GURU Organic Energy Announces Fourth Quarter and Fiscal Year 2020 Financial Results Toronto Stock Exchange:GURU

• Continued robust development in This fall 2020 with 51% enhance in income whereas delivering gross margins above 60%
• Closing of $34.5 million financing and itemizing on TSX in fall 2020 to speed up North American growth plans by way of gross sales and advertising and marketing investments
• Quickest-growing power drink model in Québec with over 13% market share¹ disrupting the 2 largest manufacturers in a US$15B² class with a better-for-you natural providing

MONTREAL, Jan. 21, 2021 (GLOBE NEWSWIRE) — GURU Natural Power Corp. (TSX: GURU) (“GURU” or the “Firm”), Canada’s main natural power drink model, is happy to announce its outcomes for the fourth quarter and financial yr ended October 31, 2020. All quantities are expressed in Canadian {dollars} until in any other case indicated.

“I’m very happy with what GURU has completed in fiscal 2020, with report revenues and over 50% gross sales development within the fourth quarter, reflecting a robust efficiency in our core markets and rising shopper demand for better-for-you power drinks,” mentioned Carl Goyette, President and CEO of GURU. “In fiscal 2021, our focus is on aggressively shifting ahead with our growth plans throughout Canada and the U.S. following the completion of our $34.5 million financing and TSX itemizing this previous fall. A number of steps have already been initiated together with the launch of our new Yerba Mate natural plant-based power drink, hiring of key personnel, partnering with a number one experiential and area advertising and marketing company, and actively engaged on distribution and advertising and marketing plans exterior of Québec.”

“To be able to meet the anticipated enhance in demand and within the context of COVID-19, we have now elevated our advertising and marketing and promotional actions in assist of our growth plans and brought proactive measures to strengthen our provide chain and construct stock. These measures will permit us to pursue our development initiatives with out interruption.”

¹ Nielsen: L52 interval ending July 18, 2020 (Grocery Drug Mass +Comfort & Gasoline) Québec
² Mintel, Could 2020. Doesn’t embody power photographs section
³ Discuss with reconciliation of web earnings (loss) to adjusted EBITDA and adjusted EBITDA margin on the finish of this launch.

“Our goal for the subsequent two to a few years is to considerably enhance our presence in key channels, together with in comfort, in grocery, drug and on-line, in addition to to extend the speed of our gross sales in Canada and the U.S. Our confirmed observe report in Québec and our success-to-date in California are proof of what we are able to accomplish, and we now have the means to take action on a a lot bigger scale,” concluded Mr.Goyette.

Outcomes of operations for the fourth quarter of fiscal 2020

Income elevated by 51% to $6.1 million, in comparison with $4.1 million for a similar interval final yr. The rise is especially because of market share development in Canada, predominantly in Québec. Gross sales within the U.S. have been barely decrease versus the identical interval final yr primarily as a result of affect of the COVID-19 pandemic on shopper procuring patterns within the pure retail channel, which represents a big proportion of GURU’s U.S. gross sales.

Gross revenue totalled $3.7 million, a rise of 41% in comparison with $2.6 million final yr. Gross margin was 61% in comparison with 65% for a similar interval a yr in the past. The lower in gross margin was because of enhanced promotional applications because the begin of the COVID-19 pandemic within the spring of 2020 and better product prices, pushed by elevated demand for ready-to-drink drinks.

Promoting, normal and administrative bills (“SG&A”), which embody operational, gross sales, advertising and marketing and administration prices, amounted to $4.2 million or 69% of income for the three-month interval ended October 31, 2020. Final yr SG&A was $3.4 million, or 84% of income. The advance in SG&A as a proportion of income was achieved by means of extra managed gross sales and advertising and marketing spend.

Adjusted EBITDA⁴ amounted to $(0.4) million in comparison with $(0.6) million final yr.

Web loss for the fourth quarter of fiscal 2020 totalled $3.1 million or $(0.11) per share (fundamental and diluted), in comparison with a web lack of $0.7 million or $(0.03) per share (fundamental and diluted) for a similar interval a yr in the past. Nearly all of the web loss displays the reverse acquisition of Mira X bills incurred by GURU forward of its itemizing on the Toronto Inventory Change subsequent to yr finish.

As of October 31, 2020, the Firm had money and money equal of $30.4 million and unused $CA and $US denominated credit score amenities totalling about $6.5 million. Its robust monetary place will permit it to fund its growth actions.

Outcomes of operations for fiscal 2020

Income elevated by 26% to a report $22.1 million, in comparison with $17.5 million in fiscal 2019. The Firm’s development development was impacted by the COVID-19 pandemic in Q2 and Q3 2020, however has recovered since July 2020 with a 51% enhance in gross sales within the final quarter in comparison with This fall 2019. The rise was primarily because of market share development in Canada, predominantly in Québec, pushed by each comfort and fuel shops and grocery shops, partially offset by decrease gross sales within the U.S. as a result of affect of the COVID-19 pandemic at its onset in March 2020.

Gross revenue totalled $14.0 million, a rise of twenty-two% in comparison with $11.5 million in fiscal 2019. Gross margin was 64% in fiscal 2020, in comparison with 66% a yr in the past. The lower in gross margin was because of enhanced promotional applications because the begin of the COVID-19 pandemic within the spring of 2020 and better product prices, pushed by elevated demand for ready-to-drink drinks.

Adjusted EBITDA² was $1.4 million in comparison with $1.6 million final yr, leading to an adjusted EBITDA² margin of 6% in fiscal 2020 versus 9% in fiscal 2019.

