Gaithersburg, MD, June 22, 2021 (GLOBE NEWSWIRE) – Verus International, Inc. (âVerusâ or the âCompanyâ) (OTC Pink: VRUS), an international food, CBD and hemp products company, released its financial results for the second quarter of l he fiscal year 2021, ended April 30, 2021 Along with this press release, the Company also provides additional details on the development of business after the end of the quarter.
For Q2 2021, management notes the following significant elements:
- Revenue declined 28% year-over-year to $ 3.3 million in the second quarter of fiscal 2021, from $ 4.6 million in the second quarter of l ‘fiscal year 2020, in part due to continued repositioning of the product line which is expected to continue to generate higher margin revenues in future neighborhoods;
- Gross profit margin continued to improve from previous quarters, reaching around 23% for the second quarter of fiscal 2021, around 600 basis points more than the 17% generated in the first quarter of 2021 , and approximately 1,100 basis points more than the 12% generated during the year. Q4 2020;
- Operating expenses of $ 0.9 million were 89% lower than operating expenses of $ 7.6 million in the second quarter of fiscal 2020, mainly due to the completion of the compensation program former CEO’s stock-based and spending rationalization measures in almost all spending categories;
- The operating loss of $ 0.1 million was 98% lower than the $ 6.7 million reported in the second quarter of fiscal 2020;
- Net loss from continuing operations was $ 0.7 million, an improvement of 90% over the $ 7.0 million reported in the prior year period as non-cash expenses impacted increased by $ 0.3 million year-on-year
âOur sales in the United States reached double-digit figures for the first time (around 11%) as a percentage of our total revenue,â said Andy Dhruv, CEO of Verus. âEven at this modest percentage of the Pachyderm Labs product lines, you can already see the positive effect on gross margins, which were almost 600 basis points higher than in the previous quarter. Based on current sales forecasts, we expect our higher margin product lines in the United States to continue to capture a greater share of our overall revenue in subsequent quarters. This trend, coupled with our significant rationalization of expenses, quickly repositioned us into a more sustainable business. Overall, our strategy of cost rationalization and new higher margin product lines has put us on the right track to generate better operating results going forward. Our next goal is to further increase growth, so we plan to have our own booth at the upcoming Champs show in Las Vegas, NV, which will take place July 27.e until July 30e. Industry trade shows have been a tremendous source of new business, so we are particularly excited to be showcasing our product lines in a venue of this size and importance.
Operationally, the new Waffles product line continues to sell, with replenishment rates above historical averages for the food and CBD lines. The Company is currently working to secure additional working capital and capacity to meet this growing demand. Based on recent orders and inventory rotations, Verus believes it will return to revenue growth in the coming quarters.
In terms of M&A activity, management continues to move forward with previously announced M&A discussions, although management cannot be certain of the timing or outcome of these active merger discussions. and acquisitions, which involve companies equal to or larger than Verus’ current operations.
About VÃ©rus International
Verus is an emerging multi-line consumer packaged goods (CPG) company that develops branded product lines in the United States and globally. The Company trades on the OTC market (OTC Pink: VRUS). Investors can find real-time quotes and market information for the Company at www.otcmarkets.com. Additional information is also available on the Company’s website, www.verusfoods.com, and via the official Twitter feed. @Verus_Foods, and the Twitter feed of the Pachyderm Labs subsidiary @PachydermLabs.
Safe Harbor Declaration
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words âmayâ, âbelieveâ, âanticipateâ, “” Intend “,” estimate “,” expect “,” may “,” continue “,” anticipate “,” potential “,” plan “and similar expressions intended to identify forward-looking statements . All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations and intentions reflected or suggested by forward-looking statements are reasonable, we cannot guarantee that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and current expectations or projections. Actual results could differ materially from those of forward-looking statements and the price of our common shares could fluctuate significantly. Forward-looking statements are also affected by risk factors described in documents filed by the Company with the United States Securities and Exchange Commission. Except as required by law, we assume no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unforeseen events. events.