TRUBAR INC. ANNOUNCES FIRST QUARTER 2025 RESULTS, AND PROVIDES FISCAL YEAR 2025 OUTLOOK

• The TRUBAR^TM brand generated Net Revenue of $9.9 million in Q1-2025 from its protein bar sales, excluding contribution from its No B.S. division. TRUBAR’s revenue in the quarter was driven by 373% increase in revenues in its physical retail channel (excluding the Company’s wholesale club channel) and 593% growth in its direct-to-consumer e-commerce channel.
• During the quarter TRUBAR announced strategic launches with leading retailers including Costco Canada and Sam’s Club. Subsequent to March 31, 2025, the Company announced a nationwide rollout into Target stores and launched into Costco Warehouse locations in Mexico.
• TRUBAR management expects to deliver Net Revenue of $65 to $70 million for fiscal 2025.

VANCOUVER, BC, May 28, 2025 /CNW/ – TRUBAR Inc. (formerly, Simply Better Brands Corp.) (“TRUBAR” or the “Company“) (TSXV: TRBR) (OTCQX: TRBRF), a better-for-you snacking company focused on delivering high-quality, plant-based protein products with exceptional taste and made with clean, recognizable ingredients, today announced its interim financial results for the three months ended March 31, 2025. All amounts are expressed in United States dollars unless otherwise noted. Certain metrics, including those expressed on an adjusted basis, such as “Gross Revenue”, “Gross Profit”, “Gross Margin Percentage”, “EBITDA” and “Adjusted EBITDA”, are non-International Financial Reporting Standards (“IFRS”) measures, see “Non-IFRS Measures” below.

Selected financial and operating information are outlined below and should be read with the Company’s interim consolidated financial statements and related management’s discussion and analysis (“MD&A”) for the three months ended March 31, 2025, which are available under the Company’s profile on SEDAR+ at www.sedarplus.com.

MANAGEMENT COMMENTARY

Erica Groussman, Chief Executive Officer, TRUBAR, commented: “We are very pleased with our strong first quarter results which reflect a continuation of the progress we made throughout 2024 expanding our distribution footprint to more than 15,000 retailers across North America and driving substantial growth in the direct-to-consumer ecommerce channel. The successful execution of our strategy helped us deliver sales growth of 498% in Q1 2025 vs Q1 2024, excluding sales in the wholesale club channel.”

Groussman added: “We continue to expand the distribution footprint for TRUBAR with the addition of key strategic retail partnerships, and we remain on track to grow to 25,000 retail locations by year-end.  We are also seeing continued strong growth and momentum in the ecommerce channel building on our recent success increasing TRUBAR’s online availability and consumer reach. We have made meaningful progress in our supply chain strategy and execution, ensuring we maintain inventory levels to meet the growing demand for TRUBAR. In addition, we are leveraging our increasing volumes to secure supplier agreements and partnerships that will help us enhance our margins going forward. I am also very pleased with the world class team of seasoned CPG leaders we have assembled to drive our strategy at this critical point in the growth trajectory of TRUBAR.”

Kingsley Ward, Executive Chairman, commented: “We’re proud to now be operating as TRUBAR Inc., a rebrand that strategically aligns our corporate identity with our highest-performing brand and positions us for sustained growth and long-term value creation. Our focus remains on enhancing the Company’s financial position through strategic initiatives designed to support sustainable growth while ensuring strong operational and working capital efficiency. With higher revenues anticipated next quarter, we are well-positioned to continue executing on our growth strategy while maintaining prudent financial discipline.”

FISCAL 2025 OUTLOOK

TRUBAR management expects to deliver Net Revenue between $65 million and $70 million in fiscal 2025.

