Yahoo Finance Mene Inc. Reports Financial Results for the First Quarter 2023
TORONTO, May 30, 2023--(BUSINESS WIRE)--Menē Inc. (TSX-V:MENE) (US:MENEF) ("Menē" or the "Company"), an online 24 karat jewelry brand, today announced financial results for the first quarter ended March 31, 2023. All amounts expressed herein reflect Canadian dollars unless otherwise noted.
FIRST QUARTER FINANCIAL HIGHLIGHTS
IFRS Revenue of $7.2 million a decrease of $0.2 million (3%), Year-over-Year ("YoY").
Gross Profit of $1.8 million.
Operating Expenses as a percentage of Revenue of 21%, a record low.
Operating Income of $0.2 million during the quarter.
Total Comprehensive Loss of $0.5 million during the quarter, decreased by 23% YoY. Non-IFRS Adjusted Income of $0.5 million, increased by 96% YoY.
Sold metal weight of 73 kg and 7,872 Units of Jewelry.
OPERATIONAL HIGHLIGHTS
Introduced 14 new product designs during the quarter.
Sales to Returning Customers attributed to 70% of total sales during the quarter, due to great customer satisfaction.
Cumulative units of jewelry sold reached 143,700 as of quarter end.
Featured in Emily in Paris, Season 3, L’OFFICIEL Arabia, Dreams Magazine, Vanity Fair France, Cosmopolitan France, LesEchos and Gala.
Registered nearly 36,000 independent customer reviews on mene.com/reviews.
IFRS Consolidated Income Statement Data & | FY 2023 | FY 2022 | FY 2021 | |||||
Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | |
Revenue | 7,152,013 | 8,664,734 | 5,049,992 | 5,850,574 | 7,346,373 | 8,497,769 | 5,317,842 | 5,754,156 |
Gross profit | 1,722,642 | 2,036,909 | 1,123,083 | 1,529,649 | 1,953,731 | 2,009,201 | 1,245,908 | 1,529,690 |
Gross profit (%) | 24% | 24% | 22% | 26% | 27% | 24% | 23% | 27% |
Net income (loss) | (634,056) | (1,019,380) | (247,861) | 67,421 | (263,647) | (244,687) | (271,872) | (188,355) |
Total comprehensive income (loss) | (516,921) | (1,240,274) | 1,019,930 | 36,892 | (668,530) | (237,119) | 551,723 | (769,975) |
Non-IFRS Adjusted Revenue2 | 8,518,875 | 9,924,352 | 6,729,702 | 6,396,694 | 9,306,449 | 10,345,196 | 6,466,242 | 6,678,006 |
Non-IFRS Adjusted Income (Loss) 3 | 504,728 | (37,683) | (330,262) | (893,730) | 257,385 | 311,106 | 106,889 | (276,183) |
Total Shareholders' Equity | 16,982,599 | 17,469,126 | 18,138,403 | 17,049,081 | 16,981,454 | 17,620,821 | 17,835,586 | 17,101,667 |
Inventory balance (kg of gold)4 | 189 | 188 | 238 | 164 | 184 | 249 | 301 | 246 |
Customer orders | 4,938 | 6,495 | 4,175 | 3,947 | 5,407 | 6,584 | 4,153 | 4,377 |
Units of jewelry sold | 7,872 | 10,280 | 6,225 | 6,939 | 7,787 | 10,143 | 6,322 | 7,197 |
Jewelry weight sold (total kg) | 73 | 97 | 56 | 65 | 80 | 98 | 62 | 66 |
(1) | The Company’s financial statements for fiscal year 2022 and 2021 are audited by an external assurance firm. | |
(2) | The Company adjusts its revenue by adding back the value of jewelry that was returned by customers, revenue from orders for which fulfillment is under process, and discounts given to customers. These adjustments are made to assess the gross revenue before deducting these items from revenue per IFRS. See Non-IFRS Measures for a full reconciliation. | |
(3) | The Company adjusts its total comprehensive income (loss) by removing the impact of non-cash expenses, consisting of depreciation and amortization, stock-based compensation, accretion, revaluation of metal loan and translation gain or loss. See Non-IFRS Measures for a full reconciliation. | |
(4) | Inventory balances in kilograms of gold are calculated by taking the total Canadian Dollar (CAD) inventory value at each quarter-end date and dividing the value by the CAD gold spot price per gram. |
STATEMENT FROM FOUNDER & CEO ROY SEBAG:
From a balance sheet perspective, Q1 2023 was neutral to positive. The reduction in equity reflects a circa $1 million revaluation of the Goldmoney metal loan given gold’s impressive Q1 performance whilst total equity only decreased by $0.5 million. In other words, without the metal loan, Menē sustained and even grew its shareholder equity QoQ. From an income statement perspective, Q1 was slightly weaker YoY. This was expected and does not alarm us. We have continued to grow our customer base and brand equity this quarter while maintaining a level of operational discipline that ensures our company’s long-term potential. The most important developments during the quarter and since quarter-end relate to our strategic plan. We are nearing the completion of this plan which will see the company attract new talent to the C-Suite, implement a new marketing strategy, and return to consistent top-line growth. We anticipate that by Q2 2023 release, we will be in a position to better articulate our new strategy.
