In an effort to “Make America Healthy Again,” the Trump Administration wants to “re-direct our national focus, in the public and private sectors, toward understanding and drastically lowering chronic disease rates and ending childhood chronic disease. This includes fresh thinking on nutrition, physical activity, healthy lifestyles, over-reliance on medication and treatments, the effects of new technological habits, environmental impacts, and food and drug quality and safety,” as quoted by The White House. All of which could create a healthy market for healthy snack stocks like Simply Better Brands (TSXV: SBBC) (OTCQX: SBBCF), BellRing Brands (NYSE: BRBR), General Mills (NYSE: GIS), Kellanova (NYSE: K) and Mondelez International (NASDAQ: MDLZ), too.
In addition, the Trump administration wants to remove artificial dyes from the US food supply, with HHS Secretary Robert F. Kennedy Jr. expected to share more about those plans shortly. Plus. According to CNN, “Lawmakers in more than half of states – both Republican- and Democrat-led – are pushing to restrict access, according to a tracker by the Environmental Working Group, a nonprofit environmental health organization, reflecting a bipartisan push toward a safer food system.”
“Food dyes are most commonly used in foods of low nutritional value such as candy and soft drinks, according to the Center for Science in the Public Interest, a nonprofit consumer advocacy group,” they added.
Again, this could all help boost healthy snack foods and related stocks.
Look at Simply Better Brands (TSXV: SBBC) (OTCQX: SBBCF), For Example
The company just announced results for fiscal 2024, highlighting a 77% increase in TRUBAR™ revenue and its corporate name change to TRUBAR™.
· SBBC generated net revenue of $45.3 million from continuing operations for the twelve months ended December 31, 2024, an increase of 69% as compared to the prior year. Revenue growth was primarily driven by a 77% increase in TRUBARTM revenue. The Company also achieved positive Adjusted EBITDA of $0.5 million from its continuing operations in 2024, an improvement of 151% compared to 2023.
· During 2024, SBBC expanded TRUBAR™’s regional and national footprint and achieved its goal of 15,000 stores by year-end. The Company secured strategic launches in 2024 with leading retailers including Costco, Whole Foods, Walmart, CVS, and GNC.
· Subsequent to December 31, 2024, the Company announced the following distribution and significant news; Nationwide rollout into Sam’s club stores, expansion into Costco Canada west, strong growth of its DTC sales channel and the launch of TRUBARTM nationwide in select Target locations.
· The Company is pleased to announce its intention to change its corporate name to TRUBAR Inc., subject to TSX Venture Exchange approval, marking a strategic shift to become a pure-play business focused entirely on the growth and expansion of its flagship brand, TRUBAR™. In line with this transition, the Company has signed a binding Letter of Intent (LOI) for the sale of its portion of the No B.S. brand, with the transaction expected to close by Q2.
Simply Better Brands Corp., a rapidly growing brand accelerator in the global protein-based nutrition category, offering innovative, plant-based protein products that prioritize clean ingredients and exceptional taste, is pleased to report selected information from its audited consolidated financial results for the fiscal year and fourth quarter ended December 31, 2024. All amounts are expressed in United States dollars unless otherwise noted.
Selected financial and operating information are outlined below and should be read with the Company’s audited consolidated financial statements and related management’s discussion and analysis for the twelve months ended December 31, 2024, which are available under the Company’s profile on SEDAR+ at www.sedarplus.com.
FINANCIAL HIGHLIGHTS FOR THE TWELVE MONTH PERIOD ENDED DECEMBER 31, 2024
Financial highlights for the Company’s continuing operations during the twelve months ended December 31, 2024 included:
· Net revenue of $45.3 million for the twelve months ended December 31, 2024, representing an increase of 69% compared to $26.8 million during the twelve months ended December 31, 2023. This growth was driven primarily by TRUBARTM sales, which contributed 96% of the Company’s overall revenue in 2024.
· Gross Revenue1 was $55.9 million for the twelve months ended December 31, 2024, an increase of 89% compared to $29.6 million for the comparable period in 2023. This growth was driven primarily by TRUBARTM sales.
· Revenue derived from TRUBARTM sales was $43.6 million for the twelve months ended December 31, 2024, representing an increase of $18.9 million or 77% as compared to $24.7 million for the twelve months ended December 31, 2023.
