-- TRUBAR generated record Net Revenue of $17.7 million from continuing
operations for the three months ended June 30, 2025, representing an
increase of 176% compared to Net Revenue of $6.4 million during the three
months ended June 30, 2024.
-- During Q2 2025, the Company continued to advance its strategy to increase
household penetration through retail expansion, extensive trial and
awareness programs supporting existing and new distribution and
accelerated direct-to-consumer sales.
-- TRUBAR reaffirms full-year 2025 guidance for Net Revenue in the range of
$65 to $70 million
VANCOUVER, BC, Aug. 25, 2025 /CNW/ - TRUBAR Inc. ("TRUBAR" or the "Company") (TSXV: TRBR) (OTCQX: TRBRF), a better-for-you snacking company focused on delivering high-quality, plant-based protein products with exceptional taste and made with clean, recognizable ingredients, is pleased to announce its interim financial results for the three months ended June 30, 2025. All amounts are expressed in United States dollars unless otherwise noted. Certain metrics, including those expressed on an adjusted basis, such as "Gross Revenue," "Gross Profit," "Gross Margin Percentage," "EBITDA" and "Adjusted EBITDA", are non-International Financial Reporting Standards ("IFRS") measures, see "Non-IFRS Measures" below.
Selected financial and operating information are outlined below and should be read with the Company's interim consolidated financial statements and related management's discussion and analysis ("MD&A") for the three months ended June 30, 2025, which are available under the Company's profile on SEDAR+ at www.sedarplus.com.
MANAGEMENT COMMENTARY
Erica Groussman, Chief Executive Officer, commented, "Our second quarter results demonstrate the strength of the TRUBAR$(TM)$ brand as we continue to execute our strategy to expand distribution, drive innovation, increase trial, build brand awareness, and ultimately increase household penetration. Net revenue increased by 176% year over year driven by ongoing retail expansion and the execution of in-store consumer trial and brand awareness building efforts. Our continued retail expansion included launches across several regional and national mass, club, and grocery chains in Q2 keeping us on track to reach our goal of 25,000 retail locations by the end of 2025. As the TRUBAR(TM) brand continues to increase household penetration, the benefit of these efforts is reflected in continued direct-to-consumer growth, with DTC net revenue up +281% in Q2 2025 compared to Q2 2024. We are also advancing our innovation pipeline with the recent launch of TRUBAR(TM) Kids, a healthy and delicious snack that delivers one of the highest fiber and protein content among leading kids' bars. The highly anticipated launch of TRUBAR(TM) Kids is generating solid listing momentum in both physical retail and e-commerce channels. With our continued growth and momentum in the second quarter, we are well positioned to further strengthen our leadership in the better-for-you snacking category going forward."
Kingsley Ward, Executive Chairman, added, "Our expanded retail footprint, continued strength in the e-commerce channel, increase in brand awareness and trial, and a solid innovation pipeline is creating a powerful platform for long-term growth. The Company's capital structure and liquidity position provide flexibility to support ongoing expansion, and we remain confident in our ability to deliver sustained growth and long-term shareholder value."
2025 ANNUAL GUIDANCE
TRUBAR is pleased to reaffirm full-year 2025 guidance for Net Revenue in the range of $65 to $70 million.
FINANCIAL HIGHLIGHTS FOR THE THREE-MONTH PERIOD JUNE 30, 2025
Financial highlights for the Company's continuing operations during the three months ended June 30, 2025, included:
-- Net Revenue was $17.68 million for the three months ended June 30, 2025,
representing an increase of 176% compared to Net Revenue of $6.39 million
during the three months ended June 30, 2024, driven by a 328% increase in
retail net revenue and a 281% increase in DTC net revenue.
-- Gross Revenue was $24.88 million for the three months ended June 30,
2025, an increase of 298% compared to $6.24 million for the comparable
period in 2024.
-- Gross Profit was $3.95 million for the three months ended June 30, 2025,
an increase of 35% as compared to Gross Profit of $2.91 million for the
three months ended June 30, 2024. Gross Margin Percentage1 was 22% for
the three months ended June 30, 2025, compared to 46% for the comparable
period in 2024. The decline in Gross Margin Percentage was due to
investments we have made at retail to drive consumer trial and
awareness.
