SIMPLY BETTER BRANDS ANNOUNCES 124% INCREASE IN REVENUE FOR THIRD QUARTER 2024

• SBBC generated revenue of $12.1 million for the three months ended September 30, 2024, a 124% increase over the prior year, driven by a 156% increase in TRUBAR^™ revenue, along with Adjusted EBITDA of $1.0 million from its continuing operations. 
• During Q3-2024, SBBC expanded its regional and national footprint for TRUBAR™ with key strategic launches in leading retailers including Walmart, Whole Foods Market, CVS and GNC. With this momentum, SBBC expects TRUBAR^™ to reach 15,000 distribution points by year-end.

VANCOUVER, BC, Nov. 18, 2024 /CNW/ - Simply Better Brands Corp. ("SBBC" or the "Company") (TSXV: SBBC) (OTCQB: SBBCF), an international omni-channel platform with a portfolio of diversified assets in the rapidly growing plant-based, natural, and clean ingredient space, is pleased to announce its interim financial results for the three and nine months ended September 30, 2024. All amounts are expressed in United States dollars unless otherwise noted. Certain metrics, including those expressed on an adjusted basis, are non-International Financial Reporting Standards ("IFRS") measures, see "Non-IFRS Measures" below.

Kingsley Ward, Chief Executive Officer and Chairman of SBBC commented on the third quarter results, "I am very pleased with our strong performance in the quarter results as we reported a 124% increase in revenue and continue to expand the distribution of TRUBAR^™ across North America. TRUBAR^™ was the primary driver of growth, achieving a remarkable 156% increase in revenue. The acceleration in revenue and distribution locations marks substantial progress in making TRUBAR^™ a leading name in the protein bar category. We are confident in our ability to meet the evolving preferences of consumers seeking high-quality, nutritious snacks, and we are excited to continue building on this momentum."

Erica Groussman, Co-Founder and CEO of Tru Brands, Inc. added, "I'm incredibly proud of our team's success in rapidly expanding the distribution footprint of TRUBAR^™, regionally and nationally, partnering with major retailers like GNC, Whole Foods, CVS, and Walmart has enabled us to expand our distribution of TRUBAR^™ six-fold in 2024, with over 15,000 distribution points expected by the end of the year."

Brian Meadows, Chief Financial Officer of SBBC commented, "The Company is dedicated to bolstering its financial strength through strategic initiatives that support both operational growth and working capital requirements. This quarter, we achieved a notable shift from a $12.4 million working capital deficit at the end of 2023 to positive working capital of $2.9 million—a $15.3 million improvement reflecting our solid financial footing. Our commitment to enhancing working capital has included establishing new lines of credit for our subsidiaries, empowering us to efficiently finance large retail purchase orders and strengthen support for key customers. These efforts are essential as we scale our operations and capture growth opportunities in the market. Additionally, over the past nine months, the Company has reduced its promissory notes and loan balances, and in the most recent quarter, all outstanding convertible debentures were converted to equity."

Selected financial and operating information are outlined below and should be read with the Company's interim consolidated financial statements and related management's discussion and analysis for the nine months ended September 30, 2024 ("MD&A"), which are available under the Company's profile on SEDAR+ at www.sedarplus.ca

FINANCIAL HIGHLIGHTS FOR THREE MONTH PERIOD ENDED SEPTEMBER 30, 2024

Financial highlights for the Company's continuing operations during the three months ended September 30, 2024 included:

• The Company generated revenue of $12.1 million for the three months ended September 30, 2024, compared to revenue of $5.4 million for the three months ended September 30, 2023, representing an increase of 124%.
• Revenue derived from TRUBAR^™ sales for the three months ended September 30, 2024, was $11.5 million compared to $4.5 million for the comparable period in 2023, representing an increase of $7.0 million or 156%.
• Direct-to-consumer (DTC) revenue, driven by e-commerce sales of TRUBAR^™, primarily through Amazon, increased by 253% compared to the three months ended September 30, 2023 and represented 14% of total revenue.
• Gross profit for the three months ended September 30, 2024 was $5.5 million (or 45% gross margin percentage) compared to gross profit of $2.2 million for the three months ended September 30, 2023 (or 41% gross margin percentage). The increase in gross margin percentage was driven by lower production costs of TRUBAR^™.
• Operating costs for the three months ended September 30, 2024 were $5.2 million, an increase of $2.1 million (or 68%), compared to $3.1 million for the three months ended September 30, 2023 due to marketing allowances on TRUBAR^™ retailer sales.
• The Company had Adjusted EBITDA of $1.0 million from continuing operations for the three months ended September 30, 2024, a $0.8 million (or 376%) improvement over the Adjusted EBITDA achieved in the comparable period in 2023. The improvement in Adjusted EBITDA was due to the higher revenue and gross profit in the third quarter of 2024 compared to the prior year.
• During the three months ended September 30, 2024, the Company recorded a net profit from continuing operations of $4.1 million compared to a net profit of $0.4 million for the three months ended September 30, 2023. The majority of the profit from continuing operations was driven by the fair value changes to warrants and derivative liabilities measured during the third quarter ($4.2 million total impact).

