According to Guru, the net loss notably reflects the additional costs associated with changing its status as a public corporation (Image: Courtesy)
Guru Organic Energy posted a record $8.0 million ($1 million) in revenue for the third quarter, which didn’t stop the energy drink producer from posting a net loss of $2 million on Tuesday.
The Montreal-based company reported a net loss per share of 7 cents for the quarter ended July 31, compared to net earnings of $1.2 million, or 5 cents per share, in the same period a year earlier.
According to Guru, the net loss in particular reflects the additional costs associated with changing its status as a public company. Guru was listed on the Toronto Stock Exchange in November 2020.
Guru said the launch of in-field and point-of-sale marketing activities in Ontario, Western Canada and the Atlantic Provinces and costs associated with implementing measures under expansion plans also hurt profitability in the fourth quarter.
Guru attributed the 22% annual revenue growth to a 32% increase in sales in Canada, particularly thanks to the increase in the number of outlets. In the United States, sales fell 7% in constant dollars in the third quarter, compared to the same period last year.
Analysts, on average, expected a loss of 6 cents per share, as well as sales of $7.5 million, according to forecasts compiled by financial data firm Refinitiv.
“We are proud to have not only delivered record revenue, maintained strong margins and expanded our sales channel network,” said Carl Jewett, Guru’s president and CEO, in a statement.
The senior president notably noted the conclusion of an exclusive Canadian distribution agreement with PepsiCo in June, which should go into effect on October 4.
“This new way of doing things will greatly simplify CRM and distribution activities in Canada, and allow us to focus exclusively on PepsiCo sourcing and increase awareness of the Guru brand,” said Carl Jewett.
Guru also completed a buyout and private placement financing transaction in July, bringing in total revenue of $49.6 million, strengthening its financial position. Mr. Jewett said the company intends to take advantage of this situation to intensify its brand positioning and marketing efforts in North America.
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