· Direct-to-consumer (DTC) revenue for the twelve months ended December 31, 2024, represented 11% of total TRUBARTM revenue. DTC revenue includes e-commerce sales of TRUBARTM through Amazon and Shopify channels.
· Gross profit was $13.3 million for the twelve months ended December 31, 2024, an increase of 77% as compared to Gross profit of $7.5 million for the twelve months ended December 31, 2023. Gross margin percentage was 29% for the twelve months ended December 31, 2024, compared to Gross margin percentage of 28% for the comparable period in 2023.
· Operating costs were $16.2 million for the twelve months ended December 31, 2024, an increase of $3.2 million (or 25%), compared to $13.0 million for the twelve months ended December 31, 2023. This increase reflects the Company’s strategic investments and operational growth initiatives.
· The Company achieved Adjusted EBITDA2 of $0.5 million from continuing operations for the twelve months period ending December 31, 2024, a $1.4 million improvement over the Adjusted EBITDA achieved in the comparable period in 2023. The improvement in Adjusted EBITDA was due to higher gross profit which was partially offset by higher cash operating expenses for the twelve months ended December 31, 2024 compared to the prior year.
· The Company recorded a net loss from continuing operations of $11.5 million during the twelve months ended December 31, 2024, compared to a net loss of $7.5 million for the twelve months ended December 31, 2023. Excluding the impacts of warrant liabilities, net loss from continuing operations would have been $4.4 million during the twelve months ended December 31, 2024, compared to a net loss of $8.5 million for the twelve months ended December 31, 2023.
CORPORATE NAME CHANGE TO TRUBARTM INC.
SBBC is also pleased to announce its intention to change its name to TRUBARTM Inc., marking a strategic shift to become a pure-play business focused entirely on the growth and expansion of its flagship brand, TRUBAR™, subject to the acceptance of the TSX Venture Exchange. The purpose of the rebrand is to align the Company’s identity with its core business and consumer-facing brand, while reinforcing its commitment to building long-term shareholder value.
The effective date of the name change and further details, including the new ticker symbol and CUSIP/ISIN numbers for the common shares of the Company will be announced in a subsequent news release once confirmed. Shareholders will not be required to take any action in connection with the name change. Outstanding common share and warrant certificates bearing the old name of the Company will still valid and are not affected by the name and ticker symbol change.
MANAGEMENT COMMENTARY
Kingsley Ward, Chief Executive Officer and Chairman of SBBC commented on the results, “Fiscal 2024 was a transformational year for SBBC as we accelerated our growth strategy in the better-for-you consumer space. Our efforts to streamline the business and strengthen our leadership team have positioned us for long-term success. With the planned sale of the No BS brand, we are placing our entire focus on TRUBARTM. With a strong Board of Directors, a focused strategy, and increasing consumer demand for better-for you snacks, we are confident in our ability to drive growth and deliver value to our shareholders in 2025 and beyond.”
Erica Groussman, Co-Founder and CEO of Tru Brands, Inc. added, “2024 was a milestone year for TRUBAR™, as we significantly expanded our retail footprint and secured key partnerships with leading retailers such as Costco, Whole Foods, Walmart, CVS, and GNC. Reaching our target of 15,000 stores reflects the incredible momentum behind the brand and the growing consumer demand for clean, plant-based snacks. With our strengthened and highly skilled leadership team, we remain confident in our ability to build on this success, putting our entire focus on scaling TRUBAR™ in 2025 through expanded distribution, marketing, innovation, and a commitment to providing clean, recognizable ingredients without compromising on taste.”
Laura Freimane, Chief Financial Officer of SBBC commented, “The Company remains focused on enhancing its financial position through strategic initiatives designed to support sustainable growth while ensuring strong operational and working capital efficiency. This year, we achieved a positive Adjusted working capital of $4.1 million and a cash balance of $7.1 million reflecting our solid financial footing. We expect tariffs to have a minimal impact on our business as our manufacturing is based in the United States and the vast majority of our revenue is generated domestically. We are well-positioned to navigate potential trade fluctuations with minimal disruption expected to our operations and financial performance.”