FINANCIAL HIGHLIGHTS FOR NINE MONTH PERIOD ENDED SEPTEMBER 30, 2024

Financial highlights for the Company's continuing operations during the nine months ended September 30, 2024 included:

• For the nine months ended September 30, 2024, the Company generated revenue of $32.6 million compared to $25.1 million during the nine months ended September 30, 2023, representing an increase of 30%.
• Revenue derived from TRUBAR^™ sales for the nine months ended September 30, 2024, was $30.9 million compared to $23.7 million for the comparable period in 2023, representing an increase of $7.2 million or 29%.
• Direct-to-consumer (DTC) revenue for the nine months ended September 30, 2024, represented 11% of total revenue, driven by e-commerce sales of TRUBAR^™. DTC revenue increased by 180% compared to the three months ended September 30, 2023.
• Gross profit for the nine months ended September 30, 2024 was $12.5 million (or 38% gross margin percentage) compared to gross profit of $8.6 million (or 34% gross margin percentage) for the nine months ended September 30, 2023.
• Operating costs for the nine months ended September 30, 2024, were $12.5 million, an increase of $0.5 million (or 4%), compared to $12.0 million for the nine months ended September 30, 2023.
• The Company had Adjusted EBITDA of $1.9 million from continuing operations for the nine months period ending September 30, 2024, a $1.8 million improvement over the Adjusted EBITDA achieved in the comparable period in 2023. The improvement in Adjusted EBITDA was due to higher gross profit which was partially offset by higher cash operating expenses for the nine months ended September 30, 2024 compared to the prior year.
• During the nine months ended September 30, 2024, the Company recorded a net loss from continuing operations of $3.3 million compared to a net loss of $4.8 million for the nine months ended September 30, 2023.

THIRD QUARTER 2024 BUSINESS and OPERATIONAL HIGHLIGHTS

Significant business and operational highlights for the Company during the three months ended September 30, 2024 included:

• Partnership with GNC: On July 4, 2024, the Company announced the launch of TRUBAR™ in more than 1,000 GNC retail locations across the U.S. and online at gnc.com.
• CEO Appointment: On July 11, 2024, the Company announced the appointment of J.R. Kingsley Ward as SBBC's permanent CEO in addition to his role as Chairman of the SBBC Board of Directors after successfully leading the Company through a period of transition and growth since February 2024 as Interim CEO.
• Rollout of TRUBAR^™ in Whole Foods: On July 18, 2024, the Company announced the launch of TRUBAR™ in select Whole Foods Market locations around the U.S., building on a successful initial rollout of the brand in the Denver Metro area where it has delivered strong sales velocities in the competitive nutrition bar category.
• Expansion of North American Distribution: On September 5, 2024, the Company announced the addition of 4 new regional retail partners, extending the geographic reach of TRUBAR^™ across 6 states, including a large presence in the greater Washington D.C. area. The new retail partners included:
  • Giant Food Stores chainwide distribution in 150 stores in Virginia, Maryland, Delaware and the District of Columbia
  • Lowes Foods 100 stores in North Carolina
  • Kroger subsidiary Roundy's Supermarket under its Mariano's Fresh Market banner 69 stores in Illinois
  • Jungle Jim's International Market located in Ohio
• Rollout of TRUBAR^™ in CVS Pharmacy: On September 9, 2024, the Company announced a nationwide rollout of TRUBAR^™ in 6,600 CVS store locations nationwide and on cvs.com.
• Rollout of TRUBAR^™ in Walmart (U.S.): On September 16, 2024, the Company announced a nationwide rollout of TRUBAR^™ in more than 700 Walmart store locations across the U.S., building on a successful initial launch of the brand online at walmart.com.

SIGNIFICANT EVENTS SUBSEQUENT TO SEPTEMBER 30, 2024

Subsequent to September 30, 2024 the Company announced the following distribution partners:

• Walmart Canada: On October 9th, 2024, the Company announced the rollout of TRUBAR^™ in more than 300 Walmart stores across Canada, a key strategic addition in expanding the brand's presence to more than 1,000 Walmart store locations across North America.
• GPM Investments convenience store chains: On October 17, 2024, the Company announced further distribution expansion of TRUBAR^™ in the convenience channel with the addition of more than 25 regional store brands operating under GPM Investments, LLC, one of the largest convenience store chains in the U.S. TRUBAR^™ will soon be available across more than 1,400 GPM locations in more than 33 states in a wide range of well-known regional convenience chains including Fas Mart, E-Z Mart, Roadrunner Markets, Village Pantry and Jiffi Shop.
• Love's Travel Stops: On October 24, 2024, the Company announced the launch of TRUBAR^™ in over 600 Love's Travel Stops across 42 states, the largest network of travel stops and convenience stores across the U.S.
• Albertsons Companies: On November 11, 2024, the Company announced the launch of TRUBAR^™ in more than 500 Albertsons Companies locations, the second-largest supermarket chain in North America. TRUBAR™ will be available in the following banners: Albertsons, Safeway, Shaw's, Star Market, Jewel-Osco, Carrs, and Market Street.

