NSPDF - Naturally Splendid Reports Third Quarter Results for 2020
(TheNewswire)
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 thenine months ended September 30, 2020. All amounts are in Canadiandollars and are prepared in accordance with International FinancialReporting Standards.
Naturally Splendid recorded sales of $1,348,831 duringthe nine months ended September 30, 2020, compared to $2,359,525 forthe nine months ended September 30, 2019. The Company's salesdecreased by approximately $1,010,700 over the same period last year.
Selling and distribution costs of $1,296,441 decreased due to on-goingcost efficiency strategies, including the reduction in facility costsand inventory write-downs as well as limited product development dueto 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 forboth Company branded products, as well as lesser than expected volumesfrom contract manufacturing clients due in large part to the continuednegative effects of the COVID-19 pandemic. Gross Profit Marginsrepresent 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, animprovement 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 continuedimprovements in operational efficiencies over the same period lastyear. While the Company experienced a decrease in production andsales due to the COVID-19 pandemic, operations experienced increasedfacility 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 lossfurther.
Gross profits decreased by approximately 20.4% for thenine 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-goingpandemic.
Cost of Sales during the nine months ended September 30, 2020 wasreduced to $1,205,901 compared to $1,628,274 in the nine months endedSeptember 30, 2019.
| Statements of Loss Data |
| For the Three Months Ended September30, 2020 |
| For the Three Months Ended September30, 2019 |
| For the Nine Months Ended September30, 2020 |
| For the Nine Months Ended September30, 2019 |
| Revenue |
| 323,195 |
| 635,984 |
| 1,348,831 |
| 2,359,525 |
| Cost of sales |
| 292,827 |
| 436,229 |
| 1,205,901 |
| 1,628,274 |
| Gross profit |
| 30,368 |
| 199,755 |
| 142,930 |
| 731,251 |
| Selling and distribution expenses |
| (338,359) |
| (722,227) |
| (1,296,441) |
| (1,436,344) |
| Administrative Expenses |
| (797,753) |
| (1,600,093) |
| (2,549,668) |
| Other Income (loss) and taxes |
| 239,529 |
| 76,170 |
| 363,020 |
| 1,118,098 |
| Discontinued Operations |
| - |
| - |
| - |
| - |
| Net Income (Loss) |
| (911,215) |
| (2,046,395) |
| (3,340,159) |
| (3,627,472) |
| Basic and Diluted Earnings (Loss) Per Share |
| (0.00) |
| (0.02) |
| (0.02) |
| (0.03) |
Market opportunities remain strong for existing Company BrandedProducts domestically and now with the recently launched NATERA(TM)Plant Based Foods line, distribution and sales are anticipated toincrease.
Naturally Splendid CEO Mr. J. Craig Goodwin states , "The Company continues to focus onplant-based nutrition, health & wellness while positioning theCompany 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 forplant-based offerings from consumers. Ironically, the very realchallenges we are experiencing during this time of COVID-19, areactually driving more attention than ever from consumers interested inplant-based nutrition. Additionally, the efforts we have expendedestablishing new e-commerce strategies to support multiple onlinemarketing initiates, is in direct response to the shift in consumersbuying more products than ever online. Additionally, we look forwardto the next phase of commercializing Cavaltinib TM , the plant-based target drug that hasbeen approved by Health Canada for a phase 2 clinical trial for apotential COVID-19 treatment. Cavaltinib TM is licensed to Plasm Pharmaceutical, ourjoint venture with BiologicPharmamedical Research" .
Goodwin adds, "Although we findourselves operating in historically challenging times, NaturallySplendid is positioned to participate in the rapidly growingplant-based market which is growing at rates greater than traditionalgrocery even in this time of COVID-19. As important, the move to moreplant-based products in people's diets is anticipated to continue togain traction long after the disruptions caused by the pandemic. Thefoundation in the world of plant-based products has been set and welook forward to building on these opportunities".
Naturally Splendid's financial statements can be viewed at: www.SEDAR.com
About Naturally Splendid EnterprisesLtd.
NSE operates a Safe Quality Food Level 2 certified food manufacturingfacility just outside Vancouver, BC in Canada. We have establishednumerous healthy, functional foods under recognized brands such asNatera Sport(TM), Natera Hemp Foods, CHII (TM), Elevate Me(TM) andWoods Wild Bar. The Company has a myriad of new products and lineextensions under development that are approaching launch. NSE has alsodeveloped 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 productsand ingredients focusing on plant-based ingredients. The Companyprovides contract manufacturing services for many global healthy foodcompanies, private labelling a wide variety of nutritional foodproducts destined for global healthy food markets.
For more information e-mail info@naturallysplendid.com or call Investor Relations at 604-673-9573
On Behalf of the Board of Directors
Mr. J. Craig Goodwin
CEO, Director
Contact Information
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
E-mail: info@naturallysplendid.com
Website: www.naturallysplendid.com
Forward-LookingStatements
Information set forth in this news release contains forward-lookingstatements that are based on assumptions as of the date of this newsrelease. These statements reflect management's current estimates,beliefs, intentions and expectations. They are not guarantees offuture performance. Naturally Splendid cautions that all forwardlooking statements are inherently uncertain and that actualperformance may be affected by a number of material factors, many ofwhich are beyond Naturally Splendid's control including, NaturallySplendid's ability to compete with large food and beverage companies;sales of any potential products developed will be profitable; sales ofshelled hemp seed will continue at existing rates or increase; theability to complete the sales of all bulk hemp seed purchase orders;and the risk that any of the potential applications may not receiveall required regulatory or legal approval. Accordingly, actual andfuture events, conditions and results may differ materially from theestimates, beliefs, intentions and expectations expressed or impliedin the forward-looking information. Except as required underapplicable securities legislation, Naturally Splendid undertakes noobligation to publicly update or revise forward-looking information.
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