TORONTO, May 30, 2022
/CNW/ - The Well Told Company Inc. ("Well Told" or the
"Company") (TSXV: WLCO) (FSE: 7HO), the female-founded
wellness company that offers plant-based supplements, remedies,
and other functional wellness products, is pleased to announce its
financial results and operational highlights for the three months
ended March 31, 2022.
Financial Highlights:
- Net Revenue for Q1 2022 increased by 113% over Q1 2021 and 30%
over Q4 2021 driven by gross revenues of $812k, as a result of the Company's growth in all
channels in both Canada and the
U.S.;
- Gross profit for Q1 2022 improved by 56% over Q1 2021 and 159%
over Q4 2021 as the Company continued to focus on cost reduction,
greater efficiency in supply chain fulfillment and shipping in
2022;
- In Q1 2022, the Company increased its total wholesale gross
revenue by 122% compared to Q1 2021;
- The Company saw a 65% YOY increase in its Direct-To-Consumer
revenue, fueled by growth across all ecommerce channels, and in
particular Amazon, where the Company's Bye Bye Bloating product
continues to hold the coveted "Amazon's Choice" badge for bloating
relief;
- Net loss and comprehensive loss was $1.67 million for Q1 2022, representing a
significant improvement over Q4 2021 net and comprehensive loss of
$6.1 million. This is the result of
significant efficiencies gained in marketing and other areas. The
loss also includes several one-time expenses including financing
fees ($111k), investments in research
and development ($87k), annual stock
option awards to management and directors ($331k) and one-time public company related fees
($165k).
Operational Highlights:
- In Q1 2022, the Company increased its points of distribution by
26% reaching a total of 18,345, driven by its continued expansion
in Canada and the U.S. in which
the Company increased from 1,700 points of distribution at the end
of Q4 2021 to over 5,000 by the end of Q1 2022;
- The Company launched the first four SKUs of its new powder line
in compostable packaging in Canada
and the U.S. in Q1 2022, all of which have already received orders
from several retailers:
-
- FACE THE DAY, After Party liver and antioxidant support
- STIR UP YOUR IMMUNITY, Adaptogen blend
- GOOD NIGHT SLEEP TIGHT, Natural sleep aid with
antioxidants
- STRESS FIGHTER, Mushroom adaptogen blend.
- The Company engaged a new fulfillment and shipping partner in
the U.S. market and expects to see gains in efficiencies in terms
of cost and speed of delivery as a result of this change.
Management Commentary
"We are proud to report another quarter of terrific growth
across all channels and significant gains in efficiency both in
Canada and the U.S.", said
Monica Ruffo, CEO of Well Told.
"Although we recognize that the capital markets continue to be very
challenging, we continue to focus on building a solid sustainable
business with strong values and a culture of growth as we remain
committed to paving the way towards profitability by 2023."
2022 Outlook
- As of the end of May 2022, the
Company had surpassed its 2022 goal of quadrupling points of
distribution in the U.S. with over 8,000 points of distribution as
the Company continues to expand into natural food retailers,
independents, regional grocery and drug retailers;
- The Company's main priority for 2022 is to continue to move
towards profitability by focussing our growth on the U.S. market,
as well as Amazon in Canada and
the U.S. The Company will also be looking to continue to improve
cost efficiency with a focus on fulfilment, distribution and
shipping costs;
- The Company continues to see stronger re-orders from Canadian
and American retailers which began selling prior to 2022;
- The Company expects Amazon sales to continue to grow
significantly in 2022.
The financial statements of the Company for the quarter ended
March 31, 2022. and accompanying
Management Discussion & Analysis (MD&A) are available at
www.sedar.com.
About The Well Told Company Inc.
Well Told is a female-founded, emerging plant-based wellness
company that formulates, develops, distributes and sells a variety
of supplements, remedies and other functional wellness products.
Founded by serial entrepreneur and award-winning leader
Monica Ruffo, it was after
undergoing treatment for breast cancer, and deciding to take her
health into her own hands that she discovered the lack of
transparency and availability of clean, plant-based formulations in
the wellness industry. With the mission "Clean wellness for all",
Well Told's products are currently available in over 2,000 stores
across Canada including several
well-known retailers and recently launched in over 850 pharmacies
in the U.S. in addition to being available at welltold.com and on
Amazon.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Certain statements contained in this press release constitute
"forward-looking information" as such term is defined in applicable
Canadian securities legislation. The words "may", "would", "could",
"should", "potential", "will", "seek", "intend", "plan",
"anticipate", "believe", "estimate", "expect" and similar
expressions as they relate to the Company are intended to identify
forward-looking information, including the Company showing a
profit by 2023; the Company expecting to see gains in
efficiency in terms of cost and speed of delivery as a result of
engaging a new fulfillment and shipping partner in the U.S.;
the Company expecting Amazon sales to continue to grow
significantly in 2022; and the Company's outlooks for 2022.