UPDATE ON LIQUIDITY AND CAPITAL RESOURCES

The Company's primary liquidity and capital requirements are for inventory and general corporate working capital purposes. The Company had a cash balance of $3.7 million as of September 30, 2024, which will provide capital to support the planned growth of the business and for general corporate working capital purposes. The Company's working capital deficiency decreased from $12.4 million as of December 31, 2023, to a positive working capital of $2.9 million as of September 30, 2024 ($15.3 million increase).  Additionally, if the warrant liabilities are excluded, there would be a working capital surplus of $5.4 million. Warrant liabilities do not require cash to settle, only the issuance of common shares. Significant liquidity and capital-related updates included:

• Line of Credit Facilities: The Company has secured several lines of credit facilities for three of its subsidiaries to support the financing of purchase orders from key customers. These lines of credit have been critical to finance the large retail purchase orders the Company's subsidiaries have successfully generated during the three months ended September 30, 2024. During the nine months ended September 30, 2024, the Company raised over $5.7 million in funds from these lines of credit to finance purchase orders from its large retail customers. Over the same period, the Company repaid over $9.9 million of these credit facilities to the lender. TRU was able to increase its primary line of credit with this lender to $6 million in December 2022. The nature of these loans is to turnover between 3-5 months from the time the money is advanced to repayment.
• Convertible Notes, Promissory Notes and Loans Payable: During the nine months ended September 30, 2024, the Company reduced the balance of promissory notes and loans payable outstanding by approximately $1.2 million. Also, during the third quarter the balance of the convertible debentures were all converted into equity (CA$655,000 or US$481,618) thereby reducing the amount of convertible debentures to currently $nil.
• Promissory Notes: During the three months ended September 30, 2024, the Company secured CA$3.0 million in promissory notes with a 12-month maturity at 15% interest rate per annum. The notes were taken out with two of the Company's Board Members and one of its shareholders. The funds were used to finance the operations of the Company, specifically TRUBAR^™'s growth.

For more information of the line of credit facilities please refer to note 8 in the interim Third Quarter 2024 financial statements for the period ended September 30, 2024. The Company's ability to fund operating expenses will depend on its future operating performance which will be affected by general economic, financial, regulatory, and other factors including factors beyond the Company's control (See "Risk and Uncertainties").

Management continually assesses liquidity in terms of the ability to generate sufficient cash flow to fund the business. Net cash flow is affected by the following items: (i) operating activities, including the level of accounts receivable, other receivable, accounts payable, accrued liabilities and unearned revenue and deposits; (ii) investing activities (iii) financing activities.

WEBCAST and CONFERENCE CALL DETAILS:

SBBC will be holding a conference call and simultaneous webcast to discuss its financial results on Monday, November 18, 2024, at 5:00 pm EST (2:00 pm PST). The call will be hosted by Kingsley Ward, Chief Executive Officer, and Brian Meadows, Chief Financial Officer, as well as Erica Groussman, Co-founder & Chief Executive Officer of TRUBAR^™.  Please dial-in 10 minutes prior to the start of the call.

Date: Monday, November 18, 2024
Time: 5:00 pm EST (2:00 pm PST)

For attendees who wish to join by webcast, the event can be accessed at:
https://bit.ly/SBBC-Q324 

Dial in by phone
[phone] (Vancouver Local)
[phone] (Toronto Local)
Click here to find local numbers
Meeting ID: 848 7310 5859

Non-IFRS Measures (EBITDA and Adjusted EBITDA)

EBITDA and Adjusted EBITDA are non-IFRS measures used by management that are not defined by IFRS. EBITDA and Adjusted EBITDA do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Management believes that EBITDA and Adjusted EBITDA provide meaningful and useful financial information as these measures demonstrate the operating performance of the business excluding non-cash charges.

"EBITDA" is calculated as earnings before interest, taxes, depreciation, depletion, and amortization. "Adjusted EBITDA" is calculated as EBITDA adjusted for non-cash, extraordinary, non-recurring, and other items unrelated to the Company's core operating activities.

The most directly comparable measure to EBITDA and Adjusted EBITDA calculated in accordance with IFRS is net loss. The following table presents the EBITDA and Adjusted EBITDA for the three months ended September 30, 2024, and 2023, and a reconciliation of same to net income (loss).

