Hello, welcome. If you tune in to Investor Update from overseas, a very good morning to you. If you watch this live, you can, as always, interact with the management and thus by adding your comments in the live chat. We will deal with the comments after the presentation. It is high time to welcome Gord Davey, CEO of Delivra Health Brands. Hello, Gord. How are things in Ontario?
They are great. Thank you for asking, Carlos. They're wonderful.
Excellent. Gord, please walk us through how to build a community of natural wellness, your company structure, and your many products. Gord, the floor is yours.
Thank you very much. I really appreciate that. I will take everybody through a presentation here that gives you an overview of what Delivra Health Brands is and where we are going. Again, at the end of this, we'll have some questions, and hopefully we'll be able to answer any questions that you may have. I think we'll go on to the next slide, please. This is just a disclaimer, as everybody would put out there. Just letting everybody know that what we talk about, we're a publicly traded company, so what we talk about is part of that. Next slide, please. Who is Delivra Health Brands? We are a global portfolio of brands, and you can see a display of products here.
We have three major brands inside Delivra Health Brands, and we're helping people take control of their lives through natural products inside the marketplace. Our three brands are LivRelief, which is a plant-based natural pain relief topical that we have in various forms for muscles and joints and arthritis and nerves and varicose veins, as well as any types of cuts or bruises or itches. We also have our Dream Water brand that we have several varieties in, in different functionalities, both in gummies and sleep shot format. We also have our LivRelief Infuse, which is an extension of our LivRelief over-the-counter products at the top, and they are in regulated markets in the Canadian market space. Can you go to the next slide, please? This is a really important slide as a Delivra Health Brands.
As investors that are watching this, what I would say as you look at this slide is that as a management group, we have looked to de-risk our company from where we were back in 2020. As you can see this timeline that has stretched over the past four to five years, it has been a responsible turnaround program that we have put in place. Back in 2020, we were in real difficulty with debt, with low margins, with negative EBITDA, and with SG&A expenses that were really out of control. Through a responsible strategic turnaround, we have not only changed this pattern, but we have done it exponentially. You can see that our margins now, moving through the timeframe of this four years, margins have increased. We've gone from a negative EBITDA to a positive EBITDA.
We have taken our revenue, consistently growing it throughout these years. As investors watching this, what is important about this slide is the de-risking of the company from 2020. We have now taken that risk out, and we can move forward in an accelerated plan. Next slide, please. How do we do that? We have our key pillars that we look at and how we structure our company. These are six things that we focus in on each month, each quarter, each year, and we continue to expand on them. We invest into our people and our support. Making sure we have the right people in the right place at the right time, it is very important for that. We are lucky and fortunate at Delivra Health Brands to have strong consumer packaged goods professionals inside our team. We continue to market and brand build.
It's very important when you have brands such as ours that we continue to market and bring awareness programs through e-commerce, through integrated programs, and social influencers. We continue to do business development. This is absolutely critical to the growth of Delivra Health Brands, focusing in on relations, planning, strategic growth, expanding our broker network, and having sustainable, responsible growth inside our company. The allocation of our investment in our funds. As a consumer packaged goods company, there is cost of doing business when you are accelerating your growth. There's investment into listing fees and programs and promotions and shelf space. We do this responsibly. It's an important aspect to how we sustain our business responsibly going forward. Investor Relations, exactly what we're doing now. We're bringing our company to you so that you can see what we're doing and why we're doing it.
It's a very important piece to get our brand and our company out there to the marketplace and for the investors to take advantage of that de-risking that we looked after four years ago. Obviously, making sure that our operations are in check. Production, innovation, expansion, efficiency is very important to the sustainability of a company. Next slide, please. This is our vision and mission. It's very important. We are building a community of wellness naturally, and we'll continue to do so. It's very important to us that we stay true to those route-to-market principles and become a very large consumer packaged goods leader in the health and wellness space. Next slide, please. Here's investment highlights that we are positioned for accelerated growth. This is an important aspect. It's not just positioned for growth. It's for accelerated growth. We have the right people on our team.
