SIMPLY BETTER BRANDS ANNOUNCES RESULTS FOR FISCAL 2024, HIGHLIGHTING 77% INCREASE IN TRUBAR™ REVENUE, AND CORPORATE NAME CHANGE TO TRUBAR INC.

• SBBC generated net revenue of $45.3 million from continuing operations for the twelve months ended December 31, 2024, an increase of 69% as compared to the prior year. Revenue growth was primarily driven by a 77% increase in TRUBAR^TM revenue. The Company also achieved positive Adjusted EBITDA of $0.5 million from its continuing operations in 2024, an improvement of 151% compared to 2023.
• During 2024, SBBC expanded TRUBAR™'s regional and national footprint and achieved its goal of 15,000 stores by year-end. The Company secured strategic launches in 2024 with leading retailers including Costco, Whole Foods, Walmart, CVS, and GNC.
• Subsequent to December 31, 2024, the Company announced the following distribution and significant news; Nationwide rollout into Sam's club stores, expansion into Costco Canada west, strong growth of its DTC sales channel and the launch of TRUBAR^TM nationwide in select Target locations.
• The Company is pleased to announce its intention to change its corporate name to TRUBAR Inc., subject to TSX Venture Exchange approval, marking a strategic shift to become a pure-play business focused entirely on the growth and expansion of its flagship brand, TRUBAR™. In line with this transition, the Company has signed a binding Letter of Intent (LOI) for the sale of its portion of the No B.S. brand, with the transaction expected to close by Q2.

VANCOUVER, BC, April 22, 2025 /CNW/ - Simply Better Brands Corp. ("SBBC" or the "Company") (TSXV: SBBC) (OTCQX: SBBCF), a rapidly growing brand accelerator in the global protein-based nutrition category, offering innovative, plant-based protein products that prioritize clean ingredients and exceptional taste, is pleased to report selected information from its audited consolidated financial results for the fiscal year and fourth quarter ended December 31, 2024. All amounts are expressed in United States dollars unless otherwise noted. Certain metrics, including those expressed on an adjusted basis, such as "EBITDA" and "Adjusted EBITDA", are non-International Financial Reporting Standards ("IFRS") measures, see "Non-IFRS Measures" below.

Selected financial and operating information are outlined below and should be read with the Company's audited consolidated financial statements and related management's discussion and analysis for the twelve months ended December 31, 2024 ("MD&A"), which are available under the Company's profile on SEDAR+ at www.sedarplus.com. 

FINANCIAL HIGHLIGHTS FOR THE TWELVE MONTH PERIOD ENDED DECEMBER 31, 2024

Financial highlights for the Company's continuing operations during the twelve months ended December 31, 2024 included:

• Net revenue of $45.3 million for the twelve months ended December 31, 2024, representing an increase of 69% compared to $26.8 million during the twelve months ended December 31, 2023. This growth was driven primarily by TRUBAR^TM sales, which contributed 96% of the Company's overall revenue in 2024.
• Gross Revenue¹ was $55.9 million for the twelve months ended December 31, 2024, an increase of 89% compared to $29.6 million for the comparable period in 2023. This growth was driven primarily by TRUBAR^TM sales.
• Revenue derived from TRUBAR^TM sales was $43.6 million for the twelve months ended December 31, 2024, representing an increase of $18.9 million or 77% as compared to $24.7 million for the twelve months ended December 31, 2023.
• Direct-to-consumer (DTC) revenue for the twelve months ended December 31, 2024, represented 11% of total TRUBAR^TM revenue. DTC revenue includes e-commerce sales of TRUBAR^TM through Amazon and Shopify channels.
• Gross profit was $13.3 million for the twelve months ended December 31, 2024, an increase of 77% as compared to Gross profit of $7.5 million for the twelve months ended December 31, 2023. Gross margin percentage was 29% for the twelve months ended December 31, 2024, compared to Gross margin percentage of 28% for the comparable period in 2023.
• Operating costs were $16.2 million for the twelve months ended December 31, 2024, an increase of $3.2 million (or 25%), compared to $13.0 million for the twelve months ended December 31, 2023. This increase reflects the Company's strategic investments and operational growth initiatives.
• The Company achieved Adjusted EBITDA² of $0.5 million from continuing operations for the twelve months period ending December 31, 2024, a $1.4 million improvement over the Adjusted EBITDA achieved in the comparable period in 2023. The improvement in Adjusted EBITDA was due to higher gross profit which was partially offset by higher cash operating expenses for the twelve months ended December 31, 2024 compared to the prior year.
• The Company recorded a net loss from continuing operations of $11.5 million during the twelve months ended December 31, 2024, compared to a net loss of $7.5 million for the twelve months ended December 31, 2023. Excluding the impacts of warrant liabilities, net loss from continuing operations would have been $4.4 million during the twelve months ended December 31, 2024, compared to a net loss of $8.5 million for the twelve months ended December 31, 2023.

