Trading Symbol: VPI
VANCOUVER, May 31, 2019 /CNW/ - Vitality Products Inc. (TSX-V: VPI) (the "Company" or "Vitality"), an award-winning line of vitamins and natural health supplements, is pleased to report its financial results for the fourth quarter and the fiscal year ending January 31, 2019.
Sales for the year was $528,041, 26% higher than sales of $417,438 during the same period in fiscal 2018. Sales for the fourth quarter increased 39% to $109,977 (2018 Q4 - $78,906) through new stores, reorders and online sales growth. The Company's highest sales month to date was January 2019 when the Company recorded $70,277 of sales.
The Company is in a strong position for growth in fiscal 2020 with $824,641 in total assets at January 31, 2019 from $478,232 at January 31, 2018. The overall increase in current assets during the past three years is due to the growth of the Company's sales, expanding distribution of Vitality products and financing activities through the issuance of share capital.
During fiscal 2019 the Company achieved the following milestones:
- Successfully financed $500,000 for the growth of the business. The Company, in April 2019, received aggregate exercise proceeds of $103,350 due to the exercise of 689,000 share purchase warrants. The proceeds of the share purchase warrants exercised will be used for the Company's general corporate and working capital purposes.
- Invested in online marketing in Canada and achieved a 378% increase in online sales on Amazon.ca.
- Explored new markets for growth including the United States, Japan and China for its 92 licensed natural health and wellness products. Currently five licenses are in use in Canada.
Fourth Quarter Results:
During the fourth quarter of fiscal 2019, the Company's financial results show a net loss of $52,960 (2018 Q4 - $11,701). Vitality sales increased 39% to $109,977 (2018 Q4 - $78,906). The cost of sales increased to $35,048 (2018 Q4 - $25,057) and wages and salary increased to $59,212 (2018 Q4 - $33,813).
Year End Results:
The financial results of the Company for its year ended January 31, 2019 show a net loss of $354,958 or $0.01 per share compared to a net loss of $27,468 or $0.00 per share for the same period last year. The Company's net loss increased in fiscal 2019 as the Company recognized a share-based compensation expense of $252,220.
Sales for the year ended January 31, 2019 of the Company's products increased 26% to $528,041 (2018 - $417,438). The Company's general and administrative expenses for the year ended January 31, 2019 increased to $722,773 (2018 - $316,954). Share-based compensation increased to $252,220 (2018 - $Nil). Wages and salary increased to $185,039 (2018 - $132,977), consulting fees increased to $97,373 (2018 - $65,799), travel increased to $25,920 (2018 - $8,591) and promotion increased to $61,650 (2018 - $33,690) as the Company expanded distribution and grew sales.
With current assets, the Company will focus on same store sales growth, and expansion into the United States including online sales and new products in fiscal 2020. Vitality's products are available for sale in 575 retail stores (2018 - 525 retail stores) located in Canada and online at vitality.ca, amazon.ca and well.ca. A list of the retailers is available at www.vitality.ca.
The Company's audited financial statements and management's discussion and analysis for the years ended January 31, 2019 and 2018 are available on SEDAR at www.sedar.com.
VITALITY® is an award-winning line of clean vitamins and supplements, marketed to natural health retailers and health and wellness conscious consumers. Manufactured locally in BC, and currently sold in 575 stores nationally, the products are vegan, non-GMO and third party tested. Following the proven success of the line through repeat orders and same store sales growth, the Company is focused on expanding distribution and growing sales in-store and online; evaluating, researching and developing new products for future distribution; and exploring new markets for its products.
On behalf of the Board of
VITALITY PRODUCTS INC.
"Cheryl A. Grant" (signed)
Cheryl A. Grant, President & CEO
Information set forth in this news release involves forward-looking statements. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address a company's expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: risks associated with marketing and sale of securities; the need for additional financing; reliance on key personnel; the potential for conflicts of interest among certain officers or directors with certain other projects; and the volatility of common share price and volume. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and except as required by law, the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE SECURITIES LEGISLATION.
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 news release.
SOURCE Vitality Products Inc.
For further information: Vitality Products Inc., Cheryl A. Grant, President and CEO, (604) 591-1322, [email protected]