FOURTH QUARTER 2024 BUSINESS and OPERATIONAL HIGHLIGHTS
Significant business and operational highlights for the Company during the three months ended December 31, 2024 included:
· Walmart Canada: On October 9th, 2024, the Company announced the rollout of TRUBARTM in more than 300 Walmart stores across Canada, a key strategic addition in expanding the brand’s presence to more than 1,000 Walmart store locations across North America.
· GPM Investments Convenience Store Chains: On October 17, 2024, the Company announced further distribution expansion of TRUBARTM in the convenience channel with the addition of more than 25 regional store brands operating under GPM Investments, LLC, one of the largest convenience store chains in the U.S. with more than 1,400 GPM locations in more than 33 states in a wide range of well-known regional convenience chains including Fas Mart, E-Z Mart, Roadrunner Markets, Village Pantry and Jiffi Shop.
· Love’s Travel Stops: On October 28, 2024, the Company announced the launch of TRUBARTM in over 600 Love’s Travel Stops across 42 states, the largest network of travel stops and convenience stores across the U.S.
· Albertsons Companies: On November 11, 2024, the Company announced the launch of TRUBARTM in more than 500 Albertsons Companies locations, the second-largest supermarket chain in North America. TRUBARTM will be available in the following banners: Albertsons, Safeway, Shaw’s, Star Market, Jewel-Osco, Carrs, and Market Street.
· Senior Leadership Appointments: On December 17, 2024, the Company announced key executive appointments. Claire Ughetto has been named Senior Vice President of Operations to oversee TRUBAR™’s expansion and Laura Freimane, CPA, has been appointed Chief Financial Officer, to lead SBBC’s financial team and strategy.
SIGNIFICANT EVENTS SUBSEQUENT TO DECEMBER 31, 2024
Subsequent to December 31, 2024 the Company announced the following distribution partners:
· Sam’s Club Expansion: On January 15, 2025, the Company announced the nationwide rollout of TRUBAR™ in select Sam’s Club warehouse stores across the U.S. This launch builds on the brand’s successful online presence at SamsClub.com and further strengthens its North American distribution footprint with key retail partners.
· Gopuff E-Commerce Expansion: On January 21, 2025, the Company announced the launch of TRUBAR™ on Gopuff, the leading instant commerce platform with a presence in major U.S. markets. This partnership enhances TRUBAR™’s reach through Gopuff’s micro-fulfillment centers and omnichannel retail locations across the U.S.
· GoMart Convenience Channel Expansion: On February 6, 2025, the Company announced the launch of TRUBAR™ in GoMart, a regional convenience store chain with a major presence in West Virginia and additional locations in Ohio and Virginia. TRUBAR™ is now available in 124 GoMart stores.
· TRUBAR™ Canada Expansion: On February 24, 2025, the Company announced the launch of TRUBAR™ in Costco Canada’s West Region, marking a major milestone in the brand’s expansion across Canada and strengthening its strategic partnership with Costco. Additionally, SBBC has expanded TRUBAR™’s retail footprint with the addition of Nature’s Emporium, an Ontario-based health food market with six locations, and Freson Bros., an Alberta-based grocery chain with 16 locations.
· Direct to Consumer Growth Update: On March 4, 2025, the Company announced preliminary unaudited results of its estimated growth in direct-to-consumer (“DTC”) sales for 2024. TRUBAR™ demonstrated exceptional growth throughout 2024, with total DTC sales increasing by 365% from Q1 to Q4-2024.
· Target Expansion: On April 14, 2025 the Company announced the launch of TRUBARTM in select Target locations, marking further progress in expanding the brand’s North American distribution footprint with key national retail partners.
UPDATE ON LIQUIDITY AND CAPITAL RESOURCES
The Company’s primary liquidity and capital requirements are for inventory and general corporate working capital purposes. The Company had a cash balance of $7.1 million as of December 31, 2024, which will provide capital to support the planned growth of the business and for general corporate working capital purposes. The Company’s Adjusted working capital increased from a deficiency of $12.1 million as of December 31, 2023, to a positive working capital $4.1 million as of December 31, 2024 ($16.3 million improvement). This excludes warrant liabilities as they are settled through the issuance of Common shares.