⁴ Discuss with reconciliation of web earnings (loss) to adjusted EBITDA and adjusted EBITDA margin on the finish of this launch.

Web loss for the yr totalled $2.2 million or $(0.07) per share (fundamental and diluted), in comparison with a web earnings of $0.7 million or $0.03 per share (fundamental and diluted) a yr in the past. The reverse acquisition of Mira X, which amounted to $2.9 million, was the primary motive for the web loss. Excluding this transaction, GURU would have generated earnings earlier than taxes of $721,347 in fiscal 2020.

Convention name

GURU will maintain a convention name to debate its fourth quarter and 2020 fiscal yr outcomes at the moment, January 21, 2021 at 10:00 a.m. (ET). events can listen-in by accessing the stay audio webcast by means of GURU’s web site at https://investors.guruenergy.com/en/ir-corner or by dialing 833-678-0822 (North America) or 602-563-8278 (Worldwide). A webcast replay will likely be accessible on GURU’s web site till January 21, 2022.

About GURU
GURU (TSX: GURU) is a dynamic, fast-growing beverage firm launched in 1999, when it pioneered the world’s first pure, plant-based power drink. The Firm markets natural power drinks in Canada and throughout the USA by means of a distribution community of greater than 15,000 factors of sale, and thru guruenergy.com and Amazon. GURU has constructed an inspiring model with a clear listing of natural plant-based components. Its drinks provide shoppers good power that by no means comes on the expense of their well being. The Firm is dedicated to attaining its mission of cleansing the power drink business in Canada and the USA. For extra details about GURU, go to www.guruenergy.com.

Ahead-Trying Statements
This press launch might include “forward-looking statements” inside the that means of relevant Canadian securities laws. Such forward-looking statements embody, however are usually not restricted to, info with respect to our aims and the methods for attaining these aims, in addition to info with respect to our beliefs, plans, expectations, anticipations, estimates and intentions. Ahead-looking statements are sometimes recognized by means of phrases akin to “might”, “would”, “ought to”, “might”, “count on”, “intend”, “estimate”, “anticipate”, “plan”, “foresee”, “consider”, or “proceed”, though not all forward-looking statements include these phrases. Ahead-looking statements are supplied for the needs of helping the reader in understanding the Firm and its enterprise, operations, prospects and dangers at a time limit within the context of historic and potential future developments, and the reader is subsequently cautioned that such info will not be acceptable for different functions. Ahead-looking statements are based mostly on assumptions and are topic to numerous dangers and uncertainties, lots of that are past our management, which might trigger precise outcomes to vary materially from these which can be disclosed in or implied by such forward-looking statements. These dangers and uncertainties embody the next: continued uncertainty within the monetary markets; an financial downturn; adversarial adjustments on the whole financial or political circumstances; the COVID-19 pandemic; fluctuations in overseas forex trade charges; elevated competitors; reliance on power drinks as our sole supply of revenues; adjustments in shopper preferences; the altering retail panorama; important adjustments in authorities regulation; criticism of power drink merchandise and/or the power drink market; reliance on co-packers to fabricate our merchandise; our capacity to take care of good relations with our current clients; will increase in prices and/or shortages of uncooked supplies, components, gasoline and/or co-packing; failure to precisely estimate demand for our merchandise; lack of mental property rights; our capacity to retain senior administration or to take care of model picture or product high quality; local weather change; our capacity to attain and handle development; conflicts of curiosity; litigation; and catastrophic occasions. Sure assumptions have been made in making ready the forward-looking statements regarding availability of capital sources, enterprise efficiency, market circumstances and shopper demand. Consequently, the entire forward-looking statements contained herein are certified by the foregoing cautionary statements, and there could be no assure that the outcomes or developments that we anticipate will likely be realized or, even when considerably realized, that they are going to have the anticipated penalties or results on our enterprise, monetary situation or outcomes of operation. Until in any other case famous or the context in any other case signifies, the forward-looking statements contained herein are supplied as of the date hereof, and we don’t undertake to replace or amend such forward-looking statements whether or not because of new info, future occasions or in any other case, besides as could also be required by relevant regulation.

Non-IFRS Monetary Measures

Adjusted EBITDA and adjusted EBITDA Margin
Adjusted EBITDA and adjusted EBITDA margin are each non-IFRS monetary measures. Adjusted EBITDA is outlined as web earnings or loss earlier than reverse acquisition of Mira X bills, earnings taxes, web finance bills, depreciation and amortization, and stock-based compensation bills, whereas adjusted EBITDA margin is outlined as the proportion of adjusted EBITDA to revenues. We consider that adjusted EBITDA and adjusted EBITDA margin are helpful measures of economic efficiency as a result of they supply a sign of the Firm’s capacity to grab development alternatives in a cheap method, finance its ongoing operations and repair its long-term debt. Every of those non-lFRS monetary measures shouldn’t be an earnings or money move measure acknowledged by Worldwide Monetary Reporting Requirements (IFRS) and doesn’t have a standardized that means prescribed by IFRS. Our methodology of calculating such monetary measures might differ from the strategies utilized by different issuers and, accordingly, our definition of those non-lFRS monetary measures will not be corresponding to comparable measures offered by different issuers. Buyers are cautioned that non-lFRS monetary measures shouldn’t be construed as an alternative choice to web earnings decided in accordance with IFRS as indicators of our efficiency or to money flows from working actions as measures of liquidity and money flows.

Reconciliation of Web Earnings (Loss) to Adjusted EBITDA

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