TORONTO, Feb. 12, 2024 /CNW/ - EMERGE Commerce Ltd. (TSXV: ECOM) ("EMERGE", or the "Company"), a premium e-commerce brand portfolio, is pleased to provide the following corporate update based on preliminary unaudited financial highlights for January2024:
EMERGE achieved positive organic revenue growth in January2024 compared to January2023, including for truLOCAL, UnderPar, and JustGolfStuff
truLOCAL saw its largest influx of net new subscribers since Q22020 (peak-pandemic)
Cash on hand at January31, 2024 was approximately $3M
EMERGE CEO to host virtual webcast on Thursday, February15, at 11:00amET (Register Below)
Ghassan Halazon, Founder and CEO of EMERGE commented, "After having spent 2023 prioritizing debt paydown, we now shift our primary focus to driving organic revenue growth, while operating our streamlined business with discipline. In that spirit, we are pleased to share that we recorded positive year-over-year organic revenue growth in January 2024, based on preliminary results. While still early in the year, given our recent performance and upcoming plans, we are increasingly optimistic that 2024 can be the year EMERGE returns to organic growth for our key businesses, following the comedown from the artificially high peak-pandemic period."
In January 2024, truLOCAL, our premium meat subscription brand, saw its largest monthly influx of net new customers since Q2 2020, considered the peak-pandemic period accompanied by a temporary but pronounced spike in new subscribers at the time. truLOCAL is EMERGE's largest business by revenue, as well as our most profitable brand.
"We were especially pleased to see that truLOCAL experienced a substantial improvement in net new customers in January, primarily driven by our more effective marketing efforts, among other initiatives. As a Canadian leader in premium meat subscriptions, we believe truLOCAL presents an outsized strategic opportunity for us, and given our more focused vertical strategy, truLOCAL is finally starting to get the attention it deserves," continued Halazon.
EMERGE's golf brands, UnderPar, our discounted experiences marketplace, and JustGolfStuff, our rapidly growing golf products and apparel business, both also achieved positive organic growth in January 2024.
"Our thesis is that the weakening economic climate is conducive to UnderPar's model, a business that was founded during the 'Great Recession' in 2008. We are starting to see some landmark golf courses return to our discounted marketplace for the first time in years, which partially drove the positive results in January. JustGolfStuff, our golf products business, continues to record high double-digit revenue growth and has been optimized for profitability in recent months," added Halazon.
Cash Update
Following the closing of the WholesalePet sale transaction on January 31, 2024, EMERGE's cash balance was approximately $3M.
EMERGE Webcast
EMERGE Founder and CEO, Ghassan Halazon, will be hosting a virtual corporate presentation on Thursday, February15, at 11:00amET to discuss the Company's recent progress and upcoming plans. Mr. Halazon will also take some live questions from investors.
EMERGE (TSXV: ECOM) is a premium e-commerce brand portfolio in Canada and the U.S. Our subscription and marketplace e-commerce properties provide our members with access to unique offerings across grocery and golf verticals. Our grocery businesses include truLOCAL.ca, our premium meat subscription brand, and Carnivore Club, our artisanal/ cured meat brand. Our golf businesses include UnderPar, our discounted experiences business, and JustGolfStuff, our golf products & apparel brand.
Cautionary notice Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Notice regarding forward-looking statements
This press release may contain certain forward-looking information and statements ("forward-looking information") within the meaning of applicable Canadian securities legislation, that are not based on historical fact, including without limitation statements containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts" and other similar expressions. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. The Company undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of the Company, its securities, or financial or operating results (as applicable). Although the Company believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including the risk factors discussed in the Company's MD&A, Prospectus Supplement and Annual Information Form and are available through SEDAR at www.sedar.com. The forward-looking information contained in this press release are expressly qualified by this cautionary statement and are made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
On Behalf of the Board Ghassan Halazon Director, President, and CEO
