Mene Inc. Reports Financial Results for Fiscal Year 2023

TORONTO, April 29, 2024 (GLOBE NEWSWIRE) -- Men? Inc. (TSX-V:MENE) (US:MENEF) ("Men?" or the "Company"), an online 24 karat jewelry brand, today announced financial results for the fourth quarter and fiscal year ended December 31, 2023. All amounts expressed herein reflect Canadian dollars, unless otherwise noted.

FOURTH QUARTER FINANCIAL HIGHLIGHTS

• IFRS Revenue of $6.9 million and Non-IFRS Adjusted Revenue of $7.9 million.
• Generated Gross Profit of $1.7 million.
• Operating Loss of $0.7 million.
• Generated Cash from operations of $3.0 million.
• Sold metal weight of 69 kg and 7,342 Units of Jewelry.
  

2023 FISCAL YEAR FINANCIAL HIGHLIGHTS

• IFRS Annual Revenue of $23.3 million and Non-IFRS Adjusted Revenue of $27.7 million in Fiscal Year 2023, a decrease of $3.6 million and $4.6 million respectively, YoY.
• Annual Gross Profit of $5.8 million, a decrease of $0.8 million, YoY.
• Operating Loss of $1.2 million and Total Comprehensive Loss of $2.2 million.
• Non-IFRS Adjusted Gain of less than $0.1 million.
• Total Cash used in operations amounted to $0.9 million during the year.
• Sold 25,466 Units of Jewelry through 16,380 Customer Orders.
• Jewelry Weight Sold totalling 235 kgs.
  

OPERATIONAL HIGHLIGHTS

• Cumulative units of jewelry sold since inception reached 143,000 as of the 2023 year end.
• Full repayment of the Goldmoney Inc. loan with total repayments of $12.84 million for the year.
• Launched the new Egyptian and Pet Tags collections, along with personalized engraving.
• Introduced 51 new product designs throughout the year.
• The Heart and Nail Necklace was sold at Christie's Paris Jewelry auction.
• Featured at Sotheby's and in L'OFFICIEL UK, LesEchoes, Stylist, Le Journal Des Femmes, Marie Claire, Christie's, Vanity Fair and L'OFFICIEL Paris.
• Sales to Returning Customers made up 70% of total sales in 2023. Customer satisfaction remains high at 95% on average across the various service channels.
• Registered over 40,000 independent customer reviews on mene.com/reviews since inception.
  
  

STATEMENT FROM CEO VINCENT GLADU:

At Men?, we concluded yet another important year in 2023, starting with strategic leadership appointments to guide us towards the next chapter of our growth story. In September, I assumed the role of Chief Executive Officer, succeeding our founder Roy Sebag, who transitioned to Executive Chairman. We also welcomed Gavin Johnson to our leadership team as CFO in July.

We recognize the immense potential that lies ahead for Men?. To that end, mirroring our product philosophy, our business strategy prioritized enduring value over short-term fluctuations. The reduction in sales volumes in Fiscal 2023 is seen in this context, where our focus remains on re-aligning our operational model for long-term, sustainable, and profitable growth. Our commitment to craftsmanship and heritage remains paramount, and we eschew fleeting sales tactics in favor of strategies that cultivate enduring customer loyalty.

The latter half of the year saw the culmination of a refreshed strategic plan, designed to unify our vision, and establish a scalable operating model. This plan encompasses several key initiatives, including a targeted realignment of our public relations efforts towards the North American market, a comprehensive review of our creative asset production for enhanced efficiency, and the implementation of 3D product models on our website to elevate the customer experience.

Fiscal Year 2024 will be a period of transformation for Men?. We continue to identify opportunities to optimize our operations across all facets of the organization. Through this process, we will ensure Men? is ready to capitalize on the opportunities that lie ahead, while maintaining our unwavering commitment to empower our customers with exceptionally crafted jewelry that preserves its purchasing power.

