Today's News

Vancouver, BC, April 30, 2023--(T-Net)--good natured Products Inc. (TSX-V: GDNP), a North American leader in plant-based products, today announced its financial results for the three months ("Q4 2022") and twelve months ("FY2022") ended December 31, 2022. 

"This was a historic year for good natured ® where we achieved a major milestone of over $100 million in revenue and executed our strategic goal to expand our Packaging business group though strong organic growth," stated Paul Antoniadis, CEO of good natured ®. "In addition, we made significant progress on improving profitability, generating our first full year of positive adjusted EBITDA1 with a strong focus on cash management in the face of volatile macroeconomic conditions."

Paul added: "As we stated at the time of our Q3 2022 results, we had seen some signs of reduced demand for our industrial products as customers continued to work through high inventory levels. Although this trend in our Industrial business group continued as anticipated through Q4 2022 and into early 2023, our pipeline for eco-friendly packaging remains very robust. Recent policy developments, including the White House announcing incentives to transition 90% of plastics to bio-based feedstock within 20 years, are providing the Company with tremendous potential for long term growth and value creation."

Key Highlights:

• Revenues for Q4 2022 increased 2% to $23.3 million compared to $22.9 million for the three months ended December 31, 2021 ("Q4 2021"). FY2022 revenues increased 65% to a record $101.0 million compared to $61.1 million for the twelve-month period ended December 31, 2021 ("FY2021").

• Variable gross profit[1] for Q4 2022 increased 10% to $7.7 million, representing a variable gross margin1 of 33%, compared to $7.0 million and 31% for Q4 2021. Variable gross profit for FY2022 increased 69% to $33.2 million, 33% of sales, compared to $19.7 million, 32% of sales, in FY2021.
• Gross profit for Q4 2022 increased 9% to $5.8 million representing a gross margin of 25%, compared to $5.3 million and 23% respectively for Q4 2021. Gross profit for FY2022 increased 68% to $26.3 million, 26% of sales, compared to $15.6 million, 26% of sales, in FY2021.

• Selling, general and administrative expenses ("SG&A"), excluding acquisition activity and one-time charges,1 for Q4 2022 and FY2022 were $4.0 million and $15.7 million compared to $3.2 million and $10.2 million for Q4 2021 and FY2021. As a percent of sales, SG&A expenses, excluding acquisition activity and one-time charges,1 was 17% for Q4 2022 and 16% for FY2022 compared to 14% in Q4 2021 and 17% in FY2021.

• SG&A expenses for Q4 2022 and FY2022, were $4.9 million and $17.9 million compared to $4.1 million and $12.8 million for Q4 2021 and FY2021. As a percent of sales, SG&A expenses was 21% for Q4 2022 and 18% for FY2022 compared to 18% in Q4 2021 and 21% in FY2021.
  
  
• Cash generated by operating activities for FY2022 was $4.6 million compared to $13.7 million used by operating activities for FY2021.

• Net working capital improved to $10.0 million as at December 31, 2022, compared to a deficit of $16.0 million as at December 31, 2021.

• Cash and cash equivalents improved to $11.9 million as at December 31, 2022, compared to $10.7 million as at December 31, 2021.

• The Company's adjusted EBITDA1 for Q4 2022 and FY2022 was nil and $3.0 million respectively, compared to $0.5 million for Q4 2021 and a loss of $0.1 million for FY2021.

• In Q4 2022, the Company incurred a net loss of $4.9 million compared to a net loss of $4.2 million in Q4 2021. Net loss for FY2022 was $11.6 million compared to a net loss of $12.7 million in FY2021.

The Company's Q4 2022 and FY2022 financial statements and Management's Discussion and Analysis are available on SEDAR at sedar.com and on the Company's investor website at investor.goodnaturedproducts.com.

About good natured Products Inc.

good natured ® is passionately pursuing its goal of becoming North America's leading earth-friendly product company by offering the broadest assortment of plant-based products made from rapidly renewable resources instead of fossil fuels. The Company is focused on making it easy and affordable for business owners and consumers to shift away from petroleum to better everyday products ® that use more renewable materials, less fossil fuel, and no chemicals of concern.

good natured ® offers over 400 products and services through wholesale, direct to business, and retail channels. From plant-based home organization products to certified compostable food containers, bio-based industrial supplies and medical packaging, the Company is focused on making plant-based products more readily accessible to people as a means to create meaningful environmental and social impact.

[1] A non-GAAP financing measure. Please refer to the "Non-GAAP Financial Measures" below for an explanation of these measures and reconciliation to the Company's financial results reported in accordance with GAAP.