Acquisitions and mergers - The company said Q2 revenue growth was driven by the acquisition of Imaraïs Beauty and merger with Gummy USA, which expanded product lines and distribution channels.
Retail expansion - The initial Imaraïs Beauty order shipped to more than 4,000 U.S. stores, boosting sales.
Higher operating costs - Operating expenses rose due to added salaries, wages, and stock-based compensation from Gummy USA and Imaraïs Beauty integration.
Q2 preliminary revenue and profit trends
Nutraceutical gummy maker's preliminary Q2 net revenue rose 113% year over year on acquisitions.
Gross profit climbed 145%, with margin rising to 70.3% from 61.2% year over year.
The company posted a net loss of $129,000 due to higher operating and interest expenses.
Outlook for annualized revenue and manufacturing
The company targets annualized net revenue of more than $20 million by year-end, calling it aggressive.
HYEX•
