Delivra Health Brands (DHB) Q4 2024 earnings summary

Executive summary

• Achieved a significant turnaround over four years, moving from negative CAD 9 million Adjusted EBITDA to positive CAD 900,000 for the second consecutive year.

• Achieved 26% year-over-year net revenue growth in fiscal 2024, driven by increased sales in the USA and Canada.

• Margins expanded from 9% to 52%, highlighting improved operational efficiency and profitability.

• Generated positive net cash from operating activities, reversing a negative position from the prior year.

• Focused on building global brands, Dream Water and LivRelief, now available in thousands of locations.

Financial highlights

• Fiscal 2024 net sales reached CAD 12.4 million, up 26% year-over-year, with Adjusted EBITDA of CAD 900,000 (7% of revenue), up from CAD 500,000 (5%) last year.

• Gross profit increased to CAD 6.4 million, with gross margin rising from 49% to 52%.

• Net profit from continuing operations was CAD 876,000, compared to a net loss of CAD 184,000 in fiscal 2023.

• Net cash provided by operating activities was CAD 756,000, up from a use of CAD 1,088,000 in the prior year.

• Increased marketing spend by CAD 1 million to support brand equity and future growth.

Outlook and guidance

• Strategic focus on customer growth, geographic expansion, innovation, and brand portfolio diversification.

• Fiscal 2025 focus will be on expanding market position and revenue through channel development and brand innovation.

• Continued investment in R&D and marketing to drive product innovation and market presence.

• Growth expected to be measured, sustainable, and aligned with long-term value creation.

• Anticipates positive impact from easing interest rates and improved consumer spending.