- Simply Better Brands (SBBC) experienced year-over-year growth this quarter, with higher revenue and gross margin compared to Q3 2020
- The company also reported increased operating expenses, a net loss of US$6.1 million, and a loss of $0.3 per share
- With new acquisitions made throughout the first nine months, the company has increased its product portfolio and increased its cost of goods
- Shares in Simply Better Brands Corp. (SBBC) are down 0.56 per cent, trading at $5.35 per share
Simply Better Brands (SBBC) experienced year-over-year growth this quarter, with higher revenue and gross margin compared to Q3 2020.
The company also reported increased operating expenses, a net loss of US$6.1 million, and a loss of $0.3 per share.
The majority of the operating costs increase was related to share-based payments, which increased as the first stock compensation grant was issued in July after the company’s shareholder meeting.
Despite these losses and increased expenses, Simply Better Brands reported strong revenue growth for the third quarter. Revenue for the third quarter of 2021 was $3.5 million compared to $2.9 million in the third quarter of 2020.
PureKana’s revenue was flat in the third quarter compared to the same period in 2020, which reversed the revenue decline seen in the previous two-quarters of 35 per cent year-over-year.
Revenue for the first nine months of 2021 was lower than the same period in 2020, coming in at $9.1 million year-to-date compared to $10.6 million in 2020. This decrease was mainly due to the increase in competition of the online CBD sales experienced during the first six months of 2021.
Gross profit for the third quarter of 2021 was $2.0 million compared to $1.8 million in the third quarter of 2020, driven by the lower margins from business-to-business sales.
In addition to expanding its majority-owned CBD subsidiary brand, PureKana, the company has over the past nine months made or announced strategic acquisitions in industry-leading health, wellness, beauty, pet, and lifestyle brands and companies.
In August, the company acquired Tru Brands Inc. and in September closed its acquisition of Crisp Management Group, focusing on the sale and distribution of CBD and Hemp products.
With the addition of Tru Brands, the company saw an increase in the cost of goods sold of 33 per cent in the third quarter to $3.7 million due to a higher mix of business-to-business revenues.
Simply Better Brands currently has a cash balance of $4.1 million as of September 30, 2021, which will provide capital to support the planned growth of the business and for general corporate working capital purposes.
Simply Better Brands leads an international omnichannel platform with diversified assets in the emerging plant-based and holistic wellness consumer product categories.
Shares in Simply Better Brands Corp. (SBBC) are down 0.56 per cent, trading at $5.35 per share as of 3:12 pm EST.