- Annual revenue: $16 million, up 51% YoY
- Annual gross profit: $10.0 million, up 42% YoY
- Annual adjusted EBITDA (1): $(0.3) million, improved 82% YoY
Vancouver, British Columbia--(Newsfile Corp. - October 6, 2025) - Purebread Brands Inc. (TSXV: BRED) ("Purebread" or the "Company") is pleased to announce its financial results for the year ended March 31, 2025 ("FY 2025"). Highlights for FY 2025 and for the three months ended March 31, 2025 ("Q4 2025"), are outlined below, with the complete Consolidated Financial Statements and Management Discussion and Analysis available on the Company's website at www.purebreadbrands.com or its SEDAR+ profile at www.sedarplus.ca.
Q4 2025 and FY 2025 Financial Highlights
FY 2025 revenue increased 51% YoY from $10.6 million in FY 2024 to $16 million in FY 2025. The increase in revenue was driven by strong retail revenue generated from Purebread Bakery.
Q4 2025 revenue of $3.6 million, a 10% decrease from $4 million in Q4 2024. The decrease was primarily driven by lower revenue from Coho Collective Kitchens, following the discontinuation of some locations.
FY 2025 gross profit increased 44% YoY to $10.0 million from $7 million in FY 2024. The increase in gross profit was driven by the significant increase in revenue due to Purebread Bakery.
Q4 2025 gross profit increased by 42% YoY compared to Q4 2024. The increase in gross profit was driven by the significant increase in revenue from Purebread Bakery.
Total operating expenses increased by 10% compared to FY 2024 and reduced by 6% in Q4 of 2025 compared to Q4 2024. The increase in the YoY operating expenses reflects the first full-year impact of the Purebread Bakery acquisition, while the decrease in Q4 2025 operating expenses compared to Q4 2024 aligns with management's cost-reduction efforts and continued focus on streamlining the business going forward.
FY 2025 Adjusted EBITDA of $(0.3) million, an 82% improvement from $(1.7) million in the prior year. Improvements in Adjusted EBITDA are attributable to: i) the contributions of Purebread Bakery, acquired in September 2023 and ii) ongoing efforts to streamline the business and maximize efficiency in operating expenses.
| Year Ended March 31, | Year Ended March 31, | |||
| 2025 | 2024 | |||
| $ | $ | |||
| Net loss | (14,576,579) | (7,675,457) | ||
| Amortization | 1,687,563 | 1,906,638 | ||
| Accretion | 348,977 | 268,022 | ||
| Interest | 3,592,574 | 2,160,536 | ||
| Share based compensation | 167,532 | 768,996 | ||
| Loss on derecognition of right-of-use asset and lease obligation | 2,603,240 | - | ||
| Loss on derecognition of property and equipment | 3,060,808 | - | ||
| Gain on forgiveness of loan | (97,144) | - | ||
| Loss on provision for facility related obligations | 2,478,988 | - | ||
| Loss on write-off of prepaid expenses | 386,265 | - | ||
| Non-recurring transaction costs (1) | - | 830,737 | ||
| Adjusted EBITDA | (347,776) | (1,740,528) |
(1) Adjusted EBITDA is a non-IFRS measure defined as earnings (or loss) before interest, taxes, depreciation, amortization, share-based compensation, and accretion.
- Interim CEO Amrit Maharaj commented on the results:"These numbers reflect the significant progress we've made in aligning our business model with our core strengths. Revenue growth from our bakery operations was exceptional on a full-year basis, underscoring the strength of the Purebread brand. Just as importantly, we substantially reduced costs and delivered our strongest adjusted EBITDA performance to date. This is a major milestone that positions us well for sustainable growth and profitability moving forward."
FY 2025 Operational Highlights
Purebread Bakery Expansion
- The Company opened a new bakery in Q1 of FY 2025, located on West 4th in Vancouver. This launch demonstrated the capability of the new management team to uphold Purebread's brand standards.
