GURU is focusing on making a return to profitability as it faced net revenue declines in its Q3 2024 earnings report this week.
- The Canadian energy drink brand reported net revenue of CAD$7.9 million in the quarter, down from CAD$8.9 million in the same period last year. However, trailing net revenue for the first nine months of the year is up 6.9% to CAD$23.1 million.
- Net losses were down by 18.3% to CAD$6.8 million for the first nine months of 2024, compared with a loss of CAD$8.3 million in the first nine months of 2023.
- U.S. sales are up 7% in the last 52-weeks, the company said, and in particular sales at Whole Foods stores rose 16% year-over-year in Q3, with Bristol Farms sales up 71% and Erewhon up 35%.
In a statement, GURU president and CEO Carl Goyette attributed Q3’s revenue drop to “reduced shipments and decreased convenience store traffic.” He said the company has responded by initiating “a packaging and messaging revitalisation” and shifting its marketing strategy to focus on digital campaigns.
The results arrive as GURU prepares to launch its Zero Sugar line in the U.S. this fall via Amazon and Life Time Fitness gyms, as well as select retailers. The drink touts a better-for-you positioning with no artificial sweetener and will come in Wild Berry, Wild Strawberry Watermelon and Wild Ruby Red flavors.
“In the coming quarters, our primary focus will be on accelerating our return to profitability, and we are confident that we have ample resources to achieve this goal,” Goyette said in a release. “We will continue to strategically deploy resources and capital to deliver tangible results and return on investment, all while remaining deeply committed to our consumers, driving innovation and fostering sustainable growth in key channels.”
Despite a challenging quarter, the company highlighted a “strong financial position” in the report, with $37.7 million in cash, cash equivalents and short-term investments, as well as unused credit facilities.
The brand also increased its market share in Quebec to 18.3% over the first nine months of the fiscal year, attributing much of the growth to new innovations like Peach Mango Punch flavor and Zero Wild Berry.
Online, GURU reported 37% unit sales growth on Amazon in Canada and 45% improvement for Amazon in the U.S., in the nine month period ending July 31.
In July, GURU announced it has added three new board members, including Suja and Rowdy Energy co-founder Jeff Church, former Super Coffee CEO Tyler Ricks and former Bombardier Recreational Products CMO Anne-Marie Laberge. At the same time, board member Alain Miquelon resigned his seat.