Canada's Delivra Health Q3 revenue plunges on Middle East disruptions

Delivra Health Brands

29/05/2026 22:55

Overview
Canada health and wellness firm's Q3 revenue fell 60% yr/yr due to Middle East shipment disruptions
Gross profit margin dropped to 25% from 50% on lower revenue and higher product costs
Adjusted EBITDA for Q3 turned negative, reflecting lower sales volume and gross profit

Outlook
Company anticipates outbound shipments to Middle East to resume in Q4 and fiscal 2027
Delivra Health expects e-commerce sales growth to continue in fiscal 2027
Company plans to advance innovation projects and stabilize LivRelief Infused business next quarter

Result Drivers
MIDDLE EAST SHIPMENT DISRUPTIONS - Co said Q3 revenue decline was mainly due to reduced Dream Water shipments to Middle East partners amid geopolitical conflict and Strait of Hormuz closure
HIGHER PRODUCT COSTS - Co said gross profit margin fell due to higher input costs from vendor price increases and tariffs
E-COMMERCE GROWTH - Co reported strong e-commerce sales growth for Dream Water Canada and LivRelief, though not enough to offset declines in other channels

Company press release: ID:nNFC78GhQF

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
 
C$1.2 mln
 
Q3 Adjusted EBITDA
 
-C$949,000
 
Q3 Gross Profit
 
C$311,000
 
Q3 Income from Operations
 
-C$978,000
 

Analyst Coverage
Wall Street's median 12-month price target for Delivra Health Brands Inc is C$0.72, about 380% above its May 28 closing price of C$0.15

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)