FINANCIAL HIGHLIGHTS FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2025

Financial highlights for TRUBAR Inc. continuing operations during the three months ended March 31, 2025, included:

• Net Revenue was $10.2 million for the three months ended March 31, 2025, representing a decrease of 26% compared to Net Revenue of $13.7 million during the three months ended March 31, 2024. The decrease reflects the timing of marketing activities, with the Costco MVM campaign occurring in Q1 of 2024 versus Q2 this year. Outside of the MVM period, TRUBAR maintained strong growth in the protein bar segment, reinforcing its market position and the effectiveness of the Company’s expansion strategy.
• Gross Revenue was $13.9 million for the three months ended March 31, 2025, a decrease of 16% compared to $16.6 million for the comparable period in 2024.
• Revenue derived from TRUBAR^TM sales was $9.9 million for the three months ended March 31, 2025, representing a decrease of $3.1 million or 24% as compared to $13.0 million for the three months ended March 31, 2024. The decline in revenue was due to the above-mentioned timing of promotional activities.
• Direct-to-consumer/Ecommerce (DTC) net revenue for the three months ended March 31, 2025, was $2.9 million, an increase of 593% compared to $430,000 for the three months ended March 31, 2024, and represented 30% of total TRUBAR^TM net revenue.
• Gross Profit¹ was $3.2 million for the three months ended March 31, 2025, a decrease of 16% as compared to Gross Profit of $3.8 million for the three months ended March 31, 2024. Gross Margin Percentage¹ was 31% for the three months ended March 31, 2025, compared to Gross Margin Percentage of 28% for the comparable period in 2024.
• Operating costs were $4.9 million for the three months ended March 31, 2025, an increase of $1.5 million (or 47%), compared to $3.4 million for the three months ended March 31, 2024. This increase reflects the Company’s strategic investments and operational growth initiatives.
• TRUBAR Inc. generated an Adjusted EBITDA² loss of $1.5 million from continuing operations for the three months ending March 31, 2025, a $2.2 million decrease compared to the Adjusted EBITDA of $0.7 million in Q1 2024. This was primarily due to the timing of the above-mentioned promotional activity in the club channel.
• TRUBAR Inc. recorded a net loss from continuing operations of $1.2 million during the three months ended March 31, 2025, compared to a net loss of $0.2 million for the three months ended March 31, 2024.

FIRST QUARTER 2025 BUSINESS and OPERATIONAL HIGHLIGHTS

Significant business and operational highlights for the Company during the three months ended March 31, 2025, included:

• Sam’s Club Expansion: On January 15, 2025, the Company announced the nationwide rollout of TRUBAR in select Sam’s Club warehouse locations across the U.S. This launch builds on the brand’s successful online presence at SamsClub.com and further strengthens its North American distribution footprint with key retail partners.
• Gopuff E-Commerce Expansion: On January 21, 2025, the Company announced the launch of TRUBAR on Gopuff, the leading instant commerce platform with a presence in major U.S. markets. This partnership enhances TRUBAR’s reach through Gopuff’s micro-fulfillment centers and omnichannel retail locations across the U.S.
• GoMart Convenience Channel Expansion: On February 6, 2025, the Company announced the launch of TRUBAR in GoMart, a regional convenience store chain with a major presence in West Virginia and additional locations in Ohio and Virginia. TRUBAR is now available in 124 GoMart stores.
• TRUBAR Canada Expansion: On February 24, 2025, the Company announced the launch of TRUBAR in Costco Canada’s West Region, marking a major milestone in the brand’s expansion across Canada and strengthening its strategic partnership with Costco. Additionally, SBBC has expanded TRUBAR’s retail footprint with the addition of Nature’s Emporium, an Ontario-based health food market with six locations, and Freson Bros., an Alberta-based grocery chain with 16 locations.
• Direct to Consumer Growth Update: On March 4, 2025, the Company announced preliminary unaudited results of its estimated growth in direct-to-consumer (“DTC”) sales for 2024. TRUBAR demonstrated exceptional growth throughout 2024, with total DTC sales increasing by 365% from Q1 to Q4-2024. This growth is reflected in quarterly DTC sales of $395K in Q1, $916K in Q2, $1.48 million in Q3, and $1.84 million in Q4.

SIGNIFICANT EVENTS SUBSEQUENT TO MARCH 31, 2025

Significant business and operational highlights for the Company subsequent to March 31, 2025, the Company:

• Target Expansion: On April 14, 2025, the Company announced the launch of TRUBAR^TM in select Target locations, marking further progress in expanding the brand’s North American distribution footprint with key national retail partners.
• Costco National MVM Promotion: On May 12, 2025, the Company announced TRUBAR^TM will be featured in National MVM Promotion at Costco U.S. The MVM serves as one of Costco’s flagship promotional tools, driving visibility and encouraging trial through exclusive savings offered to an engaged customer base.
• Name Change to TRUBAR Inc.: On May 21, 2025, the Company announced it has officially changed its name from Simply Better Brands Corp. to TRUBAR Inc., aligning its corporate identity with its flagship brand. As part of the transition, Kingsley Ward has been appointed Executive Chairman to lead capital markets strategy, while Erica Groussman, co-founder of TRUBAR, has assumed the role of Chief Executive Officer to lead brand operations and growth.

