VANCOUVER, British Columbia, July 14, 2016 (GLOBE NEWSWIRE) -- Naturally Splendid Enterprises Ltd. ("Naturally Splendid") (FRANKFURT:50N) (TSX-V:NSP) (OTC:NSPDF) is pleased to announce accumulated gross sales to date in 2016 of approximately $7,100,000 CDN.
Naturally Splendid has recorded approximately $4,300,000 CDN in gross sales during the second quarter (Q2) of 2016, which spans the period from April 1, 2016 to June 30, 2016. The Company previously reported gross sales of $1,420,000 CDN in the first quarter (Q1) of 2016, which spanned the period from January 1, 2016 to March 31, 2016. Accumulative gross sales for Q1 and Q2 are approximately $5,600,000 CDN.
Additionally, Naturally Splendid announced a Purchase Order of $1,450,000 CDN on June 20, 2016 to be filled in the third quarter (Q3) of 2016. The sum of Q1 and Q2 sales, plus the June 20th Purchase Order, gives Naturally Splendid approximately $7,100,000 CDN in gross sales to date in 2016.
In comparison, the Company recorded audited gross annual sales of $235,000 CDN in 2014 and audited gross sales of $301,705 CDN in 2015. Currently the Company has exceeded 2015 gross sales by over 2,350%.
Naturally Splendid is experiencing growth in gross sales in many of its divisions. The most significant growth has been in the export division where South Korean exports have exceeded initial projections by over 400% to date. However, the overall increase in gross sales can be attributed to several factors including Naturally Splendid's retail lines NATERA®, Chii™ and Pawsitive FX™ which are showing consistent growth in sales. As reported earlier, the Company is pleased to confirm that in Q1 2016 their majority owned subsidiary, POS / BPC Manufacturing Corp. ("POS / BPC"), completed the preparation/training work to begin normal manufacturing status at this facility and has begun manufacturing for multiple clients. The POS / BPC facility will add additional revenue to Naturally Splendid in 2016. The 12,000-square-foot POS / BPC Facility -- which is managed for POS / BPC by POS Bio-Sciences -- is positioned to offer commercial-scale custom processing solutions for biological materials, such as functional foods and natural health ingredients to a wide range of clients. POS / BPC came on line March 28, 2016 having spent Q1 completing significant upgrades to the facility. In Q2, the first quarter that POS / BPC has been operational, the facility grossed in excess of $ 390,000 and is expected to be cash flow positive in 2016. Management expects gross revenue for POS / BPC to increase in Q3 and Q4.
Naturally Splendid CEO Mr. Craig Goodwin states, “We are off to a good start for Q3. Having already secured a Purchase Order for $1,450,000 for Q3, Naturally Splendid is on pace to equal the sales performance of Q2. Our goal is to exceed our Q2 sales figures through increased export activity, increased retail sales, as well as securing additional clients and optimizing operations at POS / BPC.”
Goodwin adds, "We are definitely pleased with the increase in our gross sales throughout our divisions. More importantly, we believe the Company is reaching the stage of being cash flow positive on a consistent basis. This is due in fact to not only the increased gross sales, but also increasing margins as scales of economy begin to show a positive effect on our bottom line. As the Company approaches being cash flow positive, we can begin to focus more attention and resources towards the lucrative omega markets globally with HempOmega® and also begin to focus attention on the positively evolving cannabinoid opportunities in the United States, specifically focusing on the Cannabidiol (CBD) markets.”
In regards to HempOmega®, Naturally Splendid's proprietary omega ingredient, the Company continues to increase the commercial applications and therefore revenue opportunities through continued research and development. The research and development is being conducted at POS Bio-Sciences specifically for functional beverage applications; through the Saskatchewan Agri-Value Initiative (SAVI) under the Canada-Saskatchewan Growing Forward 2 for ingredient application for products such as breads and nutritional bars; as well as product development at the Alberta Agriculture and Rural Development's Food Science and Technology Center (FSTC) in Brooks, Alberta for application in pet feed. HempOmega™ was a finalist for NutraIngredients Start-up Ingredient of the Year which has generated many inquiries from a wide range of potential clients. The Company is currently in discussions with several of these potential clients for HempOmega™.
