The Very Good Food Co Inc. (VERY.CN) (VRYYF.PK)

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The Very Good Food Company Announces Q2 Financial Results

Vancouver, BC – September 1, 2020  – The Very Good Food Company Inc. (CSE: VERY) (OTCPK: VRYYF) (FSE: 0SI) (“VGFC” or the “Company”) today announced its second quarter (“Q2”) financial results for the period ended June 30th, 2020.

 

Second Quarter 2020 Financial Highlights:

 

  • Revenues were $1,100,816 million, an increase of 400% year over year
  • Gross profit margin of 42% over 6 month period, an improvement from 34%
  • Total assets of $6,757,062, including a cash balance of $3,508,826
  • Outstanding debt reduced by $1.1 million
  • Net loss was $1,653,655 million, or $0.03 per common share

 

CEO Mitchell Scott stated: “We were extremely pleased with our financial performance this quarter, with revenue growth and gross margins both producing industry leading results. With a very healthy balance sheet and quickly growing demand for our products, we are in a position of strength as we charge forward with our international expansion. Over the coming quarters, investors can expect to see significant progress on our next phase of growth, as we transition to becoming a much larger company with global ambitions.”

 

Management Discussion & Analysis

 

During the second quarter, the Company reported record quarterly revenue of $1,100,816 million, up 225% quarter-over-quarter from $338,552 and up nearly 400% year-over-year from $222,054. The increase in revenues for the three months ended June 30, 2020 was mainly due to an increase in eCommerce Store sales associated with an eCommerce Partnership Agreement entered into during March 2020.

 

When compared to the 6 month period ended June 30, 2019 the Company has improved its gross margin from 34% to 42%. The Company continues to have industry leading margins when compared to competitors such as Beyond Meat, who recently announced a 29.7% gross margin on revenues.

 

Total assets held by the Company increased to $6,757,062 which includes a cash balance of $3,508,826. The increase in working capital was primarily due to an increase in cash from the completion of an Initial Public Offering. Subsequent to the date of the Q2 statements, the Company completed a prospectus offering of 6,555,000 units at $1.30 per unit for gross proceeds of $8,521,500.

 

During the quarter, the Company repaid $1.1 million of outstanding debt. Where possible without incurring early repayment penalties, the Company intends to deleverage further, with a focus on debt bearing a higher interest rate.

 

As an early stage company experiencing significant growth, the Company is currently prioritizing reinvesting cash flow in further expansion, rather than short term profits. The increase in net and comprehensive loss for the quarter was mainly due to the increase in advertising and promotional expenses associated with the eCommerce Partnership Agreement, and an increase in selling costs, which consist of shipping and merchant processing fees.

 

About The Very Good Food Company

 

The Very Good Food Company Inc. is an emerging plant-based food technology company that designs, develops, produces, distributes and sells a variety of plant-based meat and other food alternatives. Our mission is to employ plant-based food technology to create products that are delicious while maintaining a wholesome nutritional profile. To date we have developed a core product line under The Very Good Butchers brand.

 

For further information, please contact:

Mitchell Scott

Chief Executive Officer and Director

 

Kevan Matheson

Corporate Communications and Investor Relations

 

Email: invest@verygoodbutchers.com

Phone: +1 855-472-9841

 

Neither the Canadian Securities Exchange nor its Market Regulator (as defined in the policies of the Canadian Securities Exchange) accept responsibility for the adequacy or accuracy of this release.

 

Cautionary Note Regarding Forward-Looking Information

 

This news release contains forward-looking information. Such forward-looking statements or information are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Any such forward-looking information may be identified by words such as “proposed”, “expects”, “intends”, “may”, “will”, and similar expressions. Forward-looking information contained or referred to in this news release includes, but is not be limited to: the ability to maintain industry leading margins, the continued growing demand for the its products, and its ability to expand internationally.

 

Forward-looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information, but which may prove to be incorrect. Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct. Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to: negative cash flow and future financing requirements to sustain operations; dilution; limited history of operations and revenues and no history of earnings or dividends; competition; economic changes; the Company’s application for listing on the OTCQB may not be approved; and the impact of and risks associated with the ongoing COVID-19 pandemic. The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company.

 

Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.

 

Source:  The Very Good Food Company Inc.

The Very Good Food Company Inc. Announces Logistics Partners and Provides Production Capacity Update

Vancouver, BC – August 11, 2020  –  The Very Good Food Company Inc. (CSE: VERY) (OTCPK: VRYYF) (FSE: 0SI) (“VGFC” or the “Company“) is pleased to announce that it has signed an agreement with three third party logistics providers (“3PL“) to increase shipping speed and reduce associated costs for its ecommerce store orders. The Company has also made improvements to its Victoria facility to increase throughput and position the facility for a near-term ramp up in production.

