eResearch | Good Natured Products Inc. (TSXV: GDNP; “Good Natured”), formally Solegear, is a plant-based bioplastics company headquartered in Vancouver, Canada, with over 100 plant-based food packaging designs, 10 grades of bioplastic rollstock sheets, and 30 business & home bioplastic products.
In the Company’s most recent quarter, Good Natured reported an 84% increase in revenue with C$2 million in three months ended March 2019 compared to C$1.1 million in three months ended December 2018.
On June 11, 2019, Good Natured raised US$10 million from BDC Capital Inc. The capital will be used to accelerate organic growth (expand the customer base, product assortment & market reach), restructure existing loans, and potentially pursue acquisition targets.
The Company believes this funding will position them to expand their existing footprint as well as increase product offerings to achieve their goal of becoming a dominant plant-based product and packaging company in North America.
The bioplastic industry is quickly growing with support from both U.S. and Canadian regulators who are putting pressure on companies to reduce petroleum-based plastic packaging, forcing plastic utilizing companies to change suppliers to renewable and sustainable solutions. Good Natured positions themselves to take advantage of this change by becoming a cost-efficient leader, while growing their customer base and brand.
Good Natured scales production efficiently at a low cost because their supply chain (manufacturing, engineering, logistics etc.) is outsourced to a network of companies that have a vested interest in Good Natured. These partnerships also enable Good Natured to collaborate with their supply chain partners to develop customized and cost-effective bioplastic products. In addition, the Company invests in internal process optimization through software solutions, such as the outbound freight and fulfillment system, which should ultimately decrease costs as they scale.
Good Natured is in a growth phase, focused mainly on customer acquisition, which in turn is supporting strong revenue growth. Revenue for FY2018 increased 104% to C$5.1 million compared to C$2.5 million in FY2017, with gross margins remaining consistent at approximately 30%. SG&A expenses increased to C$3.3 million in FY2018 compared to C$2.7 million in FY0217. Net losses before interest, depreciation, and stock compensation was C$1.8 million in FY2018 compared to C$2.2 million in FY2017. Insiders and management own 45% of outstanding shares.
Good Natured currently focuses on growing their 195+ customer base that spans across 20 states and provinces. The Company leads the industry by developing and sourcing proprietary material, and then converting those materials into products for sale through a fully integrated and outsourced supply chain partner network.
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Good Natured Products Inc. (TSXV: GDNP)
Headquartered in Vancouver, Canada, Good Natured Products, formally Solegear, is a plant-based bioplastics company. Good Natured is currently trading at C$0.14 with a market capitalization of C$14.2 million.
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