In a 2013 Nutraceuticals World article it was reported Omega production is forecast to grow a mammoth 32.8% annually in volume (15.1% in value) by 2018, by which time 3.3 million metric tons worth $9.1 billion will be produced. "Plant omega 3 production value is expected to grow twice as fast as marine during the next five years," Mr. Bender predicted. "As a result, by 2018, plant omega 3s will account for 52% of production value compared to 48% for marine. Plant omega 3s will benefit from consumers' desire to get away from animal based products." Naturally Splendid is positioned to be at the forefront of this opportunity and intends to capitalize on this shift for omega sources.
Goodwin summarizes, “Our success exporting to South Korea is just the beginning. The South Korean opportunity secures Naturally Splendid a foothold in the growing Asian health and wellness market and we are experiencing increased interest for our products in Asia since attending tradeshows as official Members of the Canadian Trade Delegation in Singapore and Seoul and more recently as official Members of the Premier’s Trade Mission to Seoul, Manila and Tokyo, which was lead by British Columbia’s Premier Christy Clark. The success that we have had in South Korea creates the opportunity to increase our exporting sales by expanding to additional countries not only in Asia but globally, as well as adding additional product offerings such as hemp protein, hemp oil and HempOmega®. However, we are not limited to just hemp products. We are pursuing numerous opportunities to introduce additional food products outside of hemp into our exporting offerings, utilizing in part the same successful product launch strategy executed with our shelled hemp seed hearts in South Korea.”
Naturally Splendid is positioning itself to export healthy foods and value added natural formulations globally. The global functional, allergen-free, organic and other healthy foods market will push through the $1 trillion (€770m) mark for the first time in 2017, as consumer interest in preventing illness via foods snowballs, says Euromonitor International.1
1. Global healthy foods to hit $1 trillion in 2017: Report By Shane Starling, 26-Nov-2012
About Naturally Splendid Enterprises Ltd.
Naturally Splendid is a multifaceted biotechnology company that is developing, producing, commercializing, and licensing an entirely new generation of plant-derived, bioactive ingredients, nutrient-dense foods, and related products. Naturally Splendid is building an expanding portfolio of patents (issued and pending) and proprietary intellectual property focused on the commercial uses of industrial hemp and non-psychoactive cannabinoid compounds in a broad spectrum of applications.
Naturally Splendid currently has six innovative divisions: (1) Natera® brand of retail hemp superfood products currently distributed throughout North America and Asia; (2) Chi Hemp Industries Incorporated (Chii) is selling natural and organic hemp products through e-commerce (3) PawsitiveFX® brand of pet care products; (4) Simlpi Plant-Based Ingredients Division of plant-derived bulk ingredients including patent-pending HempOmega®; (5) The 12,000-square-foot POS / BPC Facility - which is managed for Naturally Splendid by POS Bio-Sciences - is positioned to offer commercial-scale custom processing solutions for biological materials, such as functional foods and natural health ingredients to a wide range of clients (6) hemp-based cannabinoid nutraceuticals. The Company's advanced technologies, industry expertise, and strategic partners allow for the creation of customized solutions with a consistent focus on quality and sustainability.
For more information e-mail firstname.lastname@example.org or call 604-673-9573
On Behalf of the Board of Directors
J. Craig Goodwin
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Naturally Splendid cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond Naturally Splendid's control including, but not limited to, Naturally Splendid’s ability to complete the private placement financing. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, Naturally Splendid undertakes no obligation to publicly update or revise forward-looking information.
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Contact Information Naturally Splendid Enterprises Ltd. (NSP – TSX Venture; NSPDF – OTCQB; 50N Frankfurt) 2435 Beta Avenue Burnaby, BC, V5C 5N1 Phone: (604) 465-0548 Fax: (604) 465-1128 E-mail: email@example.com Website: www.naturallysplendid.com