Business
Progressive Planet Reports Third Quarter - For the three months ended January 31, 2023
Progressive Planet Reports Third Quarter - For the three months ended January 31, 2023 ...
About this update from Progressive Planet Solutions Inc.
[{"type":"text","content":"\n \n \n \n Progressive Planet Reports Third Quarter - For the three months ended January 31, 2023\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n /NOT FOR DISTRIBUTION IN THE\n \n USA\n \n /\n \n \n \n \n HEAVY INVESTMENT IN RESEARCH & DEVELOPMENT CONTINUED FOR NEAR TERM GROWTH\n \n \n \n \n Highlights:\n \n \n \n \n Revenue of\n \n $4.5 million\n \n versus\n \n $5.4\n \n in the prior quarter\n \n \n \n Transition from low margin product lines to higher margin alternatives\n \n \n \n \n Gross margins of 27% versus 32% in the prior quarter\n \n \n \n Increase in R&D to\n \n $302,000\n \n from\n \n $112,000\n \n in the prior quarter, and,\n \n \n Net loss of\n \n $456,000\n \n versus net income of\n \n $81,000\n \n in the prior quarter.\n \n \n \n \n \n KAMLOOPS, BC\n \n \n ,\n \n \n April 3, 2023\n \n \n /CNW/ - Progressive Planet (\"PLAN\") today announced financial results for its fiscal 2023 third quarter ended\n \n January 31, 2023\n \n .\n \n \n \n \n \n \n \n \n \n The Company saw both reduced revenue and slightly reduced margins in the quarter, which were a result of one-time events and costs related to the execution of its strategic growth plan to transition from low-margin to high-margin products that will improve EBITDA.\n \n \n The primary reason for the reduction of revenue in Q3 was a choice by Progressive Planet to cease supplying its largest customer with private label cat litter after reasonable price increases were refused. These price increases were essential for Progressive Planet to make sufficient gross margin to meet its profit per product objectives. The final shipment of product to this customer occurred in November as stated in the Management Discussion & Analysis (MD&A) for the previous quarter.\n \n \n This customer represented approximately 20% of revenue in prior years, with the bulk of the business supplying private label clumping cat litter. As previously stated in our strategic plan, this line was not a future focus due to its low margins and...