Annual revenue of $10.6 million, up 308% year-over-year
Q4 revenue of $4.0 million, up 567% year-over-year
Results reflect only six months of contributions from Purebread Bakery (acquired September 2023)
Vancouver, British Columbia--(Newsfile Corp. - August 1, 2024) - Purebread Brands Inc. (TSXV: BRED) ("Purebread" or the "Company") today announced its financial and operational results for the fiscal year and fourth quarter ended March 31st, 2024. All financial information is presented in Canadian dollars unless otherwise indicated.
Q4 and FY 2024 Highlights
FY 2024 revenue of $10.6 million, a 308% increase from $2.6 million in the prior year.
Q4 2024 revenue of $4.0 million, a 567% increase from $0.6 million in the prior year.
Q4 2024 represents the eighth consecutive quarter of at least double-digit growth for Coho Collective Kitchens and Purebread Brands.
Store sales at Purebread Bakery vs. the previous year were up 27% overall, contributed to by a 6% increase in Same Store Sales (surpassing Company growth targets).
FY 2024 Adjusted EBITDA of $(1.7) million, a 46% improvement from $(2.8) million in the prior year. Improvements in Adjusted EBITDA are attributable to: i) the contributions of Purebread Bakery, acquired in September 2023, ii) revenue growth in the Company's new and existing shared kitchen facilities, and iii) ongoing efforts to streamline the business and maximize efficiency in operating expenses.
Subsequent to year-end, the Company opened the eighth Purebread Bakery location, which was opened in less than 2 months. The Company continues to identify growth opportunities to rapidly scale the business, with priority on opening new Purebread Bakery locations.
At the end of Q4, the company enacted a series of profit maximization efforts which included the following and will be discussed further as Q1 and future quarter results are shared in the coming months.
At Coho Commissaries:
The increase of rental rates across the membership to account for rising costs.
Reduction of 20% of Coho Commissary staff
The successful onboarding of Sodexo's Global Purchasing Organization (GPO) that reduced vendor costs throughout - while maintaining consistency and quality
At Purebread:
The roll out of an improved retail packaged products (which includes a new cold drink program) driving a 250% increase within this category
The improvement of online sales processes that improved online seasonal activity (for example Christmas and Mother's Day) by 68%
The roll-out of our first 3rd party delivery platform "Uber Eats" at our downtown locations
The signing of notable wholesale contracts
"The Company's strong fourth quarter and fiscal year results reflect the successful execution of our business strategy over the period, highlighting our ability to achieve our stated goals," said Andrew Barnes, CEO of Purebread. "We continue to execute our rapid expansion model through the acquisition of Purebread, building our retail footprint with an award-winning bakery brand. Additionally, we have strengthened the profitability of our business, improved our balance sheet, and demonstrated our ability to grow with low capital constraints. The business has never been stronger, and we are excited for the company to continue advancing as new locations come on board and enhance the company's strength."
Operational Highlights
In September 2023 the Company acquired Purebread Bakery. This acquisition strengthens our market position and expands our product offerings.
During and subsequent to the acquisition, Purebread Bakery has grown significantly, including the opening of the YVR store. The YVR expansion showcases our brand's increasing footprint and customer reach.
In July 2023 the Company partnered with Sodexo for facility management to enhance operational efficiency and customer experience. This partnership leverages Sodexo's comprehensive expertise to improve our service offering and reduce costs.
In April 2024 Purebread Bakery won the AXN award for Best QSR in North America. This prestigious award highlights our commitment to quality and excellence in the quick-service restaurant sector and ability to scale across the airport ecosystem.
In February 2024 the Company announced the appointment of Dan Haroun and Marija Radulovic-Nastic to its Board of Directors. These appointments bring valuable experience and insights to our leadership.
In March 2024 the Company changed its name from Coho Collective Kitchens to Purebread Brands. This rebranding aligns with our strategic focus on expanding our scalable cafe and bakery business.
Throughout FY24, within Coho Commissaries, the Company has implemented staff reductions and cost management measures. These actions are intended to streamline operations and improve financial performance and have improved the profitability of the business.
