Transformation of Aegis into a consolidator in
the food and beverage space continues
MARKHAM, ON , May 9, 2022
/CNW/ - Aegis Brands Inc. (TSX: AEG) ("Aegis," "the Company")
has reported financial results for the first quarter ending
March 27th, 2022,
reflecting improvements on key performance indicators.
- Bridgehead's Same Store Sales for the quarter rose 12 percent
from the comparable quarter in 2021.
- Revenue for the quarter increased by 15 percent to $2,542,000, from $2,204,000 in the same quarter last year.
- Net loss for the quarter was $1,656,000, or $0.07 per share, compared to a loss of
$1,801,000, or $0.08 per share, for the same quarter last
- Bridgehead continues its wholesale growth with product on
shelves in Costco, Sobeys, Farm Boy, Whole Foods and now
Sales at Bridgehead coffeehouses
gradually improved throughout the first quarter as COVID-19
restrictions lifted. System sales in coffeehouses for the 13 weeks
ended March 27, 2022 were
$1,986,000 compared to $1,698,000 in the prior year, representing an
increase of $288,000 or 17%. The
increase in Bridgehead coffeehouse sales is the combined result of
same store sales growth and 2 new locations. Same Store
Sales were up 12% in the quarter compared to the
quarter a year ago, but remain lower compared to the first quarter
The wholesale channel will play an increasingly important role
as Bridgehead continues to expand its presence in grocery stores
across Ontario, with plans to grow
across Canada. The wholesale
business increased by 55% over the same quarter last year; there
are 84 stores now carrying Bridgehead products throughout
Ontario, compared to 45 last year.
The e-commence channel experienced a decline of 28% in the quarter
compared to Q1 2021 but has been identified as offering high
potential for growth. Accordingly, we are investing in marketing
both the grocery and e-commerce channels this fiscal year, to
support this planned growth.
Coffeehouse cost of sales were $2,601,000 compared to $1,355,000 for the same quarter in 2021, an
increase of $1,246,000. Of that, the
difference is in government subsidies received in 2021 compared to
2022, and the remainder is comprised of higher labour and food
General and administrative expenses were $1,011,000 compared to $609,000 for the same quarter in 2021. This
increase is a result of overhead expenses and salaries no longer
being shared with other companies.
Aegis is building a portfolio of amazing brands in the
restaurant and hospitality space.
"After two years of pandemic restrictions, Canadians are
enthusiastically returning to in-person food service experiences of
all kinds," said Steve Pelton,
President and CEO of Aegis Brands Inc. "We're all emerging from a
long period of limited choices of surroundings, of company, and of
dining experiences. We're ready to return to our favourites and to
try new things."
Restaurants Canada predicts a
strong comeback for the hospitality industry in 2022 with
sales in the foodservice business expected to increase by 16.5%
over 2021, fuelled by the combination of reduced pandemic
restrictions and pent-up consumer demand. Fast Casual and Quick
Service Restaurants offering delivery, order-ahead and other
digitally-supported options are now well-positioned to capitalize
on both consumers' return to in-venue dining and the digital
ordering options they've come to appreciate.
"The popular resurgence of restaurants is already underway this
year, and Aegis is poised to play a larger role in it by expanding
its presence in the Canadian food and beverage space," said Pelton.
"We are actively seeking out great entrepreneurs and restaurant
brands to join our family of excellent Canadian foodservice
Aegis measures the success of its business in part by employing
several key performance indicators, referenced herein, including
Same Store Sales and EBITDA, that are not recognized under IFRS.
These indicators should not be considered an alternative to IFRS
financial measures, such as net income, and are presented in this
report because Aegis management believes that such measures are
relevant in interpreting the performance of its business. As
non–IFRS financial measures do not have standardized definitions
prescribed by IFRS, they are less likely to be comparable with
those of other issuers or peer companies. A description of the
non–IFRS measures used by Aegis in measuring its performance and a
reconciliation of certain non–IFRS measures to the nearest
IFRS measure is included in Aegis' management's discussion and
analysis for the first quarter ended March
27th, 2022, available on SEDAR at
This press release contains forward-looking statements within
the meaning of Canadian securities laws. These forward-looking
statements contain statements of intent, belief, or current
expectations of Aegis. Forward-looking information is often, but
not always, identified by the use of words such as "anticipate,"
"believe," "expect," "plan," "intend," "forecast," "target,"
"project," "may," "will," "should," "could," "estimate," "predict"
or similar words suggesting future outcomes, or language suggesting
The forward-looking statements included in this press release,
including statements regarding the nature of Aegis'
growth strategy going forward and Aegis' execution on any
of its potential plans (including with respect to the growth and
development of Bridgehead Coffee and identification of future
acquisition targets), are not guarantees of future results and
involve risks and uncertainties that may cause actual results to
differ materially from the potential results discussed in the
Risks and uncertainties that may cause such differences include
but are not limited to: risks related to the company's
strategy going forward; risks related to the COVID-19 pandemic; and
other risks inherent in the industry in which Aegis operates.
Accordingly, readers should not place undue reliance on the
forward-looking statements and information contained in this news
release. Additional information on these and other factors
that could affect Aegis' operations or financial results are
included in reports on file with applicable securities regulatory
authorities and may be accessed through the SEDAR website
In respect of the forward-looking statements and information
included in this press release, Aegis has provided such in reliance
on certain assumptions that it believes are reasonable at this
time, including the ability of the company to manage the risks
(economic, operational, financial, and other risks) associated with
the COVID-19 pandemic, the ability of the company to identify new
acquisition opportunities and to successfully integrate past and
future acquisition targets into the company's business, and the
company's ability to generally execute on its strategy going
The forward-looking statements in this press release are made as
of the date it was issued and Aegis does not undertake any
obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by applicable
About Aegis Brands
Aegis Brands Inc. currently owns and operates
Bridgehead Coffee. The company's vision is to build a portfolio of
amazing brands that can grow and flourish with access to our
resources and expertise. The company is committed to letting each
brand operate independently while providing shared expertise to
help them thrive.
For more information, please visit aegisbrands.ca.
SOURCE Aegis Brands Inc.