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Komo Plant Based Foods Inc. (CSE: YUM) (OTCQB: KOMOF) (FSE: 9HB0) ( the "Company", "Komo"), a premium plant‐based food company, reports financial results for the quarterly period ended October 31, 2022.
FINANCIAL RESULTS
- During the quarter ended October 31, 2022, Komo grew its revenue to $178,290, which is an increase of 89% as compared to the same period of the prior year. Revenue growth was driven by greater market presence through wholesales distributions. Wholesale revenue growth was 203% and accounted for 90% of total revenue. Direct to consumer (DTC) sales declined by 57% and accounted for 10% of total revenue.
- Komo increased the number of Canadian distributors from 7 to 8 in the quarter. Komo currently has approximately 790 distribution points, defined as the number of retail locations that carry Komo products, representing an increase of 64% as compared to July 31, 2022.
- Komo's gross profit margin for the three months ended October 31, 2022 was 39% which is consistent with management expectations, as compared to 35% in the same period of the prior year. The increase in gross margin was primarily driven by increased efficiency with higher production volume.
- Komo incurred a net loss of $243,640 for the three months ended October 31, 2022, as compared to $1,778,371 in the same period of the prior year. The decrease in net loss was primarily driven by an increase in sales and gross margin and a decrease in operating expenses. Loss per share, basic and diluted, was nil for the three months ended October 31, 2022 as compared to $0.02 per share of the same period of the prior year.
- Advertising and promotion expenses were $32,689 in the quarter, as compared to $617,506 in the same quarter of the prior year.
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.
SUMMARY OF QUARTERLY RESULTS
Komo launched its plant-based foods business in March 2021. The following is a summary of Komo's most recently completed quarterly periods:
| October 31, 2022 | July 31, 2022 | April 30, 2022 | January 31, 2022 | |
| $ | $ | $ | $ | |
| Revenue | 178,290 | 176,536 | 213,405 | 166,052 |
| Net loss from continuing operations | (243,640) | (905,074) | (797,486) | (1,121,872) |
| Basic and diluted loss per share from continuing operations | (0.00) | (0.01) | (0.01) | (0.01) |
| October 31, 2021 | July 31, 2021 | April 30, 2021 | January 31, 2021 | |
| $ | $ | $ | $ | |
| Revenue | 94,256 | 44,940 | 16,029 | - |
| Net loss from continuing operations | (1,778,371) | (5,581,069) | (376,606) | (358,789) |
| Basic and diluted loss per share from continuing operations | (0.02) | (0.07) | (0.01) | (0.01) |
LIQUIDITY
The following information relates to Komo for Q1 2023 and fiscal 2022:
| October 31, 2022 | July 31, 2022 | |||||
| Current ratio(1) | 0.7 | 0.9 | ||||
| Cash | $ | 46,840 | $ | 224,344 | ||
| Working capital deficiency(2) | $ | (232,997 | ) | $ | (86,047 | ) |
| Long Term Debt(3) | $ | 1,309,161 | $ | 1,243,256 | ||
| Shareholders' equity (deficit) | $ | (1,485,579 | ) | $ | (1,269,190 | ) |
(1) Current ratio is current assets divided by current liabilities.
(2) Working capital is current assets minus current liabilities.
(3) Long Term Debt consists of convertible debentures and Canada Emergency Business Account interest-free loans.
The management's discussion and analysis for the period and the accompanying consolidated financial statements and notes are available under the Company's profile on SEDAR.
About Komo
Komo Plant Based Foods 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, the company's mission is to help make plant-based meals a staple on every dinner table by sharing the company's love for feel-good food that connects the people to the planet. The company believes plant-based eating is the future and that "Change can start with a single bite." The company's experienced plant-based innovation and development team recreates vegan versions of traditionally cheesy and meaty classics, with 100 per cent plants. Komo's products are sold direct-to-consumer through the company's e-commerce website, and a distribution network of on-line and brick and mortar grocery, convenience and natural retailer channels. The company's operating subsidiary, Komo Comfort Foods, launched in 2021 with the company's flagship products: plant-based lasagna, shepherd's pie and chickenless pot pie, and Komo Plant-Based Meal Helpers -- versatile meal starters to allow the creation of many dishes at home. Komo's newest product is Mac & Greens. All of the company's products are 100-per-cent 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 an 18-month frozen shelf life.
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/149829
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