Delivra Health Brands Inc.
Q2 Revenue Rebound: Building Momentum with Increased Marketing
Published: 3/5/2025
Author: FRC Analysts
Sector: Healthcare | Industry: Drug Manufacturers-Specialty & Generic
Ticker Symbols:DHBUF - NASDAQ 🔹DHB.V - TSX 🔹
Rating and Key Data
| Metrics | Value |
|---|---|
| Current Price | CAD $0.16 |
| Fair Value | CAD $0.73 |
| Risk | 3 |
| 52 Week Range | CAD $0.15-0.55 |
| Shares O/S (M) | 31 |
| Market Cap. (M) | CAD $5 |
| Current Yield (%) | N/A |
| P/E (forward) | N/A |
| P/B | 1.2 |
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Report Highlights
- Earlier this month, DHB completed a 1:10 share consolidation.
- Q2-FY2025 (ended December 2024) revenue grew 34% YoY, 4% below our estimate, driven by orders from large customers, and a stronger US$. We had projected a Q2 rebound, as Q1 revenue was unusually low due to order timing mismatches.
- Management remains confident in achieving YoY revenue growth this year, following four consecutive years of growth: 2% in FY2021 and FY2022, 20% in FY2023, and 26% in FY2024.
- DHB’s products are available at 30k+ distribution points, including established retail/pharmacy chains such as Shoppers Drug Mart, Walmart (NYSE: WMT), and Kroger (NYSE: KR). DHB sells sleep aid products through its Dream Water brand, and pain relief products through its LivRelief and LivRelief Infused brands. In Q2, 75% of sales came from the U.S., and the Middle East (Q1-FY2025: 79%), and 25% from Canada.
- Higher marketing expenses weighed on EBITDA, EPS, and free cash flows. Marketing costs rose 5 pp YoY to 21% of revenue in Q2, reflecting management's optimism for the coming quarters. We beli
