Report

Delivra Health (DHB) FY2025 Beat: Expansion & M&A Drive Growth - Report Update

Delivra Health Brands Inc. (TSXV: DHB / OTCQB: DHBUF) reported FY2025 (ended June 30, 2025) revenue growth of 8% YoY, surpassing estimates by 3%, fueled by robust Dream Water sales in the U.S. and Middle East. The company's share price has surged 93% YTD, outperforming the S&P Personal Care Index, which declined 7%. Marketing expenses increased 26% YoY to 15% of revenue, aligning with guidance to boost growth. Adjusted EPS was ($0.02), a 12% drop but beating the estimated ($0.04) due to higher revenue and controlled costs. DHB offers sleep aids under Dream Water and pain relief under LivRelief brands, with 80% of sales from U.S./Middle East (up from 74%), and 20% from Canada. Products are distributed at over 30,000 points, including retail, pharmacies, convenience stores, and airports. Expansion efforts focus on the Middle East and Latin America for sustained growth. Despite a slight dip in Personal Care sector sentiment (3% drop in forward EV/revenue since May 2025), consensus projects 11% revenue growth in 2025, up from 9% in 2024. DHB's solid balance sheet supports organic expansion amid rising awareness of sleep's health benefits. Additionally, planned M&A aims to broaden the product portfolio, leveraging strong distribution to rapidly increase revenue and create accretive value.
Underlying
Delivra Health Brands Inc.

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Fundamental Research
Fundamental Research

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Analysts
Sid Rajeev

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