Reviv3 Procare Reports Record 2021 Financial Results and Provides Business Updates
Record FY 2021 results reflect 61% year-over-year revenue growth and 21% increase in Gross Profit as percentage of sales, driven by consumer marketing campaigns and strong demand for premium hair care products.
Company provides guidance of continued revenue growth with revenues for the quarter ending August 31, 2021 projected to exceed $800,000 for the first time.
LOS ANGELES, CA / ACCESSWIRE / August 31, 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 its fiscal year ended May 31, 2021.
Fiscal Year End 2021 Financial Summary
- Revenues increased 61% to $1,633,609 compared to $1,012,711 in the previous year, primarily driven by continued growth in the direct-to-consumer sales channels.
- Gross profit increased by 94% to $1,033,908, or 63% of revenues, compared to gross profit of $531,933, or 52% of revenues, in the previous year, representing a 21% year-over-year increase, primarily attributable to a shift toward higher margin, direct-to-consumer sales.
- Cost of sales increased by $118,923 or 24.7%, as compared to the comparable period in 2020. Cost of sales as a percentage of net revenues decreased to 36.7%, compared to 47.5% for the previous year. The overall decrease in cost of sales is primarily attributable to the Company's increased efficiencies in procurement and manufacturing systems, and increased sales in the higher margin, direct-to-consumer sales channels.
- Operating expenses increased to $1,354,962, or 83% as a percentage of sales, compared to $703,052, or 69% as a percentage of sales, for the previous year. The dollar and percentage increases in the 2021 year were primarily the result of higher marketing and advertising expenses to promote the Company's product line in direct-to-consumer sales channels.
- Net loss was $297,755, compared to a net loss of $172,767 for the prior year.
"We are extremely pleased with our year-end results, which marked our fourth consecutive year of revenue growth. Although we shared many of the challenges in our industry, particularly supply chain disruptions related to the COVID-19 pandemic, we continued to successfully shift our Company's focus to the direct-to-consumer sales model, which allows us higher flexibility in our product offerings and leads to enhanced gross margins," commented Jeff Toghraie, Chairman and CEO of Reviv3 Procare.
"As part of our on-going strategy to significantly expand our direct customer base, we continue to optimize our product offerings, direct sales platforms, production operation systems, and customer experience. We believe these efforts will result in a meaningful contribution to our customer acquisition and maintenance efforts and will provide additional momentum to our direct sales market presence and revenue growth.
Looking ahead, we intend to maintain flexibility in our operating model to adapt to changing market conditions and business environment. Our primary focus remains to generate consistent long-term growth of our business. We remain encouraged by the continued strong demand for our hair care products, primarily in our direct-to-consumer markets. At this time, we can provide guidance that revenue for our first quarter, which ends on August 31, 2021, will exceed $800,000, a quarterly record for us," 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.
Reviv3 PR Team
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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