Naturally Splendid Reports First Quarter Results for 2018
Vancouver, British Columbia / TheNewswire / May 30, 2018 - Naturally Splendid Enterprises Ltd. ("Naturally Splendid", "NSE" or "the Company") (FRANKFURT:50N) (TSXV:NSP) (OTC:NSPDF) announces its financial results for the three months ended March 31, 2018. All amounts are in Canadian dollars and are prepared in accordance with International Financial Reporting Standards.
Naturally Splendid recorded a net loss of $13,397 during the three months ended March 31, 2018, compared to a loss of $942,055 during the three months ended March 31, 2017. The decrease in net loss was due to the sale of POS BPC Manufacturing Corp. which provided for a gain on sale of $1,535,096, offset by an increase in selling and distribution costs of $88,479 and administrative expenses of $453,230, mainly due to the addition of the Company's Prosnack Natural Foods Inc. ("Prosnack") business which was not included in the expenses in the comparative quarter, as the acquisition occurred on October 18, 2017.
Naturally Splendid recorded sales of $320,827 during the three months ended March 31, 2018 compared to $587,203 in for the three months ended March 31, 2017. This revenue decrease was mainly due to the collapse of sales of bulk hemp seed to South Korea where the Company had recorded $Nil bulk sales in the current quarter compared to $245,400 in the first quarter of 2017. The additional sales generated from the acquisition of the Prosnack business was not enough to counter the loss of bulk sales. Retail sales were off during the first quarter whereas online sales remained consistent.
Cost of Sales during the three months ended March 31, 2018 was $217,523, compared to $435,766 in the three months ended March 31, 2017. The Company significantly changed its sales mix in 2018 with a reduction of exporting bulk seed sales which have been generally sold at a lower gross margin percentage.
Gross profits during the three months ended March 31, 2018 was $103,304 (32.2% of sales) compared to $151,437 (25.8%) in the three months ended March 31, 2017 due to higher margins on retail and online sales whereas in the comparative quarter the lower margins on bulk seed sales caused the overall margins to decrease. In 2018, the Company is focused on rebuilding its markets and products and new commercial opportunities, both domestically and in new international markets, and with NSE's acquisitions of Prosnack (acquired October 18, 2017) and Absorbent Concepts Inc. ("ACI") (acquired April 24, 2018)
REST OF RELEASE: https://www.dailymarijuanaobserver.com/single-post/2018/05/30/NSP-NSPDF-Naturally-Splendid-Reports-First-Quarter-Results-for-2018