ALUULA Reports Financial Results for the Fourth Quarter and Fiscal Year 2023

[ad_1]

Victoria, British Columbia–(Newsfile Corp. – February 27, 2024) – ALUULA Composites Inc. (TSXV: AUUA) (“company” or “AlUla“) Today, we reported our fourth quarter financial results (“Q4 2023“) and for the year ending October 31, 2023 (“2023“). All currency amounts are expressed in Canadian dollars.

“Looking back at fiscal 2023, ALUULA achieved significant growth with revenue increasing 168% compared to fiscal 2022, driven by a combination of acquisition activity and organic growth,” said Richard Myerscough, CEO and Director of ALUULA. says. “Last year was not just about numbers. It demonstrated our commitment to building a solid foundation that will lead us to great success. At the same time, we expanded our new sales pipeline and made multiple We commercialized windsports products and proudly maintained our position as a leader in windsports innovation. ”

ALUULA has decided to diversify into additional markets during 2023, including the outdoor, aerospace and sailing industries. This decision is due to the increasing demand for our high-performance, recyclable materials.

“The collaboration with Arc’teryx is notable for two reasons. It highlights the advances that ALUULA has made in these new areas, and it brings together innovative materials and product design expertise. It proves that great products are possible when you do the right thing,” said Myerscough.

Last quarter, ALUULA focused on continued innovation of its products and manufacturing processes. This includes finalizing specifications for ALUULA Durlyte.® and ALUULA Graflyte™ material, developed specifically to meet the demands of new vertical markets. Additionally, as a result of new manufacturing techniques, seamless seams were introduced. These seams continue to improve our product development efficiency and cost effectiveness.

“As we look to 2024, ALUULA is well-positioned to take advantage of our strong sales pipeline outside of windsports, particularly in the outdoor industry, while remaining committed to excellence and growth,” said Myerscough. .

Key highlights for 2023:

sale An increase of 168% or $4,603,819 to $7,347,300 compared to $2,742,481 in fiscal year 2022 (“2022This increase was primarily due to the inclusion of Ocean Rodeo sales of $3,185,614 in our 2023 consolidated results. ALUULA acquired Ocean Rodeo on October 31, 2022, so sales of Ocean Rodeo are not included in fiscal 2022.
Single sales of ALUULA An increase of 52% or $1,418,205 compared to 2022. This increase was primarily due to the Company acquiring three new customers representing his five windsports brands.
Cost of sales An increase of $5,472,007 compared to $1,649,542 in fiscal year 2022.
gross profit margin This has decreased from 40% in FY2022 to 26%. The year-over-year decrease was primarily due to inventory write-offs, discount pricing to clear Ocean Rodeo’s old inventory, accounting adjustments, and increased small-lot production of ALUULA materials, which reduced profit margins and sales pipeline.
Net loss and comprehensive loss Net loss for fiscal year 2022 was $481,570 compared to $5,155,427 for fiscal year 2023. The increase in net loss was primarily due to costs of $2,053,903 to obtain and maintain listing on the TSX Venture Exchange, including a net loss of $1,729,029 incurred by Ocean Rodeo. increases in salaries and benefits and marketing expenses incurred by ALUULA alone;
Increase in several vertical markets Outdoor activities, sailing, airships, etc. In collaboration with these customers, ALUULA has developed additional products such as ALUULA Durlyte™ and ALUULA Graflyte™ to successfully replace existing materials in these new markets.
Introducing 6 new windsports brandsThis brings the total number of brands offering premium-priced windsports products made with ALULA materials to eight by the end of 2023.
Partnered with over 10 famous outdoor brands It spans various stages of the sales cycle, from initial needs analysis to field testing of prototype products.

