Guru Loses $ 2 Million Despite Record Revenue
According to Guru, the net loss notably reflects the additional costs associated with changing its status as a public company (Image: Courtesy)
Guru Organic Energy posted a record third quarter revenue of $ 8.0 million ($ 1 million), which did not prevent the energy drink producer from posting a net loss of $ 2 million. dollars Tuesday.
The Montreal-based company reported a net loss per share of 7 cents for the quarter ended July 31, compared to net income of $ 1.2 million, or 5 cents per share, for the same period a year earlier.
According to Guru, the net loss reflects in particular the additional costs associated with changing its status as a public company. Guru was listed on the Toronto Stock Exchange in November 2020.
Guru said the initiation of field and point-of-sale marketing activities in Ontario, Western Canada and the Atlantic Provinces and the costs associated with implementing measures under the expansion plans also hurt profitability in the fourth quarter.
Guru attributes the 22% annual growth in revenue to a 32% increase in sales in Canada, notably thanks to the increase in the number of outlets. In the United States, sales were down 7% in constant dollars in the third quarter, compared to the same period last year.
Analysts on average expected a loss of 6 cents per share, as well as sales of $ 7.5 million, according to forecasts compiled by financial data firm Refinitiv.
“We are proud to have not only generated record revenues, maintained strong margins and expanded our sales channel network,” said Carl Jewett, President and CEO of Guru, in a statement.
The senior president notably noted the signing of an exclusive Canadian distribution agreement with PepsiCo in June, which is expected to come into effect on October 4.
“This new approach will greatly simplify the CRM and distribution business in Canada and allow us to focus exclusively on sourcing PepsiCo and increasing awareness of the Guru brand,” said Carl Jewett.
Guru also closed a buyout and private placement financing transaction in July, generating total revenues of $ 49.6 million, thereby strengthening its financial position. Mr. Jewett said the company intends to take advantage of this situation to intensify its brand positioning and marketing efforts in North America.