Toronto, Ontario, May 30, 2022 – The Well Told Company Inc. (“Well Told” or the “Company”) (TSXV:WLCO) (FSE:7HO), the female-founded wellness company that offers plant-based supplements, remedies, and other functional wellness products, is pleased to announce its financial results and operational highlights for the three months ended March 31, 2022.
- Net Revenue for Q1 2022 increased by 113% over Q1 2021 and 30% over Q4 2021 driven by gross revenues of $812k, as a result of the Company’s growth in all channels in both Canada and the U.S.;
- Gross profit for Q1 2022 improved by 56% over Q1 2021 and 159% over Q4 2021 as the Company continued to focus on cost reduction, greater efficiency in supply chain fulfillment and shipping in 2022;
- In Q1 2022, the Company increased its total wholesale gross revenue by 122% compared to Q1 2021;
- The Company saw a 65% YOY increase in its Direct-To-Consumer revenue, fueled by growth across all ecommerce channels, and in particular Amazon, where the Company’s Bye Bye Bloating product continues to hold the coveted “Amazon’s Choice” badge for bloating relief;
- Net loss and comprehensive loss was $67 million for Q1 2022, representing a significant improvement over Q4 2021 net and comprehensive loss of $6.1 million. This is the result of significant efficiencies gained in marketing and other areas. The loss also includes several one-time expenses including financing fees ($111k), investments in research and development ($87k), annual stock option awards to management and directors ($331k) and one-time public company related fees ($165k).
- In Q1 2022, the Company increased its points of distribution by 26% reaching a total of 18,345, driven by its continued expansion in Canada and the U.S. in which the Company increased from 1,700 points of distribution at the end of Q4 2021 to over 5,000 by the end of Q1 2022;
- The Company launched the first four SKUs of its new powder line in compostable packaging in Canada and the U.S. in Q1 2022, all of which have already received orders from several retailers:
- FACE THE DAY, After Party liver and antioxidant support
- STIR UP YOUR IMMUNITY, Adaptogen blend
- GOOD NIGHT SLEEP TIGHT, Natural sleep aid with antioxidants
- STRESS FIGHTER, Mushroom adaptogen blend.
- The Company engaged a new fulfillment and shipping partner in the U.S. market and expects to see gains in efficiencies in terms of cost and speed of delivery as a result of this change.
“We are proud to report another quarter of terrific growth across all channels and significant gains in efficiency both in Canada and the U.S.”, said Monica Ruffo, CEO of Well Told. “Although we recognize that the capital markets continue to be very challenging, we continue to focus on building a solid sustainable business with strong values and a culture of growth as we remain committed to paving the way towards profitability by 2023.”
- As of the end of May 2022, the Company had surpassed its 2022 goal of quadrupling points of distribution in the U.S. with over 8,000 points of distribution as the Company continues to expand into natural food retailers, independents, regional grocery and drug retailers;
- The Company’s main priority for 2022 is to continue to move towards profitability by focussing our growth on the U.S. market, as well as Amazon in Canada and the U.S. The Company will also be looking to continue to improve cost efficiency with a focus on fulfilment, distribution and shipping costs;
- The Company continues to see stronger re-orders from Canadian and American retailers which began selling prior to 2022;
- The Company expects Amazon sales to continue to grow significantly in 2022.
The financial statements of the Company for the quarter ended March 31, 2022. and accompanying Management Discussion & Analysis (MD&A) are available at www.sedar.com.
About The Well Told Company Inc.
Well Told is a female-founded, emerging plant-based wellness company that formulates, develops, distributes and sells a variety of supplements, remedies and other functional wellness products. Founded by serial entrepreneur and award-winning leader Monica Ruffo, it was after undergoing treatment for breast cancer, and deciding to take her health into her own hands that she discovered the lack of transparency and availability of clean, plant-based formulations in the wellness industry. With the mission "Clean wellness for all", Well Told's products are currently available in over 2,000 stores across Canada including several well-known retailers and recently launched in over 850 pharmacies in the U.S. in addition to being available at welltold.com and on Amazon.
For further information, please contact:
Chief Executive Officer
The Well Told Company Inc.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain statements contained in this press release constitute "forward-looking information" as such term is defined in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", "will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions as they relate to the Company are intended to identify forward-looking information, including the Company showing a profit by 2023; the Company expecting to see gains in efficiency in terms of cost and speed of delivery as a result of engaging a new fulfillment and shipping partner in the U.S.; the Company expecting Amazon sales to continue to grow significantly in 2022; and the Company’s outlooks for 2022. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company's current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions, including: further growth of 73% in the U.S. market which includes Amazon in the U.S. as well as growth with Amazon in Canada; the Company improving cost efficiency with a focus on fulfilment, distribution and shipping costs by at least 15%; the Company’s ability to capitalize on growth opportunities and implement its growth strategy; the Company’s ability to build its market share; the Company’s ability to maintain brand development; the Company’s ability to maintain existing customer relationships and to continue to expand its customers’ use of its products; the Company’s ability to obtain financing on acceptable terms or at all; the impact of competition; the Company’s ability to negotiate favorable terms with retailers and distributors; the company’s ability to scale its ecommerce business; the Company’s ability to continue to source ingredients and packaging for its products on favourable terms; the changes and trends in the Company’s industry or the global economy; and changes in laws, rules, regulations, and global standards.
Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. Examples of such risk factors include, without limitation: credit; market (including equity, commodity, foreign exchange and interest rate); liquidity; operational; reputational; insurance; strategic; regulatory; legal; environmental; the general business and economic conditions in the regions in which the Company operates; the ability of the Company to execute on key priorities; the Company’s results of operations may be difficult to forecast; the Company is a holding company with its only asset being direct ownership of Well Told Inc.; the Company’s success depends upon the continued strength of its reputation and brands; disruptions in manufacturing facilities or losses of site licenses and other qualifications could adversely affect sales and customer relationships; the Company’s success depends on its ability to continue to enhance products and develop new products; the Company’s suppliers and sources for materials and inputs may fail to support demand and increasing raw material costs could adversely affect margins; the Company is reliant on third parties for shipping and payment processing; the Company’s ability to compete could be negatively impacted if it is unable to protect its intellectual property rights; the ability to implement business strategies and pursue business opportunities; disruptions in or attacks (including cyber-attacks) on the Company's information technology, internet, network access or other voice or data communications systems or services; the evolution of various types of fraud or other criminal behavior to which the Company is exposed; the failure of third parties to comply with their obligations to the Company or its affiliates; the impact of new and changes to, or application of, current laws and regulations; granting of permits and licenses in a highly regulated business; the overall difficult litigation environment; increased competition; changes in foreign currency rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the availability of funds and resources to pursue operations; critical accounting estimates and changes to accounting standards, policies, and methods used by the Company; the occurrence of natural and unnatural catastrophic events and claims resulting from such events; and risks related to COVID-19 including various recommendations, orders and measures of governmental authorities to try to limit the pandemic, including travel restrictions, border closures, non-essential business closures, quarantines, self-isolations, shelters-in-place and social distancing, disruptions to markets, economic activity, financing, supply chains and sales channels, and a deterioration of general economic conditions including a possible national or global recession; as well as those risk factors discussed or referred to in the Company’s disclosure documents filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.