UPDATE ON LIQUIDITY AND CAPITAL RESOURCES

The Company’s primary liquidity and capital requirements are for inventory and general corporate working capital purposes. The Company had a cash balance of $1.65 million as of March 31, 2025, which will provide capital to support the planned growth of the business and for general corporate working capital purposes. The Company’s Adjusted working capital increased to $5.3 million as of March 31, 2025, from $4.1 million as of March 31, 2024 ($1.2 million improvement).  This excludes warrant liabilities as they are settled through the issuance of Common shares.

Significant liquidity and capital-related updates included:

• Line of Credit Facility – On November 8, 2024, the Company, through its subsidiary, Tru Brands Snack, entered into a credit agreement referred to as the “TBS Overdraft Facility” with a banking institution. This facility provides the Company with overdraft protection of $10.0 million for operational purposes and is repayable on demand. The balance on March 31, 2025, was $2.23 million.
• Promissory Notes – During the current reporting period, the Company repaid loan principal of $0.98 million. The remaining principal balance on March 31, 2025 is $2.5 million.
• $10 million Credit Facility – On April 22, 2025, the Company entered into a credit facility agreement with a related party, to provide up to $10 million to support the TRUBAR sales expansion in 2025.

The Company’s ability to fund operating expenses will depend on its future operating performance which will be affected by general economic, financial, regulatory, and other factors including factors beyond the Company’s control (See “Risk and Uncertainties” in the MD&A).

Management continually assesses liquidity in terms of the ability to generate sufficient cash flow to fund the business. Net cash flow is affected by the following items: (i) operating activities, including the level of accounts receivable, other receivable, accounts payable, accrued liabilities and unearned revenue and deposits; (ii) investing activities (iii) financing activities.

WEBCAST and CONFERENCE CALL DETAILS:

TRUBAR INC. will be holding a conference call and simultaneous webcast to discuss its financial results on Thursday, May 29, 2025, at 10:00 am ET (7:00 am PT). The call will be hosted by Kingsley Ward, Executive Chairman, and Erica Groussman, Chief Executive Officer & President.  Please dial-in 10 minutes prior to the start of the call.

Date: Thursday, May 29, 2025
Time: 10:00 am EST (7:00 am PST)

For attendees who wish to join by webcast, the event can be accessed at:
https://bit.ly/SBBC-Q1-25-Investor-Webinar 

Dial-in by phone
+1 778 907 2071 (Vancouver Local)
+1 647 558 0588 (Toronto Local)
Click here to find local numbers
Meeting ID: 868 4843 4713

Footnotes:

1.      Non-IFRS financial measures – Gross Profit, Gross Margin Percentage, Gross Revenue

In addition to results reported in accordance with IFRS, the Company uses certain non-IFRS financial measures as supplemental indicators of its financial and operating performance. These non-IFRS financial measures include Gross Revenue, Gross Profit, and Gross Margin Percentage. The Company believes these supplementary financial measures reflect the Company’s ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in its business.

Gross Profit and Gross Margin Percentage

The Company defines Gross Profit as revenue less cost of sales and Gross Margin Percentage as Gross Profit as a percentage of revenue. Gross Profit and Gross Margin Percentage should not be construed as an alternative for revenue or net income (loss) determined in accordance with IFRS. The Company believes that Gross Profit and Gross Margin Percentage are meaningful metrics that are often used by readers to measure the Company’s efficiency of selling its products and services.

Gross Revenue

The Company defines Gross Revenue as Net Revenue adjusted for vendor discounts. The Company, through its subsidiary, Tru Brands, engaged in a marketing program with one of its vendors. Discounts and specific promotional expenditures related to this program were recognized as a reduction of revenue in accordance with IFRS 15, ‘Revenue from Contracts with Customers’.

