11:42 AM EDT, 06/13/2025 (MT Newswires) -- GURU Organic Energy ( GUROF ) reported muted second-quarter results with revenue declining 19%, missing expectations, notes Stifel Canada.

Revenue was impacted by a shortfall in shipments ahead of Guru changing distributor in Canada. The last months of distribution by PepsiCo did not appear to go as planned, with out-of-stock positions at retailers leading to retail sales declining by 6% Y/Y in Canada, writes analyst Martin Landy.

The agreement with PepsiCo ended on May 22nd and the company has re-established a direct relationship with retailers. Management has built a network of 25 distributors/brokers to reach retailers across the country. Early indications point to a positive reception by retailers and shelf space gains at one key retailer.

"There is a potential scenario where GURU succeeds at growing its sales and market share faster on its own than under the PepsiCo umbrella," Landry adds.

Maintain Buy rating, $2.50 target.

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