CORPORATE NAME CHANGE TO TRUBAR^TM INC.

SBBC is also pleased to announce its intention to change its name to TRUBAR^TM Inc., marking a strategic shift to become a pure-play business focused entirely on the growth and expansion of its flagship brand, TRUBAR™, subject to the acceptance of the TSX Venture Exchange. The purpose of the rebrand is to align the Company's identity with its core business and consumer-facing brand, while reinforcing its commitment to building long-term shareholder value.

The effective date of the name change and further details, including the new ticker symbol and CUSIP/ISIN numbers for the common shares of the Company will be announced in a subsequent news release once confirmed. Shareholders will not be required to take any action in connection with the name change. Outstanding common share and warrant certificates bearing the old name of the Company will still valid and are not affected by the name and ticker symbol change.

MANAGEMENT COMMENTARY

Kingsley Ward, Chief Executive Officer and Chairman of SBBC commented on the results, "Fiscal 2024 was a transformational year for SBBC as we accelerated our growth strategy in the better-for-you consumer space. Our efforts to streamline the business and strengthen our leadership team have positioned us for long-term success.  With the planned sale of the No BS brand, we are placing our entire focus on TRUBAR^TM. With a strong Board of Directors, a focused strategy, and increasing consumer demand for better-for you snacks, we are confident in our ability to drive growth and deliver value to our shareholders in 2025 and beyond."

Erica Groussman, Co-Founder and CEO of Tru Brands, Inc. added, "2024 was a milestone year for TRUBAR™, as we significantly expanded our retail footprint and secured key partnerships with leading retailers such as Costco, Whole Foods, Walmart, CVS, and GNC. Reaching our target of 15,000 stores reflects the incredible momentum behind the brand and the growing consumer demand for clean, plant-based snacks. With our strengthened and highly skilled leadership team, we remain confident in our ability to build on this success, putting our entire focus on scaling TRUBAR™ in 2025 through expanded distribution, marketing, innovation, and a commitment to providing clean, recognizable ingredients without compromising on taste."

FOURTH QUARTER 2024 BUSINESS and OPERATIONAL HIGHLIGHTS

Significant business and operational highlights for the Company during the three months ended December 31, 2024 included:

• Walmart Canada: On October 9th, 2024, the Company announced the rollout of TRUBAR^TM in more than 300 Walmart stores across Canada, a key strategic addition in expanding the brand's presence to more than 1,000 Walmart store locations across North America.
• GPM Investments Convenience Store Chains: On October 17, 2024, the Company announced further distribution expansion of TRUBAR^TM in the convenience channel with the addition of more than 25 regional store brands operating under GPM Investments, LLC, one of the largest convenience store chains in the U.S. with more than 1,400 GPM locations in more than 33 states in a wide range of well-known regional convenience chains including Fas Mart, E-Z Mart, Roadrunner Markets, Village Pantry and Jiffi Shop.
• Love's Travel Stops: On October 28, 2024, the Company announced the launch of TRUBAR^TM in over 600 Love's Travel Stops across 42 states, the largest network of travel stops and convenience stores across the U.S.
• Albertsons Companies: On November 11, 2024, the Company announced the launch of TRUBAR^TM in more than 500 Albertsons Companies locations, the second-largest supermarket chain in North America. TRUBAR^TM has since been made available in the following banners: Albertsons, Safeway, Shaw's, Star Market, Jewel-Osco, Carrs, and Market Street.
• Senior Leadership Appointments: On December 17, 2024, the Company announced key executive appointments. Claire Ughetto has been named Senior Vice President of Operations to oversee TRUBAR™'s expansion and Laura Freimane, CPA, has been appointed Chief Financial Officer, to lead SBBC's financial team and strategy.