Streamlined Shared Kitchen Operations
- Cost reductions: Continued to lower operating expenses while growing revenue, with further profit maximization efforts planned for future quarters.
- Closures: Transitioned two Coho Commissary locations (Pandora Street and Gibsons) back to landlords and closed the East Hastings and Victoria Public Market sites. These strategic changes will help streamline operations and allocate resources toward expanding Purebread Bakery.
- Announced that it has entered shares-for-debt agreements with lenders, to convert $5,577,570 of outstanding debt to shares, strengthening the Company's balance sheet and enhancing financial flexibility for future growth initiatives.
- Implemented a 5-for-1 Common Share consolidation to optimize its capital structure and enhance the long-term value for shareholders.
About Purebread Brands Inc.:
Purebread Brands Inc. is a leader in fast-casual cafe / bakeries in British Columbia, driving retail expansion in vibrant communities across Canada and beyond. Purebread is committed to crafting exceptional food experiences and making a positive impact on the communities it serves.
For more information and updated investor presentation, please visit www.purebreadbrands.com or contact:
Amrit Maharaj, Interim Chief Executive Officer
(604) 889-5865
info@purebread.ca
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 release.
Non-IFRS Measures, Reconciliation and Discussion
This press release contains references to "Adjusted EBITDA" that is a non-IFRS financial measures. Adjusted EBITDA is defined as earnings (or loss) from operations before interest, taxes, depreciation and amortization, adjusted for share based compensation, accretion and non-recurring transaction costs, and is a non-IFRS measure.
For Adjusted EBITDA: 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 Coho's financial statements. Reconciliations of the supplemental non-IFRS measure are presented in the Company's MD&A for the year ended March 31, 2025 ("FY 2025 MD&A"). 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)" in the Company's FY 2025 MD&A, which is available under the
Company's System for Electronic Document Analysis and Retrieval ("SEDAR+") profile on www.sedarplus.ca.
Forward-Looking Information
This press release may contain "forward-looking statements" and "forward-looking information" (collectively, "forward-looking statements") within the meaning of applicable securities legislation, which reflect management's current expectations regarding future events. Such forward-looking statements include, but are not limited to, forward-looking statements with respect to plans, intentions, beliefs, and current expectations of the Company with respect to future business activities, expansion and operating performance.
Forward-looking statements are frequently characterized by words such as "plan", "project", "intend", "believe", "anticipate", "estimate", "expect" and other similar words, or statements that certain events or conditions "may" or "will" occur. Although the Company's management believes that the assumptions made (and the expectations represented by such forward-looking statements) are reasonable, there can be no assurance that any forward-looking statements referenced herein will prove to be accurate.
Forward-looking statements are not based on historical facts but instead reflect the opinions and estimates of management at the date the statements are made and are subject to a variety of risks, uncertainties, and other factors that could cause actual results or events to differ materially from those anticipated in the forward-looking statements. These risks, uncertainties, and other factors that could cause actual results to differ materially from those in forward-looking statements include: reliance on key personnel, protection of our intellectual property rights, competition, a failure to establish additional locations, disruption at our facilities, global pandemics (such as COVID-19) and corresponding impacts on the Company's business, government regulation of the virtual kitchen industry, the price of raw materials, consumer trends, climate change, cybersecurity, food safety and consumer health, brand value, internet search algorithms, reputation risk, risks associated with leasing commercial and retail space, effect of service and facility innovation, failure to retain current members and/or recruit new members, litigation risk, failure to meet expectations of our values & metrics, risks associated with acquisitions, management of growth, a history of losses, negative cash flow, additional funding requirements and risks, dividend risk, increased costs of being a publicly traded company, global economic risk, and share price volatility risk.
The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates should change, except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. More detailed information about potential factors that could affect results is included in the documents that may be filed from time to time with Canadian securities regulatory authorities by the Company.
For a more detailed discussion of certain of these risk factors, see the heading "Risk Factors" in the Company's most recent MD&A, available under the Company's SEDAR+ profile at www.sedarplus.ca.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/269231
SOURCE: Purebread Brands Inc.