Vegalab Announces 2017 Financial Results
Vegalab, Inc. (OTCQB: VEGL) reported 2017 financial results showing total revenues of $2,491,391, up from $2,115,421 in 2016. The company holds exclusive North and South American distribution rights for earth-friendly agricultural products under the Vegalab brand.
Revenue and Sales Performance
Early 2017 sales were impacted by adverse weather in California and customers drawing down inventory carried over from 2016 purchases. The fourth quarter saw improvement when the company began selling through two major US agricultural retailers, with one committing to a $13 million minimum purchase for 2018 — a significant forward indicator of commercial momentum.
M&G Packing Acquisition
In October 2017, Vegalab acquired substantially all assets of M&G Packing, Inc., a produce packing business in Tulare County, California. The acquisition included 11 acres of real property and 30,000 square feet of buildings. From October through year-end, the packing operation generated $2,130,308 in processing revenue. The company invested $350,000 in equipment to increase production capacity by up to 200%.
Financial Summary
| Metric | 2017 | 2016 |
|---|---|---|
| Total Revenues | $2,491,391 | $2,115,421 |
| Cost of Goods Sold | $2,057,619 | $1,617,366 |
| Operating Expenses | $2,116,404 | $593,334 |
| Net Loss | $(1,673,779) | $(116,361) |
| Net Loss Per Share | $(0.08) | $(0.01) |
Operating expenses increased significantly to $2,116,404 from $593,334, reflecting staff additions and professional services costs associated with the M&G Packing acquisition and the company's broader commercial expansion efforts.
CEO Commentary
"We look forward to sharing the successful business trajectory of Vegalab Inc., as we expand the Company's offerings and operations."
— David Selakovic, CEO, Vegalab