Guru Organic bringing Zero line of drinks to Canada after strong growth results
Canadian-based Guru Organic Energy Corp., a maker of organic energy drinks, is reporting strong margin growth and sales, fueled by strong U.S. of its products and the company’s continuing focus on margin expansion and efficiencies.
According to a financial filing made by the company for its first-quarter results for this year, net revenue increased by 8% to $7.7 million in the first quarter of this year, up from $7.1 million in in the same time last year. U.S. sales grew 46%, reaching $2.1 million, made possible by expanded distribution and improved retail sales velocity. Online sales continued to accelerate, with Amazon U.S. consumer sales units up 58% in the last 12 weeks, reflecting strong demand for Guru’s products in the e-commerce channel.
Canadian sales, however, decreased slightly to $5.6 million from $5.7 million in Q1 2024, as the prior-year quarter benefited from higher distributor inventory levels. This was partially offset by online sales at Amazon Canada, where consumer sales units increased by 43% in the last 12 weeks.
“We are very pleased to report a record Q1 performance, fueled by strong U.S. growth and continued focus on margin expansion and operational efficiencies,” said Carl Goyette, president and CEO of Guru Organic Energy Corp. in a written statement upon the announcement of the results. “Our strategy to enhance pricing execution and optimize promotions has led to continued significant improvement in gross margin, which reached 59.5%. At the same time, the combination of strong net revenue growth and higher gross profit has resulted in a 31% reduction in net loss, marking our lowest quarterly loss since Q2 2021. We continue to make meaningful progress toward profitability while driving sustainable growth in key markets.”
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“The strong momentum of our Guru Zero-line launch in the U.S. further reinforces our commitment to innovation and the growing consumer demand for better-for-you energy drinks,” he continued. "Unlike many competitors in this space, GURU is the only zero sugar organic energy drink brand that is 100% free of artificial sweeteners, sucralose, and aspartame—offering a clean energy alternative with natural ingredients. With the Canadian launch of Zero Wild Berry, Wild Ruby Red and Wild Ice Pop this quarter—our first in North America—we are well positioned to capitalize on the accelerating shift towards natural, health-conscious energy drinks.”
The company’s growth in the United States was driven by a continued expansion in the premium grocery and natural channels, with U.S. Natural Channel scan sales up 12% in the last 52 weeks and 20% in the last 12 weeks, and Whole Foods scan sales growing 22% in the last 52 weeks and 37% in the last 12 weeks.