Throughout FY24, within Purebread, the Company has improved operational performance through increased focus on sustainable practices, expansion into new geographical markets, introduction of new product lines, implementation of advanced technology systems, launch of a comprehensive employee training program, successful capital raising efforts, enhanced digital marketing strategies, positive feedback from customer satisfaction surveys, and development of strategic partnerships and alliances.
Subsequent to Quarter End
The Company opened Purebread's 8th location in Vancouver's West 4th area. This location was opened for under $200k of costs, with the project being completed within a two month timeframe.
The Company opened a location in Parksville partnered with Evergreen Hospitality. This location provides an opportunity for added growth and revenue, as well as an opportunity to test logistics of working outside of the Lower Mainland, and paving the road for continued geographic expansion.
Non-IFRS Measures, Reconciliation and Discussion
This press release contains references to "Adjusted EBITDA" that is a non-IFRS financial measures. Adjusted EBITDA is defined as earnings (or loss) from operations before interest, taxes, depreciation and amortization, adjusted for share based compensation, accretion and non-recurring transaction costs, and is a non-IFRS measure.
For Adjusted EBITDA: This measure can be used to analyze and compare profitability among companies and industries, as it eliminates the effects of financing and capital expenditures. It is often used in valuation ratios and can be compared to enterprise value and revenue. This measure does not have any standardized meaning according to IFRS and, therefore, may not be comparable to similar measures presented by other companies.
The non-IFRS financial measure should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with the IFRS financial measures presented in the Company's financial statements.
About Purebread Brands Inc.:
Purebread Brands Inc. is a growing force in commercial real estate and food technology, operating fast-casual cafes, bakeries, and shared-kitchen facilities. Purebread is committed to making a positive impact on the communities it serves.
For more information and updated investor presentation, please visit www.purebreadbrands.com
Contact: Andrew Barnes, Chief Executive Officer andrew@purebread.ca (778) 877-6513
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.
Cautionary Note Regarding Forward-Looking Information
This press release may contain "forward-looking statements" and "forward-looking information" (collectively, "forward-looking statements") within the meaning of applicable securities legislation, which reflect management's current expectations regarding future events. Such forward-looking statements include, but are not limited to, forward-looking statements with respect to plans, intentions, beliefs, and current expectations of the Company with respect to future business activities, expansion and operating performance.
Forward-looking statements are frequently characterized by words such as "plan", "project", "intend", "believe", "anticipate", "estimate", "expect" and other similar words, or statements that certain events or conditions "may" or "will" occur. Although the Company's management believes that the assumptions made (and the expectations represented by such forward-looking statements) are reasonable, there can be no assurance that any forward-looking statements referenced herein will prove to be accurate.
Forward-looking statements are not based on historical facts, but instead reflect the opinions and estimates of management at the date the statements are made and are subject to a variety of risks, uncertainties, and other factors that could cause actual results or events to differ materially from those anticipated in the forward-looking statements. These risks, uncertainties, and other factors that could cause actual results to differ materially from those in forward-looking statements include: reliance on key personnel, protection of our intellectual property rights, competition, a failure to establish additional locations, disruption at our facilities, global pandemics (such as COVID-19) and corresponding impacts on the Company's business, government regulation of the virtual kitchen industry, the price of raw materials, consumer trends, climate change, cybersecurity, food safety and consumer health, brand value, internet search algorithms, reputation risk, risks associated with leasing commercial and retail space, effect of service and facility innovation, failure to retain current members and/or recruit new members, litigation risk, failure to meet expectations of our values & metrics, risks associated with acquisitions, management of growth, a history of losses, negative cash flow, additional funding requirements and risks, dividend risk, increased costs of being a publicly traded company, global economic risk, and share price volatility risk.
The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates should change, except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. More detailed information about potential factors that could affect results is included in the documents that may be filed from time to time with Canadian securities regulatory authorities by the Company.
For a more detailed discussion of certain of these risk factors, see the heading "Risk Factors" in the Company's most recent MD&A, available under the Company's SEDAR+ profile at www.sedarplus.ca.
