Record Q3 results reflect 131% year-over-year revenue growth, driven by highly successful consumer marketing campaigns due to strong demand for premium hair care products.
LOS ANGELES, CA / ACCESSWIRE / April 15, 2021 / Reviv3 Procare Company (OTCQB:RVIV), an emerging global e-commerce brand in the premium hair care products industry, today announced its financial and operational results for the third quarter ended February 28, 2021.
Fiscal Third Quarter 2021 Financial Summary
- Revenues increased 131% to $364,966 compared to $157,880 in the third quarter of 2020, primarily driven by growing direct-to-consumer sales, partially offset by temporary supply chain disruptions that pushed certain sales into the fiscal fourth quarter.
- Gross profit in the third quarter of 2021 increased 4% to $271,475, or 74% of revenues, compared to gross profit of $112,114, or 71% of revenues, in the same quarter last year. The increase in gross profit was primarily attributable to a shift towards higher margin, direct-to-consumer sales.
- Operating expenses in the third quarter of 2021 were $392,503, compared to $153,255 in the same quarter last year. Operating expenses as a percentage of sales totaled 108% compared to 97% for the same period last year. The increase is primarily due to higher marketing and advertising expenses to promote the Company's product line in direct-to-consumer channels.
- Net loss in the third quarter of 2021 was $106,460, compared to net loss of $41,499 in the same quarter last year.
Third Quarter 2021 and Subsequent Operational Highlights
- Selected Coinbase Commerce as its cryptocurrency payments partner and completed the technical and financial integrations to accept cryptocurrency payments on its direct-to-consumer e-commerce platform.
- Reaffirmed commitment to the capital markets through engagement of investor relations specialists MZ Group (MZ) to lead a comprehensive strategic investor relations and financial communications program across all key markets.
- Launched new investor relations website, reflecting ongoing efforts to provide up-to-date information for shareholders and prospective investors.
'We saw significant progress in shifting our sales mix towards a direct-to-consumer model in fiscal Q3 - notably improving our corporate margin profile,' said Jeff Toghraie, Chairman and CEO of Reviv3 Procare. 'While we saw impressive year-over-year revenue growth, we were nonetheless faced with supply chain challenges facing the hair care industry at large due to the COVID-19 pandemic, creating a current backlog of over $330,000 worth of orders. Our supply chain has since normalized and believe we are poised to monetize the majority of this backlog in our fiscal fourth and first quarter - continuing our recent cadence of robust revenue growth.
'We continued to refine our direct-to-consumer technology platform during the quarter, adding the ability to accept Bitcoin, Bitcoin Cash, Ethereum, DAI, Litecoin and USD Coin for all online shopping purchases from our customers. We also took the opportunity to reaffirm our commitment to our shareholders, engaging MZ Group to develop and execute a complete capital markets strategy designed to increase our visibility throughout the investment community. In conjunction with this partnership, we revamped our investor relations website to better highlight our ongoing achievements.
'Looking ahead, we anticipate continued growth in the high margin, direct-to-consumer segment of our business and a surge in new orders given our recently fortified supply chain. Our focus remains on continued execution success on the online marketing front, where we have seen significant traction, leveraging our portfolio of differentiated products and unrivaled customer service to match. We look forward to announcing exciting new milestone achievements in the months to come as we strive to create sustainable, long-term value for our shareholders,' concluded Toghraie.
About Reviv3 Procare Company
Reviv3 Procare Company (OTCQB:RVIV) is an emerging global e-commerce brand in the $90 billion hair care products industry. The Company is a predominantly direct-to-consumer marketer of premium hair and skincare products under its in-house Reviv3 Procare brand - selling products in the United States, Canada, the European Union and throughout Asia. To learn more, please visit the Company's website at www.reviv3.com.
This press release contains a number of forward-looking statements within the meaning of the federal securities laws. The use of words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'confident that' and 'believes,' among others, generally identify forward-looking statements.
These forward-looking statements are based on currently available information, and management's beliefs, projections, and current expectations subject to a number of significant risks and uncertainties. Factors that could cause actual results to differ materially from those in the forward-looking statements include, among other things: (i) Reviv3's ability to grow net sales and adjusted EBITDA as anticipated; (ii) our ability to fund our operating expenses (iii) potential difficulties or delays Reviv3 may experience in implementing its cost savings and efficiency initiatives; (iv) Reviv3's ability to compete effectively with other hair and skincare companies (v) the concentration of Reviv3's customers, potentially increasing the negative impact to Reviv3 by changing purchasing or selling patterns (vi) changes in laws or regulations in the United States and/or in other major markets, such as China, in which Reviv3 operates, including, without limitation, with respect to taxes, tariffs, trade policies or product safety, which may increase Reviv3's product costs and other costs of doing business, and reduce Reviv3's earnings. Potential investors are urged to consider these factors carefully in evaluating the forward-looking statements. These forward-looking statements speak only as of the date hereof. Except as required by law, Reviv3 does not assume any obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future.
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SOURCE: Reviv3 Procare Company
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