Company achieves 360% increase in revenue in 2021 through successful acquisition strategy
Completed three major acquisitions in the last six months of the year
Currently operating at a $20 million revenue rate
MIAMI, April 01, 2022 (GLOBE NEWSWIRE) — Smart for Life, Inc. (Nasdaq: SMFL) (“Smart for Life” or the “Company”), a global leader in the development, marketing and manufacturing of Nutritional and Related Products, today announced its financial results and business update for the year ended December 31, 2021.
“2021 has been a transformational year for the company, as revenues have more than quadrupled, primarily driven by acquisitions that were completed in 2021, in addition to significantly expanding our product lines, production capabilities, distribution and marketing,” said AJ Cervantes, Jr., executive chairman of Smart for Life. “In particular, we have now completed four major acquisitions since our inception, which not only validates our ability to acquire accretive businesses at attractive multiples, but also our ability to successfully integrate these businesses into our organization.”
“It should be noted that three of our acquisitions were completed towards the end of 2021. Therefore, our results above only include partial results for the year for some of our subsidiaries,” commented Mr. Cervantes. . “For example, the acquisitions of Nexus and GSP Nutrition both closed after November 1, 2021 and therefore only include a partial quarter of the operations in our consolidated results. Given that, we’re currently at a revenue rate of $20 million. We remain focused on our goal of reaching $100 million in revenue over the next 24 months. Additionally, we believe that the net loss we generated as an emerging growth company does not fully reflect the benefits of our recent acquisitions, and we believe that we will begin to see significant improvement in the coming quarters. as we consolidate our businesses, eliminate duplicate costs and grow our various business units. »
As a health and wellness company, Smart for Life benefits the entire nutraceutical industry, which is expected to grow from approximately $400 billion in 2020 to approximately $720 billion in by 2027 according to Grand View Research, representing a highly fragmented market that is ripe for consolidation. Following Smart for Life’s recent IPO, the company’s management team is executing its buy-and-build strategy, while minimizing dilution by acquiring companies through a combination of cash, stocks and notes from the seller. Through this approach, Smart for Life believes that its acquired companies remain strongly incentivized, while ensuring that their interests are aligned with those of shareholders.
Smart for Life’s first major acquisition was Bonne Santé Natural Manufacturing (BSNM), completed in March 2018, a contract manufacturer of nutraceuticals. This acquisition includes a state-of-the-art FDA-certified facility, which provides in-house manufacturing capabilities to scale the business faster. BSNM specializes in a wide variety of products, from private labeling vitamins, dietary supplements, nutraceuticals, sports nutrition and broad-spectrum nutritional supplements, and sells them in the United States and around the world, including including South America, Central America and Europe. .
Smart for Life’s next acquisition was Doctors Scientific Organica (DSO), completed in July 2021. DSO sells and owns the Smart for Life brand of natural meal replacement health and wellness products. The company plans to leverage DSO’s established retail distribution channels in our other product lines, which include big-box retailers such as Costco, Walmart, BJs Sam’s Club and others. This acquisition also strengthens the company’s in-house manufacturing capability, while providing predictable, high-margin revenue from contract manufacturing for third-party brands. The third acquisition of Nexus Offers, Inc. by Smart for Life, completed in November 2021, provides a premier digital marketing platform to accelerate the company’s growth. This network consists of hundreds of digital marketers, who the Company can leverage with Nexus’ technology and marketing expertise, to drive awareness and revenue across all of the Company’s product lines. Completing the acquisitions of Smart for Life in 2021, the Company acquired GSP Nutrition in December, which holds the exclusive license for the Sports Illustrated Nutrition™ brand (excluding the Sports Illustrated Swimsuit brand for which it has a right of first offer under license) for certain dietary and nutritional supplements, in each case to be sold through certain authorized accounts in the United States and Canada. GSP’s growing product line includes whey protein powder, joint health, pre- and post-workout blends, omega-3 supplements and other targeted formulations for athletes and consumers concerned about their health.
“To illustrate our steady growth through mergers and acquisitions, we announced earlier this month a definitive agreement to acquire another company, Ceutamed Worldwide, owner of the Greens First line of nutritional products, including rich supplements antioxidants, plant-based proteins, alkalizing nutrients, and products designed for weight management,” continued Cervantes. “Our strategy is to migrate their manufacturing to our state-of-the-art, owned manufacturing facility. exclusive, which will translate into immediate cost savings.We plan to leverage our relationships with big-box retailers, our global distribution channels, as well as our digital marketing platform to further accelerate Ceeautamed’s growth. .
Mr. Cervantes concluded: “Overall, we are executing a carefully orchestrated strategy and every piece is falling into place. Additionally, our balance sheet is stronger than ever, as we raised $14.4 million in gross proceeds and converted over $5.4 million in debt to equity under the IPO, both of which have significantly improved our balance sheet. We are building our business for the long term and are more confident than ever in our strategic vision. We are 100% committed to maximizing shareholder value and look forward to announcing a number of important milestones in the weeks and months ahead. »
Revenue increased to $9.02 million in fiscal 2021, including revenue from acquisitions completed in 2021, from $1.96 million in 2020. Gross profit increased to $2.90 million dollars in fiscal 2021, including gross profit from acquisitions completed in 2021, compared to $0.13 million. in fiscal 2020. Net loss was $7.77 million in fiscal 2021, taking into account acquisitions made in 2021, compared to $3.17 million in fiscal 2021. financial year 2020.
About Smart for Life, Inc.
Smart for Life, Inc. (Nasdaq: SMFL) is engaged in the development, marketing, manufacturing, acquisition, operation and sale of a wide range of nutritional and related products with an emphasis on health and well-being. Structured as a global holding company, the company executes a buy-and-build strategy with serial accretive acquisitions creating a vertically integrated company with the goal of bringing together companies generating a minimum of $300 million in revenue over the next thirty-six months. To drive growth and profits, Smart for Life develops proprietary products and acquires other profitable companies, encompassing brands, manufacturing and distribution channels. The Company currently operates four subsidiaries, including Doctors Scientific Organica, Nexus Offers, Bonne Santé Natural Manufacturing and GSP Nutrition. For more information about Smart for Life, please visit: www.smartforlifecorp.com.
A video regarding the company’s manufacturing facility at Bonne Santé Natural Manufacturing is available at: www.bonnesantemanufacturing.com/video.
Investor materials and a fact sheet with additional information about Smart for Life are available at: www.smartforlifecorp.com/investor-center.
This press release may contain information about our views on future expectations, plans and prospects that constitute forward-looking statements. All forward-looking statements are based on management’s beliefs, assumptions and expectations regarding the future economic performance of Smart for Life, taking into account information currently available to it. These statements are not statements of historical fact. Although Smart for Life believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions, it cannot guarantee that its expectations will be achieved. Smart for Life assumes no obligation to update any statements contained herein (including forward-looking statements), except as required by law. There can be no assurance that Smart for Life will be successful in acquiring its acquisition targets. Forward-looking statements are subject to a number of factors, risks and uncertainties, some of which are not currently known to us, which could cause the actual results, performance or financial condition of Smart for Life to be materially different from expectations of future results, performance or financial condition. Actual results may differ materially from the expectations discussed in the forward-looking statements. Factors that could cause actual results to differ materially from expectations include general industry considerations, regulatory changes, changes in local or national economic conditions and other risks set forth in the “Risk Factors” included in our documents. filed with the Securities and Exchange Commission.
The information provided in this press release is intended for general knowledge only and is not a substitute for professional medical advice or treatment for specific medical conditions. Always seek the advice of your physician or other qualified health care provider with any questions you may have regarding a medical condition. This information is not intended to diagnose, treat, cure or prevent any disease.
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