Full Press Release Details
Smart for Life Announces FY 2021 Financial Results
Company Achieves 360% Increase in Revenue in 2021
through Implementation of Successful Acquisition Strategy
Completed Three Material Acquisitions in Last Six
Currently Operating at a $20 Million Revenue Run
Miami, FL - April 1, 2022 - Globe Newswire
- Smart for Life, Inc. (Nasdaq: SMFL) ("Smart for Life" or the "Company"), a global leading developer, marketer,
and manufacturer of nutritional and related products, today announced financial results and provided a business update for the year ended
"2021 was a transformational year for the Company
as revenue increased more than four-fold mainly as the result of acquisitions that closed in 2021, in addition to significantly expanding
our product lines, production capabilities, distribution and marketing capabilities," stated A.J. Cervantes, Jr., Smart for Life's
Executive Chairman. "Most notably, we have now completed four major acquisitions since our formation, which not only validates our
ability to acquire accretive businesses at attractive multiples, but also our ability to successfully integrate these companies within
"It is notable that three of our acquisitions
closed toward the end of 2021. Consequently, our above results only include partial year results for some of our subsidiaries,"
commented Mr. Cervantes. "For example, the acquisitions of Nexus and GSP Nutrition both closed after November 1, 2021, and thus
only include a partial quarter of operations in our consolidated results. Taking this into account, we are now currently at a $20 million
revenue run rate. We remain laser focused on our goal of achieving $100 million in revenues within the next 24 months. In addition, it
is our view that the net loss we have generated as an emerging growth company does not fully reflect the benefit of our recent acquisitions,
and we believe that we will begin to see significant improvement in future quarters as we consolidate operations, eliminate duplicate
costs and grow our various operating units."
As a company in the health and wellness sector, Smart
for Life is benefiting from the overall nutraceutical industry, which is projected to grow from approximately $400 billion in 2020 to
roughly $720 billion by 2027 according to Grand View Research, representing a highly fragmented market that is ripe for consolidation.
Following Smart for Life's recent IPO, the Company's management team is executing on its buy-and-build acquisition strategy,
while minimizing dilution by acquiring companies through a combination of cash, stock and seller's notes. Through this approach,
Smart for Life believes its acquired companies remain highly incentivized, while ensuring their interests are aligned with shareholders.
Smart for Life's first major acquisition was
Bonne Sant Natural Manufacturing (BSNM), completed in March of 2018, a nutraceutical contract manufacturer. This acquisition includes
a state-of-the-art, FDA-certified facility, which provides in-house manufacturing capabilities to scale the business more rapidly. BSNM
specializes in a wide variety of products, from the private labeling of vitamins, dietary supplements, nutraceuticals, sport nutrition
and broad-spectrum nutritional supplements, and sells them throughout the United States and around the world, including South America,
Central America and Europe.
Smart for Life's next acquisition was Doctors
Scientific Organica (DSO), completed in July of 2021. DSO sells and owns the Smart for Life brand of natural health and wellness meal
replacement products. The Company plans to leverage DSO's established retail distribution channels across our other product lines,
which includes big box retailers such as Costco, Walmart, BJs Sam's Club and others. This acquisition also further enhances the
Company's in-house manufacturing capacity, while providing predictable, high margin revenue from contract manufacturing for third-party
brands. Smart for Life's third acquisition of Nexus Offers, Inc., completed in November 2021, provides a first-class digital marketing
platform to accelerate the Company's growth. This network consists of hundreds of digital marketers, which the Company can leverage
along with Nexus' technology and marketing expertise, to drive awareness and revenues across all of the Company's product
lines. Rounding out Smart for Life's acquisitions in 2021, the Company acquired GSP Nutrition in December, which has the exclusive
license to the Sports Illustrated Nutrition brand (excluding the Sports Illustrated Swimsuit brand for which it has a right of
first offer under the license) for certain dietary and nutritional supplements, in each case to be sold through certain approved accounts
in the United States and Canada. GSP's growing product line consists of whey protein powder, joint health, pre- and post-workout
blends, omega-3 supplements, and other targeted formulations for athletes and health-conscious consumers alike.
