Ann: Director Resignation, page-38

The brands division delivered a $1.1m EBITDA loss. I’d like to understand this in a bit more detail.

One aspect contributing to the loss in Brands was the heavy marketing spend to the tune of $0.8m (think non stop influencers on IG) has all but stopped as penetration into the gym space has now been achieved.

Another impact would have been the rebates etc being offered to distributors to get the initial stocking and momentum.

I think adjusting for these two factors and with continued growth, it won’t be long before Brands is delivering a tidy EBITDA profit to the consolidated business.

A $1m EBITDA profit instead of the $1.1m loss posted for 2021 would mean more or less the difference between a normalised consolidated EBITDA loss and a consolidated EBITDA break even.