GURU Organic Energy Corp.

Q2 2021 Earnings Conference Call

6/14/2021

spk_0: welcome to the guru organic energy second quarter twenty twenty one results conference call and webcast being recorded today june fourteenth twenty twenty one at for forty five pm eastern time at the some operatives montana listen only mode if anyone has difficulty hearing the conference please press star followed by zero for operator assistance at any time please note that exceptionally there will be no q and a session where financial analyst following today's presentation gurus press releases issued today is am dna and financial statements are available in the investors section of his website and on cedar during the call the company may refer to certain non i far as measures reconciliations are available and as m dna also note that all financial figures are expressed in canadian dollars unless otherwise indicated i would also like to remind you that today's presentation may contain forward looking statements about gurus current and future plans expectations and intentions results level of activity performance goals or achievements or other future events or developments as such please take a moment to read the disclaimer on for looking statements on slight to at a presentation our now turn the car over to carl go yet gurus chief executive officer
spk_1: thank you operate for the better and everyone and welcome to our earnings turning me to afternoon is our seattle into iraq if afternoon do any record rather results or the second quarter atlantic when you having made continued progress since the beginning of the year to achieve our growth objectives we were also very pleased to announce a game changing the division agreement with ethical babbage's canada at law on that in a moment let's take a look at our quarterly results kitchen revenue increased by seventy four percent the seven point one million dollars and are gross margins to that sixty three percent backward revenue growth was primarily driven by significant increase in our point the hair and continued strong can beckloff seven canada grew by eighty nine but that us sales increased or consecutive quarter to twenty eight percent year over year increase in boston dollars and online sales continue to perform well the results reflect our strong performance in our market and growing consumer appetite for plant based products and better for you energy drinks during the quarter we continue to execute on are near term growth plans with the addition of over eight hundred doors namely with the fresh market light market and really than the us and canadian by your gas in canada we have grown our president by over six thousand additional doors in the first half of twenty twenty one with the most recent addition we have now fully captured the us national grocery channel in terms of banners further strengthening our health and wellness it also in the us we launched guru your by a earlier this month the product gnarly be available to at various that he didn't partners there growing up i'm not be as perform extremely well since it launched in quebec late last year we expect that it will contribute to cells grow out of the border as we going to do shit this not is also being supported by some targeted activation in canada we are in school education mode following the various new doors we're now in market outside of combat and said whatever can eat and go back to our efforts are being supported by digital marketing install marketing feel marketing and sales activation these activities will be ramping in the coming months to to the fall and will support continued sales growth in subsequent quarters online sales things you need to be robust this is supported by ongoing consumer acquisition investments sustained the man for help your functional products and it continued consumers if the went online channels accelerated by the pandemic finally on the operation fun proactive measures we have taken to strengthen and diversify supply came to need to prove effective
spk_2: with our supply chain activities running smoothly in support of our growth
spk_3: mg over to you thanks your car and hello everyone fuck you to two thousand and twenty one regenerated record revenue as seven point one million compared to four point one million last year
spk_4: the increases like they have gotten canada and the us as a result of a three point the fail and velocity and book might
spk_3: kids two thousand and twenty compared of quarter also coincided with the onset of the pandemic which negativity it affected failed in that period was profit totaled four point four million compared to two point four million a year ago
spk_4: north mountain returned to talk on leveled at sixty three percent compared to sixty percent last year
spk_3: the increase like due to changes in the product quick and the timing of promotional activity
spk_4: journey was five point five million or seventy eight percent fail compared to three point two million or eighty percent that failed a year ago i definitely that was negative the low point eight million from a negative zero point seven million a year ago due to hire a journey partially offset by the increasingly profit
spk_3: net loss totaled one point two million or four cents per share compared to a net loss of zero point seven million or three cents per share a year ago
spk_4: the majority of the net lottery select additional costs associated with operating of a public company and the fed up of our expansion plan we have a strong financial position with cash and cash equivalent of twenty four point one million dollars an unused canadian dollar and us dollar denominated credit facility totaling about ten million or that it april thirtieth two thousand twenty one
spk_3: even though editor early to assess the impact of corbett nine keen on our behalf going forward we are starting to see a positive effect in our in for sale and vaccination we continue to increase and they have restrictions are littered with hopefully a gradual return to my normal life situation in the coming month
spk_1: come back for you to this up our dame teams in agreement with that equal beverages canada and now concurrently with the release of our due to result thank you and we are thrilled to have enough that he to do with entered into an exclusive longtime national definition agreement with ethical beverages canada he did to get our energy drink in a canadian market yeah one of canada's largest and fastest growing non alcoholic beverage company the have best in class sales capability and inexpensive director store distribution network that is significantly greater than are going retail network the agreement before national debt and initial term a ten year and can be renewed for subsequent five year period unless either by the chooses not to renew voice agreement is terminated further details are in a press release issued today starting in october ethical beverages canada will be responsible for selling and distributing not products in canada of adding us with access to theirself president and expensive distribution network at from coast to coast on our end we will recall kiss or efforts on the marketing side on dedicates significant resources to support a new partners best in class failed effort in retail and food service and continue to grow customer acquisition for our online activity as we got we expect to significantly ramp up our marketing activities in canada wow deploying additional says be sources towards the us as some of these will no longer be required in canada this agreement significantly expand our distribution capabilities than a very short period of time and will accelerate our grow plants lot of the border specifically this partnership at the potential to accelerate our comedian market share got significantly basically we're going from walking to rent here the gives us first mover advantage in the better for you energy drinks a national this is he right now when you look at the attractiveness of this market it will also solidify guru as he natural energy drink in canada in a fast growing in competitive can do we've been at this person gun and we have begun this this is an incredible up what needed to be that reach your objective with an amazing part finally the deal with the execution of our comedian market growth plan i'm a sales and distribution point they are the leader in the space as for the u s the agreement which is for canada only makes it possible for us to reality they resources that the us market to accelerate our growth there and there's no doubt that our association with a global leader and the best of breed here in canada can only have positive benefits for us in all markets that confident in our prada is a strong endorsement of what we can bring to the table we are very excited about this agreement and the team is motivated to execute on to maximize success that work is already in motion to okay so we are ready to go come october today guru also announced the financing coal led by the fallen see id and with the participation of prominent institutional investors the proceeds will be used to fund the required ramp up of our marketing efforts in the context of the agreement with pepsico canada and further support a canadian girls that which will be accelerated by the agreement and will also support the ramp up of been distribution activity even the us he's lost on transaction that a result of the hard work of many dedicated people i would like to say my deepest thank the good team for their contribution than dedication and they're amazing ability to adapt it's it's so important when you have ambitions like we did there is a lot of good energy to deliver now and i know that team is supremely motivated it captured the amazing up watching t that i'd also like to thank our existing canadian distribution partners for their support to the years as we transition to this model and our various i'd known as across canada finally i would like to thank our new canadian distribution partner for recognizing our unique positioning and i would potential then we will continue setting the standard had the canadian consumers organic plant based energy drink of choice this concludes our family remarks thank you for joining this afternoon
spk_0: operator back to you to end the call
Disclaimer

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only. Earnings Call, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.

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