-- Operating costs were $6.77 million for the three months ended June 30,
2025, an increase of $3.16 million (or 87%), compared to $3.61 million
for the three months ended June 30, 2024. This increase reflects the
Company's strategic investments and operational growth initiatives.
-- The Company generated an Adjusted EBITDA loss of $1.85 million from
continuing operations for the three months period ending June 30, 2025,
compared to $0.27 million in the comparable period in 2024. The decrease
was primarily due to brand-building investments at retail to drive
consumer trial and awareness, as reflected in the change in gross margin.
-- The Company recorded a net loss from continuing operations of $1.96
million during the three months ended June 30, 2025, compared to a net
loss of $7.07 million for the three months ended June 30, 2025.
SEGMENT REVENUE
-- Wholesale club net revenue was $11.24 million in Q2 2025, an increase of
135% as compared to $4.78 million in Q2 2024.
-- Retail net revenue was $2.62 million in Q2 2025, an increase of 328% as
compared to $0.61 million in Q2 2024.
-- Direct-to-consumer (DTC) net revenue was $3.81 million in Q2 2025, an
increase of 281% compared to $1.0 million in Q2 2024. DTC revenue
includes e-commerce revenue generated from Amazon and Shopify.
RECENT BUSINESS HIGHLIGHTS
-- Target Expansion: On April 14, 2025, the Company announced the nationwide
launch of TRUBARTM in select Target locations, marking further progress
in expanding the brand's North American distribution footprint with key
national retail partners.
-- Expansion into Major Regional Grocery Chains: On July 8, 2025, the
Company announced the addition of over 500 stores across key grocery
chains in the U.S. Midwest, Pacific Northwest, and Colorado. The new
retail partnerships include Meijer, Fred Meyer, King Soopers, and Fresh
Thyme Market, significantly extending TRUBAR(TM)'s geographic reach.
-- Launch of TRUBAR(TM) Kids Line: On August 5, 2025, the Company introduced
its TRUBAR(TM) Kids snack bar line at Sprouts Farmers Market, marking the
brand's entry into the kids snack bar category. The allergy-friendly bars
feature one of the highest fiber and protein content among leading kids'
bars and are now available across 400 Sprouts locations in 24 states,
with plans to expand to Amazon, Walmart.com, Hy-Vee, and trubar.com later
in mid to late September.
CORPORATE DEVELOPMENTS
-- Name Change to TRUBAR Inc.: On May 21, 2025, the Company officially
changed its name from Simply Better Brands Corp. to TRUBAR Inc., aligning
its corporate identity with its flagship brand. As part of the transition,
Kingsley Ward was appointed Executive Chairman to lead capital markets
strategy, while Erica Groussman, co-founder of TRUBAR(TM), assumed the
role of Chief Executive Officer to lead brand operations and growth.
-- Sale of NO BS Brand: On July 2, 2025 -- the completed the sale of its
personal care product line, NO BS Life, LLC, to an arm's length third
party buyer effective June 30, 2025. This strategic move sharpens the
Company's focus on its core business and reinforces its commitment to
scaling the flagship TRUBAR(TM) brand.
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 $1.19 million as of June 30, 2025, which will provide capital to support the planned growth of the business and for general corporate working capital purposes. The Company's working capital increased to $1.34 million as of June 30, 2025, representing an improvement of $3.66 million from a working capital deficiency of $2.32 million as of December 31, 2024.
On April 22, 2025, the Company entered into a credit facility agreement with a related party, to provide up to $10 million to support the TRUBAR sales expansion in 2025.
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; and (iii) financing activities.
WEBCAST and CONFERENCE CALL DETAILS:
TRUBAR will be holding a conference call and simultaneous webcast to discuss its financial results on Tuesday, August 26, 2025, at 10:00 am ET (7:00 am PT). The call will be hosted by Kingsley Ward, Executive Chairman, and Erica Groussman, Chief Executive Officer & President. Please dial-in 10 minutes prior to the start of the call.
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