Rapid Nutrition PLC (SWX:RAP)(OTCQB:RPNRF), a natural wellness company focused on organic wholefood-based nutrition and science-based herbal products, announced the following trading update ahead of the publication of its Annual Financial Report for the period ended 31 December 2020.
Evolving to meet growing consumer demand for health-focused and immunity-boosting products during the global pandemic, Rapid Nutrition’s positioning in the health and wellness life science sector was beneficial.
2020 Financial Highlights
Financial highlights for the period to date include:
- Revenue for FY2020 is anticipated to be in line with expectations where the company has seen its flagship brand flourish in the past year with meaningful interest in health and immunity.
- Gross margin is expected to remain steady compared to FY2019 as a result of continued focus on supply chain optimization.
- Profit for the period is expected to be lower compared to FY2019, due to new distribution agreements secured during the period requiring initial marketing support resulting in increased expenses incurred for the period.
- Continued growth anticipated for this year as the company progresses its strategy of bringing to market innovative science-based organic products across multiple categories to anchor future earnings.
2020 Operational Highlights
Noteworthy annual highlights for Rapid Nutrition for the period in review include:
- Further expansion of the company’s global distribution with new partnerships in Brazil, France, Italy, Switzerland, Jamaica and the Caribbean Community (CARICOM). In particular, a new partnership with Cloud 9 Switzerland LLC will support widespread distribution of flagship brand, SystemLS, as well as a new partnership with professional retail operator BFG Brazil Comercial de Vitaminas.
- Notable growth through the company’s direct-to-consumer channels for its flagship brands, with its recent Amazon store addition, as more consumers seek organic health and wellness products and services. This model will be scaled throughout the UK and Europe in 2021.
- Expansion of the company’s ecommerce channel and online partnerships worldwide as well as completion of a new corporate website.
- Advanced preparations to launch an anti-viral prevention therapy (oral) designed to help relieve symptoms of cold and the flu, which was granted an Innovation Patent in 2016.
- Awarded an Innovation Connections Grant from the Australian Government to support development of its cold and flu therapy. The company was also accepted into the touted Entrepreneurs Programme, which shares expert advice, funding and incentives to help businesses innovate, compete and grow.
- The group incorporated Rapid Nutrition Science, which will host the intellectual property for the herbal anti-viral and focus on in-house development of cutting-edge natural science formulas. This will provide Rapid Nutrition PLC with an exclusive worldwide licensing deal in a category which is expected to witness substantial growth, with the global market for immune health supplements likely to exceed a valuation of US$25 billion, according to Persistence Market Research. The company also strengthened its management team with key hires with expertise in life sciences.
- Bolstering the company’s balance sheet with recent institutional investment to provide greater capitalization for 2021, while at the same time the Company expects to write down the value of its investments in both Motivate Health Technologies Inc and Streamcast marketing LLC, both being difficult to assess in view of the continued Covid-19 environment, however in our opinion this had no impact on the underlying core business.
Despite a difficult year for retail and a wealth of uncertainty in global markets, Rapid Nutrition evolved with innovation and insight to deliver impressive year-end results for 2020, with an eye ahead towards 2021 expansion.
“With proof that we are able to not only survive but also thrive during unprecedented conditions, our team looks forward to further growth as health and wellness remain top of mind in 2021,” said Rapid Nutrition CEO Simon St. Ledger. “I am grateful to the strength and poise showcased by our team and board this year, which helped Rapid Nutrition grow and continue to look ahead during these challenging times.”
With a focus on delivering shareholder value and transparency, Rapid Nutrition’s leadership team and board of directors continue to focus on multi-channel delivery, intellectual property and global growth, chiefly in the cold and flu category and the rapidly growing vegan market. In the year to come, Rapid Nutrition will also extend marketing initiatives into retail stores as they continue to reopen while maintaining focus on its successful direct-to-consumer initiatives.
“2020 reminded everyone how important good health is to quality of life, and we are proud to be a trusted partner in delivering the best in health and wellness products. We know the best is yet to come,” St. Ledger added.
With continued expansion into key markets across the globe, the company anticipates organic growth through its organic products, spearheaded by science-driven product innovation in 2021 and beyond.
The Annual financial report will be published on the company’s website once available.
About Rapid Nutrition PLC
Rapid Nutrition PLC (SWX:RAP)(OTCQB:RPNRF): Dedicated to the development and distribution of premium, science-based health and wellness brands across the globe, Rapid Nutrition shares a wealth of award-winning products with consumers who are passionate about innovations that are “made by nature, refined by science.” Rapid Nutrition’s first-class scientific team matches the experience of its management team to keep both the company and consumers on top of the latest industry trends and developments, while aligning with industry leaders worldwide to deliver effective supplements and solutions. For more information, please visit http://rnplc.com
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SOURCE: Rapid Nutrition Plc