We have an experienced consumer packaged goods leadership team. With that experience, we're able to make decisions that are quick, nimble, and educated. We have a product portfolio and innovation and a pipeline that is extensive. We have a five-year plan in innovation on functionalities, expansion, and growth in innovation. What's really important is that we have such a large marketplace. Everybody on this call, 100% of the population goes to sleep at night. We have a very large audience when it comes to the sleep category. 70% of the population does have pain at some point in their life, whether it's through muscles or joints or nerves, and everybody has a cut or a bruise. We have those natural products to provide to the marketplace. Our process is that we have established distribution relationships and partnerships that are extensive and long-lasting.
It's one of the things that's very important to our group is that we sustain the business as we get it. What we have done is we've continued to make sure that we market correctly and provide the right programming. We have taken on an asset-light strategic manufacturing and supply chain model. What that does, that de-risks us from having large overheads and large production costs for our products. It's been actually worked out very well and really helped in our margins and our sustainability in the business. Next slide, please. This is a model for effective and efficient consumer packaged goods companies. This is how we have done it. In-house, we look after all our branding, all our controllables. We look after our intellectual properties and our brand guidelines, everything that we do inside the company, our e-commerce strategies, our sales, and distribution strategies.
We look after everything that we can control inside our company in our house. What we outsource is the asset-light model. We outsource our operations so that we have turnkey situations where we just put in an order and we receive the product. That is an important aspect to controlling your costs and understanding where your margins will be. As we continue, these two pieces add into this revenue generation. How do we do that? Through new product offerings and expansion with our products and services, both geographically and channels. We are growing exponentially outside of North America. Inside North America, we are growing by expanding channels in convenience and travel and hotels and grocery. Those will continue to accelerate as we continue our model. Next slide, please. These are our brands. We are a natural supplier of products.
We provide a sleep solution with our Dream Water. As I alluded to earlier, 100% of the population goes to sleep every night. When we have expanded in our innovation, we've added in gummies, we've added in functionalities into our brand, and we continue to grow not only in North America, but outside of North America globally as well. We also have LivRelief, our chronic pain relief. This is unique. It's not your typical pain relief cream. It is established for chronic pain. That's something that's unique to the marketplace. We have very strong retention in both of these products, in both of our brands, LivRelief and Dream Water. The retention and the people that are buying it is at the highest level in the marketplace. That's very important. Now it's our job to get that product to more people.
Our Infuse LivRelief is a product that is in the regulated markets in Canada, and it is distributed through a licensed producer in Canada. We have expanded in this category. We had three SKUs, and now we're up to six SKUs. Continued innovation and expansion. Next slide, please. What's in Dream Water? We're not going to give you the whole formulation, but what we're going to do is let you know what's in our proprietary blend. There's a lot of products in the marketplace for sleep that just have melatonin. That's an important aspect to the formulation. Our proprietary blend of these three ingredients slows you down with the GABA, puts you to sleep with the melatonin, and keeps you to sleep with the 5-HTP. We encourage everybody on this call to try our Dream Water Sleep Shots and our Dream Water product.
It's a very relaxing, long sleep, excellent sleep for you to take. We continue to grow exponentially with this product. We have campaigns, as you'll see in the top there, Shush Your Mind. We have done market research around what is so important to that consumer. The initial aspect of closing down your mind at night is something that's very important. We have a campaign around that. You'll continue to see that develop as we go. Next slide, please. Amazing distribution that we have. This list continues to grow. It continues to soar. It continues to grow in partnership. What's really important, excuse me, about this slide is the sustainability and retention of these customers. It's very important. When we get in, we are keeping our customers, and we're being responsible to which customers we go to.
