In a year that saw the shuttering of a number of bioplastics ventures, it is consoling to read the financial results for the three months (Q2 FY18) and six months (YTD) ended June 30, 2018, published today by Canadian bioplastic consumer products and packaging manufacturer good natured Products Inc.
The Vancouver-based company changed its fiscal year-end from February 28 to December 31 on January 9, 2018. As required in such cases, Q2 FY18 is being compared to three months and six months ended May 31, 2017.
The figures released today showed that Q2 FY18 and YTD revenues increased 59% and 60% to $1,064,589 and $2,183,076 compared to $670,532 and $1,360,613 for the comparative periods in the previous year.
Gross profit margins for Q2 FY18 & YTD were 33.9% and 33.5% versus to 34.7% and 31.9% for the comparative periods.
Selling, general and administrative expenses for Q2 FY18 and YTD were $772,463 and $1,551,414 compared to the comparative period’s 718,114 and $1,620,342; an 8% year-on-year increase for the comparative three month period, and a 4% year-on-year decrease for the comparative six month period. SG&A expenditures, minus the Company’s variable outsourced supply chain & fulfillment costs, increased 3% for the comparative three month period, and decreased 10% for the comparative six month period.
Q2 FY18 and YTD net losses before interest, depreciation, and stock compensation, were $490,675 and $977,678 compared to $558,652 and $1,345,451 the comparative periods, an improvement of 12% and 27%, respectively.
The company had cash of $4,088,924 on June 30, 2018 compared to $797,883 on December 31, 2017.
“This latest record-setting quarter represents our 10th straight quarter of over 45% quarter over quarter revenue growth,” said Paul Antoniadis, CEO of good natured.
“Demand for alternatives to petroleum-based materials continues to increase rapidly amongst both businesses and consumers. What’s especially exciting is that our growth continues to outpace the growth of the overall bioplastic market, which is currently estimated to be growing at about 20% per year.”