TRUBAR (SBBC) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 124% year-over-year to $12.1 million, driven by a 156% increase in TRUBAR sales and significant expansion in distribution channels, with TRUBAR now the main business focus.

• TRUBAR products are expected in 15,000 stores by year-end, with strong performance in major retailers like Costco, Walmart, Whole Foods, Amazon, CVS, and GNC, and a clear path to $100 million in revenue.

• Adjusted EBITDA from continuing operations was $1.0 million for Q3 2024, a 376% improvement over the prior year.

• Net profit from continuing operations for Q3 2024 was $4.1 million, mainly due to fair value changes in warrants and derivative liabilities.

• TRUBAR is now the main business focus, with other divisions contributing minimally and plans to divest from cannabis by year-end.

Financial highlights

• Q3 2024 total revenue reached $12.1 million, up from $5.4 million year-over-year; TRUBAR revenue was $11.5 million versus $4.5 million.

• Gross margin improved to 50% from 40% year-over-year, with further upside expected as volumes increase.

• Adjusted EBITDA for Q3 2024 was $1.0 million, up from $0.2 million in Q3 2023.

• Net profit for Q3 2024 was $4.1 million, driven by $4.2 million in fair value changes.

• Cash balance at quarter-end was $3.7 million, with $10 million available in credit lines.

Outlook and guidance

• Confident in maintaining 2024 TRUBAR revenue guidance of $45–$50 million, implying $15–$19 million in Q4 revenue.

• Focused on rapid distribution expansion, new product innovation, and marketing acceleration, with a target to reach $100 million in revenue as quickly as possible.

• TRUBAR expected to reach 15,000 distribution points by year-end, reflecting continued expansion.

• Expecting continued strong growth in 2025, with more detailed guidance to be provided with Q4 results.

• Management confident in ability to meet evolving consumer preferences and sustain growth momentum.