On April 30, good natured Products (GDNP) announced financial results for the year ended December 31, 2020. The North American leader in earth-friendly plant-based products will host a webcast investor presentation at 2:00 p.m. EST/11:00 a.m. Pacific time on May 5, 2021.
good natured’s revenue for FY2020 came in at C$16.71 million, an increase of 65% from the revenue of C$10.10 million reported in FY2019. Gross profit for FY2020 grew 80% to C$6.24 million. The gross profit margin increased to 37.3%, an improvement from 34.4% for the year ended December 31, 2019.
The company reported an adjusted EBITDA loss of C$1.52 million in FY2020 compared to C$1.45 million in FY2019. The net loss more than doubled from a year ago to reach C$7.19 million at the end of 2020.
good natured Products’ CEO Paul Antoniadis said, “In the fourth quarter our logistics and warehousing expenses increased due to a planned plant-based resin inventory build we executed ahead of capacity increases, new product launches, and customer material transition at Integrated Packaging Films. These were purposeful decisions made to support our future growth initiatives.”
“We also saw external cost inflation in our logistics and fulfillment operations and anticipate continued pressures here through the end of 2021. We have initiated some changes in our business to deal with the logistics and fulfillment cost inflation facing the industry. We remain confident in the outlook for growth in the 2021 financial year, with our preliminary and unaudited Q1 2021 results expected to show revenue growth of over 150%. Our new customer activity remains strong as is our pipeline of potential acquisitions,” added Antoniadis. (See good natured Products stock analysis on TipRanks)
About a month ago, Beacon analyst Ahmad Shaath reiterated a Buy rating on the stock and a C$1.80 price target (73% upside potential).
Shaath stated, “Having improved GDNP’s balance sheet, management is turning its full attention to product development, where the team now has more capabilities, materials, and molds compared to the previous year.”
The rest of the Street is bullish on GDNP with a Strong Buy consensus rating based on 3 Buys. The average analyst price target of C$1.70 implies an upside potential of about 63.5% from current levels. Shares have tripled in value over the past six months.
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