SIGNIFICANT EVENTS SUBSEQUENT TO DECEMBER 31, 2024

Subsequent to December 31, 2024 the Company announced the following distribution partners:

• Sam's Club Expansion: On January 15, 2025, the Company announced the nationwide rollout of TRUBAR^™ in select Sam's Club warehouse stores across the U.S.. This launch builds on the brand's successful online presence at SamsClub.com and further strengthens its North American distribution footprint with key retail partners.
• Gopuff E-Commerce Expansion: On January 21, 2025, the Company announced the launch of TRUBAR^™ on Gopuff, the leading instant commerce platform with a presence in major U.S. markets. This partnership enhances TRUBAR^™'s reach through Gopuff's micro-fulfillment centers and omnichannel retail locations across the U.S.
• GoMart Convenience Channel Expansion: On February 6, 2025, the Company announced the launch of TRUBAR^™ in GoMart, a regional convenience store chain with a major presence in West Virginia and additional locations in Ohio and Virginia. TRUBAR^™ is now available in 124 GoMart stores.
• TRUBAR^™ Canada Expansion: On February 24, 2025, the Company announced the launch of TRUBAR^™ in Costco Canada's West Region, marking a major milestone in the brand's expansion across Canada and strengthening its strategic partnership with Costco. Additionally, SBBC has expanded TRUBAR^™'s retail footprint with the addition of Nature's Emporium, an Ontario-based health food market with six locations, and Freson Bros., an Alberta-based grocery chain with 16 locations.
• Direct to Consumer Growth Update: On March 4, 2025, the Company announced preliminary unaudited results of its estimated growth in direct-to-consumer ("DTC") sales for 2024. TRUBAR^™ demonstrated exceptional growth throughout 2024, with total DTC sales increasing by 365% from Q1 to Q4-2024.
• Target Expansion: On April 14, 2025 the Company announced the launch of TRUBAR^TM in select Target locations, marking further progress in expanding the brand's North American distribution footprint with key national retail partners.

UPDATE ON LIQUIDITY AND CAPITAL RESOURCES

The Company's primary liquidity and capital requirements are for inventory and general corporate working capital purposes. The Company had a cash balance of $7.1 million as of December 31, 2024, which will provide capital to support the planned growth of the business and for general corporate working capital purposes. The Company's Adjusted working capital increased from a deficiency of $12.1 million as of December 31, 2023, to a positive working capital $4.1 million as of December 31, 2024 ($16.3 million improvement).  This excludes warrant liabilities as they are settled through the issuance of Common shares.

Significant liquidity and capital-related updates included:

