• Net Revenue: Down $3.1 million due to the promotional shift at Costco to Q2.

• Direct-to-Consumer Channel Growth: Up 593% driven by brand awareness, marketing activities, and new SKUs.

• Retail Channel Growth: Up 373% due to expanded door counts and increased velocities.

• Gross Margin: Approximately 30%, with plans to increase to 35%-40% through efficiencies and supplier agreements.

• Projected Revenue for 2025: Estimated at $65 million to $70 million, representing a 50%-60% increase.

• Store Expansion: Plan to increase from 15,000 to 25,000 doors, currently at over 18,000.

• Direct-to-Consumer Sales Run Rate: Over $14 million, with $1.2 million in sales in March.

• Warning! GuruFocus has detected 5 Warning Signs with TRBRF.

Release Date: May 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Trubar Inc (TRBRF) has completed most of its restructuring efforts, with only the sale of the No B.S. brand remaining.

• The company has experienced significant growth in its direct-to-consumer channel, up 593%, driven by increased brand awareness and marketing activities.

• Retail channels have seen a 373% increase due to expanded door counts and growing velocities.

• Trubar Inc (TRBRF) plans to expand from 18,000 to 25,000 retail doors, with a focus on grocery and convenience stores.

• The company has launched new product lines, including Tru Kids, and is actively working on innovation with mini bars and other formats.

Negative Points

• Net revenue declined by $3.1 million in Q1 due to the timing shift of a promotional campaign with Costco.

• Gross margins are currently around 30%, with efforts underway to improve them to 35-40%, indicating room for improvement.

• The company has a high concentration of revenue from Costco, which it aims to reduce to 60% or less.

• Trubar Inc (TRBRF) plans to spend significantly more on marketing, which could impact short-term profitability.

• The company is still working towards achieving positive adjusted EBITDA, with no specific timeline provided.

Q & A Highlights

Q: Can you elaborate on the door growth strategy and which categories you are focusing on to reach 25,000 doors? A: We are focusing on all categories, but specifically targeting grocery and convenience stores (C-store) to expand our door presence.

Q: Are there plans to launch mini bars in 2025, and how will they be positioned in the market compared to regular-sized bars? A: Yes, we are currently producing mini bars, which will be sold in larger pack sizes, primarily targeting food service sectors like cafeterias and office buildings, marking a new market segment for us.