Through Dream Water, we have grocery, travel, convenience, and we have several distributors inside that. Next slide, please. Our LivRelief is an all-natural, plant-based product that targets pain fast, quickly, and through our proprietary intellectual property of our delivery system. It is very unique to the marketplace. It is patented. We have over 33 patents with our LivRelief brand that we grow and expand with. Our LivRelief chronic pain relief cream is a patented approach that is unique to the marketplace. Again, the "Quiets the Chronic Pain" is our marketing campaign that we continue to go forward with. Next slide, please. Again, where it targets. This is LivRelief and our Transdermal Delivery System. This is the intellectual property and the patented approach that is clinically proven to get to the source of pain. This is unique and proprietary to Delivra Health Brands. Next slide, please.
LivRelief available in Canada right now, what an opportunity to expand this globally. As you can see in the Canadian marketplace, we are in every major drugstore, every major grocery store, in convenience stores. We are on Amazon and Shopify. We are in a little over 5,000 stores with our LivRelief product and continue to grow. Our plan with LivRelief is to expand it globally into the North American market as well as the global market. Next slide, please. Our LivRelief Infuse product is available in regulated markets in Canada through provincial boards as well as medical platforms. This is a brand that continues to grow inside this regulated market and will continue to work with our licensed producer to expand, grow, and develop this product. Next slide, please. The global market is extensive for both of these products.
The categories are in the billions, and we have a market share inside these global markets. You can see that the sleep category is over $53 billion by 2032, and our topical pain creams are over $10.6 billion now and up to $16 billion by 2032. We have a presence inside this market. We need to continue to develop, grow, and expand inside these markets, which we are, and we continue to do so. Next slide, please. This is a slide for us to show you some continuous improvement inside our company. It is one of the things that, as a group, we talk about, and that is continuous improvement. I'll just take you through a couple of top-line pieces here. You can see that our revenue has consistently increased from June 2020 to June 2024. It is a continuous increase that we'll continue to see as we move forward.
Our net revenue has increased as well inside that. So we are not only growing our top line, but we are growing our bottom line as well. I want to bring reference to the difference in our margins. You can see that we had a 9% gross profit percentage back in 2020. We have now, through dedicated and responsible business practices, moved that up to 52%. Why is this important? It's so important so that we can take these margins and invest them back into the company, which we are doing. Marketing programs, awareness programs, innovation programs. So that will continue to be the strategy. What's really important here is to look at where our SG&A expenses were. Back in 2020, we had over $12 million in expenses, and now we have responsibly brought these down to $5.7 million in 2024, which is extremely important.
Now, let's look at the last line there, and that is the EBITDA that we've been able to turn around in these past four years. Working at a negative $9 million EBITDA is a very risky situation. What we have done is, through our strategic review and through responsible programs, you can see now that we are actually making money at $871,000 in June 2024. These are numbers that will continue to increase as we accelerate our growth in the marketplace. We're responsible in what we do and why we do it. We see nothing but huge opportunity going forward. Next slide, please. This is our market information and our strategic investors. Through management and strategic investors, we continue to increase our presence, and that is 33% of the market share. Our public float is 67%, making up the full 100%.
We have some options and warrants out there, and our fully diluted shares are 40 million. Next slide, please. The 13. Experienced, professional, and educated. So we have Jack Tasse, who's our Chief Financial Officer, very strong in the business and very fortunate to have such a structured CFO on our team. Tim Young and Rob Emery, both very experienced Consumer Packaged Goods professionals. We're very fortunate to have such a team. Next slide, please. Our board is diversified in finance, in pharma, in consumer packaged goods. We're able to cover off each of these areas. We're able to receive feedback, direction, and understanding through our board. We're very fortunate to have such a board involved with our team as well. Next slide, please. As I finish this presentation, I would like to put you through to this.
If you have any questions or you have any other comments, you can certainly contact us at our website and through our investor relations email and phone number here. I will now turn it back to Carlos for questions, and I appreciate your time in making this presentation to you.
Thank you, Gord. That was very interesting and educational, I must say. Let's start to kick off with a question. First thing first, you had a slide where you talk about the market value. Given the fact that you have come from a turnaround case and you may have felt that it took a very long time, you're not the oldest kid on the block here. What kind of market share are you—do you have now and are you aiming for?
