TRUBAR (SBBC) Q1 2025 earnings summary

Executive summary

• Completed major restructuring and rebranded as TRUBAR Inc., with only the NOBS brand sale pending, expected by end of the quarter.

• Company now operates with U.S. and Canada entities, aligning corporate identity with its flagship brand.

• Leadership team strengthened with experienced hires, including Kingsley Ward as Executive Chairman and Erica Groussman as CEO.

• Q1 net revenue was $10.2 million, down 26% year-over-year due to timing shift of Costco promotional event to Q2, but core protein bar segment showed strong growth outside of these periods.

• Direct-to-consumer e-commerce revenue surged 593% year-over-year, now representing 30% of net revenue.

Financial highlights

• Q1 2025 gross revenue was $13.9 million, down 16% year-over-year; gross profit was $3.2 million, down 16%.

• Gross margin improved to 31% from 28% in Q1 2024, with ongoing efforts to reach 35-40%.

• Operating costs increased 47% to $4.9 million, reflecting strategic investments.

• Adjusted EBITDA loss of $1.5 million, compared to positive $0.7 million in Q1 2024, mainly due to timing of promotional activities.

• DTC run rate over $14M, with March DTC sales at $1.2M.

Outlook and guidance

• 2025 net sales guidance of $65-70M, representing a 50-60% increase year-over-year.

• Plans to expand retail presence to 25,000 locations by year-end, already surpassing 18,000.

• Expecting DTC channel to reach a $20M run rate by year-end.

• Committed to positive adjusted EBITDA in 2025 and 2026.

• No plans to raise additional capital for 2025.