GURU’s Theanine Fruit Punch flavor helped drive sales according to the Canadian energy drink company’s Q3 2023 earnings report released today, setting the stage for a U.S. launch this winter.
Quarterly net revenue for the brand was up 15% year-over-year to $8.9 million, with gross profit of $4.5 million thanks to sustained strong margins, the company reported.
As well, net losses were down significantly at around $3 million compared to losses of $6.5 million in Q3 2022. GURU said it is in a “robust financial position” with $48.7 million in cash and cash equivalents, including unused credit facilities.
The company stated that the relative success of the functional Theanine Fruit Punch flavor in the Canadian market has the brand gearing up to launch the SKU in the U.S. this December, alongside another “yet-to-be-announced” innovation. As well, CEO Carl Goyette said the brand has seen strong sales for its Tropical Punch flavor in California retail outlets, making the SKU – first introduced in Canada in 2021 – its number one U.S. product.
“U.S. activities also showed positive results, driven by improved online execution in the quarter and a record performance during Amazon’s Prime Day this past July,” said Goyette in a statement. “Our rotational program with a leading wholesale club in California went extremely well and could lead to more opportunities in the future.”
While the company touted its strong financial position in the earnings report, it also announced the departure of its chief revenue officer, Rajaa Grar, who reached a “mutual agreement” to leave the business after just six months in the role, GURU announced. Grar, who previously served as chief digital and marketing officer for C4 parent company Nutrabolt, joined GURU in March.
In a LinkedIn post yesterday Grar announced her departure, calling the move “bittersweet” as she intends to focus on a new venture. In the post, she echoed the company’s confidence in its growth trajectory, pointing to this week’s signing of Toronto Raptors rookie Gradey Dick as an investor and brand ambassador as a milestone for the brand.
Grar also cited a 2x increase in GURU’s yearly run rate on Amazon in the U.S.
In Canada, Goyette said Q4 has been off to a strong start with additions in the grocery channel and this month it will begin a rotational program with a “leading wholesale club in Quebec.”
“Looking ahead, with our past learnings and solid financial position, we believe that we are on the right track to grow GURU’s market share, while continuing to improve our financial performance in the quarters ahead through efficient growth,” Goyette said in the release.