good natured Products Inc. Q2 Sales Rise 237%

good natured Products Inc. (GDNP) experienced strong revenue growth in the second quarter of 2021, but its loss widened from a year ago. The company offers a wide assortment of earth-friendly products made from plants.

Revenues for Q2 2021 came in at C$12.4 million, an increase of 237% from the C$3.7 million reported in Q2 2020. (See GDNP stock charts on TipRanks)

Gross profit for the quarter was C$3.5 million, while gross profit as a percentage of sales was 28.3%.

The company’s adjusted EBITDA was a loss of C$175,000 in the second quarter of 2021, compared to a loss of C$40,000 in the prior-year quarter.

Net loss increased from C$1.5 million to C$3.7 million year-over-year.

CEO Paul Antoniadis said, “Together, we increased our B2B customer base to 800 customers from 600 in Q1 of 2021. In anticipation of growing demand from the lifting of COVID-19 restrictions across U.S. and Canada, we made the strategic decision to build inventory levels.

“This positioned us to service demand from our existing customer base and increase our market share while the industry continues to face external supply chain challenges that has limited or delayed product availability in the market.”

On August 19, Canaccord Genuity analyst Yuri Lynk maintained a Buy rating on GDNP, and a price target of C$1.90. This implies 100% upside potential.

The rest of the Street is cautiously optimistic on GDNP, with a Moderate Buy consensus rating, based on two Buys. The average GDNP price target of C$2.03 implies upside potential of about 113.7% to current levels.

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