	For the three months ended
	September 30, 2024	September 30, 2023	Change in
	$	$	$	%
Income (loss) for the year from continuing operations	4.14	0.38	3.76	91 %
Amortization	0.38	0.70	(0.32)	(84 %)
Finance costs	0.21	0.28	(0.07)	(33 %)
EBITDA	4.73	1.36	3.37	(26 %)
Fair value adjustment of derivative liability	0.04	(0.33)	0.37	925 %
Impairment of receivable	0.01	-	0.01	100 %
Gain on remeasurement of warrant liabilities	(4.18)	(1.27)	(2.91)	70 %
Share-based payments	0.38	0.45	(0.07)	(18 %)
Warrants issues for services	0.02	-	0.02	100 %
Adjusted EBITDA	1.00	0.21	0.79	376 %

	For the nine months ended
	September 30, 2024	September 30, 2023	Change in
	$	$	$	%
Income (loss) for the period from continuing operations	(3.26)	(4.79)	1.53	(47 %)
Amortization	1.15	2.11	(0.96)	(83 %)
Finance costs	0.84	0.99	(0.15)	(18 %)
EBITDA	(1.27)	(1.69)	0.42	(148 %)
Fair value adjustment of derivative liability	0.71	(0.10)	0.81	114 %
Impairment (recovery) of receivable	0.01	(0.02)	0.03	300 %
Loss on remeasurement of warrant liabilities	1.84	0.32	1.52	83 %
Share-based payments	0.32	1.61	(1.29)	(403 %)
Warrants issued for services	0.02	-	0.02	100 %
Non-recurring expenses	0.30	-	0.30	100 %
Adjusted EBITDA	1.93	0.12	1.81	1508 %

Readers are cautioned that EBITDA and Adjusted EBITDA should not be construed as an alternative to net income as determined under IFRS; nor as an indicator of financial performance as determined by IFRS; nor a calculation of cash flow from operating activities as determined under IFRS; nor as a measure of liquidity and cash flow under IFRS. The Company's method of calculating EBITDA and Adjusted EBITDA may differ from methods used by other companies and, accordingly, the Company's EBITDA and Adjusted EBITDA may not be comparable to similar measures used by any other company. Except as otherwise indicated, EBITDA and Adjusted EBITDA are calculated and disclosed by SBBC on a consistent basis from period to period.  Specific adjusting items may only be relevant in certain periods.

See also Earnings before Interest, Taxes, Depreciation, and Amortization ("EBITDA") and Adjusted EBITDA (Non-GAAP Measures) in the Company's management discussion and analysis for the quarter ended September 30, 2024, available on SEDAR+ at www.sedarplus.ca.

About Simply Better Brands Corp.

Simply Better Brands Corp. is an international omni-channel platform with a portfolio of diversified assets in the rapidly growing plant-based, natural, and clean ingredient space. The Company targets informed, health-conscious Millennial and Generation Z consumers with a focus on opportunities for expansion into high-growth consumer product categories. For more information on Simply Better Brands Corp., please visit: For more information on Simply Better Brands Corp., please visit: https://www.simplybetterbrands.com/investor-relations.

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.

Forward-Looking Information

Certain statements contained in this news release constitute "forward-looking information" and "forward looking statements" as such terms are used in applicable Canadian securities laws. Forward-looking statements and information are based on plans, expectations and estimates of management at the date the information is provided and are subject to certain factors and assumptions, including, among others, that the Company's financial condition and development plans do not change as a result of unforeseen events, the regulatory climate in which the Company operates, and the Company's ability to execute on its business plans. Specifically, this news release contains forward-looking statements relating to, but not limited to expansion plans for TRU Brands products, and the success of the Company's marketing efforts.

Forward-looking statements and information are subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking statements and information. Factors that could cause the forward-looking statements and information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions referred to prove not to be valid or reliable, that occurrences such as those referred to above are realized and result in delays, or cessation in planned work, that the Company's financial condition and development plans change, ability to obtain necessary regulatory approvals for proposed transactions, as well as the other risks and uncertainties applicable to the plant-based food, clean ingredient skincare and plant-based wellness or broader wellness industries and to the Company, and as set forth in the Company's management's discussion and analysis available under the Company's SEDAR+ profile at www.sedarplus.com.

The above summary of assumptions and risks related to forward-looking statements in this news release has been provided in order to provide shareholders and potential investors with a more complete perspective on the Company's current and future operations and such information may not be appropriate for other purposes. There is no representation by the Company that actual results achieved will be the same in whole or in part as those referenced in the forward-looking statements and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.

SOURCE Simply Better Brands Corp.

Contact Information: Simply Better Brands Corp., Brian Meadows, Chief Financial Officer, [phone], [email protected]