same period in 2021, representing a $0.63 million, or 80% year-over-year improvement from continued operations.
Delivra said the reduction was driven by management's efforts in focusing on “margin improvement” backed by “efficient administrative and selling support functions.” For the quarter the company reported selling, general, and administrative (SG&A) expenses of $1.04 million, compared to $1.49 million in fiscal 1Q 2021.
The company posted net revenue for the quarter of $1.73 million, compared to $2.13 million in the comparable period a year earlier. Delivra explained that the $0.40 million, or 19% reduction in net revenue was mainly due to a reduction in the sales of Dream Water in the US, which was driven by the timing of customer ordering patterns.
"The 1Q of fiscal 2023 reflects our continued progress…and creating shareholder value as we work towards achieving profitability. Despite a reduction in revenue this quarter due to the timing of customer ordering patterns, we improved our gross profit margin to 51% from 33%, in the comparable quarter last year,” said Delivra Health CEO Gord Davey in the results statement.
“We also reduced SG&A expenses by 30% and further improved our Adjusted EBITDA … bringing our financial results closer to a breakeven position,” he added.
Davey noted that the company expected stronger distribution to boost business.
"Our team has increased the distribution of our Dream Water products by partnering with over 2,400 Casey's General Stores, as well as launching our new innovative six-count gummies and Dream Water Immunity shots,” said Davey. “We expect these initiatives to strengthen the company's business in the coming quarters."
The health and wellness consumer packaged goods company’s portfolio features brands like Dream Water and LivRelief, which offers respite from chronic pain, anxiety, and sleeplessness.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive