ALUULA Reports Third Quarter 2024 Financial Results

Victoria, British Columbia--(Newsfile Corp. - September 25, 2024) - ALUULA Composites Inc. (TSXV: AUUA) ("ALUULA" or the "Company") today reported its financial results for the three and nine-month periods ended July 31 2024 ("Q3 2024" and "YTD Q3 2024" respectively). All currency amounts are listed in Canadian dollars.

"We are encouraged to see a 43% increase in sales YTD Q3 2024 compared to YTD Q3 2023. While we have remained focused on growing our core windsports business, which reported a 39% increase in sales, with additional brands commercializing kites and wings. We have also directed our resources to establish ALUULA materials in the broader performance outdoor market. These efforts are starting to materialize through sales with incumbent brands, with an increase in sales in our emerging pack and bag market. We have onboarded several new brands in Q3 that have commercialized products, with others coming to market in 2025. It's promising to see the successful execution of this new focus area," said Sage Berryman, CEO & President of ALUULA.

The YTD Q3 2024 financial results also show progress in other key verticals for the Company. An example of this is seen in the sailing market with an increase of 181% through the purchase of materials for prototype field testing by industry leading brands.

The Company also reported an increase in sales from the commercial industrial channel as customers within the airship and wind power vertical markets progressed their research and development projects utilizing ALUULA materials. This channel made up 7% of sales in Q3 2024 compared to 1% in Q3 2023.

Key YTD Q3 2024 Highlights

• Sales were $4,692,368 YTD Q3 2024 compared to $3,280,490 during the YTD Q3 2023 period, which represents a 43% increase.

• This increase was driven by sales growth across various vertical markets within the performance outdoor channel.

  • The windsport vertical market reported a 39% increase in sales as a growing number of brands commercialized kites and wings featuring ALUULA material.

  • The pack and bag vertical market reported a 14x increase in sales as customers moved from field testing and prototype production to commercial orders.

  • The sailing vertical market reported a 181% increase in sales as customers purchased materials to support prototype production and field testing.