Heritage Brands Limited (NSX:HBA) Annual Report 31 July 2021

Sydney, Oct 1, 2021 AEST (ABN Newswire) - Heritage Brands Limited (NSX:HBA) is pleased to advise that the Company has delivered a material improvement for the financial year ended 31 July 2021 with EBITDA of $2.1m (FY20: $1.7m) and net profit after tax of $106k (FY20: $2.4m loss).

Heritage continues to be impacted by the Covid lockdowns in key cities and key retailers which has caused a significant downturn in sales in both our beauty and self-tanning brands. However, our investment in pure essential oils and skin care has seen solid growth year-on-year and has been a significant contributor to the improved profitability of the Company.

Despite these challenges, the improved results in 2021 have set the platform for continued improvement through:

- a further restructure of the Company's overhead base which is now more aligned with current and forecast trading conditions;

- negotiating more equitable trading terms and improvement in distribution points with key retailers;

- more targeted and profitable promotional activity, rather than market share at any cost;

- investment in and growth of online ecommerce channels and export initiatives with a focus on our pure essential oil brands and skin care. In particular, In Essence and Le Tan are experiencing strong growth in key Asian markets;

- improving margin within the colour cosmetics portfolio; and

- ensuring that our existing portfolio and all new product development is ethical, sustainable and reduces the impact on our environment and their communities.

In light of the enduring economic impact of the Covid pandemic, especially in New South Wales and Victoria, we will continue to review all aspects of the business. Whilst the start to the first half of the 2022 financial year has shown improved results, we maintain a cautious outlook due to the continued uncertainty surrounding the economic health of retail markets both here and abroad.

To view the report, please visit:
https://abnnewswire.net/lnk/IT45RBY8