Significant liquidity and capital-related updates included:
· BMO Partnership & Credit Facility: On December 2, 2024, the Company announced a new partnership with BMO Corporate Finance Division and the closing of a USD $10 million credit facility for its subsidiary, TRU Brands Inc. The facility allows TRUBAR™ to borrow against both accounts receivable and inventory. In connection with the new facility, the Company repaid and terminated a $5 million prior facility.
· Convertible Notes, Promissory Notes and Loans Payable: The Company consolidated two loan agreements from 2023 into a single unified agreement. Under the revised terms, the Company is obligated to pay $114,587 in restructuring fees over 11 equal installments. The agreement also requires the Company to make monthly interest payments. Additionally, during the fiscal year ended December 31, 2024, the Company issued four promissory notes with three of the Company’s Board Members and one of its shareholders. The funds were used to finance the operations of the Company, specifically TRUBARTM’s growth. Furthermore, convertible notes amounting to CA$850,000 were converted into 2,179,488 units during the fiscal year ended December 31, 2024.
· Credit Facility with Vimy Ridge Group: Subject to the approval of the TSX Venture Exchange, Vimy Ridge Group Investments Inc. (“VRG”), a company controlled by Kingsley Ward, has provided a credit facility of up to USD$10 million in favour of the Company to support the TRUBARTM sales expansion in 2025. The credit facility has been made pursuant to a promissory note of the Company representing a principal amount of up to USD$10 million (the “Promissory Note”). The Promissory Note provides that amounts may be drawn in USD $100,000 increments. All amounts drawn under the Promissory Note will bear interest at a rate of Prime + 5% per annum payable monthly in arrears. The principal amount drawn under the Promissory Note, plus all accrued and unpaid interest, will be payable upon demand of VRG, as lender. As consideration for the loan, the Company will pay VRG an origination fee equal to 1% of the principal amount available under the Promissory Note. Please refer to the section below entitled “Multilateral Instrument 61-101 – Protection of Minority Security Holders in Related Party Transactions” for additional information regarding the Promissory Note.
The Company’s ability to fund operating expenses will depend on its future operating performance which will be affected by general economic, financial, regulatory, and other factors including factors beyond the Company’s control (See “Risk and Uncertainties” in the MD&A).
Management continually assesses liquidity in terms of the ability to generate sufficient cash flow to fund the business. Net cash flow is affected by the following items: (i) operating activities, including the level of accounts receivable, other receivable, accounts payable, accrued liabilities and unearned revenue and deposits; (ii) investing activities (iii) financing activities.
WEBCAST and CONFERENCE CALL DETAILS:
SBBC will be holding a conference call and simultaneous webcast to discuss its financial results on Wednesday, April 23, 2025, at 12:00 pm ET (9:00 am PT). The call will be hosted by Kingsley Ward, Chief Executive Officer, and Erica Groussman, Co-founder & Chief Executive Officer of Tru Brands, Inc. Please dial-in 10 minutes prior to the start of the call.
Date: Wednesday, April 23, 2025
Time: 12:00 pm EST (9:00 am PST)
For attendees who wish to join by webcast, the event can be accessed at:
https://bit.ly/SBBC-Q424
Dial-in by phone
+1 778 907 2071 (Vancouver Local)
+1 647 558 0588 (Toronto Local)
Click here to find local numbers
Meeting ID: 892 8561 7506
Multilateral Instrument 61-101 – Protection of Minority Security Holders in Related Party Transactions
VRG is a company controlled by Kingsley Ward, the Chairman and Chief Executive Officer of the Company. As a result, the entering into of the Promissory Note and the transaction contemplated thereby is considered to be a “related party transaction”, subject to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Related Party Transaction (“MI 61-101”). Notwithstanding the foregoing, the Company is exempt from the formal valuation requirement per sections 5.5(a) and 5.5(b) of MI 61-101, as neither the fair market value of the subject matter of either of the transaction, nor the fair market value of the consideration for the transaction, insofar as it involves interested parties, exceeds 25% percent of the Company’s market capitalization and the Company is not listed on any of the exchanges specified in 5.5(b) of MI 61-101. The Company further confirms that it has not obtained any valuations relevant to the Promissory Note in the 24 months preceding entering into the Promissory Note. In addition, the Company is exempt from the requirement to obtain minority shareholder approval per section 5.7(1)(f) of MI 61-101, as the Promissory Note is a non-convertible loan obtained on reasonable commercial terms that are not less advantageous to the Company than if the Promissory Note and matters relating thereto were obtained from a person dealing at arm’s length and is not repayable, directly or indirectly, in equity or voting securities of the Company or a subsidiary.