All statements other than statements of historical fact may be
forward-looking information. Such statements reflect the Company's
current views and intentions with respect to future events, and
current information available to the Company, and are subject to
certain risks, uncertainties and assumptions, including: further
growth of 73% in the U.S. market which includes Amazon in
the U.S. as well as growth with Amazon in Canada; the Company improving cost efficiency
with a focus on fulfilment, distribution and shipping costs by at
least 15%; the Company's ability to capitalize on growth
opportunities and implement its growth strategy; the Company's
ability to build its market share; the Company's ability to
maintain brand development; the Company's ability to maintain
existing customer relationships and to continue to expand its
customers' use of its products; the Company's ability to obtain
financing on acceptable terms or at all; the impact of competition;
the Company's ability to negotiate favorable terms with retailers
and distributors; the company's ability to scale its ecommerce
business; the Company's ability to continue to source ingredients
and packaging for its products on favourable terms; the changes and
trends in the Company's industry or the global economy; and changes
in laws, rules, regulations, and global standards.
Many factors could cause the actual results, performance or
achievements that may be expressed or implied by such
forward-looking information to vary from those described herein
should one or more of these risks or uncertainties materialize.
Examples of such risk factors include, without limitation: credit;
market (including equity, commodity, foreign exchange and interest
rate); liquidity; operational; reputational; insurance; strategic;
regulatory; legal; environmental; the general business and economic
conditions in the regions in which the Company operates; the
ability of the Company to execute on key priorities; the Company's
results of operations may be difficult to forecast; the Company is
a holding company with its only asset being direct ownership of
Well Told Inc.; the Company's success depends upon the continued
strength of its reputation and brands; disruptions in manufacturing
facilities or losses of site licenses and other qualifications
could adversely affect sales and customer relationships; the
Company's success depends on its ability to continue to enhance
products and develop new products; the Company's suppliers and
sources for materials and inputs may fail to support demand and
increasing raw material costs could adversely affect margins; the
Company is reliant on third parties for shipping and payment
processing; the Company's ability to compete could be negatively
impacted if it is unable to protect its intellectual property
rights; the ability to implement business strategies and pursue
business opportunities; disruptions in or attacks (including
cyber-attacks) on the Company's information technology, internet,
network access or other voice or data communications systems or
services; the evolution of various types of fraud or other criminal
behavior to which the Company is exposed; the failure of third
parties to comply with their obligations to the Company or its
affiliates; the impact of new and changes to, or application of,
current laws and regulations; granting of permits and licenses in a
highly regulated business; the overall difficult litigation
environment; increased competition; changes in foreign currency
rates; increased funding costs and market volatility due to market
illiquidity and competition for funding; the availability of funds
and resources to pursue operations; critical accounting estimates
and changes to accounting standards, policies, and methods used by
the Company; the occurrence of natural and unnatural catastrophic
events and claims resulting from such events; and risks related to
COVID-19 including various recommendations, orders and measures of
governmental authorities to try to limit the pandemic, including
travel restrictions, border closures, non-essential business
closures, quarantines, self-isolations, shelters-in-place and
social distancing, disruptions to markets, economic activity,
financing, supply chains and sales channels, and a deterioration of
general economic conditions including a possible national or global
recession; as well as those risk factors discussed or referred to
in the Company's disclosure documents filed with the securities
regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should
any factor affect the Company in an unexpected manner, or should
assumptions underlying the forward-looking information prove
incorrect, the actual results or events may differ materially from
the results or events predicted. Any such forward-looking
information is expressly qualified in its entirety by this
cautionary statement. Moreover, the Company does not assume
responsibility for the accuracy or completeness of such
forward-looking information. The forward-looking information
included in this press release is made as of the date of this press
release and the Company undertakes no obligation to publicly update
or revise any forward-looking information, other than as required
by applicable law.
SOURCE Well Told Inc.