BON Bon Natural Life Ltd

XI'AN, China, Feb. 2, 2022 /PRNewswire/ -- Bon Natural Life Limited (Nasdaq: BON) ("BON" or the "Company"), one of the leading bio-ingredient solutions providers in the natural, health and personal care industries, today announced its 2021 annual financial results for the fiscal year ended September 30, 2021.

FY 2021 Financial Highlights

• Total net revenues were US$25.5 million, representing a 39.9% increase from US$18.2 million for the same period in 2020.
• Gross profit increased by 36.7% to US$7.1 million from US$5.2 million for the same period in 2020.
• General and administrative expenses decreased by $43,344, or 3.2%, from $1.4 million in fiscal year 2020 to $1.3 million in fiscal year 2021.
• Government subsidies received in the form of a grant and recognized as other operating income totaled $449,972 and $362,187 for the years ended September 30, 2021 and 2020, respectively.
• Net income increased by 48.8% to US$4.6 million in FY2021 from US$3.1 million for the same period in 2020.
• Adjusted EBITDA* increased by 46.5% to $6.1 million in FY2021 from $4.2 million for the same period in 2020.
• Diluted earnings per share ("EPS") was $0.68, compared to $0.58 for the same period in 2020.
• Sales volumes of fragrance compounds and health supplemental powder drinks increased by 7.9% and 51.7% for in FY2021 as compared to the same period of 2020 while sales volume of bioactive food ingredients decreased slightly by 5.7%.

*Schedule at the end of this release contain reconciliations of reported GAAP to non-GAAP metrics. See use of non-GAAP financial measures for explanations of our non-GAAP metrics.

Management Commentary

"We are pleased by the strong demand trends we've seen in our business and proud that we achieved double-digit sales growth and record revenue. These results speak volumes about our refined product portfolio, commitment to innovation and our position as an essential partner to our customers." Commented Richard (Yongwei) Hu, BON's Chairman & CEO, "In the short-term, we face unprecedented global supply-chain challenges and inflation-related increases in raw material procurement and logistics due to the protracted global pandemic, changes in trade relations and macroeconomic policies. We are confident in our team's ability to navigate through these conditions and fully offset pressures over time as we shift our product mix towards higher end and higher margin products to increase our pricing power, improve gross margin, improve productivity, and continue to exert strong cost discipline. In addition, we are very excited about the inroad we have made to end user market with the successful rollout of our all natural human microbiome product - FeatherPure and upcoming introduction of other consumer products such as Stachyose probiotic powder to address the growing demand from natural health-conscious consumers. Last but not least, we believe that with the commissioning of our Yumen Plant later this year with 150% increase of revenue growth potential on an annualized basis, we will be able to better serve our customers both at home and abroad more efficiently, accelerate our global business expansion and create lasting long-term value for our investors." 

FY 2021 Product Categories Summary: Growth vs. Prior Year

Fragrance Compounds

• Revenue from sales of fragrance compound products increased by 61.7% to US$12.7 million from US$7.9 million for the same period in 2020. The increase was primarily attributable to 7.9% and 39.2% increases in sales volume and average selling price as well as a 7.1% positive impact from currency exchange.
• Gross profit from fragrance compound increased by 82.3% from US$1.6 million to US$3.0 million for the same period in 2020. The increase was primarily attributable to the above referenced factors.

Health Supplements (Powder Drinks)

• Revenue from sales of health supplement (powder drinks) products increased by 71.2% to US$6.7 million from US$3.9 million for the same period in 2020. The increase was attributable to 51.7% and 4.9% increases in sales volume and average selling price as well as a 7.1% positive impact from currency exchange.
• Gross profit from health supplement (powder drinks) increased by 81.8% from US$1.1 million to US$2.1 million for the same period in 2020. The increase was primarily due to the above referenced factors.

Bioactive Food Ingredients

• Revenue from sales of bioactive food ingredient products decreased by 5.6% to US$6.1 million from US$6.5 million for the same period in 2020. The decrease was mainly attributable to 5.7% decrease in sales volume and 7.0% decrease in average selling price as we received less customer orders of stachyose, our major bioactive food ingredient product, when COVID-19 spread has been relatively under control in China during fiscal year 2021 and partially offset by a 7.1% positive impact from currency exchange.
• Gross profit of our bioactive food ingredient products decreased by 14.2% to $2.1 million from $2.5 million for the same period in 2020. This decrease was primarily due to the above referenced reasons.

Selling expenses decreased by $23,189, or approximately 14.3%, from $161,719 to $138,530 in the same period of 2021, mainly attributable to cost saving achieved by switching focus to target large domestic customers through online and virtual marketing and sales promotion.

Research and development ("R&D") expenses increased by $43,691, or approximately 21.3%, from $205,359 in fiscal year 2020 to $249,050 in fiscal year 2021. The increase was mainly due to an increase of $26,391 in material consumption and $10,647 in R&D testing and inspection related expenses.

Government subsidies received in the form of a grant and recognized as other operating income totaled $449,972 and $362,187 for the fiscal years ended September 30, 2021 and 2020, respectively.

Net income increased from $3.10 million in the fiscal year ended September 30, 2020 to $4.61 million in the same period of 2021.

Net cash provided by operating activities during the year ended September 30, 2021 was $4.05 million compared to $2.64 million in the same period of 2020.

Basic earnings per share ("EPS") was $0.69, compared to $0.58 for the same period in 2020.

Diluted earnings per share ("EPS") was $0.68, compared to $0.58 for the same period in 2020.

Subsequent Events

• On November 11, 2021, the Company announced that it has removed its variable interest entity ("VIE") structure and has become the sole shareholder of its operating entities in China.
• On January 12, 2022, the Company received initial purchase order for FeatherPure, its first proprietary Stachyose and Apple Extract based personal care product from Chongqing Fudoudou Technology to penetrate consumer market.

Investor Conference Call and Webcast

A live webcast to discuss the Company's FY 2021 financial results will be held on February 3, 2022, beginning at 9:00 a.m. EST. The webcast and accompanying slide presentation may be accessed on the Company's IR website at https://ir.bnlus.com/events-presentations/. For those unable to listen to the live webcast, a recorded version will be available on the Company's website after the event.

About Bon Natural Life Limited

The Company focuses on the manufacturing of personal care ingredients, such as plant extracted fragrance compounds for perfume and fragrance manufacturers, natural health supplements such as powder drinks and bioactive food ingredient products mostly used as food additives and nutritional supplements by their customers. For additional information, please visit the Company's website at www.bnlus.com.

Safe Harbor Statement

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may, "will, "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the Company's future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of the natural, health and personal care market in China and the other international markets the Company plans to serve; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China and the international markets the Company plans to serve and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward–looking statements to reflect events or circumstances that arise after the date hereof.

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SOURCE Bon Natural Life Limited