Toronto, Ontario, July 26, 2022 – The Well Told Company Inc. (“Well Told” or the “Company”) (TSXV:WLCO) (FSE:7HO), the female-founded wellness company that offers plant-based supplements, remedies, and other functional wellness products, is pleased to announce its financial results and operational highlights for the three and six months ended June 30, 2022.
Second Quarter Financial Highlights
- Gross Revenue of $812k for Q2 2022, representing an increase of 132% over Q2 2021;
- The Company increased its wholesale gross revenue by 178% when compared to Q2 2021. This includes a 40% increase in YOY Canadian wholesale gross revenue and a 2,766% increase in U.S. wholesale gross revenue when compared to Q2 2021.
- In Q2 2022, Well Told also saw a 55% YOY increase in its Direct-To-Consumer revenue through welltold.com and through third-party e-commerce platforms, including, Amazon Canada, Amazon U.S., League Canada, and League U.S.
- Net and comprehensive income was positive for the first time in the Company’s history with $428k for the quarter ended June 30, 2022; this was driven in part by improvements in efficiency in most areas of operations including sales, marketing, and shipping. This improvement was achieved despite increases in R&D investments and quality control.
- The Company has also dramatically improved its working capital position from ($5,909,977) in Q2 2021 to $64,071 in Q2 2022; current assets are primarily composed of inventory and accounts receivable; current liabilities are primarily composed of accounts payable, accrued liabilities and current portion of long term debt.
Second Quarter Business Highlights
- As of June 30, 2022, the Company has increased its points of distribution by 48% when compared to December 31, 2021 reaching a total of 21,342 points of distribution as of June 30, 2022 compared to 14,464 at December 31, 2021.
- As of the end of May 2022, the Company had surpassed its 2022 goal of quadrupling points of distribution in the U.S. with over 8,000 points of distribution as the Company continues to expand into natural food retailers, independents, regional grocery and drug retailers.
- In Q2 2022, the Company launched two more SKUs of its new powder line in compostable packaging in the U.S. for a total of 6 SKUs launched in 2022 as detailed below:
Launched in Q2 2022
- COLLAGEN BOOSTER, 100% plant-based with prebiotics
- BRAIN POWER, Adaptogen blend
Launched in Q1 2022
- FACE THE DAY, Liver and antioxidant after party support
- STIR UP YOUR IMMUNITY, Adaptogen blend
- GOOD NIGHT SLEEP TIGHT, Natural sleep aid with antioxidants
- STRESS FIGHTER, Mushroom adaptogen blend.
Monica Ruffo, CEO of Well Told commented, “I am unbelievably proud of the results our small and mighty team has achieved in Q2 2022 across the board as we are seeing growth and improvements in efficiency across all our channels both in Canada and the U.S. We are on a journey with the goal of becoming a global leader in clean wellness with highly differentiated products, strong values and a culture of growth and while capital markets remain challenging, we are committed to continuing to pave the way towards sustainable profitability by 2023.”
- Our main priority for 2022 is to continue to move closer to sustained profitability; to work towards this goal the Company will focus growth on the U.S. market, same-store sales growth in Canada as well as Amazon in Canada and the U.S.; the Company will also be looking to continue to improve cost efficiency with a focus on fulfilment, distribution and shipping costs.
- By the end of 2022, the Company had a goal of quadrupling points of distribution in the U.S. to over 7,000 which it already achieved in Q2 2022; the Company will aim to expand into natural food retailers, independents, regional grocery and drug retailers in the U.S. in Q3 and Q4.
- The Company continues to see stronger re-orders from Canadian retailers which began selling prior to 2022.
- The Company expects Amazon sales to continue to grow in 2022.
The financial statements of the Company for the quarter ended June 30, 2022, and accompanying Management Discussion & Analysis (MD&A) are available at www.sedar.com.
About The Well Told Company Inc.
Well Told is a female-founded, emerging plant-based wellness company that formulates, develops, distributes and sells a variety of supplements, remedies and other functional wellness products. Founded by serial entrepreneur and award-winning leader Monica Ruffo, it was after undergoing treatment for breast cancer, and deciding to take her health into her own hands that she discovered the lack of transparency and availability of clean, plant-based formulations in the wellness industry. With the mission "Clean wellness for all", Well Told's products are currently available in over 2,000 stores across Canada including several well-known retailers and recently launched in over 1,000 pharmacies in the U.S. in addition to being available at welltold.com and on Amazon.
For further information, please contact:
Chief Executive Officer
The Well Told Company Inc.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain statements contained in this press release constitute "forward-looking information" as such term is defined in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", "will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions as they relate to the Company are intended to identify forward-looking information, including, the Company having sustainable profitability by 2023 and the Company’s outlooks for 2022. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company's current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions, including: the Company’s ability to capitalize on growth opportunities and implement its growth strategy; the Company’s ability to build its market share; the Company’s ability to maintain brand development; the Company improving cost efficiency with a focus on fulfilment, distribution and shipping costs by at least 15%; the Company’s ability to maintain and grow its relationship with its current retailers in Canada and the US; the Company’s ability to grow its retail distribution in the U.S.; the Company’s ability to continue to optimize its marketing spend across all channels; the Company’s ability to maintain existing customer relationships and to continue to expand its customers’ use of its products; the Company’s ability to obtain financing on acceptable terms or at all; the impact of competition; the Company’s ability to negotiate favorable terms with retailers and distributors; the Company’s ability to scale its ecommerce business; the Company’s ability to continue to source ingredients and packaging for its products on favourable terms; the changes and trends in the Company’s industry or the global economy; and changes in laws, rules, regulations, and global standards.
Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. Examples of such risk factors include, without limitation: credit; market (including equity, commodity, foreign exchange and interest rate); liquidity; operational; reputational; insurance; strategic; regulatory; legal; environmental; the general business and economic conditions in the regions in which the Company operates; the ability of the Company to execute on key priorities; the Company’s results of operations may be difficult to forecast; the Company is a holding company with its only asset being direct ownership of Well Told Inc.; the Company’s success depends upon the continued strength of its reputation and brands; disruptions in manufacturing facilities or losses of site licenses and other qualifications could adversely affect sales and customer relationships; the Company’s success depends on its ability to continue to enhance products and develop new products; the Company’s suppliers and sources for materials and inputs may fail to support demand and increasing raw material costs could adversely affect margins; the Company is reliant on third parties for shipping and payment processing; the Company’s ability to compete could be negatively impacted if it is unable to protect its intellectual property rights; the ability to implement business strategies and pursue business opportunities; disruptions in or attacks (including cyber-attacks) on the Company's information technology, internet, network access or other voice or data communications systems or services; the evolution of various types of fraud or other criminal behavior to which the Company is exposed; the failure of third parties to comply with their obligations to the Company or its affiliates; the impact of new and changes to, or application of, current laws and regulations; granting of permits and licenses in a highly regulated business; the overall difficult litigation environment; increased competition; changes in foreign currency rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the availability of funds and resources to pursue operations; critical accounting estimates and changes to accounting standards, policies, and methods used by the Company; the occurrence of natural and unnatural catastrophic events and claims resulting from such events; and risks related to COVID-19 including various recommendations, orders and measures of governmental authorities to try to limit the pandemic, including travel restrictions, border closures, non-essential business closures, quarantines, self-isolations, shelters-in-place and social distancing, disruptions to markets, economic activity, financing, supply chains and sales channels, and a deterioration of general economic conditions including a possible national or global recession; as well as those risk factors discussed or referred to in the Company’s disclosure documents filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.