good natured(R) Signs Two Multi-Year Commercial Agreements with US Food Producers
Vancouver, British Columbia--(Newsfile Corp. - February 5, 2020) - good natured Products Inc. (TSXV: GDNP) (the "Company" or "good natured®") today announced that it has signed commercial agreements to supply custom designed plant-based packaging with two US food producers who distribute throughout the United States. The Company estimates the agreements will deliver between $1.7 million to $2.0 million (Canadian dollars) in organic growth on an annualized basis, and between $1.0 million to $1.2 million in the current fiscal year.
The agreements have an average term of 3 years and are expected to deliver blended gross margins of between 28% to 33% in fiscal 2020.
These agreements provide further evidence of good natured® market share gains and execution towards its goal of becoming the leading plant-based product and packaging company in North America. good natured® also recently announced its estimated, unaudited 2019 revenue with a growth rate of 94% to 100%.
"We continue to hear from a growing number of food producers and grocers with a keen interest in finding more eco-friendly packaging solutions for their proprietary product lines," said Paul Antoniadis, CEO of good natured®. "The agreements with these two producers highlight the value of our proposition to create custom packaging solutions that allow producers to switch from petroleum to renewable, plant-based alternatives that are free from chemicals of concern."
About good natured Products Inc.
good natured® is producing and distributing one of North America's widest assortments of better everyday products® made from the highest possible percentage of renewable, plant-based materials and no BPAs, phthalates or other chemicals of concern potentially harmful to human health and the environment.
By combining cutting-edge renewable material technology and the latest sustainable features, good natured® creates eco-friendly products and packaging that can do good for the planet, good for human health and good for business by focusing on innovative designs, minimizing waste and improving logistics, all bundled up in a fresh and friendly brand.
For more information: goodnatured.ca
On behalf of the Company:
Paul Antoniadis - Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibilities for the adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
Information in this news release regarding estimates of future sales constitutes forward-looking information within the meaning of securities laws. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Such factors include, among others, the risk that future orders may not be placed by the customer due to loss of business to our competitors, replacement of our products with substitutes, a downturn in general economic, market and business conditions or in our customer's business specifically, or otherwise and that as a result, actual sales may be lower than estimated.
When relying on the Company's forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed that the material factors referred to in the previous paragraph will not cause such forward-looking statements and information to differ materially from actual results or events. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
Other than as required under securities laws, we do not undertake to update this information at any particular time.
Forward-looking information contained in this news release is based on our current estimates, expectations and projections regarding, among other things, sales volume and pricing which we believe are reasonable as of the current date. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. All forward-looking information contained in this news release is expressly qualified in its entirety by this cautionary statement.
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