Page 1

good , natured better everyday products good natured Products Inc. Announces Financial Results for the Three and Nine Months Ended September 30 , 2021 VANCOUVER , BC , Nov. 30 , 2021 / CNW / - good natured Products Inc. ( the " Company " or " good natured® " ) ( TSXV : GDNP ) , a North American leader in plant - based products and packaging , today announced its financial results for the three months ( " Q3 2021 " ) and nine months ended September 30 , 2021 ( " YTD 2021 " ) . The Company's Q3 2021 year - over - year revenue growth of almost 300 % benefited from robust market demand , a full fiscal quarter of contribution from the recent acquisition of Ex - Tech Plastics Inc. , and the addition of a range of new customer accounts , including initial shipments to a large US food producer estimated to deliver approximately USD $ 13 million in its first year , as announced on October 13 , 2021. Q3 2021 also saw the Company's recurring B2B customer base expand to over 850 active accounts , more than doubling compared to 400 B2B customers on September 30 , 2020 . " The team delivered record setting revenue growth for Q3 2021 and just under 240 % growth for the first nine months of the year , " stated Paul Antoniadis , CEO of good naturedⓇ . " We did see some temporary changes in our Q3 2021 product and customer revenue mix with the recent addition of Ex- Tech , whose business is more heavily weighted to National customers and Industrial products with somewhat lower margin rates . The integration of a first full quarter of Ex - Tech's financials , combined with sustained increases in inflationary costs , resulted in our variable gross margin rate dipping to the low end of our targeted range at just under 29 % for Q3 2021. Variable gross margins for YTD 2021 are holding above 33 % , which remains at the upper end of our targeted range . Based on our growth strategy and business model , we anticipate short - term , quarterly shifts in variable gross margin as part of that process and focus on delivering the optimal range on an annual basis . We've also rolled out several price adjustments and shipping surcharges to offset rapidly rising raw material and logistics costs being felt throughout the industry . " Key Highlights : • Revenues for Q3 2021 increased 286 % to a record $ 18.0 million compared to $ 4.7 million for the three months ended September 30 , 2020. Revenue for YTD 2021 increased 236 % to $ 38.3 million compared to $ 11.4 million for the nine months ended September 30 , 2020 . • Variable gross margin , a non - GAAP measure , for Q3 2021 increased 196 % to $ 5.2 million and 28.8 % of sales , compared to $ 1.75 million and 37.6 % of sales for the three months ended September 30 , 2020. Variable gross margin for YTD 2021 increased 183 % to $ 12.7 million and 33.2 % of sales , compared to $ 4.5 million and 39.4 % of sales for the nine months ended September 30 , 2020 . • Gross margin increased 129 % to $ 4.0 million for Q3 2021 and 130 % to $ 10.3 million for YTD 2021 , As a percentage of sales , gross margin for Q3 2021 and YTD 2021 was 22.3 % and 26.9 % respectively . Selling , general and administrative expenses excluding acquisition activity and one - time charges ,