 

Third Party Logistics Providers

 

The Company has signed agreements with three strategically located third party logistics providers in North America. The new distribution hubs are expected to substantially reduce shipping costs, while also significantly improving speed of delivery to customers. The 3PL facilities are located in Ontario and on both U.S. coasts, with capabilities of reaching anywhere in North America in 2-3 days via ground transportation.

 

CEO Mitchell Scott stated: “The 3PL hubs were the next critical step in building our ecommerce business to be truly scalable. Previously, all shipping was centralized out of our Victoria facility, which delayed shipping times for customers and required cost-intensive air mail.”

Production Capacity Increase

 

With increasing demand and the current backlog in orders, increasing production out of the Victoria facility has been a high priority item for the Company. As a result of continuous optimization of scheduling, labour and supply chain planning, production at the Victoria facility has stabilized at approximately 8,100 lbs per week and the Company is working to further increase capacity in the next few months with the goal of reaching up to 19,841 lbs per week.

 

The Company currently anticipates that construction at its proposed Vancouver facility will commence before the end of this year, and when complete will provide a significant increase in production capability. While the new facility is under construction, the Victoria facility will undergo further capacity improvements including through the use of new equipment currently being sourced by the Company, to provide near-term production increases.

 

About The Very Good Food Company

 

The Very Good Food Company Inc. is an emerging plant-based food technology company that designs, develops, produces, distributes and sells a variety of plant-based meat and other food alternatives. Our mission is to employ plant-based food technology to create products that are delicious while maintaining a wholesome nutritional profile. To date we have developed a core product line under The Very Good Butchers brand.

 

For further information, please contact:

 

Mitchell Scott
Chief Executive Officer and Director

 

Kevan Matheson
Corporate Communications and Investor Relations

 

Email: invest@verygoodbutchers.com
Phone: +1 855-472-9841

 

Neither the Canadian Securities Exchange nor its Market Regulator (as defined in the policies of the Canadian Securities Exchange) accept responsibility for the adequacy or accuracy of this release.

 

Cautionary Note Regarding Forward-Looking Information

 

This news release contains forward-looking information. Such forward-looking statements or information are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Any such forward-looking information may be identified by words such as “proposed”, “expects”, “intends”, “may”, “will”, and similar expressions. Forward-looking information contained or referred to in this news release includes, but is not be limited to the benefits the Company expects to derive from the 3PL facilities including lower shipping costs and increased shipping speeds, the timing for commencement of construction of the proposed Vancouver facility and the Company’s ability to achieve further production capacity increases at its Victoria facility. .

 

Forward-looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information, but which may prove to be incorrect. Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct. Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to: negative cash flow and future financing requirements to sustain operations, dilution, limited history of operations and revenues and no history of earnings or dividends, competition, economic changes and the impact of and risks associated with the ongoing COVID-19 pandemic. The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company.

 

Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.

Source:  The Very Good Food Company Inc.

About The Very Good Food Company


There’s a new butcher on the block – and we do things differently. Really. At The Very Good Butchers, we believe in butchering beans, not animals.

 

We’re on a mission to show that making good choices doesn’t mean sacrificing flavour. We want to make plant-based eating as approachable, nutritious and delicious as possible by creating food that’s Very Good for people, animals and the planet (while having a little fun along the way).

 

Our Story 

 

Fed up with the overly-processed meat alternatives available, our founders knew they could raise the plant-based bar. As trained chefs with years of experience, they set out to make the most delicious and nutritious plant-based meats they could, and in our humble opinion, they nailed it!.

 

After selling out farmers markets on Denman Island, BC, our bean butchers knew they were onto something. They brought their magic beans to Victoria and opened the Canadian West Coasts’ first plant-based butchery.

 

A bajillion butchered beans, a Dragon’s Den appearance, 15 new products, and the opening of a production facility later (all in 3 years!), and our (not so) little Butcher Shop is online and ready to put some Very Good food on your plate.

 

Who we are

 

We are an emerging plant-based food technology company that designs, develops, produces, distributes and sells a variety of plant-based meat and other food alternatives.

 

Our mission is to employ plant-based food technology to create products that are delicious while maintaining a wholesome nutritional profile.

 

At The Very Good Food Company, we believe that making good choices doesn’t mean sacrificing flavour or giving up the things you love. That’s why we are hell bent on developing and manufacturing a range of plant-based products that will satisfy your taste buds and nourish your body.

 

Source:  https://www.verygoodbutchers.com/

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