good natured Products (TSE: GDNP), a North American leader in plant-based products, announced Thursday preliminary unaudited revenue and gross margin estimates for the quarter ending December 31, 2021, and for the year ending ending December 31, 2021.
Strong Performance Is Expected
Preliminary revenue for Q4 2021 is expected to be between C$21 million and C$23 million, an increase of approximately 300% to 330%, compared to C$5.3 million for Q4 2020.
Revenue for fiscal 2021 is expected to be between C$59.3 million and $61.3 million, an increase of approximately 255% to 270%, compared to C$16.7 million for FY 2020.
Variable gross margin for Q4 2021 is expected to be between 29% and 31%, compared to 32.9% for Q4 2020. Variable gross margin for FY 2021 is expected to be between 30% and 32%, compared to 37.3% a year ago. The company expects to publish the full results for the fourth quarter of 2021 in April 2022.
CEO Commentary
good natured Products CEO Paul Antoniadis said, “We ended 2021 on an extremely positive note by delivering the Company’s highest ever quarterly revenue and strongest percentage growth of FY2021. Our preliminary gross margins show an improvement from the third quarter despite supply chain inflation that persisted throughout the remainder of the year. Our Q4 2021 and FY2021 results are a function of robust demand across our various business segments, driving a strong recurring customer rate, execution on our acquisition strategy, and proactive monitoring and adapting to quickly changing cost structures and supply chain conditions.”
Wall Street’s Take
Last month, National Bank Financial analyst Michael Robertson initiated coverage on GDNP with a Buy rating and a price target of C$1.25. This implies 73.6% upside potential.
The rest of the Street is bullish on GDNP with a Strong Buy consensus rating, based on three Buys. The average good natured Products price target of C$1.32 implies 83.3% upside potential to current levels.
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