The following table presents the Gross revenue and Net revenue for the three months ended March 31, 2025, and 2024, and a reconciliation of same to Gross Profit (loss).

2.      Non-IFRS Measures – EBITDA and Adjusted EBITDA

EBITDA and Adjusted EBITDA are non-IFRS measures used by management that are not defined by IFRS. EBITDA and Adjusted EBITDA do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Management believes that EBITDA and Adjusted EBITDA provide meaningful and useful financial information as these measures demonstrate the operating performance of the business excluding non-cash charges.

Readers are cautioned that EBITDA and Adjusted EBITDA should not be construed as an alternative to net income as determined under IFRS; nor as an indicator of financial performance as determined by IFRS; nor a calculation of cash flow from operating activities as determined under IFRS; nor as a measure of liquidity and cash flow under IFRS. The Company’s method of calculating EBITDA and Adjusted EBITDA may differ from methods used by other companies and, accordingly, the Company’s EBITDA and Adjusted EBITDA may not be comparable to similar measures used by any other company. Except as otherwise indicated, EBITDA and Adjusted EBITDA are calculated and disclosed by SBBC on a consistent basis from period to period.  Specific adjusting items may only be relevant in certain periods.  The most directly comparable measure to EBITDA and Adjusted EBITDA calculated in accordance with IFRS is net loss.

“EBITDA” is calculated as earnings before interest, taxes, depreciation, depletion, and amortization. “Adjusted EBITDA” is calculated as EBITDA adjusted for non-cash, extraordinary, non-recurring, and other items unrelated to the Company’s core operating activities.

See also Earnings before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) and Adjusted EBITDA (Non-GAAP Measures) in the Company’s management discussion and analysis for the three months ended March 31, 2025, available on SEDAR+ at www.sedarplus.com.

The following table presents the EBITDA and Adjusted EBITDA for the three months ended March 31, 2025, and 2024, and a reconciliation of same to net income (loss).

About TRUBAR Inc.

TRUBAR Inc. is a better-for-you snacking company focused on delivering high-quality, plant-based protein products with exceptional taste and made with clean, recognizable ingredients. TRUBAR, the Company’s signature product line, is distributed through national retailers, club stores, and e-commerce platforms across North America. The Company is focused on expanding TRUBAR’s presence throughout North America and select international markets. For more information, visit: https://www.trubarinc.com/

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information

Certain statements contained in this news release constitute “forward-looking information” and “forward looking statements” as such terms are used in applicable Canadian securities laws. Forward-looking statements and information are based on plans, expectations and estimates of management at the date the information is provided and are subject to certain factors and assumptions, including, among others, that the Company’s financial condition and development plans do not change as a result of unforeseen events, the tariff and regulatory climate in which the Company operates, the Company will receive necessary approvals (including the acceptance of the TSX Venture Exchange) for the Promissory Note and the proposed name change, and the Company’s ability to execute on its business plans. Specifically, this news release contains forward-looking statements relating to, but not limited to: management’s current expectations regarding the ability of the Company to drive growth and deliver value to shareholders in fiscal 2025, management’s expectations regarding the strategic focus of the Company in 2025, plans to issue the Promissory Note, expansion plans for TRU Brands products, plans to change the Company’s corporate name, and the success of the Company’s marketing efforts.

Forward-looking statements and information are subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking statements and information. Factors that could cause the forward-looking statements and information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions referred to above prove not to be valid or reliable, that occurrences such as those referred to above are realized and result in delays, or cessation in planned work, that the Company’s financial condition and development plans change, ability to obtain necessary regulatory approvals for proposed transactions, as well as the other risks and uncertainties applicable to the plant-based food, clean ingredient skincare and plant-based wellness or broader wellness industries and to the Company, and as set forth in the Company’s management’s discussion and analysis available under the Company’s SEDAR+ profile at www.sedarplus.com.

The above summary of assumptions and risks related to forward-looking statements in this news release has been provided to provide shareholders and potential investors with a more complete perspective on the Company’s current and future operations and such information may not be appropriate for other purposes. There is no representation by the Company that actual results achieved will be the same in whole or in part as those referenced in the forward-looking statements and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.

SOURCE Trubar Inc. 

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