
MONTRÉAL, Jan. 23, 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 fourth quarter and fiscal year ended October 31, 2024. All amounts are in Canadian dollars unless otherwise indicated.
Financial Highlights (in thousands of dollars, except per share data) |
Three months ended October 31 |
Fiscal year ended October 31 |
|
|
|
|
2024 |
2023 |
2024 |
2023 |
|
$ |
$ |
$ |
$ |
Net revenue |
7,155 |
7,687 |
30,242 |
29,288 |
Gross profit |
4,087 |
4,104 |
16,736 |
15,435 |
Net loss |
(2,650) |
(3,686) |
(9,410) |
(11,962) |
Basic and diluted loss per share |
(0.09) |
(0.12) |
(0.31) |
(0.38) |
Adjusted EBITDA2 |
(2,261) |
(3,836) |
(9,132) |
(11,898) |
Quote from Carl Goyette, President and CEO
“In fiscal 2024, GURU made significant progress toward returning to profitability, achieving revenue growth while reducing net loss by over 21%, supported by gross margin improvements and disciplined cost control. These results reflect the strength of our strategic focus on operational efficiency and the ability to expand our presence in key channels, particularly online in the U.S. and Canada, as well as in wholesale clubs.”
“Subsequent to fiscal year-end, we announced that our exclusive distribution agreement in Canada will end on May 22, 2025. Since then, we have been preparing for a seamless transition back to our proven direct distribution model that drove growth from 1999 to 2021. Returning to our previous distribution model will result in greater flexibility and stronger brand control that will allow us to grow more efficiently and position GURU as a leading choice for health-conscious consumers in the Canadian market,” added Goyette.
Driving Growth in Key Markets
GURU’s revenue growth was fueled by strong U.S. performance, particularly in online channels. Amazon sales surged, supported by record-breaking Prime Day results and the successful launch of the Zero Sugar line, which meets the growing demand for clean, health-conscious energy drinks.
In Canada, GURU maintained a strong presence in Quebec, supported by product innovations such as Peach Mango Punch and Zero Wild Berry, which reinforced brand loyalty. Costco roadshows resulted in over 450,000 consumer tastings across the country and provided valuable insights to guide future distribution strategies post-transition to the direct distribution model in May 2025. These initiatives highlight GURU’s commitment to building connections with consumers while strategically positioning the brand for growth. Although market dynamics and the timing of retail shipments have impacted sales, these initiatives are expected to improve velocities in the medium term.
Strengthened Financial Discipline
GURU’s gross margin increased to 57.1% in Q4 and 55.3% for fiscal 2024, reflecting a strategic focus on cost reduction and operational efficiency. Selling, general, and administrative (SG&A) expenses decreased by 18.8% in Q4 and by 6.3% for the fiscal year, demonstrating the Company’s disciplined approach to expense management.
“Our focus on disciplined cost management and operational efficiency delivered a 21.3% reduction in net loss this fiscal year, alongside gross margin improvements that strengthen our foundation and position us well for sustained growth and profitability in the years ahead,” said Ingy Sarraf, CFO of GURU.
Innovation and Consumer Engagement
The Zero Sugar line launch in the U.S. was a pivotal milestone for GURU, enabling the brand to tap into the more than 50% of the $20 billion market segment. With no sucralose or aspartame, the Zero Sugar line appeals to health-conscious consumers seeking clean energy options. This success was complemented by the Company’s strong marketing digital engagement.
Looking Ahead to Fiscal 2025
In fiscal 2025, GURU will focus on these key initiatives to drive profitability and growth:
- Seamlessly transition to a direct distribution model in Canada, enhancing operational flexibility, improving retailer relationships, and allowing for more targeted brand-building investments.
- Strengthen GURU’s presence in key urban centers in the U.S. and Canada by expanding its Zero Sugar line across premium retail and online platforms.
- Continue disciplined cost management while investing in targeted growth opportunities that align with evolving consumer preferences.