• BMO Partnership & Credit Facility: On December 2, 2024, the Company announced a new partnership with BMO Corporate Finance Division and the closing of a USD $10 million credit facility for its subsidiary, TRU Brands Inc. The facility allows TRUBAR^™ to borrow against both accounts receivable and inventory. In connection with the new facility, the Company repaid and terminated a $5 million prior facility.
• Convertible Notes, Promissory Notes and Loans Payable: The Company consolidated two loan agreements from 2023 into a single unified agreement. Under the revised terms, the Company is obligated to pay $114,587 in restructuring fees over 11 equal installments. The agreement also requires the Company to make monthly interest payments. Additionally, during the fiscal year ended December 31, 2024, the Company issued four promissory notes with three of the Company's Board Members and one of its shareholders. The funds were used to finance the operations of the Company, specifically TRUBAR^TM's growth. Furthermore, convertible notes amounting to CA$850,000 were converted into 2,179,488 units during the fiscal year ended December 31, 2024.
• Credit Facility with Vimy Ridge Group: Subject to the approval of the TSX Venture Exchange, Vimy Ridge Group Investments Inc. ("VRG"), a company controlled by Kingsley Ward, has provided a credit facility of up to $10 million in favour of the Company to support the TRUBAR^TM sales expansion in 2025. The credit facility has been made pursuant to a promissory note of the Company representing a principal amount of up to $10 million (the "Promissory Note"). The Promissory Note provides that amounts may be drawn in $100,000 increments. All amounts drawn under the Promissory Note will bear interest at a rate of Prime + 5% per annum payable monthly in arrears. The principal amount drawn under the Promissory Note, plus all accrued and unpaid interest, will be payable upon demand of VRG, as lender. As consideration for the loan, the Company will pay VRG an origination fee equal to 1% of the principal amount available under the Promissory Note. Please refer to the section below entitled "Multilateral Instrument 61-101 – Protection of Minority Security Holders in Related Party Transactions" for additional information regarding the Promissory Note.

The Company's ability to fund operating expenses will depend on its future operating performance which will be affected by general economic, financial, regulatory, and other factors including factors beyond the Company's control (See "Risk and Uncertainties" in the MD&A).

Management continually assesses liquidity in terms of the ability to generate sufficient cash flow to fund the business. Net cash flow is affected by the following items: (i) operating activities, including the level of accounts receivable, other receivable, accounts payable, accrued liabilities and unearned revenue and deposits; (ii) investing activities (iii) financing activities.

WEBCAST and CONFERENCE CALL DETAILS:

SBBC will be holding a conference call and simultaneous webcast to discuss its financial results on Wednesday, April 23, 2025, at 12:00 pm ET (9:00 am PT). The call will be hosted by Kingsley Ward, Chief Executive Officer, and Erica Groussman, Co-founder & Chief Executive Officer of Tru Brands, Inc. Please dial-in 10 minutes prior to the start of the call.

Date:Wednesday, April 23, 2025
Time: 12:00 pm EST (9:00 am PST)

For attendees who wish to join by webcast, the event can be accessed at:
https://bit.ly/SBBC-Q424  

Dial-in by phone
+1 778 907 2071 (Vancouver Local)
+1 647 558 0588 (Toronto Local)
Click here to find local numbers
Meeting ID: 892 8561 7506

Multilateral Instrument 61-101 – Protection of Minority Security Holders in Related Party Transactions

VRG is a company controlled by Kingsley Ward, the Chairman and Chief Executive Officer of the Company. As a result, the entering into of the Promissory Note and the transaction contemplated thereby is considered to be a "related party transaction", subject to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Related Party Transaction ("MI 61-101"). Notwithstanding the foregoing, the Company is exempt from the formal valuation requirement per sections 5.5(a) and 5.5(b) of MI 61-101, as neither the fair market value of the subject matter of either of the transaction, nor the fair market value of the consideration for the transaction, insofar as it involves interested parties, exceeds 25% percent of the Company's market capitalization and the Company is not listed on any of the exchanges specified in 5.5(b) of MI 61-101. The Company further confirms that it has not obtained any valuations relevant to the Promissory Note in the 24 months preceding entering into the Promissory Note. In addition, the Company is exempt from the requirement to obtain minority shareholder approval per section 5.7(1)(f) of MI 61-101, as the Promissory Note is a non-convertible loan obtained on reasonable commercial terms that are not less advantageous to the Company than if the Promissory Note and matters relating thereto were obtained from a person dealing at arm's length and is not repayable, directly or indirectly, in equity or voting securities of the Company or a subsidiary.

The issuance of the Promissory Note and the matters relating thereto were each approved by the independent directors of the Company, being all directors other than Kingsley Ward. No materially contrary view or abstention was expressed or made by any director of the Company in relation to the proposed transaction. The Company did not file a material change report 21 days in advance of implementing the transaction as the negotiations were only concluded immediately prior to entering into the Promissory Note.

