THE GOOD SHROOM CO DISCLOSES FINANCIAL RESULTS, RECORDS OVER 6X REVENUE GROWTH FROM PREVIOUS YEAR
MONTREAL, Nov. 23, 2022 /CNW/ - The Good Shroom Co Inc. (the "Company") (TSXV: MUSH), discusses financial & operational highlights for the fiscal year ended July 31 2022.
The Company's CEO Mr. Eric Ronsse encourages readers to read the entire release and to contact him afterwards for questions/comments or refer to the Management Discussion & Analysis.
- The Company recorded $1,522,134 in sales revenue. Over 6X growth from the previous year.
- The majority of this revenue was made in the last 6 months of the fiscal year from its cannabis operations and the rest from its functional mushroom beverages. This was the Company's first fully operational year with its cannabis division beginning sales only as of December 25, 2021.
- Gross profit margins were of $228,638.
- Cannabis product gross margins vary depending on the product. Its important to note the Company has negotiated favourable payment terms that do not hinder cash flow. It is actively working to increase margins.
- Non-cannabis product gross margins are higher than cannabis products. The proportion of Teonan sales to total sales in the upcoming year is expected to be more than this year.
- No debt obligations other than $40,000 due December 2023 to the government of Canada.
- Operating cash loss was of $777,776.
A significant portion of this cash loss is due to the capital investment incurred during the year to setup up its US distribution network for its mushroom beverages. As a result the Company's products are now available through America's 2 largest grocery distributors, KEHE and United Natural Foods, as of late Q3 fiscal year 2022. A significant portion of this investment is not re-occurring now that the setup is complete.
Another portion of this loss is due to the labour cost. In June and July 2022 the Company underwent an operational restructuring whereby it reduced its labour cost by approximately 34%. The restructuring is not expected to impede the Company's growth.
The Company's CEO Eric Ronsse stated "With the current sales revenue we are a small company but our foundation is set and the potential to scale profitably is attainable in the medium term. I believe todays bear market will make it difficult for company's incapable of properly managing cash flow to effectively grow and maintain shareholder value. Our financial discipline is being tested and I expect the results to cement The Good Shroom Co as a force in our industries. Fiscal year 2023 quarterly results should begin reflecting the type of company we have the potential to become."
MUSH operates a portfolio of brands which include traditional cannabis and beverage products. It exists to promote the use of functional ingredients such as probiotics and functional mushrooms in consumer products. Its line of Teonan beverages are first a quality and tasty beverage but also contain a dose of functional mushrooms and probiotics.
We all have a daily routine; be it coffee, tea or another. Why not make that routine functional for body and mind by adding probiotics and mushrooms to it? Up to now no company has been able to maintain a familiar taste at a fair price while making them truly functional. The Good Shroom Co has bridged that gap and intends on making its brands household names for making it a part of its customers daily routine.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains statements which constitute "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of the Corporation with respect to future business activities and sales, including the anticipated orders to be placed by the SQDC. Forward-looking statements are often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions. Investors are cautioned that forward-looking statements are not based on historical facts but instead reflect the Corporation's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Corporation believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed thereon, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements. Among the key factors that could cause actual results to differ materially from those projected are the following: market acceptance of the Company's hash and other cannabis products, changes in the vendor's business or strategy, changes in our supplier's operations and pricing, expectations regarding competition and their pricing strategy; maintaining in good standing all necessary regulatory licenses and authorizations for its products; the benefits, safety, efficacy, dosing and social acceptance of cannabis related products and no material changes in the legal environment; changes in applicable laws and regulations compliance with extensive government regulation; operational risks related to and COVID-19 or other pandemic and supply chain disruptions and shortages. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended and such changes could be material. The Company does not intend, and do not assume any obligation, to update the forward-looking statements except as otherwise required by applicable law. Trading in the securities of the Company should be considered highly speculative.
SOURCE The Good Shroom Co Inc.
The Good Shroom Co Inc., Eric Ronsse, President, tel: (514) 924-2574, [email protected]| website: thegoodshroom.co
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