Mimi's Rock reports Q1 2021 results

Higher Ad spending results in online ratings boost

TORONTO, May 26, 2021 /CNW/ - Mimi's Rock Corp. (TSXV: MIMI) (OTCQB: MIMNF) (the "Company"), an online dietary supplement and wellness company, today announced its financial results for the first quarter ending March 31, 2021.

"Our first quarter was successful in a number of ways," commented CEO, David Kohler. "Our unit volumes increased, driven by aggressive advertising campaigns aimed at capitalizing on new customer acquisition during the new year period. This gives us an even stronger foundation on which to build future growth.  This uplift didn't translate into financial growth this quarter, however, as the combination of increased advertising spending, coupled with unfavourable foreign exchange impact muted the results.  We note our strong customer retention metrics, which gives us confidence that the increased volumes will translate into stronger performance in Q2 and the remainder of the year.  We are also poised to benefit from a price increase on our highest volume product (Colon Cleanse) which we enacted late in Q1.  This increase has shown no negative effect on volumes and this product should continue to increase its revenue contribution."

First Quarter Highlights

Revenues in Q1 2021 were $9.8 million, compared to $10.4 million in the Q1 2020.  Reported revenues were impacted by the lower US dollar in the 2021 period, accounting for a majority of the difference in total revenue from a year ago.

Total sales unit volumes were higher in both the supplements and skincare business in Q1 2021 compared to Q1 2020.  Many of the Company's top products benefitted from the increased exposure with higher product rankings, which in turn lead to more product listing views and ultimately, higher sales.  One of the Company's top products achieved top spot in Amazon's highly valued weight loss category several times in the past two months.

Gross margin was $6.7 million, compared to $7.3 million a year ago.  Margins remained strong, in the 69% range for both periods.

Sales and marketing expenses increased somewhat dramatically in Q1 2021, to $5.2 million (53.3% of revenue) compared to $4.7 million (45.5% of total revenues) in the first quarter of 2020.  Advertising spend in the first quarter of 2021 was consciously increased with a focus on gaining product rankings and visibility.  As a result of strategic advertisement targeting, several of the Company's key products achieved top rank in their category.   The impact of this exposure translates to considerably higher customer traffic and ultimately, sales.  Short term promotions on new product launches have enabled the business to maintain momentum, however, going forward, advertising spend is expected to remain closer to historical levels around 45% of revenue.

Q1 2021 EBITDA was $0.1 million compared to $1.1 million in Q12020, mainly due to the impacts on revenue and advertising spend as described above.  

Adjusted EBITDA, which adds back non-cash stock-based compensation and foreign exchange losses was $0.2 million for Q1 2021, compared to Adjusted EBITDA of $1.2 million for Q1 2020.

Net loss was $0.2 million ($0.00 per share) for Q1 2021, compared to a net income of $0.3 million ($0.01 per share) for Q1 2020.

	2021	2020				2019
(in 000's)	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Revenue	9,758	9,134	9,774	10,943	10,435	7,717	8,755	8,771	10,166
EBITDA	149	756	1,243	1,584	1,099	(1,356)	627	460	1,098
Adjusted EBITDA	212	603	1,166	1,573	1,228	(1,220)	903	1,382	1,318
Net Income	(233)	523	546	928	282	(2,460)	(243)	(1,240)	392

Conference Call

Management will host a conference call tomorrow to discuss these results and take questions from investors. Details are as follows:

Date:    Thursday, May 27, 2021

Time:   11:00am Eastern Time

Dial-in: 1-800 319 4610 or

            1-604 638 5357

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

About Mimi's Rock Corp.:

Mimi's Rock Corp. is an online dietary supplement and wellness company which market and sells its products under the Dr. Tobias, All Natural Advice and Maritime Naturals brand names.  The Dr. Tobias brand features over 30 products, including the top-selling Colon 14-Day Cleanse and the #1 selling Omega 3 Fish Oil on Amazon.com.  All Natural Advice and Maritime Naturals products focus on skin and beauty care.  Products sold under the All Natural and Maritime Naturals brand names are made in Canada and registered with Health Canada and under the EU Cosmetics Act.  All Natural Advice has been featured on BNN as a top selling skincare brand in Canada, and has been rated the #1 Beauty Brand on Amazon Canada for the past four years.

Forward-Looking Information

This news release contains forward-looking statements and forward looking information within the meaning of applicable securities laws. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Please refer to the 2020 Annual Financial Statements for more details on the Company's calculation of EBITDA and adjusted EBITDA.

All forward-looking statements reflect the Company's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. All of the Company's forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions listed below. Although the Company believes that these assumptions are reasonable, this list is not exhaustive of factors that may affect any of the forward-looking statements.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking 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 statements. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise, except in accordance with applicable securities laws.

Please visit www.mimisrock.com or www.sedar.com for the Company's recent filings.

SOURCE Mimi's Rock Corp.

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