Overview

* GURU Q3 net income at C$1.3 mln, first profitable qtr since 2020

* Q3 revenue rises 31.4% to C$10.4 mln, beating analyst expectations

* Adjusted EBITDA beats estimates, improving to C$1.6 mln from a loss of C$1.5 mln

Outlook

* Company launched GURU Island Breeze Punch in Quebec and online

* Early sell-through of 18-pack Zero variety exceeded expectations

* GURU expanding U.S. presence and direct distribution in Canada

* Company expects sustained growth in energy drink market

Result Drivers

* DIRECT DISTRIBUTION - Transition to direct distribution model in Canada boosted sales by 35%, enhancing retailer relationships and execution flexibility

* ONLINE SALES - Record Amazon sales in July, with Prime Day sales up 40% in Canada and 96% in the U.S., driving U.S. sales growth of 16.4%

* GROSS MARGIN EXPANSION - Gross margin increased to 71.3% due to a one-time adjustment; excluding this, margin improved to 65.9% from 55.4% last year

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat C$10.44 C$8.20

Revenue mln mln (2

Analysts

)

Q3 EPS C$0.04

Q3 Net C$1.30

Income mln

Q3 Beat C$1.55 -C$1.53

Adjusted mln mln (2

EBITDA Analysts

)

Q3 Gross C$7.44

Profit mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the non-alcoholic beverages peer group is "buy"

* Wall Street's median 12-month price target for Guru Organic Energy Corp ( GUROF ) is C$3.13, about 7.2% above its September 10 closing price of C$2.90

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)