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EMERGE's latest acquisitions of WholesalePet and BattlBox exhibited strong profitability in their first full quarter under EMERGE ownership
EMERGE CEO to host webcast today at 11:00 AM ET (Register Below)
TORONTO, March 31, 2022 /CNW/ - EMERGE Commerce Ltd. (TSXV: ECOM) ("EMERGE" or the "Company"), a diversified acquirer and operator of niche e-commerce brands, is pleased to provide a corporate update related to its recent acquisitions of WholesalePet.com ("WholesalePet") and BattlBox Group ("BattlBox").
Recent Acquisitions Update
WholesalePet, a profitable business-to-business ("B2B") pet marketplace, was acquired by EMERGE on November 15, 2021. The business, now EMERGE's largest in terms of Gross Merchandise Sales ("GMS")(1), drove strong profitability through its first full quarter under EMERGE ownership, as demand for pet products remained robust in a post-pandemic world.
Ghassan Halazon, Founder and CEO of EMERGE, commented, "WholesalePet continues to exhibit terrific operational consistency with positive organic growth and strong cash flow conversion through its first full quarter under EMERGE. WholesalePet's sticky B2B marketplace model, which includes average customer tenures of 10 years for its best clients, has encouraged us to look into other similar models, both organically and via potential acquisitions down the line."
BattlBox, a profitable outdoor gear subscription service, was acquired by EMERGE on October 6, 2021. The business has driven strong profitability through its first full quarter under EMERGE ownership, despite the challenging advertising and supply-side environment facing most direct-to-consumer ("D2C") brands.
"BattlBox drove significant profitability in its first-quarter under EMERGE, exceeding management's expectations. The BattlBox team has demonstrated their ability to remain ahead of the curve in a turbulent digital advertising climate, diversifying customer acquisition channels by growing its TikTok to have over 3M likes, along with over 392K followers, and continuing to receive brand awareness through the Netflix show, Southern Survival, where it was featured."
EMERGE is advancing multiple acquisition opportunities and anticipates making additional acquisitions in 2022.
"We are pleased with the acquisitions we closed in 2021 and look forward to extracting synergies under our shared services model, this year and beyond. In parallel, we continue to seek other proven, profitable businesses to add to our family of brands in the near-term," continued Halazon.
Non-GAAP Financial Measure. Refer to section "Non-GAAP Financial Measures" below for additional information.
EMERGE Founder and CEO, Ghassan Halazon, will host a webcast (today) (March 31, 2022) at 11:00 AM ET, during which he will discuss the Company's business performance, provide updates on the M&A pipeline, and take questions from investors.
Link: https://us06web.zoom.us/webinar/register/WN_MdlL9JLGTb6HT4z9Npy_5g V
Webinar (Zoom) ID: 818 8200 7856
EMERGE Commerce Ltd. (TSXV: ECOM) is a disciplined, diversified, rapidly growing acquirer and operator of profitable niche e-commerce brands. EMERGE's subscription and marketplace e-commerce properties provide their members with access to pet products, premium meat & groceries, outdoor gear, golf, and other curated experiences. EMERGE's portfolio houses some of North America's most coveted online destinations, including WholesalePet.com, truLOCAL.ca, BattlBox.com, UnderPar.com, JustGolfStuff.ca, CarnivoreClub.co, WagJag.com, and BeRightBack.ca. EMERGE was named one of the fastest-growing companies in Canada by the Startup 50, and the Globe and Mail's 2020 Canada's Top Growing Companies.
To learn more about EMERGE, visit https://www.emerge-brands.com/
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release makes reference to certain non-GAAP measures. These non-GAAP measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing a further understanding of results of operations from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the financial information of the Company reported under IFRS. Gross Merchandise Sales ("GMS") should not be construed as alternatives to revenue or net income/loss determined in accordance with IFRS. GMS does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers.
GMS as defined by management is the total dollar value of customer purchases of goods and services, excluding applicable taxes and net of discounts and refunds. Management believes GMS provides a useful measure for the dollar volume of e-commerce transactions made through our platforms and an indicator for our business performance.
Notice regarding forward-looking statements
This press release may contain certain forward-looking information and statements ("forward-looking information") within the meaning of applicable Canadian securities legislation, that are not based on historical fact, including without limitation statements containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts" and other similar expressions. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. The Company undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of the Company, its securities, or financial or operating results (as applicable). Although the Company believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including the risk factors discussed in the Company's annual information form, which are available through SEDAR at www.sedar.com. The forward-looking information contained in this press release are expressly qualified by this cautionary statement and are made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
On Behalf of the Board
Director and CEO
SOURCE EMERGE Commerce Ltd.
View original content: http://www.newswire.ca/en/releases/archive/March2022/31/c7840.html