GURU Organic Energy (GURU) Q2 2024 earnings summary

Executive summary

• Achieved fifth consecutive quarter of topline growth, with Q2 net revenue of $8.0M and year-to-date net revenue up 19% to $15.1M.

• US sales surged 143% year-over-year to $2.7M, driven by wholesale club and Amazon channels.

• Canadian sales declined due to distributor inventory adjustments, but underlying demand and retail/online sales remained strong.

• Recent product innovations, Peach Mango Punch and Zero Wild Berry, delivered record-breaking performance and achieved a combined 5.2% market share in leading grocery banners.

• US expansion continues, with GURU Zero product line set to launch in Q4 2024 following strong Canadian performance.

Financial highlights

• Q2 2024 net revenue was $8.0M, up from $7.7M in Q2 2023.

• Gross profit for Q2 rose to $4.5M from $4.1M, with gross margin improving to 55.8% from 53.1%.

• Net loss for Q2 was $2.7M, stable year-over-year; six-month net loss narrowed to $4.5M from $5.3M.

• Adjusted EBITDA loss for Q2 was $2.7M versus $2.5M in Q2 2023; six-month adjusted EBITDA loss improved to $4.7M from $5.1M.

• Cash, cash equivalents, and short-term investments totaled $28.2M, with $10M in unused credit facilities and no debt.

Outlook and guidance

• Confident in Canadian market outlook for 2024, supported by new product launches, strong in-store execution, and targeted marketing.

• GURU Zero product line to launch in the US in Q4 2024 and in the rest of Canada in spring 2025.

• Focus remains on accelerating return to profitability through strategic resource deployment and continued innovation.

• Gross margin expected to remain within year-to-date average for the remainder of the year.

• Continued expansion in online and wholesale club channels in both Canada and the US.