Lifeist Reports Fourth Quarter 2023 Financial Results

Focus on efficiencies and delivering high-quality products drives improvements in gross margins

TORONTO, April 01, 2024 (GLOBE NEWSWIRE) -- Lifeist Wellness Inc. (“Lifeist” or the “Company”) (TSXV: LFST) (FRANKFURT: M5B) (OTCMKTS: LFSWF), a health-tech company that leverages advancements in science and technology to build breakthrough companies that transform human wellness, today reported its financial results for the three and 12 months ended November 30, 2023 (“Q4 2023”) compared to the same period last year (“Q4 2022”). All financial figures are in Canadian dollars unless otherwise indicated.

Fourth Quarter Highlights

• Net revenue from continued operations of $4.7 million in Q4 2023 compared to $6.2 million in Q4 2022.
• Gross profit before inventory adjustment of $2.0 million in Q4 2023, representing gross margin of 42%, compared to $1.9 million, or 31% gross margin, in Q4 2022. Q4 2023 gross profit was the highest quarterly gross profit in the company’s history as the strategic focus on high margin activities and operational efficiency continues to have a positive impact.
• Operating costs and professional fees increased to $5.6 million in Q4 2023 compared to $5.5 million in Q4 2022.
• Adjusted EBITDA loss improved to $5.0 million in Q4 2023 compared to $5.5 million in Q4 2022.

Full-Year 2023 Highlights

• Net revenue from continued operations was $21.7 million in 2023 compared to $22.1 million in 2022.
• Gross profit before inventory adjustment increased to $6.6 million in 2023 compared to $5.9 million in 2022, with margins expanding from 27% to 31%.
• Adjusted EBITDA loss improved to $13.8 million in 2023 compared to $18.5 million in 2022.
• Working capital position of negative $0.3 million at year end.

"Our performance in the fourth quarter of 2023 reflects our strategic focus on high-margin activities and operational efficiency, resulting in the highest quarterly gross profit in our company's history," said Meni Morim, CEO of Lifeist. "Though accompanied by unique hurdles, our focus towards enhancing gross profit has produced promising results. We are looking at more cost and operational efficiency measures in 2024. We continue to work to position the Company to navigate industry fluctuations, drive profitability, and ensure sustainable growth. Despite the challenging landscape, we are committed to building Lifeist into a diversified wellness company with high-margin business units.”