(TheNewswire)
Toronto, ON - TheNewswire- March 1, 2023 - HillStreet Beverage Company Inc. ( TSXV:HILL ) ( OTC:HSEEF ) (" Hill Street ” or the" Company "), aprogressive bioscience implementation company that utilizes newtechnologies to provide innovative cannabis solutions andnon-alcoholic beverage products globally, is pleased to announce thefollowing updates from the three-month period ended December 31, 2022(“ Q2 FY 2023 ”)financial statements.
Continued DehydraTECH™Expansions Lead to Record Quarterly Licensing Revenue &Growth
The Company continued to add states to its geographic footprint forDehydraTECH ™ licensingas well as form factors to its portfolio of DehydraTECH™-powered consumer products duringthe three-month period ended December 31,2022 .
As a result, the Company is pleased to announce that itgrew DehydraTECH™ licensing revenues by 93% in Q2 versus the priorquarter and 263% for the fiscal year to date.
The following chart shows the DehydraTECH ™ licensing revenues over the past 6quarters:
In 000’s | Dec 31, 2022 | Sept. 30, 2022 | June 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 |
Licensing Revenue | 328 | 170 | 138 | 77 | 59 | 130 |
The Transformed Vin(Zero)Business Model Leads to Record High Quarterly Revenue and GrossProfit
In Q2 FY 2023, HillStreet achieved record quarterly revenues overall and also for itsVin(Zero) alcohol-free beverage business. The Vin(Zero) results wereprimarily driven by the Company’s newstreamlined Vin(Zero) business model that created a new anddifferent cadence to that business, as we havepreviously announced. The Company now executes larger orders thatare spread months apart to optimize the timing and efficiency of oursupply chain. The new business model significantly improves keyfinancial metrics such as order to cash and reduced working capital ininventory, but the Vin(Zero) business must now be looked at acrosslonger time frames to truly understand its patterns.
The following chart shows the Vin(Zero) alcohol-freebusiness results over the past 6 quarters:
In 000’s | Dec 31, 2022 | Sept. 30, 2022 | June 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 |
Gross Revenue | 1,487 | 188 | 1,198 | 778 | 476 | 527 |
Chargebacks | (249) | (27) | (217) | (108) | (68) | (56) |
Net Revenue | 1,238 | 161 | 981 | 670 | 408 | 471 |
CoGS | (738) | (113) | (747) | (406) | (252) | (270) |
Gross Profit | 500 | 48 | 234 | 264 | 156 | 201 |
GP % | 34% | 26% | 20% | 34% | 33% | 39% |
Release of Q2 FY2023 Financial Statements andMD&A
For the three-month period ended December 31, 2022, theCompany has released its Financial Statements, and a comprehensiveCompany update by way of its Management Discussion and Analysis, whichcan now be found on the Company’s profile at www.sedar.com .
Craig Binkley, CEOcomments: “This was by far the best quarterly result in theCompany’s history, for both business units. We are very pleased that our December 31, 2022 results for theVin(Zero) business validate that the fundamentaladjustments we made to our business model overthe past several months were well considered and on target. Byrefocusing our efforts towards our two on-trend, strong-margin and streamlined businesssegments - Vin(Zero)beverage sales and DehydraTECH™licensing - we are wellpositioned as we head into the spring.”
Hill Street Mailing ListLaunched
With the Company expecting increasing shareholdercommunication over the coming months, Hill Street is pleased to alsoannounce that it has initiated an exclusive mailing list for allsupporters wishing to receive direct and timely communication aboutCompany updates. If you wish to sign up for this mailing list, click HERE .
*All financial information is provided in Canadiandollars, is unaudited and subject to change.
About Hill Street Beverage Company Inc. (TSXV:HILL)
Hill Street is a progressive bioscience implementationcompany that utilizes new technologies to provide innovative cannabissolutions and non-alcoholic beverage products globally. We arepioneering the space where craft consumer products meet bioscience byleveraging our deep CPG expertise to commercialize leading-edgetechnologies to craft superior plant-derived consumer products. We arecurrently developing the platform for North American distributionaround our rights to use Lexaria Bioscience Corp.’s ground-breakingDehydraTECH™ patent portfolio for product development, licensing andB2B sales of cannabis ingredients.
For more information on our business activities or tocheck out Hill Street’s award-winning alcohol-free line-up andorder product to be delivered straight to your home go to www.hillstreetbeverages.com
For more information:
Matthew Jewell, Chief Financial Officer
matthew@hillstreetbevco.com
Statements in this press release may containforward-looking information. Any statements in this press release thatare not statements of historical fact may be deemed to beforward-looking statements. Forward-looking statements are oftenidentified by terms such as “may”, “should”, “would”,“anticipate”, “expects”, and similar expressions. The readeris cautioned that assumptions used in the preparation of anyforward-looking information may prove to be incorrect. Events orcircumstances, such as future availability of capital on favourableterms, may cause actual results to differ materially from thosepredicted, as a result of numerous known and unknown risks,uncertainties, and other factors, many of which are beyond the controlof the Company. The reader is cautioned not to place undue reliance onany forward-looking information. Such information, although consideredreasonable by management at the time of preparation, may prove to beincorrect and actual results may differ materially from thoseanticipated. Forward-looking statements contained in this pressrelease are expressly qualified by this cautionary statement. Theforward-looking statements contained in this press release are made asof the date of this press release. The Company does not undertake anyobligation to update publicly or to revise anyof the included forward-looking statements, whether as a result of newinformation, future events or otherwise, except as required bysecurities law.
Neither TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this release.
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