CE Brands Reports Third Quarter 2024 Financial Results

CALGARY, AB, Feb. 14, 2024 /CNW/ - CE Brands Inc. (TSXV: CEBI) ("CE Brands", "we", "our", or the "Company"), a data-driven consumer-electronics company, today announced its financial results for the three and nine months ended December 31, 2023 ("Q3 2024"). The related financial statements and accompanying notes, and Management's Discussion and Analysis for Q3 2024 ("MD&A") are available on SEDAR+ at www.sedarplus.ca and on the CE Brands' website at www.cebrands.ca. 

All dollar amounts in this press release are expressed in the Canadian dollars.

Q3 2024 Highlights

• Revenue decreased by $1.33 million, reflecting an 87% drop in the three month period ended December 31, 2023 as compared to the corresponding period in the prior year. Total revenue decreased by $4.80 million, or 77%, in the nine month period ended December 31, 2023 as compared to the same period in the prior year. The decreases can be attributed to the termination of the trademark license agreement between Eastman Kodak Company and the Company, which ended the sales of Kodak products, lower Business to Consumer ("B2C") sales of Motorola watches on e-commerce platforms in the first fiscal quarter of 2024 (April 2023 to June 2023) and no B2C sales thereafter.
  
  
• Gross profit was $0.03 million in the three months ended December 31, 2023, a $2.83 million improvement to the same period in the prior year. The improvement is due to sales of the Moto 70 and Moto 40 watches during the three month period ended December 31, 2023, both bearing higher gross profit ratios than compared to Kodak products, which held a considerable portion of sales during the three month period ended December 31, 2022.As compared to the gross loss of $1.73 million during the nine months ended December 31,2023,the entity made a gross profit of $0.57 million. This was driven by the fact that multiple inventory write offs took place in December, 2022, whereas, no such write offs took place during the nine month period ended December 31, 2023.
  
  
• There was a net loss of approximately $1.14 million for the three month period ended December 31, 2023, which represents an 81% improvement compared to the $6.06 million net loss for the corresponding period in the prior year. The decrease in net loss was due to lower operating expenditures and comparative increase in gross profit ratio for the three months ended December 31, 2023.

"Our improved capital structure and lower debt costs, alongside strengthened relationships with suppliers and customers, are driving positive momentum." said Kalvie Legat, Interim Chief Executive Officer of CE Brands. "With sales picking up and new product launches on the horizon, we're focused on operational execution to drive growth and deliver value to our stakeholders"

About CE Brands

CE Brands Inc. develops products with leading manufacturers and iconic brand licensors by utilizing proprietary data that identifies key market opportunities.

Neither the TSX Venture Exchange nor its regulation services provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Forward-Looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian securities laws. In general, forward-looking information is disclosure about future conditions, courses of action, and events, including information about prospective financial performance or financial position. The use of any of the words "anticipates", "believes", "expects", "intends", "plans", "will", "would", and similar expressions are intended to identify forward-looking information.

By its nature, forward-looking information is subject to various risks, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed in this document. Please refer to the Company's December 31, 2024 Management's Discussion and Analysis filed on SEDAR+ at www.sedarplus.ca for a list of potential risks and forward looking statements.

Readers are cautioned not to place undue reliance on forward-looking information, which is given as of the date of this press release, and to not use such forward-looking information other than for its intended purpose. CE Brands undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events, or otherwise, except as required by applicable securities law.

Further Information

For further information about CE Brands or its principal operating subsidiary, CE Brands International Inc., please contact:

Kalvie Legat
Interim Chief Executive Officer
[phone]
[email protected]                     

SOURCE CE Brands Inc.