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Komo Plant Based Foods Inc. (CSE: YUM) (OTCQB: KOMOF) (FSE: 9HB0) ("Komo"), a premium plant-based food company, today reports financial results for the year ended July 31, 2022.
"We began our fiscal year as a new brand with a mission to make plant-based meals a staple on every dinner table by sharing our love for feel-good food that connects the people to the planet. Thanks to the strength of our team and the love of Komo products, we were successful in achieving sales growth of 935 percent over last year," says Komo founder and CEO William White. "The consistently strong retail sales of our products have allowed us to demonstrate to large retail chains that our products sell well and have repeat customers. We recently completed a national listing with Loblaws and we are in discussions with several other large national chains. As a result, we are anticipating continued significant revenue increases in 2023."
"We achieved many of our objectives in 2022, including expanding the product shelf life of our frozen products to 18 months, additions to our product line, growth of our customer base and significant expansion to our distribution network. We plan to continue to follow an asset-light strategy and focus on developing additional co-packing partnerships to increase our production capacity."
Financial highlights:
- Revenue in fiscal 2022 increased 935 percent to $650,249 as compared with $62,835 in fiscal 2021 primarily driven by an increase of $419,789 in wholesale revenues sales and $167,625 in direct to consumer revenue due to an expansion of retail distribution points and continued growth through new and repeat orders;
- Increase in number of Canadian distributors from 4 to 7 in fiscal 2022;
- Wholesale revenue increased 2,594 per cent to $435,969 in fiscal 2022 compared with $16,180 in fiscal 2021;
- Wholesale distribution points increased from 110 locations at July 31, 2021 to 360 locations at July 31, 2022 to 476 distribution points at November 28, 2022 (the number of retail locations carrying Komo products);
- Direct to Consumer sales increased 359 percent to $214,280 in fiscal 2022 compared with $46,655 in fiscal 2021;
- Gross margin was 34 percent of revenue, and gross profit was $220,093 in fiscal 2022 compared with 44 percent and $27,691 in fiscal 2021;
- Gross profit was $220,093 for the year ended July 31, 2022, presenting an increase of 695% from the prior year.
- Net loss was ($4,602,803) in fiscal 2022 compared with ($6,472,166) in fiscal 2021;
- Advertising and promotion expenses were $1,075,538 in fiscal 2022, as compared to $387,412 in the prior year.
- General and administrative expenses were $267,319 in fiscal 2022 compared with $312,474 in fiscal 2021.
Operational Highlights
Komo launched five of its plant-based comfort foods in March 2021. Since then, Komo has been adding innovative plant-based products to its offerings. Currently Komo offers 10 products through wholesale distribution and Komo's own eCommerce web store.
As of today, Komo has on-boarded seven distribution partners across Canada and one in the USA. Through these distribution partners, Komo's products are sold in approximately 476 retail locations in Canada. Komo is currently being carried by many multi-location retail customers including: Your Independent Grocer Stores of Loblaws, Safeway, IGA, Metro, Thrifty Foods, Whole Foods Market, Foodland, Fresh St. Market, Choices, Stong's Market, Country Grocer, Nestors, Nature's Fare Market, Foodland, Aisle24, Goodness Me!, Nature's Emporium, Ambrosia, Highland Farms, La Boite à Grains, Pasquier and Fairway Market. Komo's products are also available in various specialty and independent stores and online stores.
Komo products have been listed nationally in Loblaws warehouses located across Canada and will also be distributed to Loblaw banner stores directly from Komo's distribution partners. Komo is currently fulfilling its first purchase orders and expects its products to be on the shelves of some Loblaws stores in December 2022. Loblaw Companies is Canada's largest Canadian food retailer with over 2,400 stores across the country.
Komo is in discussions with several other large retail chains for a listing of its products in their stores.
Outlook
In the next 12 months, Komo plans to continue to strengthen its sales channels and strategy, and onboard new distributors and brokers to expand its presence across Canada and USA. Komo aims to grow its distribution network to reach over 1,000 retail stores in 2023.
Komo plans to increasingly emphasize a wholesale distribution focused business model to speed up its growth in sales, to simplify distribution operations, and to save operating costs.
The management's discussion and analysis for the year and the accompanying consolidated financial statements and notes are available under the Company's profile on SEDAR.
About Komo
Komo Plant Based Foods Inc. is a premium plant-based food company that develops, manufactures and sells a variety of plant-based frozen meals that are always hearty, satisfying, and made with wholesome ingredients. At Komo, our mission is to help make plant-based meals a staple on every dinner table by sharing our love for feel-good food that connects the people to the planet. We believe plant-based eating is the future and - Change can start with a single bite TM. Our experienced plant-based innovation and development team recreates vegan versions of traditionally cheesy and meaty classics, with 100% plants. Komo's products are sold direct-to-consumer through our eCommerce website and a distribution network of online and brick and mortar grocery, convenience and natural retailer channels. Our operating subsidiary Komo Comfort Foods launched in 2021 with our flagship products: plant-based Lasagna, Shepherd's Pie and Chickenless Pot Pie and Komo Plant-Based Meal Helpers TM - versatile meal starters to allow the creation of many dishes at home. Komo's newest product is Mac & Greens. All of our products are 100% plant-based, made with wholesome ingredients, free from preservatives and frozen for freshness. Freezing products is a natural and effective way of keeping food products for longer without having to use any preservatives. Komo's meals have a frozen shelf life of 18 months.
Learn more at: www.komocomfortfoods.com and follow on Instagram: @komocomfortfoods
For further information, please contact:
William White, President & CEO, Komo Plant Based Foods Inc.
+1 (236) 8000-YUM / (236) 800-0986
The Canadian Securities Exchange has not reviewed, approved or disapproved the contents of this news release.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or Komo's future performance. The use of any of the words and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on Komo management's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, Komo's ability to retain key personnel, its projected revenues, its projected expenses, its ability to raise capital, and its expectation as to the continued increase in the number of retailers and consumers of its products constitute forward-looking information. Actual results and developments may differ materially from those contemplated by forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information. The statements made in this press release are made as of the date hereof. Komo disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/146017
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