Non-IFRS Measures
This news release contains non-IFRS financial measures; the Company believes that these measures provide investors with useful supplemental information about the financial performance of its business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating its business. Although management believes these financial measures are important in evaluating the Company's performance, they are not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with IFRS. These non-IFRS financial measures do not have any standardized meaning and may not be comparable with similar measures used by other companies. For certain non-IFRS financial measures, there are no directly comparable amounts under IFRS. These non-IFRS financial measures should not be viewed as alternatives to measures of financial performance determined in accordance with IFRS. Moreover, presentation of certain of these measures is provided for year-over-year comparison purposes, and investors should be cautioned that the effect of the adjustments thereto provided herein have an actual effect on the Company's operating results.
Non-IFRS Adjusted Revenue is a non-IFRS measure. The Company adjusts its revenue by adding back the value of jewelry that was returned by customers, revenue from orders not yet delivered, and discounts given to customers. These adjustments are made to assess the gross revenue before deducting these items per IFRS revenue. The closest comparable IFRS measure is revenue.
Non-IFRS Adjusted Income (loss) is a non-IFRS measure. Non-IFRS Adjusted Income (Loss) is a non-IFRS measure, calculated as total comprehensive income (loss), excluding depreciation and amortization, stock-based compensation, accretion, revaluation of metal loan and translation gain or loss. The closest comparable IFRS measure is total comprehensive income (loss).
Tangible Common Equity is a non-IFRS measure. It is calculated as total shareholder’s equity excluding intangible assets.
For a full definition of non-IFRS financial measures used herein to their nearest IFRS equivalents, please see the section entitled "Non-IFRS Financial Measures" in the Company's MD&A for the quarter ended March 31, 2023.
About Menē Inc.
Menē crafts pure 24 karat gold and platinum jewelry that is transparently sold by gram weight. Through mene.com, customers may buy jewelry, monitor the value of their collection over time, and sell or exchange their pieces by gram weight at prevailing market prices. Menē was founded by Roy Sebag and Diana Widmaier-Picasso with a mission to restore the relationship between jewelry and savings. Menē empowers consumers by marrying innovative technology, timeless design, and pure precious metals to create pieces which endure as a store of value.
For more information about Menē, visit mene.com.
Forward-Looking Statements
This news release contains certain "forward-looking information" within the meaning of applicable Canadian securities laws that are based on expectations, estimates and projections as at the date of this news release. Any statements that involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information. In particular, but without limiting the foregoing, this news release contains forward-looking information pertaining to its business plans and goals of the Company for the current financial year, the hiring of new management, estimated potential year over year growth, marketing plans and the announcement of future plans and milestones.
This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the time it was made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others: the inability to successfully acquire and/or develop jewelry manufacturing facilities; an inability to predict and counteract the effects of COVID-19 or other pandemics on the business of the Company, including but not limited to the effects of COVID-19 and other infectious diseases presenting as major health issues and impacting the price of precious metals, capital market conditions, restriction on labour and international travel and supply chains; failure to comply with environmental and health and safety laws and regulations; operating or technical difficulties in connection with the manufacture, sale and distribution of jewelry; actual audited results differing from reported unaudited results; global economic climate; dilution of the Company’s shares; the Company’s limited operating history; future capital needs and uncertainty of raising capital; the competitive nature of the jewelry industry; currency exchange risks; the need for the Company to manage its planned growth and expansion; the effects of product development and need for continued technology and manufacturing change; protection of proprietary rights; the effect of government regulation and compliance on the Company and the industry; network security risks; the ability of the Company to maintain properly working systems; theft and risk of physical harm to personnel; reliance and availability of key personnel; global economic and financial market deterioration impeding access to capital or increasing the cost of capital; and volatile securities markets impacting security pricing unrelated to operating performance. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to revise or update any forward-looking information other than as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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Contacts
Media and Investor Relations Inquiries:
Adil Sheikh
Chief Financial Officer
Menē Inc.
ir@mene.com
+1 289 748 3702
