Reviv3 Procare Reports Profitable Second Quarter Fiscal Year 2022 Financial Results
LOS ANGELES, CA / ACCESSWIRE / January 14, 2022 / 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 its second quarter ended November 30, 2021.
Second Quarter Fiscal 2022 Financial Highlights
- Generated Revenues of $493,816 for the second quarter compared to $644,061 in the prior year quarter, impacted by supply chain disruptions in raw materials and components, partially offset by revenue growth in the direct-to-consumer sales.
- Gross profit of $381,016, or 77% of revenues, compared to gross profit of $396,233 or 62% of revenues, in the prior year quarter, representing approximately 24% year-over-year increase on a percentage basis, primarily attributable to higher direct to consumer sales.
- Cost of sales as a percentage of net revenues decreased to 23%, compared to 38% for the prior year period. The overall decrease in the cost of sales is primarily attributable to the Company's continued focus on the direct sales segment with traditionally higher margins.
- Operating expenses increased to $386,253, or 78% as a percentage of sales, compared to $341,675, or 53% as a percentage of sales, for the prior year quarter. The increase in the second quarter of the fiscal year 2022, is primarily the result of higher marketing and advertising expenses.
- Net Income was $28,201 compared to a net income of $53,103 for the prior year quarter.
Six Month Fiscal 2022 Financial Highlights
- Revenues increased to $1,333,088, an increase of 46% compared to $912,515 for the prior year period.
- Gross profit increased to $856,392 compared to $528,428 for the prior year period. Gross profit as a percentage of sales increased to 64% as compared to 58% for the same comparable period in the prior year.
- Operating expenses increased to $876,103 or 66% as a percentage of sales compared to $541,910 or 59% as a percentage of sales for the prior year period.
- Net income was $12,162 compared to a net loss of $16,166 for the prior year period.
"Our performance was adversely impacted by supply chain shortages and delays in component deliveries at our primary import hub of Long Beach. We continued to maintain growth in our direct sales channel, which resulted in a significantly improved profit margin profile." Commented Jeff Toghraie, Chairman and CEO of Reviv3 Procare. "These margin improvements contributed to achieving profitability for the quarter and the six months of our fiscal year. Although disruptions and subsequent shipping rate increases still persist, we believe the continued expansion of our end user sales channels can, in part, mitigate some of the risks to our goal of achieving long term profitability."
"For the second quarter, we achieved revenues of $493,816 and approximately 77 percent profit margins. Our operating expenses increased by 47 percent compared to the prior year quarter, primarily as a result of increased marketing expenses. Looking ahead, we intend to increase our marketing and support personnel budget allocation to the direct sales segment and further enhance our end-user customer acquisition strategies which we believe will be the most significant contributing factor to our sustained growth and profitability," 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 our 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. Current and 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.
SOURCE: REVIV3 PROCARE COMPANY
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