Overview
GURU Q3 net income at C$1.3 mln, first profitable qtr since 2020
Q3 revenue rises 31.4% to C$10.4 mln, beating analyst expectations
Adjusted EBITDA beats estimates, improving to C$1.6 mln from a loss of C$1.5 mln
Outlook
Company launched GURU Island Breeze Punch in Quebec and online
Early sell-through of 18-pack Zero variety exceeded expectations
GURU expanding U.S. presence and direct distribution in Canada
Company expects sustained growth in energy drink market
Result Drivers
DIRECT DISTRIBUTION - Transition to direct distribution model in Canada boosted sales by 35%, enhancing retailer relationships and execution flexibility
ONLINE SALES - Record Amazon sales in July, with Prime Day sales up 40% in Canada and 96% in the U.S., driving U.S. sales growth of 16.4%
GROSS MARGIN EXPANSION - Gross margin increased to 71.3% due to a one-time adjustment; excluding this, margin improved to 65.9% from 55.4% last year
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
C$10.44 mln
C$8.20 mln (2 Analysts)
Q3 EPS
C$0.04
Q3 Net Income
C$1.30 mln
Q3 Adjusted EBITDA
Beat
C$1.55 mln
-C$1.53 mln (2 Analysts)
Q3 Gross Profit
C$7.44 mln
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the non-alcoholic beverages peer group is "buy"
Wall Street's median 12-month price target for Guru Organic Energy Corp is C$3.13, about 7.2% above its September 10 closing price of C$2.90
Press Release: ID:nGNX1qy9Cl
(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.)