2022 Marked Transformative Year for Smart for Life; Built a Solid Foundation Through Acquisitions and Anticipates Significant Growth in 2023
MIAMI, Jan. 12, 2023 (GLOBE NEWSWIRE) — Smart for Life, Inc. (Nasdaq: SMFL) (“Smart for Life” or the “Company”), a high growth global leader in the Health & Wellness sector marketing and manufacturing nutritional foods and supplements worldwide, today provided the following letter to shareholders from the Company’s CEO, Darren Minton:
“2022 was truly a transformative year for Smart for life and as we look toward a promising year ahead, I am proud to reflect on all that we have achieved. In the beginning of 2022, we completed our Initial Public Offering and raised gross proceeds of $14.4 million. We have now completed five major acquisitions since our formation which not only validates our ability to acquire accretive businesses at attractive multiples but also our ability to successfully integrate these companies within our organization. Although 2022 has certainly been a tumultuous year in the capital markets, our proactive “Buy and Build” strategy is working—we are currently generating pro forma revenues in excess of $30 million and anticipate expanding to over $100 million in annualized revenues in the next twelve months based on anticipated acquisitions and organic growth. In addition, as we have publicly announced, we have an objective of achieving $300 million in revenues within the next 36 months.
Through our subsidiaries, we boast a dynamic, exciting mix of brands and capabilities including Ceautamed Worldwide LLC, GSP Nutrition Inc. (which owns a license in the U.S. and Canada for the exclusive use of certain of the Sports Illustrated brands in the fields of dietary and nutritional supplements), Doctors Scientific Organica, LLC, Bonne Santé Natural Manufacturing, Inc. and Nexus Offers, Inc. Our current businesses include two state-of-the-art FDA-certified contract manufacturing facilities, spanning an aggregate of 60,000 sq. ft., along with consumer brands, digital marketing services, and licensing agreements. We offer a variety of cutting-edge formulary and manufacturing capabilities including capsules, tablets, powders, health bars, baked goods, functional foods, and other product types and delivery methods.
We achieved several noteworthy milestones in 2022:
- Launched new line of Greens First protein bars
- Achieved strong revenue growth: Q3 2022 revenues increased 59.1% year-over-year to $5.4 million due to successful acquisition strategy; Q3 2022 profit margin increased to 49.1%, versus 42.6% for the same period last year
- Initiated capital restructuring designed to increase shareholders’ equity and contribute toward our continued Nasdaq listing requirements
- Opened new corporate headquarters, consolidated operations aimed at delivering greater savings and efficiencies at scale
- Executed Letter of Intent for strategic co-venture with Cosmos Health, Inc. (Nasdaq: COSM) to cross market products and services in their reciprocal markets
- Announced Letter of Intent to acquire a premier eCommerce nutraceuticals company with operations in North America; acquisition is expected to add over $12 million of revenue and to be accretive to earnings
- Formed Smart Acquisition Group, LLC to accelerate M&A activities; named Stuart Benson, JD as Managing Director
- Completed strategic acquisition of Ceautamed Worldwide LLC owner of Greens First Brand; expected to be highly synergistic and accretive, while adding established medical distribution channels and expanding product portfolio
- Partnered with Milk Dust for manufacturing of its proprietary products designed to support mother’s breast milk production during baby formula shortage
- Aided shipment of over 100,000 meal replacement bars to Ukraine to help those in need
- Selected by Amazon to launch various Smart for Life products in Singapore
- Acquired Sports Illustrated™ trademark rights as described above
In summary, Smart for Life represents an exciting opportunity to invest in a dynamic, innovative, proactive organization capitalizing on the fragmented yet rapidly growing nutraceutical market. We believe our proactive acquisition strategy, targeting accretive cash flow positive companies, combined with strategies to enhance organic growth, represents the best path to drive long-term value for shareholders. We are extremely well positioned to take advantage of the opportunities in front of us and are excited about the outlook for 2023 and beyond.”
About Smart for Life, Inc.
Smart for Life, Inc. (Nasdaq: SMFL) is engaged in the development, marketing, manufacturing, acquisition, operation and sale of a broad spectrum of nutritional and related products with an emphasis on health and wellness. Structured as a publicly held global holding company, the Company is executing a Buy-and-Build strategy with serial accretive acquisitions creating a vertically integrated company with an objective of aggregating companies generating a minimum of $300 million in revenues within the next thirty-six months. To drive growth and earnings, Smart for Life is developing proprietary products as well as acquiring other profitable companies, encompassing brands, manufacturing and distribution channels. The Company currently operates five subsidiaries including Doctors Scientific Organica, Nexus Offers, Bonne Santé Natural Manufacturing, GSP Nutrition and Ceautamed Worldwide. For more information about Smart for Life, please visit: www.smartforlifecorp.com.
Video regarding the Company’s manufacturing facility at Bonne Santé Natural Manufacturing is available at: www.bonnesantemanufacturing.com/video.
Investor material and a Fact Sheet with additional information about Smart for Life is available at: www.smartforlifecorp.com/investor-center.
This press release may contain information about our views of future expectations, plans and prospects that constitute forward-looking statements. All forward-looking statements are based on management’s beliefs, assumptions and expectations of Smart for Life’s future economic performance, taking into account the information currently available to it. These statements are not statements of historical fact. Although Smart for Life believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Smart for Life does not undertake any duty to update any statements contained herein (including any forward-looking statements), except as required by law. No assurances can be made that Smart for Life will successfully acquire its acquisition targets. Forward-looking statements are subject to a number of factors, risks and uncertainties, some of which are not currently known to us, that may cause Smart for Life’s actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial position. Actual results may differ materially from the expectations discussed in forward-looking statements. Factors that could cause actual results to differ materially from expectations include general industry considerations, regulatory changes, changes in local or national economic conditions and other risks set forth in “Risk Factors” included in our filings with the Securities and Exchange Commission.
The information provided in this press release is intended for general knowledge only and is not a substitute for professional medical advice or treatment for specific medical conditions. Always seek the advice of your physician or other qualified health care provider with any questions you may have regarding a medical condition. This information is not intended to diagnose, treat, cure or prevent any disease.
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