The issuance of the Promissory Note and the matters relating thereto were each approved by the independent directors of the Company, being all directors other than Kingsley Ward. No materially contrary view or abstention was expressed or made by any director of the Company in relation to the proposed transaction. The Company did not file a material change report 21 days in advance of implementing the transaction as the negotiations were only concluded immediately prior to entering into the Promissory Note.
Footnotes:
1. The Company defines Gross Revenue as Net Revenue adjusted for vendor discounts. The Company, through its subsidiary, Tru Brands, engaged in a marketing program with one of its vendors. Discounts and specific promotional expenditures related to this program were recognized as a reduction of revenue in accordance with IFRS 15, ‘Revenue from Contracts with Customers’.
2. “EBITDA” is calculated as earnings before interest, taxes, depreciation, depletion, and amortization. “Adjusted EBITDA” is calculated as EBITDA adjusted for non-cash, extraordinary, non-recurring, and other items unrelated to the Company’s core operating activities.
Other related developments from around the markets include:
BellRing Brands announced its Board of Directors approved a $300 million share repurchase authorization over the next two years with share repurchases under the new authorization beginning on March 7, 2025. Subsequent to December 31, 2024 and as of March 6, 2025, BellRing repurchased 2.1 million shares of its common stock for $151.7 million at an average price of $72.14 per share. As of March 6, 2025, BellRing had repurchased approximately $288million under its previous $300 million share repurchase authorization, which became effective on March 11, 2024 and has been cancelled effective March 6, 2025.
General Mills reported results for its fiscal 2025 third quarter. “Our third-quarter organic net sales finished below our expectations, driven largely by greater-than-expected retailer inventory headwinds and a slowdown in snacking categories,” said General Mills Chairman and Chief Executive Officer Jeff Harmening. “At the same time, we drove continued positive market share trends in Pet, Foodservice, and International as well as improvement in Pillsbury refrigerated dough and Totino’s hot snacks, two businesses where we made incremental investments last quarter and saw positive returns. We’re focused on improving our sales growth in fiscal 2026 by stepping up our investment in innovation, brand communication, and value for consumers,” Harmening continued. “We’ll fund that investment with another year of industry-leading HMM productivity, coupled with expected new cost-savings initiatives designed to further boost our efficiency and enable growth.”
Kellanova announced fourth quarter and full year 2024. While net sales were negatively impacted by adverse currency translation, the Company’s organic- basis growth was above its long-term target range, both in the fourth quarter and the full year. Double-digit operating profit growth was sustained in the fourth quarter, as well as the full year, as the Company improved profit margins faster than expected. Double-digit growth momentum was also sustained in earnings per share, both in the fourth quarter and for the full year 2024, owing primarily to higher operating profit. Due to the pending merger with Mars, Incorporated, Kellanova will not be providing forward looking guidance. “A more growth-oriented portfolio and solid execution by our entire organization once again contributed to stand-out quarterly performance, as we concluded our first full year as Kellanova,” commented Steve Cahillane, Kellanova’s Chairman, President, and Chief Executive Officer. “Led by our strong emerging markets presence, we sustained better-than-expected top-line growth amidst challenging industry conditions, and we improved our profit margins faster than we had anticipated. We also embarked on an exciting next phase, as we prepare to combine with Mars.”
Mondelez International released new findings on consumer attitudes toward indulgence from the sixth annual State of Snacking™ report, a global consumer trends study examining how consumers make snacking decisions. Overall, indulgence and treating remains at the fore of the snacking category, with most consumers snacking as a treat or reward. Developed in partnership with The Harris Poll, the State of Snacking survey tracks snacking behaviors among thousands of consumers across 12 countries. The 2024 survey findings show snacking remains a cost-effective way for consumers to have a bit of satisfaction in their daily lives. This may explain why appetite for cookies and biscuits is rising with the percentage of global consumers who eat biscuits and/or cookies at least once per week increasing 5% in the last year.
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for Simply Better Brands. by Simply Better Brands. We own ZERO shares of Simply Better Brands. Please click here for disclaimer.
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