Additionally, as part of GURU’s commitment to driving growth, the Company recently named Patrick Charbonneau as Executive Vice President, Sales. Patrick brings over 25 years of leadership experience in the food and beverage industry, where he held key leadership roles. His strategic vision and expertise in building high-performing teams will be instrumental in achieving GURU’s objectives in the coming years.
“Fiscal 2024 has set the stage for GURU’s next chapter of growth,” added Goyette. “With improved gross margins, disciplined cost controls and a clear focus on strategic priorities, GURU is well positioned to return to profitability and deliver sustainable value to its shareholders.”
Results of Operations
Net revenue for Q4 2024 was $7.2 million, a decrease of 6.9% year-over-year, primarily due to lower retail shipments, reflecting strong prior year comparables, and changes to the promotional cadence in Canada. The decline was mitigated by a strong performance in the U.S., with U.S. sales increasing by 29.5% in Q4 2024, fueled by digital campaigns and the introduction of the GURU Zero line. Enhanced digital marketing efforts, coupled with high engagement during major retail events such as Prime Day, bolstered visibility and conversion rates on Amazon and other platforms. This focus on optimized channel-specific strategies in the U.S. continues to position GURU as the leading organic energy drink choice among health-conscious consumers. Fiscal 2024 net revenue rose 3.3% to $30.2 million, up from $29.3 million in 2023. This growth was driven by robust performance in the U.S., underscoring successful expansion and brand penetration efforts in priority markets outside of Canada.
Gross profit for Q4 2024 remained stable at $4.1 million, with gross margin increasing to 57.1% year-over-year, underscoring the success of input cost management and pricing strategies. Fiscal 2024 gross profit improved by 8.4% to $16.7 million from $15.4 million in 2023, with gross margin increasing to 55.3%. This improvement underscores GURU's input cost reduction efforts and its strategic focus on margin expansion while balancing promotional activities to optimize net revenue growth in key markets.
Selling, general and administrative (“SG&A”) expenses include operational, sales, marketing and administration costs. SG&A expenses decreased to $6.8 million in Q4 2024, compared to $8.3 million for the same period a year ago. Selling and marketing expenses decreased to $4.0 million from $5.7 million in Q4 2023, a result of timing of selling expenses for in store promotional activities and marketing efficiencies. Fiscal 2024 SG&A amounted to $27.3 million, compared to $29.1 million a year ago. The decrease is primarily attributed to cost control measures stemming from the reduction in sales and marketing expenses in the last two quarters of fiscal 2024.
Net loss totalled $2.7 million or $(0.09) per share in Q4 2024, compared to a net loss of $3.7 million or $(0.12) per share for the same quarter a year ago. Fiscal 2024 net loss totalled $9.4 million, or $(0.31) per share, compared to a net loss of $12.0 million or $(0.38) per share a year ago. The improved net loss is a result of higher gross profit and lower sales and marketing expenses in fiscal 2024.
Adjusted EBITDA2 was a loss of $2.3 million in Q4 2024, compared to a loss of $3.8 million for the same quarter in 2023. The decrease in Adjusted EBITDA loss this quarter was driven by lower sales and marketing expenses, while maintaining a relatively stable gross profit. Fiscal 2024 Adjusted EBITDA was a loss of $9.1 million, compared to a loss of $11.9 million in 2023. The improvement in Adjusted EBITDA loss in fiscal 2024 was driven by stronger net revenue and gross profit, coupled with lower expenses.
As at October 31, 2024, the Company had cash and cash equivalents of $25.5 million, and unused Canadian- and US-dollar denominated credit facilities totalling $10 million.
1 Nielsen, 52-week period ended November 2, 2024, All Channels, Canada vs. same period a year ago.
2 Please refer to the “Non-GAAP and Other Financial Measures” section at the end of this release.
Conference call
GURU will hold a conference call to discuss its fourth quarter and fiscal 2024 results today, January 23, 2025, at 10:00 a.m. ET. Participants can access the call as follows:
- Via webcast: https://edge.media-server.com/mmc/p/xjuarbrw
- 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 February 28, 2025.