Yeah, thank you. That's a great question to Carlos to ask.
We look at our market share in segments. Our largest channel right now that we are in is in the travel section. In every airport in North America, we have our Dream Water product. That product now has four SKUs inside those airports. We control in that, in the sleep category, someplace around a 60% market share inside those airports. There are a few other competitors, and we continue to see the competitors come in from the larger companies trying to provide products that are similar to us. We have a good hold in that marketplace. We continue to grow in the grocery, convenience, and drug channels with our Dream Water product, and we continue to grow our market share. With our LivRelief brand in the Canadian marketplace, we continue to hold in the all-natural plant-based products.
We are one of the top producers in Canada and top market share with that product in the all-natural plant-based. We have real strong competition in people like Voltaren and A535. We do have some competition there, but we continue to differentiate ourselves inside those marketplaces.
You mentioned a couple of brand names there. Educate us here. The peer group, whom among the listed companies would you like us to compare you to? Is that excluding for the alternative wellness market, or would you like us to look at other companies when it comes to your growth and other key metrics?
Yeah, I think that there's a lot of competitors out there that we continue to see come into the marketplace. I think larger companies like Jamieson is something that we aspire to be in their route-to-market principles.
You are seeing Johnson & Johnson and GSK. They're into the marketplace in the sleep categories, not in the natural categories, but they are trying to get into this large marketplace of sleep and providing things like ZzzQuil and those types of things that will be in the marketplace. As a group and competitive-wise, we have competition that we regard in the highest respect because they continue to grow and they have good market presence and they have good brand awareness. They do a really good job in promoting products inside that space. We're okay with that because it brings more eyes on that space, and we'll take advantage of not only our marketing, but their marketing as well. That's how I'll answer that question, Carlos.
Sometimes the competition would actually help you spreading the awareness of, let's say, the products to solve because, as you said, everyone sleeps.
That's right. Yeah, I think, Carlos, I think that's a really important piece, right? Companies our size, we have to look at all aspects of opportunities. When we see opportunities like larger companies that are promoting inside the space, we take advantage of that as well.
You referred to your size, and you had two slides with partners as you referred to and also as customers. There's not only a very long list, but also very strong household names. Who finds who here? Do they find you? Do you find them? Is it a lot of effort to get hold of your partners, customers?
I think that it's a strategic approach, Carlos, to that.
Wouldn't it be nice if everybody just came to us and said, "Hey, we want your product"? That would be a wonderful solution. Now, we do get some of that, of course. Every once in a while, we do get customers coming to us. We have a very strong strategic plan in how we are accelerating our market. It is through channel strategies and global strategies, geographic strategies for growth. We have strategies in grocery channel, the drug channel, the mass channel, the convenience channel, the alternative wellness channels. We continue to develop very strong, responsible programs inside those areas.
That leads me to the next question, which is a combination here because obviously, if you want to have tractions, you need to make a song and dance of it.
I combine that with a strong quarter, as I understand it, and also an uptick in trend year on year when it comes to sales. You have invested in a sales force. What do you think we should expect going forward? Will you have to invest even further in the sales force to continue with this growth, or is it steady as you go at this moment?
It's another great question because our model is around two things. One, we have a sales force that works specifically for Delivra Health Brands, but we also use a broker network, Carlos. That means we have brokers inside each country that help us get out to the customers that have pre-established relationships. In a company our size, many of us use broker systems in order to cover such a large geography, both Canada, the U.S., and global.
We'll continue to do that. We'll continue to grow. We'll continue to add more people to our team. We'll continue to add more people to our marketing platforms. We'll continue to bring in resources to expand our awareness and reach of our products. The answer to that is you'll see more of it. As you continue to grow your revenue, your margin, and your EBITDA, you're able to reinvest that money back into your products. That's what we're doing. That is our goal.
