Mr. Craig Goodwin reports

NATURALLY SPLENDID REPORTS THIRD QUARTER RESULTS FOR 2020

Naturally Splendid Enterprises Ltd. has released its unaudited financial results for the nine months ended Sept. 30, 2020. All amounts are in Canadian dollars and are prepared in accordance with international financial reporting standards.

Naturally Splendid recorded sales of $1,348,831 during the nine months ended Sept. 30, 2020, compared with $2,359,525 for the nine months ended Sept. 30, 2019. The company's sales decreased by approximately $1,010,700 over the same period last year.

Selling and distribution costs of $1,296,441 decreased due to continuing cost-efficiency strategies, including the reduction in facility costs and inventory writedowns as well as limited product development due to the COVID-19 pandemic.

Administrative expenses decreased to $2,549,688 from $4,040,477 during the same period in 2019.

Revenues decreased significantly over the same period last year for both company-branded products, as well as lesser-than-expected volumes from contract manufacturing clients due in large part to the continued negative effects of the COVID-19 pandemic. Gross profit margins represent approximately 11 per cent of sales.

Naturally Splendid recorded a net loss from continuing operations of $3,340,159 for the nine months ended Sept. 30, 2020, an improvement when compared with a net loss from continuing operations of $3,627,472 during the nine months ended Sept. 30, 2019.

The decrease in net loss reflects continued improvements in operational efficiencies over the same period last year. While the company experienced a decrease in production and sales due to the COVID-19 pandemic, operations experienced increased facility costs related to strict new standard operating procedures (SOPs) to ensure customer, employee and facility safety, which in turn affected the company's ability to reduce the net loss further.

Gross profits decreased by approximately 20.4 per cent for the nine months ended Sept. 30, 2020, at $142,930 (11.0 per cent of sales) compared with $731,251 (31.0 per cent) for the nine months ended Sept. 30, 2019, which can be attributed in large part to the continuing pandemic.

Cost of sales during the nine months ended Sept. 30, 2020, was reduced to $1,205,901 compared with $1,628,274 in the nine months ended Sept. 30, 2019.

Market opportunities remain strong for existing company-branded products domestically and now with the recently launched Natera Plant Based Foods line, distribution and sales are anticipated to increase.

Naturally Splendid chief executive officer J. Craig Goodwin states: "The company continues to focus on plant-based nutrition, health and wellness while positioning the company as a premium food processor through our Safe Quality Food (SQF) manufacturing facility in Pitt Meadows, B.C.

"We continue to optimize operations to accommodate increased demand for plant-based offerings from consumers. Ironically, the very real challenges we are experiencing during this time of COVID-19 are actually driving more attention than ever from consumers interested in plant-based nutrition. Additionally, the efforts we have expended establishing new e-commerce strategies to support multiple on-line marketing initiates is in direct response to the shift in consumers buying more products than ever on-line. Additionally, we look forward to the next phase of commercializing Cavaltinib, the plant-based target drug that has been approved by Health Canada for a phase 2 clinical trial for a potential COVID-19 treatment. Cavaltinib is licensed to Plasm Pharmaceutical, our joint venture with Biologic Pharmamedical Research."

Mr. Goodwin adds: "Although we find ourselves operating in historically challenging times, Naturally Splendid is positioned to participate in the rapidly growing plant-based market which is growing at rates greater than traditional grocery even in this time of COVID-19. As important, the move to more plant-based products in people's diets is anticipated to continue to gain traction long after the disruptions caused by the pandemic. The foundation in the world of plant-based products has been set and we look forward to building on these opportunities."

Naturally Splendid's financial statements can be viewed on SEDAR.

About Naturally Splendid Enterprises Ltd.

Naturally Splendid Enterprises operates a food manufacturing facility (certified under Safe Quality Food Level 2) just outside of Vancouver, B.C., Canada. The company has established numerous healthy, functional foods under recognized brands, such as: Natera Sport; Natera Hemp Foods; CHII; Elevate Me; and Woods Wild Bar. The company has a myriad of new products and line extensions under development that are approaching launch. Naturally Splendid has also developed proprietary technologies for the extraction of high-demand, healthy omega-3 and omega-6 oils from hemp. Naturally Splendid is the current go-to manufacturer for healthy, functional food products and ingredients focusing on plant-based ingredients. The company provides contract manufacturing services for many global healthy food companies, private-labelling a wide variety of nutritional food products destined for global healthy food markets.

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