Nutritional High (CSE: EAT) issued a slightly misleading news release this morning, identifying that the company had “recorded record December sales” within the headline. However, upon actually reading the news release, it’s quickly noted that this figure excludes Plus Products merchandise due to a major contract terminated last month.
For the month of December, Nutritional High generated revenues in excess of US$300,000 for the first time among non-Plus Products merchandise, while maintaining a margin of approximately 15%. Above all, this demonstrates how significant the Plus contract was to Calyx and Nutritional High – during the first quarter, the firm recognized total revenues of US$5.1 million, which on a straight line basis, equates to approximately $1.7 million per month in revenues, or an 82.4% decrease in monthly sales.
To Calyx’s credit, this was a 30% increase in sales over November’s non-Plus product sales, however it still recognizes a significant decline in overall revenues.
As a result, Calyx is still focused on heavy cost reduction of its operations, which includes lower cost fulfillment only services and an increased focus on account acquisition. Nutritional High is also currently undergoing a strategic review of the Calyx operation as a whole due to the lost major account.
Nutritional High last traded at $0.045 on the CSE.
Information for this briefing was found via Sedar and Nutritional High. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