Key highlights of Q4 2023:

sale compared to $693,150 in the fourth quarter of 2022, an increase of 148% or $1,027,462 to $1,720,612. This increase was primarily due to the inclusion of $839,417 in Ocean Rodeo sales that were not included in the fourth quarter of 2022 due to the timing of Ocean Rodeo’s acquisition by ALUULA.
Single sales of ALUULA Compared to Q4 2022, it increased by 27% or $188,045. This increase was primarily due to increased sales to the windsports market.
Cost of sales This increased to $1,519,177 compared to $382,395 in the fourth quarter of 2022.
gross profit margin This decreased to 12% compared to 45% in Q4 2022. The quarter-on-quarter decline was driven by the same factors that impacted the year-over-year margin decline mentioned above.
Net loss and comprehensive loss Net income for the fourth quarter of 2023 was $844,251 and net income for the fourth quarter of 2022 was $359,812. The net loss in the fourth quarter of 2023 was primarily due to lower gross margins, higher warranty provisions and higher overall operating expenses due to the non-inclusion of Ocean Rodeo costs. Included in Q4 2022 results.
strong sales pipeline Six new brands have commercialized products using ALUULA Gold™ material, and five more are expected to commercialize in the first half of 2024.
Introduced new product It features a flame-retardant flexible composite material, a new interfacial film that enables the joining of dissimilar materials primarily for use in inflatable rafts and structures, and a unique helium gas retention capability aimed at the airship industry. Contains new materials.
Development of new manufacturing technology Intended for use with certain ALUULA products that contain seamless seams, allowing for more efficient and cost-effective production, resulting in a lighter and stronger finished product.

Outlook for 2024

We continue to work with a growing number of brand partners and are committed to developing and delivering innovative, high-performance products across industries.

Windsport will continue to be the company’s largest vertical, with end-user demand expected to gradually recover in 2024. Larger market opportunities include the development of outdoor recreation products using ALUULA materials, such as backpacks, tents, and sailing equipment. These developments will also contribute to the Company’s revenues during fiscal year 2024. Market opportunities in industrial and commercial applications, currently in early stages of development, also offer significant growth potential.

We continue to expand our line of innovative composite materials based on market needs for high-performance, recyclable materials. Continuous innovation in the company’s products and patented manufacturing processes ensures that the company’s products appeal to a wider range of customers and future brand partners.

Financial Statements and Management Discussion and Analysis

This financial results press release should be read in conjunction with ALUULA’s interim financial statements for the three and twelve months ended October 31, 2023 (“financial statements “) and related management discussion and analysis (“MD&A “), which can be found in ALUULA’s publisher profile for System for Electronic Document Analysis and Retrieval Plus (“Sedar+“) at www.sedarplus.ca.

ALUULA brand partner

The term “Brand Partner” does not refer to a formal partnership with you. This term refers to marketing relationships with customers who use ALUULA’s technology as a brand element of their products.

ABOUT ALUULA COMPOSITES

ALUULA Composites Inc. (TSXV: AUUA) is a leader in textile innovation. Partnering with world-class brands, his ALUULA is quickly becoming the top choice for product developers looking to set new standards in performance and design.

Able to perform in all conditions, ALUULA’s monopolymer material is ultralight, durable, UV resistant, and waterproof. Thanks to its unique ability to bond and thermoform into the material itself, ALUULA opens up a world of product design with exciting seamless construction possibilities, enabling the manufacture of numerous products across industries. Masu.

ALUULA is a Canadian company founded by a team of experienced chemists and engineers who share a passion for sustainability. ALUULA textiles are monopolymers and are made without adhesives, so they can be recycled at the end of their useful life.

To learn more about ALUULA’s potential, visit aluula.com.

On behalf of the Board of Directors,

Richard Myerscough
chief executive officer

For inquiries regarding investors, please contact us below.

PR for investors

1-888-724-2470, extension 4
IR@alulula.com

TSX Venture Exchange

Neither 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.

Forward-looking statements

The information in this news release contains certain information and statements regarding management’s beliefs regarding future events, expectations, plans and prospects that constitute forward-looking statements. These statements are based on assumptions that are subject to significant risks and uncertainties, as described in our management discussion and analysis. As a result of these risks and uncertainties and various factors, including the timing and receipt of all applicable regulatory, corporate and third party approvals, actual results, expectations, achievements or performance may not be as expected or as expected. It may be very different from what you received. as indicated by these forward-looking statements. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that the expectations reflected in the forward-looking statements will prove to be correct. Except as required by law, we do not make any changes to reflect actual results, whether as a result of new information, future events, changes in assumptions, or changes in factors affecting the future. We disclaim any intention or obligation to update or revise any forward-looking statements. – Look statement or otherwise.