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Delivra Health and its Brands LivRelief ™ and Dream Water ™ Report Improved Fiscal Year End 2022 Financial Results

Strategic transformation to a uniquely positioned health and wellness company that provides high-quality brands to the global marketplace

Improved net revenue by 2.3% growth year over year despite challenging business environment

Improved gross profit margin, 32% in fiscal 2022 vs. 24% in fiscal 2021

Lowered selling, general and administrative (“SG&A”) expenses by 32% year over year

Improved adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”)(1) by 54% year over year

October 28, 2022 – Vancouver, British Columbia – Delivra Health Brands Inc. (formerly, Harvest One Cannabis Inc.) ("Delivra Health" or the "Company") (TSX-V: DHB; OTCQB: DHBUF), a consumer packaged goods company uniquely positioned in the health and wellness sector, is pleased to announce its financial and operating results for the three and twelve months ended June 30, 2022.

Management Commentary

“Our fiscal year-end financial results illustrate the successful strategic repositioning of the Company to a health and wellness company, successfully restructuring our internal and external teams to increase revenues, operating margins and profitability,” said Gord Davey, President and Chief Executive Officer of Delivra Health. “The past year has been challenging given increasing inflation, supply chain disruptions and slower activity in capital markets. Throughout the year, management has focused on the execution of customer -specific programs, expanding e-commerce platforms, launching innovation products and improving distribution in international markets. In the coming fiscal year, we expect to continue to increase our revenues and profitability through a combined focus on US, international and e-commerce markets.”

Financial Highlights

  • Net revenue: The Company reported total net revenue of $8.14 million in fiscal 2022 compared to $7.96 million in fiscal 2021 from continued operations. This 2.3% increase in net revenue is driven by higher sales in our US operations.
  • Gross profit and gross profit margin: The Company reported gross profit of $2.60 million and a 32% gross profit margin compared to $1.91 million and a 24% gross profit margin from continued operations in fiscal 2021. This increase is attributed to operational improvements, cost alignment projects, and reduction in financial inventory write-downs.
  • Expenses including SG&A and excluding non-cash items: The Company reported expenses of $6.14 million in fiscal 2022 compared to $8.97 million in fiscal 2021, representing a 32% reduction for the year from continued operations. The reduction is driven by management’s efforts in focusing on balanced resources to support the business.
  • Adjusted EBITDA(1): The Company reported Adjusted EBITDA of $(2.76) million in fiscal 2022 compared to $(6.06) million in fiscal 2021, representing a $3.3 million or 33% year over year improvement from continued operations. This reduction is driven by management’s efforts in focusing on margin improvement supported by efficient administrative and selling support functions.

Summary of Key Financial Results

  For the year ended June 30
($000’s, except share and per share amounts) 2022 2021
Continued operations:    
Net revenue $8,139 $7,956
Cost of sales 4,759 5,048
Inventory write-down 776 989
Gross profit 2,604 1,919
Expenses excluding non-cash expenses 6,145 8,973
Asset impairment, depreciation and amortization and share-based compensation (2,869) (14,905)
Loss from operations before other (expense) income (6,410) (21,959)
Other (expense) income (599) (713)
Net loss from continuing operations (7,009) (22,672)

Expenses exluding non-cash items

  For the year ended June 30
($000’s, except share and per share amounts) 2022 2021
General and administration $4,542 $7,308
Sales and marketing 1,603 1,006
Research & development 72
Severance and reorganization costs 587
Total 6,145 8,973

Adjusted EBITDA (non-IFRS measure)

  For the year ended June 30
($000’s, except share and per share amounts) 2022 2021
Loss from operations $(6,410) $(21,959)
Inventory write-down 776 989
Asset impairment and write-downs 398 12,112
Depreciation and amortization 2,119 2,216
Share-based compensation 352 577
Adjusted EBITDA (2,765) (6,065)

About Delivra Health Brands Inc.

Helping people take control of their health with alternative wellness solutions is what energizes the Delivra Health team! The Delivra Health portfolio features innovative brands like Dream Water™ and LivRelief™, which deliver relief from common everyday issues like chronic pain, anxiety, and sleeplessness. Delivra Health products have allowed millions of customers to reclaim their mobility, energy, and in turn, quality of life. The websites of the Company’s two subsidiaries are  Dream Water™ and  LivReliefTM. For more information, please visit 

Non-IFRS Measures, Reconciliation and Discussion

This press release contains references to “Adjusted EBITDA” which is a non-IFRS financial measure. Adjusted EBITDA is a measure of the Company’s loss from operations before interest, taxes, depreciation, and amortization and adjusted for share-based compensation, common shares issued for services, fair value effects of accounting for biological assets and inventories, asset impairment and write-downs, and other non-cash items, and is a non-IFRS measure.

This measure can be used to analyze and compare profitability among companies and industries, as it eliminates the effects of financing and capital expenditures. It is often used in valuation ratios and can be compared to enterprise value and revenue. This measure does not have any standardized meaning according to IFRS and, therefore, may not be comparable to similar measures presented by other companies.

There are no comparable IFRS financial measures presented in Delivra Health’s financial statements. Reconciliations of the supplemental non-IFRS measure are presented in the Company’s Management Discussion and Analysis for the year ended June 30, 2022. This non-IFRS financial measure is presented because management has evaluated the financial results both including and excluding the adjusted items and believes that the non-IFRS financial measure presented provides additional perspective and insights when analyzing the core operating performance of the business. The Company believes that the supplemental measure provides information which is useful to shareholders and investors in understanding the Company’s performance and may assist in the evaluation of the Company’s business relative to that of its peers.

The non-IFRS financial measure should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with the IFRS financial measures presented in the Company’s financial statements. For more information, please see “Adjusted EBITDA (non-IFRS measure)” and “Non-IFRS Measures” in the Company’s Management Discussion and Analysis for the year ended June 30, 2022, which is available under the Company’s profile on


  1. This is a non-IFRS reporting measure. For a reconciliation of this measure to the nearest IFRS measure, see “Adjusted EBITDA (non-IFRS measure)” and “Non-IFRS Measures” in the Company’s Management Discussion and Analysis for the year ended June 30, 2022.

Cautionary Note Regarding Forward-Looking Statements

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates, and projections as at the date of this news release. Any statement that involves 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 statements. In this news release, forward-looking statements include, among other things, statements with respect to the Company’s growth objectives, increasing revenues and profitability, growth in new markets, and new distribution partners.

These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to materially differ from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: implications of the COVID-19 pandemic on the Company's operations; fluctuations in general macroeconomic conditions; fluctuations in securities markets; expectations regarding the size of the cannabis markets where the Company operates; changing consumer habits; the ability of the Company to successfully achieve its business objectives; plans for expansion; political and social uncertainties; inability to obtain adequate insurance to cover risks and hazards; employee relations and the presence of laws and regulations that may impose restrictions on cultivation, production, distribution, and sale of cannabis and cannabis-related products in the markets where the Company operates. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

Additional information regarding this and other risks and uncertainties relating to the Company's business are contained under the heading "Risk Factors" in the Company's annual information form dated March 2, 2021, and under the heading "Risks and Uncertainties" in the Company's management's discussion and analysis dated October 28, 2022, for the year ended June 30, 2022, filed under the Company's profile on SEDAR at

Neither TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accept responsibility for the adequacy or accuracy of this release.

Investor Relations:
Jack Tasse
Chief Financial Officer

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