May 28, 2022

The Queens County Citizen

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Jupiter lost $ 2 million despite record revenue

Jupiter lost $ 2 million despite record revenue

According to Guru, net loss reflects the additional costs associated with his change of status, especially as a public corporation (Photo: courtesy)

Guru Organic Energy’s earnings hit a record $ 8.0 million ($ M) in the third quarter on Tuesday, which did not stop the energy drink maker from posting a net loss of $ 2 million on Tuesday.

The Montreal-based company reported a net loss of 7 cents per share for the quarter ended July 31, up from $ 1.2 million or 5 cents in the same period a year earlier.

According to Guru, net loss particularly reflects the additional costs associated with the change in its status as a public company. Guru was listed on the Toronto Stock Exchange in November 2020.

Guru said spending on launching marketing activities in the field and implementing the measures provided in the Ontario, Western Canada and Atlantic provinces and expansion plans also hurt profitability in the recent quarter.

Guru attributed the 32% increase in sales in Canada to the 22% annual growth in revenue, especially thanks to the increase in the number of outlets. In the United States, sales were down 7% in steady dollars in the third quarter compared to the same period last year.

Analysts expect an average loss of 6 cents per share, as well as $ 7.5 million in sales, according to estimates collected by financial data firm Refinitive.

“In addition to achieving record revenues, we are proud to maintain strong margins and expand our sales channel network,” said Carl Goett, President and CEO of Guru, in a statement.

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Bigg Boss, which concluded a separate Canadian distribution agreement with PepsiCo in June, is due to go into effect on October 4.

“This new approach greatly simplifies our customer relationship management and distribution operations in Canada and enables us to focus exclusively on raising PepsiCo sourcing and awareness of the Guru brand,” said Carl Goethe.

Guru also closed the deal and private placement financing it bought in July, grossing $ 49.6 million, strengthening its financial position. Mr Goet said the company hopes to take advantage of this situation to intensify brand positioning and marketing efforts in North America.