Décevant comme trimestre, on comprend maintenant pourquoi Naturally Splendid a acheté l’équipement d’emballages (nouvelle du 26 sept.) Naturally Splendid Signs Letter of Intent to Acquire Packaging Equipment
Naturally Splendid loses $637,830 in Q3
2016-11-21 17:53 ET - News Release
Mr. Craig Goodwin reports
NATURALLY SPLENDID REPORTS OVER $6.3 MILLION IN 2016 YTD REVENUE
Naturally Splendid Enterprises Ltd. has released its unaudited financial results for the nine months ended Sept. 30, 2016. All amounts are in Canadian dollars and are prepared in accordance with international financial reporting standards.
Naturally Splendid recorded $1,235,580 in revenue during the third quarter of 2016 (2016 YTD: $6,333,460). This represents a significant increase in revenue compared to the third quarter of 2015, which amounted to $200,571 (2015 YTD: $310,523). The significant increase in top line revenue was mainly due to bulk sales of hemp products to Korea and POS BPC commencing operations in the second quarter of 2016.
Naturally Splendid previously announced it received purchase orders totalling $9.2 million for fiscal 2016 (see news release dated July 21, 2016) and recorded sales of $7.26 million for fiscal 2016 (see news release dated July 25, 2016). Naturally Splendid was unable to fulfill the purchase orders and realize these sales in the third quarter due to production bottlenecks by the third party processor as well as working capital constraints. However, the third party processor has now resolved the production challenges and is consistently reaching targeted outputs of finished product. CEO, Mr. Craig Goodwin reports, “It was a frustrating quarter to say the least since the Company had secured the significant purchase orders along with the necessary inputs. In fact, the third party processor is prepared to further increase production to match demand as Naturally Splendid secures new purchase orders”.
Gross profit for the third quarter of 2016 amounted to $375,483 or 30% of sales (2016 YTD: $2,052,219 - 32%) and net loss was $637,830 (2016 YTD: $210,460). These amounts also represent significant improvements over the 2015 third quarter gross profit of $38,758 - 19% of sales (2015 YTD: $10,072 - 3%) and net loss of $891,033 (2015 YTD: $3,096,805).
Naturally Splendid CEO Mr. Craig Goodwin states, “We’ve experienced significant growth in gross revenue in 2016, though bulk sales slowed in the third quarter. With completion of the Company’s final tranche of the private placement, we received an additional $3.2 million, and that now gives us the working capital to support increased sales and address the production bottlenecks we have been experiencing. With exports, processing and our retail lines all performing well and sufficient financial resources to support growth, we can now add additional resources to the promising HempOmega® and cannabinoid markets.”
Naturally Splendid’s unaudited condensed financial statements and management’s discussion and analysis have been filed on Naturally Splendid’s profile on the SEDAR website.
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