MONTRÉAL, March 13, 2025 (GLOBE NEWSWIRE) -- GURU Organic Energy Corp. (TSX: GURU) (“GURU” or the “Company”), Canada’s leading organic energy drink brand1, today announced its results for the first quarter ended January 31, 2025. All amounts are in Canadian dollars unless otherwise indicated.
| Financial Highlights (in thousands of dollars, except per share data) |
Three months ended January 31 |
|||
| 2025 | 2024 | |||
| $ | $ | |||
| Net revenue | 7,695 | 7,146 | ||
| Gross profit | 4,579 | 3,782 | ||
| Net loss | (1,284) | (1,858) | ||
| Basic and diluted loss per share | (0.04) | (0.06) | ||
| Adjusted EBITDA2 | (1,057) | (1,966) | ||
Quote from Carl Goyette, President and CEO
“We are very pleased to report a record Q1 performance, fueled by strong U.S. growth and continued focus on margin expansion and operational efficiencies. Our strategy to enhance pricing execution and optimize promotions has led to continued significant improvement in gross margin, which reached 59.5%. At the same time, the combination of strong net revenue growth and higher gross profit has resulted in a 31% reduction in net loss, marking our lowest quarterly loss since Q2 2021. We continue to make meaningful progress toward profitability while driving sustainable growth in key markets.”
“The strong momentum of our GURU Zero-line launch in the U.S. further reinforces our commitment to innovation and the growing consumer demand for better-for-you energy drinks. Unlike many competitors in this space, GURU is the only zero sugar organic energy drink brand that is 100% free of artificial sweeteners, sucralose, and aspartame—offering a clean energy alternative with natural ingredients. With the Canadian launch of Zero Wild Berry, Wild Ruby Red and Wild Ice Pop this quarter—our first in North America—we are well positioned to capitalize on the accelerating shift towards natural, health-conscious energy drinks,” added Mr. Goyette.
RESULTS OF OPERATIONS
Revenue Growth Driven by U.S. Momentum
Net revenue increased by 8% to $7.7 million in Q1 2025, up from $7.1 million in Q1 2024, marking a record Q1 performance. Growth was primarily driven by higher sales velocity and successful innovation launches in the U.S. across all channels.
• U.S. sales grew 46%, reaching $2.1 million, fueled by expanded distribution and improved retail sales velocity. Online sales continued to accelerate, with Amazon U.S. consumer sales units up 58% in the last 12 weeks, reflecting strong demand for GURU’s products in the e-commerce channel.
• Canada sales decreased slightly to $5.6 million from $5.7 million in Q1 2024, as the prior-year quarter benefited from higher distributor inventory levels. This was partially offset by online sales at Amazon Canada, where consumer sales units increased by 43% in the last 12 weeks.
Strong Margin Expansion and Cost Discipline
Gross profit increased 21% to $4.6 million, compared to $3.8 million in Q1 2024. Gross margin expanded significantly to 59.5% (from 52.9%), reflecting stronger pricing execution and less promotional activity in both Canada and the U.S.
SG&A expenses improved as a percentage of net revenue to 79% in Q1 2025 (from 85% in Q1 2024), reflecting operational efficiencies and enhanced gross profit leverage.
Improved Profitability and Cash Position
• Net loss reduced by 31% to $1.3 million, marking the lowest quarterly loss since Q2 2021, compared to $1.9 million in Q1 2024.
• Adjusted EBITDA loss improved to $1.1 million, from $2.0 million in Q1 2024, reflecting higher net revenue and stronger gross profit.
• Significantly reduced burn rate in Q1 2025 and maintained a solid financial position with $25.2 million in cash and cash equivalents ($25.5 million in Q4 2024), no debt and $10 million of unused credit facilities.
STRATEGIC INITIATIVES AND GROWTH OUTLOOK
Successful U.S. Expansion and Innovation
GURU continued to gain momentum in the U.S., supported by successful innovation launches and strong sales velocity. The Company also continued to expand in premium grocery and natural channels, with U.S. Natural Channel scan sales up 12% in the last 52 weeks and 20% in the last 12 weeks, and Whole Foods scan sales growing 22% in the last 52 weeks and 37% in the last 12 weeks. This growth underscores the brand’s resonance with health-conscious consumers and its ability to capture share in key strategic retail channels.
GURU’s commitment to clean energy innovation continues to set it apart from traditional and so-called 'better-for-you' brands that still rely on artificial ingredients. By offering the only certified organic energy drink on the market with zero sugar, zero sucralose and zero aspartame, GURU delivers what health-conscious consumers expect: a plant-based, naturally energizing beverage with healthy ingredients.
Q2 Launch of Zero Line-Up in Canada
Following the strong performance of the Zero line in the U.S., GURU is launching Zero Wild Berry, Wild Ruby Red, and Wild Ice Pop in Canada.
Wild Ice Pop is a North American first for GURU and the 4th Zero product to launch in the U.S., further differentiating the brand in the fast-growing zero-sugar energy drink segment.
Continued Focus on Profitability
GURU remains focused on driving sustainable growth while improving profitability. Key areas of focus for the remainder of fiscal 2025 include:
• Increasing U.S. sales velocity in key markets and expanding distribution of the Zero product line.
• Maintaining pricing discipline while optimizing promotions.
• Executing a smooth transition back to a direct distribution model in Canada to strengthen brand control and enhance retailer relationships.
• Managing costs and driving efficiencies to support the path to profitability.
Conference call
GURU will hold a conference call to discuss its first quarter 2025 results today, March 13, 2025, at 10:00 a.m. ET. Participants can access the call as follows:
• Via webcast: https://edge.media-server.com/mmc/p/hthk7vn8
• Via telephone: 1-844-481-2517 (toll free) or 1-412-317-0545 for international dial-in
• A webcast replay will be available on GURU’s website until March 31, 2025.