Mr. Gord Davey reports

DELIVRA HEALTH BRANDS AND ITS LEADING BRANDS DREAM WATER(R) AND LIVRELIEF(TM) REPORTS POSITIVE ADJUSTED EBITDA(1) AND IMPROVED FISCAL YEAR END 2023 FINANCIAL RESULTS

Delivra Health Brands Inc. has released its financial and operating results for the three and 12 months ended June 30, 2023 (fiscal 2023). The Delivra Health portfolio features innovative brands Dream Water and LivRelief, which deliver relief from common health issues such as sleeplessness, chronic pain and anxiety.

Management commentary

"In fiscal 2023, Delivra Health achieved positive adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] for the first time in the company's history. This is a commitment we made to our shareholders and other stakeholders at the beginning of the year, and we are delighted to have achieved this milestone," said Gord Davey, president and chief executive officer of Delivra Health. "We kept our promise to shareholders, capital markets partners and our internal team, by remaining focused on the execution of customer-specific programs, optimizing e-commerce platforms, launching innovation products and improving distribution across several markets. In the coming year, we expect to continue to increase our revenues and profitability through a combined focus on Canada, U.S., international and e-commerce markets."

Financial highlights:

• Net revenue: The company reported total net revenue of $9,791,000 in fiscal 2023 compared with $8,139,000 in the 12 months ended June 30, 2022 (fiscal 2022), from continued operations. This 20-per-cent increase in net revenue is driven by higher net sales in the United States.
• Gross profit and gross profit margin: The company reported gross profit of $4,823,000 and a 49-per-cent gross profit margin in fiscal 2023 compared with $2,604,000 and a 32-per-cent gross profit margin in fiscal 2022. This increase is attributed to lower sales fees and lower indirect cost of sales incurred relative to the increase in sales and a reduction in financial inventory writedowns.
• Expenses including selling, general and administrative and excluding non-cash items: The company reported expenses of $4,704,000 in fiscal 2023 compared with $6,145,000 in fiscal 2022, representing a $1,441,000 or 23-per-cent reduction for the year. The reduction is driven by a decrease in SG&A expenses due to operational changes and cost reductions.
• Adjusted EBITDA: The company reported adjusted EBITDA of $517,000 in fiscal 2023 compared with $(2,765,000) in fiscal 2022, representing a $3,282,000 or 119-per-cent year-over-year improvement. This reduction is driven by higher net sales, a higher gross margin and an overall reduction in expenses, as noted above.

About Delivra Health Brands Inc.

Helping people take control of their health with alternative wellness solutions is what energizes the Delivra Health team. The Delivra Health portfolio features innovative brands like Dream Water and LivRelief, which deliver relief from common everyday issues like chronic pain, anxiety and sleeplessness. Delivra Health products have allowed millions of customers to reclaim their mobility, energy and, in turn, quality of life.

We seek Safe Harbor.