Cibi e Bevande
The Very Good Food Company Announces Q2 Financial Results
CEO Mitchell Scott stated: "We were extremely pleased with our financial performance this quarter, with revenue growth and gross margins both producing industry leading results. With a very healthy balance sheet and quickly growing demand for our products, we are in a position of strength as we charge forward with our international expansion. Over the coming quarters, investors can expect to see significant progress on our next phase of growth, as we transition to becoming a much larger company with global ambitions."
During the second quarter, the Company reported record quarterly revenue of $1,100,816 million , up 225% quarter-over-quarter from $338,552 and up nearly 400% year-over-year from $222,054 . The increase in revenues for the three months ended June 30, 2020 was mainly due to an increase in eCommerce Store sales associated with an eCommerce Partnership Agreement entered into during March 2020 .
When compared to the 6-month period ended June 30, 2019 the Company has improved its gross margin from 34% to 42%. The Company continues to have industry leading margins when compared to competitors such as Beyond Meat, who recently announced a 29.7% gross margin on revenues.
Total assets held by the Company increased to $6,757,062 which includes a cash balance of $3,508,826 . The increase in working capital was primarily due to an increase in cash from the completion of an Initial Public Offering. Subsequent to the date of the Q2 statements, the Company completed a prospectus offering of 6,555,000 units at $1.30 per unit for gross proceeds of $8,521,500 .
During the quarter, the Company repaid $1.1 million of outstanding debt. Where possible without incurring early repayment penalties, the Company intends to deleverage further, with a focus on debt bearing a higher interest rate.
The Very Good Food Company Inc. is an emerging plant-based food technology company that designs, develops, produces, distributes and sells a variety of plant-based meat and other food alternatives. Our mission is to employ plant-based food technology to create products that are delicious while maintaining a wholesome nutritional profile. To date we have developed a core product line under The Very Good Butchers brand.
Neither the Canadian Securities Exchange nor its Market Regulator (as defined in the policies of the Canadian Securities Exchange) accept responsibility for the adequacy or accuracy of this release.
Mitchell Scott
Chief Executive Officer and Director
Kevan Matheson
Corporate Communications and Investor Relations
Email: invest@verygoodbutchers.com
Phone: +1 855-472-9841