Non-IFRS Measures

This news release contains non-IFRS financial measures; the Company believes that these measures provide investors with useful supplemental information about the financial performance of its business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating its business. Although management believes these financial measures are important in evaluating the Company's performance, they are not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with IFRS. These non-IFRS financial measures do not have any standardized meaning and may not be comparable with similar measures used by other companies. For certain non-IFRS financial measures, there are no directly comparable amounts under IFRS. These non-IFRS financial measures should not be viewed as alternatives to measures of financial performance determined in accordance with IFRS. Moreover, presentation of certain of these measures is provided for year-over-year comparison purposes, and investors should be cautioned that the effect of the adjustments thereto provided herein have an actual effect on the Company's operating results.

Non-IFRS Adjusted Revenue is a non-IFRS measure. The Company adjusts its revenue by adding back the value of jewelry that was returned by customers, revenue from orders not yet delivered, and discounts given to customers. These adjustments are made to assess the gross revenue before deducting these items per IFRS revenue. The closest comparable IFRS measure is revenue.

Non-IFRS Adjusted Income (loss) is a non-IFRS measure. Non-IFRS Adjusted Income (Loss) is a non-IFRS measure, calculated as total comprehensive income (loss), excluding depreciation and amortization, stock-based compensation, accretion, loss on debt retirement, revaluation of metal loan, translation gain or loss, unrealized foreign exchange gains or losses and other non-recurring expenses. The closest comparable IFRS measure is total comprehensive income (loss).

Adjusted EBITDA, calculated as total operating income (loss), excluding depreciation and amortization, stock-based compensation, other non-recurring expenses. The closest comparable IFRS measure is total operating income (loss).

Tangible Common Equity is a non-IFRS measure. It is calculated as total shareholder's equity excluding intangible assets.

For a full definition of non-IFRS financial measures used herein to their nearest IFRS equivalents, please see the section entitled "Non-IFRS Financial Measures" in the Company's MD&A for the period ended December 31, 2023.

About Men? Inc.

Men? crafts pure 24 karat gold and platinum jewelry that is transparently sold by gram weight. Through mene.com, customers may buy jewelry, monitor the value of their collection over time, and sell or exchange their pieces by gram weight at prevailing market prices. Men? was founded by Roy Sebag and Diana Widmaier-Picasso with a mission to restore the relationship between jewelry and savings. Men? empowers consumers by marrying innovative technology, timeless design, and pure precious metals to create pieces which endure as a store of value.

For more information about Men?, visit mene.com.

Media and Investor Relations Inquiries:

Gavin Johnson
Chief Financial Officer
Men? Inc.
[email protected]
+1 289 748 3702

Forward-Looking Statements

This news release contains certain "forward-looking information" within the meaning of applicable Canadian securities laws that are based on expectations, estimates and projections as at the date of this news release. Any statements that involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information. In particular, but without limiting the foregoing, this news release contains forward-looking information pertaining to its business plans and goals of the Company for the current financial year, the hiring of new management, estimated potential year over year growth, marketing plans and the announcement of future plans and milestones.

This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the time it was made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others: the inability to successfully acquire and/or develop jewelry manufacturing facilities; an inability to predict and counteract the effects of COVID-19 or other pandemics on the business of the Company, including but not limited to the effects of COVID-19 and other infectious diseases presenting as major health issues and impacting the price of precious metals, capital market conditions, restriction on labour and international travel and supply chains; failure to comply with environmental and health and safety laws and regulations; operating or technical difficulties in connection with the manufacture, sale and distribution of jewelry; actual audited results differing from reported unaudited results; global economic climate; dilution of the Company's shares; the Company's limited operating history; future capital needs and uncertainty of raising capital; the competitive nature of the jewelry industry; currency exchange risks; the need for the Company to manage its planned growth and expansion; the effects of product development and need for continued technology and manufacturing change; protection of proprietary rights; the effect of government regulation and compliance on the Company and the industry; network security risks; the ability of the Company to maintain properly working systems; theft and risk of physical harm to personnel; reliance and availability of key personnel; global economic and financial market deterioration impeding access to capital or increasing the cost of capital; and volatile securities markets impacting security pricing unrelated to operating performance. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to revise or update any forward-looking information other than as required by law.

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.