"As an illustration of our constant growth
through M&A, earlier this month we announced a definitive agreement to acquire yet another company, Ceautamed Worldwide, owner of
the Greens First line of nutritional products, including antioxidant rich supplements, plant-based protein, alkalizing nutrients and
products designed for weight management," continued Mr. Cervantes. "Our strategy is to migrate their manufacturing to our
wholly owned, state-of-the-art manufacturing facility, which will result in immediate cost savings. We plan to leverage our relationships
with big box retailers, our global distribution channels, as well as our digital marketing platform to further accelerate Ceautamed's
Mr. Cervantes concluded, "Overall, we are executing
on a carefully orchestrated strategy and each of the pieces is falling into place. Moreover, our balance sheet is stronger than ever,
as we raised gross proceeds of $14.4 million and converted over $5.4 million of debt to equity in connection with the IPO, both of which
have significantly enhanced our balance sheet. We are building our business for the long-term and are more confident than ever in our
strategic vision. We are 100% committed to maximizing value for shareholders and look forward to announcing a number of important milestones
in the weeks and months ahead."
Revenues increased to $9.02 million in FY 2021, including
revenues from acquisitions that were completed during 2021, compared to $1.96 million in FY 2020. Gross profit increased to $2.90 million
in FY 2021, including gross profit from acquisitions completed in 2021, compared to $0.13 million in FY 2020. Net loss was $7.77 million
in FY 2021, taking into account acquisitions that were completed in 2021, compared to $3.17 million in FY 2020.
About Smart for Life, Inc.
Smart for Life, Inc. (Nasdaq: SMFL) is engaged in
the development, marketing, manufacturing, acquisition, operation and sale of a broad spectrum of nutritional and related products with
an emphasis on health and wellness. Structured as a global holding company, the Company is executing a buy-and-build strategy with serial
accretive acquisitions creating a vertically integrated company with an objective of aggregating companies generating a minimum of $300
million in revenues within the next thirty-six months. To drive growth and earnings, Smart for Life is developing proprietary products
as well as acquiring other profitable companies, encompassing brands, manufacturing and distribution channels. The Company currently operates
four subsidiaries including Doctors Scientific Organica, Nexus Offers, Bonne Sant Natural Manufacturing and GSP Nutrition. For
more information about Smart for Life, please visit: www.smartforlifecorp.com.
Video regarding the Company's manufacturing
facility at Bonne Sant Natural Manufacturing is available at: www.bonnesantemanufacturing.com/video.
Investor material and a Fact Sheet with additional
information about Smart for Life is available at: www.smartforlifecorp.com/investor-center.
Forward-Looking Statements
This press release may contain information about our
views of future expectations, plans and prospects that constitute forward-looking statements. All forward-looking statements are based
on management's beliefs, assumptions and expectations of Smart for Life's future economic performance, taking into account
the information currently available to it. These statements are not statements of historical fact. Although Smart for Life believes the
expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations
will be attained. Smart for Life does not undertake any duty to update any statements contained herein (including any forward-looking
statements), except as required by law. No assurances can be made that Smart for Life will successfully acquire its acquisition targets.
Forward-looking statements are subject to a number of factors, risks and uncertainties, some of which are not currently known to us, that
may cause Smart for Life's actual results, performance or financial condition to be materially different from the expectations of
future results, performance or financial position. Actual results may differ materially from the expectations discussed in forward-looking
statements. Factors that could cause actual results to differ materially from expectations include general industry considerations, regulatory
changes, changes in local or national economic conditions and other risks set forth in "Risk Factors" included in our filings
with the Securities and Exchange Commission.
The information provided in this press release is
intended for general knowledge only and is not a substitute for professional medical advice or treatment for specific medical conditions.
Always seek the advice of your physician or other qualified health care provider with any questions you may have regarding a medical condition.
This information is not intended to diagnose, treat, cure or prevent any disease.
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