If I understand you correctly, as it stands now, you can continue with new accounts, deeper penetrations, and new geographical areas with the setup that you have now, at least for 2025.
Oh, absolutely. Here's what happens.
We have a broker network, and we have presentations that we have been making so that we have a pipeline fill as we continue to grow. When you present, you do not present today and get the order tomorrow on floors and cars. Wouldn't that be nice if we could do that? There is a process and programs that we have to follow in order to do that. There is a process inside retail outlets. The retail piece is one that is really important. The other aspect that we really look at is our e-commerce. We continue to develop, grow, and strengthen our e-commerce platform.
You touched upon one thing there. Wouldn't it be swell if we all got paid tomorrow here?
If we look at the cash flow and the revenue stream here, am I right in assuming that it's more on a monthly or a quarterly basis than on a daily, weekly basis?
Again, it's staggered when we receive our money. We use a distributor and broker network. We're not what they call a DSD or a Direct Store Delivery company. We are not out making those deliveries. We get paid, and orders come in monthly and quarterly. That's a really important aspect. As a publicly traded company, when we file our quarterly reports, we may have a very large order that doesn't land in the end of that month but goes into the next month. There's a bit of fragmentation there when it comes to reporting.
Our goal is to sustain that and continue to grow that so that we have pipeline each and every quarter so that that's maintained. We're seeing more and more of that as we develop as a company.
If we look at the, in my humble opinion, very handsome margins here, how much control do you have of the cost side? As you now mentioned, the income side is, well, it's steady, but it's not, let's say, on a daily basis, whereas cost may be. How do you control your cost?
Yeah, it's a great, another, you're asking really great questions and how we understand this. One of the things that is in our strategy, as you saw, is getting the right people in the right places. We're fortunate to have one of the best operational people in Canada, and that is Tim Young.
Tim comes from a world of experience through Molson Coors and 25 years' experience running the operations and the contract manufacturing with such a large company. He brings that acumen with him. We do monthly, quarterly programs to not only control our costs, but to work on competitors to make sure that we always have the right amount of operational excellence. Controlling those costs in our contract manufacturing is one of the things that sets us apart. It de-risked us from those costs. That allows us to maintain our margins and allows us to keep those in a higher level so that we can invest back into our innovation and marketing.
Obviously, if one look at the history here, going from a negative EBITDA to a positive one, obviously the proof there is in the pudding.
What do you want us in the market to look for news-wise the coming month or quarter?
Yeah. There's lots. There's a lot of and thank you for asking because I think that's really important. Our sales team, our broker network, have been relentless in getting in front of the customers. You're going to see increased customers in grocery and the grocery channel, both Canada and the U.S. You're going to see geographical expansion with our Dream Water product in the Middle East and more countries coming on. You're going to see development in innovation that's coming on. You're going to see us we have presented to major customers. We are very happy with our presentations that we've made, which is really important. We're really happy with how we've made these presentations and where we believe these decisions will fall out.
I can't say much more than that as a publicly traded company. What you can expect is more customers, more channels, more geographical areas. That's what an investor could expect.
We should see the harvest of the hard toil that the company and yourself are doing here. My final question here is the end game. Why haven't the big boys already engulfed you or bought you?
We're not ready for them to quite ready for us to be sold off right now. We have a lot more work to do. It's not that maybe they have talked to us, Carlos. Maybe they have. We're not quite ready. We feel that we have a lot more runway, a lot more expansion, and a lot more to do. I'm not saying they haven't. All I'm saying is that we're not quite ready.
Excellent. Thank you, Gord.
Where to turn to if anyone wants more information? They should turn to your web page, to yourself?
That's it. Yeah, exactly. Web page, myself, through our CFO, Jack Tasse, who's just a great person I have on our team. Anywhere through that, it's all through our website that you can contact us. Contact me directly if you want.
Thank you, Gord. It's been an absolute pleasure and very educational. Not that you need it, but I will wish you the best of luck. Thank you for participating in this broadcast.