Footnotes:

About Simply Better Brands Corp.

Simply Better Brands Corp. is a rapidly growing brand accelerator in the global protein-based nutrition category, delivering premium protein products made with clean ingredients, exceptional taste, and a commitment to sustainable health and wellness. Focused on innovation and customer empowerment, the company aims to redefine modern nutrition while expanding its reach in this dynamic market. For more information on Simply Better Brands Corp., please visit:  https://www.simplybetterbrands.com/investor-relations.

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.

Non-IFRS Measures (EBITDA and Adjusted EBITDA)

EBITDA and Adjusted EBITDA are non-IFRS measures used by management that are not defined by IFRS. EBITDA and Adjusted EBITDA do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Management believes that EBITDA and Adjusted EBITDA provide meaningful and useful financial information as these measures demonstrate the operating performance of the business excluding non-cash charges.

The most directly comparable measure to EBITDA and Adjusted EBITDA calculated in accordance with IFRS is net loss. The following table presents the EBITDA and Adjusted EBITDA for the years ended December 31, 2024, and 2023, and a reconciliation of same to net income (loss). 

Readers are cautioned that EBITDA and Adjusted EBITDA should not be construed as an alternative to net income as determined under IFRS; nor as an indicator of financial performance as determined by IFRS; nor a calculation of cash flow from operating activities as determined under IFRS; nor as a measure of liquidity and cash flow under IFRS. The Company's method of calculating EBITDA and Adjusted EBITDA may differ from methods used by other companies and, accordingly, the Company's EBITDA and Adjusted EBITDA may not be comparable to similar measures used by any other company. Except as otherwise indicated, EBITDA and Adjusted EBITDA are calculated and disclosed by SBBC on a consistent basis from period to period.  Specific adjusting items may only be relevant in certain periods.

See also Earnings before Interest, Taxes, Depreciation, and Amortization ("EBITDA") and Adjusted EBITDA (Non-GAAP Measures) in the Company's management discussion and analysis for the year ended December 31, 2024, available on SEDAR+ at www.sedarplus.com.

Forward-Looking Information

Certain statements contained in this news release constitute "forward-looking information" and "forward looking statements" as such terms are used in applicable Canadian securities laws. Forward-looking statements and information are based on plans, expectations and estimates of management at the date the information is provided and are subject to certain factors and assumptions, including, among others, that the Company's financial condition and development plans do not change as a result of unforeseen events, the tariff and regulatory climate in which the Company operates, the Company will receive necessary approvals (including the acceptance of the TSX Venture Exchange) for the Promissory Note and the proposed name change, and the Company's ability to execute on its business plans. Specifically, this news release contains forward-looking statements relating to, but not limited to: management's current expectations regarding the ability of the Company to drive growth and deliver value to shareholders in fiscal 2025, management's expectations regarding the strategic focus of the Company in 2025, plans to issue the Promissory Note, expansion plans for TRU Brands products, plans to change the Company's corporate name, and the success of the Company's marketing efforts.

Forward-looking statements and information are subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking statements and information. Factors that could cause the forward-looking statements and information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions referred to above prove not to be valid or reliable, that occurrences such as those referred to above are realized and result in delays, or cessation in planned work, that the Company's financial condition and development plans change, ability to obtain necessary regulatory approvals for proposed transactions, as well as the other risks and uncertainties applicable to the plant-based food, clean ingredient skincare and plant-based wellness or broader wellness industries and to the Company, and as set forth in the Company's management's discussion and analysis available under the Company's SEDAR+ profile at www.sedarplus.com.

The above summary of assumptions and risks related to forward-looking statements in this news release has been provided in order to provide shareholders and potential investors with a more complete perspective on the Company's current and future operations and such information may not be appropriate for other purposes. There is no representation by the Company that actual results achieved will be the same in whole or in part as those referenced in the forward-looking statements and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.

SOURCE Simply Better Brands Corp.