Vancouver, British Columbia - TheNewswire - November 27, 2020 - Naturally Splendid Enterprises Ltd. ("Naturally Splendid", "NSE" or "the Company") (FRANKFURT:50N) (TSXV:NSP) (OTC:NSPDF) announces its unaudited financial results for the nine months ended September 30, 2020. All amounts are in Canadian dollars and are prepared in accordance with International Financial Reporting Standards.
Naturally Splendid recorded sales of $1,348,831 during the nine months ended September 30, 2020, compared to $2,359,525 for the nine months ended September 30, 2019. The Company's sales decreased by approximately $1,010,700 over the same period last year.
Selling and distribution costs of $1,296,441 decreased due to on-going cost efficiency strategies, including the reduction in facility costs and inventory write-downs as well as limited product development due to COVID-19 pandemic.
Administrative expenses decreased to $2,549,688 from $4,040,477 during the same period in 2019.
Revenues decreased significantly over the same period last year for both Company branded products, as well as lesser than expected volumes from contract manufacturing clients due in large part to the continued negative effects of the COVID-19 pandemic. Gross Profit Margins represent approximately 11% of sales.
Naturally Splendid recorded a net loss from continuing operations of $3,340,159 for the nine months ended September 30, 2020, an improvement when compared to a net loss from continuing operations of $3,627,472 during the nine months ended September 30, 2019.
The decrease in net loss reflects continued improvements in operational efficiencies over the same period last year. While the Company experienced a decrease in production and sales due to the COVID-19 pandemic, operations experienced increased facility costs related to strict new standard operating procedures (SOPs) to ensure customer, employee and facility safety, which in turn affected our ability to reduce the net loss further.
Gross profits decreased by approximately 20.4% for the nine months ended September 30, 2020 at $142,930 (11.0% of sales) compared to $731,251 (31.0%) for the nine months ended September 30, 2019, which can be attributed in large part to the on-going pandemic.
Cost of Sales during the nine months ended September 30, 2020 was reduced to $1,205,901 compared to $1,628,274 in the nine months ended September 30, 2019.
Statements of Loss Data
For the Three Months Ended September 30, 2020
For the Three Months Ended September 30, 2019
For the Nine Months Ended September 30, 2020
For the Nine Months Ended September 30, 2019
Cost of sales
Selling and distribution expenses
Other Income (loss) and taxes
Net Income (Loss)
Basic and Diluted Earnings (Loss) Per Share
Market opportunities remain strong for existing Company Branded Products domestically and now with the recently launched NATERA(TM) Plant Based Foods line, distribution and sales are anticipated to increase.
Naturally Splendid CEO Mr. J. Craig Goodwin states, "The Company continues to focus on plant-based nutrition, health & wellness while positioning the Company as a premium food processor through our Safe Quality Food (SQF) manufacturing facility in Pitt Meadows, BC.
We continue to optimize operations to accommodate increased demand for plant-based offerings from consumers. Ironically, the very real challenges we are experiencing during this time of COVID-19, are actually driving more attention than ever from consumers interested in plant-based nutrition. Additionally, the efforts we have expended establishing new e-commerce strategies to support multiple online marketing initiates, is in direct response to the shift in consumers buying more products than ever online. Additionally, we look forward to the next phase of commercializing CavaltinibTM, the plant-based target drug that has been approved by Health Canada for a phase 2 clinical trial for a potential COVID-19 treatment. CavaltinibTM is licensed to Plasm Pharmaceutical, our joint venture with Biologic Pharmamedical Research".
Goodwin adds, "Although we find ourselves operating in historically challenging times, Naturally Splendid is positioned to participate in the rapidly growing plant-based market which is growing at rates greater than traditional grocery even in this time of COVID-19. As important, the move to more plant-based products in people's diets is anticipated to continue to gain traction long after the disruptions caused by the pandemic. The foundation in the world of plant-based products has been set and we look forward to building on these opportunities".
Naturally Splendid's financial statements can be viewed at: www.SEDAR.com
About Naturally Splendid Enterprises Ltd.
NSE operates a Safe Quality Food Level 2 certified food manufacturing facility just outside Vancouver, BC in Canada. We have established numerous healthy, functional foods under recognized brands such as Natera Sport(TM), Natera Hemp Foods, CHII (TM), Elevate Me(TM) and Woods Wild Bar. The Company has a myriad of new products and line extensions under development that are approaching launch. NSE has also developed proprietary technologies for the extraction of high demand, healthy omega 3 and 6 oils from hemp. NSE is the current "go-to" manufacturer for healthy, functional food products and ingredients focusing on plant-based ingredients. The Company provides contract manufacturing services for many global healthy food companies, private labelling a wide variety of nutritional food products destined for global healthy food markets.
On Behalf of the Board of Directors
Mr. J. Craig Goodwin
Naturally Splendid Enterprises Ltd.
(NSP - TSX Venture; NSPDF - OTCQB; 50N Frankfurt)
#108-19100 Airport Way
Pitt Meadows, BC, V3Y 0E2
Office: (604) 465-0548
Fax: (604) 465-1128
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Naturally Splendid cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond Naturally Splendid's control including, Naturally Splendid's ability to compete with large food and beverage companies; sales of any potential products developed will be profitable; sales of shelled hemp seed will continue at existing rates or increase; the ability to complete the sales of all bulk hemp seed purchase orders; and the risk that any of the potential applications may not receive all required regulatory or legal approval. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, Naturally Splendid undertakes no obligation to publicly update or revise forward-looking information.
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