Cizzle Brands Corporation Announces (Cboe Canada: CZZL) (OTCQB: CZZLF) (Frankfurt: 8YF) (the “Company” or “Cizzle Brands”) has released its financial results for the second quarter of its 2025 fiscal year, covering the three-month period ending January 31, 2025 (“FQ2 2025”). These results mark the conclusion of the first half of Cizzle Brands’ inaugural fiscal year as a publicly traded company. The Company reported net sales exceeding $5.64 million during this six-month period, with a strong gross profit margin of 60.03%, resulting in a total gross profit of over $3.38 million.
Strong First-Half Performance and Strategic Growth
During the first half of fiscal 2025, Cizzle Brands executed strategic commercialization initiatives aimed at expanding market penetration and increasing product accessibility. The Company continued to scale its flagship hydration product, CWENCH Hydration™, while simultaneously launching Spoken Nutrition, a premium brand offering athlete-grade nutraceuticals. These efforts were met with success, as evidenced by strong sales figures and increasing consumer adoption across multiple regions.
The Company’s revenue distribution during this period was primarily centered in Canada, which accounted for 71% of total sales. The United States contributed 20% to overall sales, while Europe accounted for 9%, demonstrating the brand’s expanding international presence.
Key Financial Highlights for FQ2 2025
All financial figures below are reported in Canadian Dollars unless otherwise stated:
- Net Sales: $2,856,072 for FQ2 2025.
- Cost of Goods Sold (COGS): $1,216,689, leading to a gross profit margin of 57.4%.
- Current Assets Growth: Increased by 43.3%, rising from $7,220,755 at July 31, 2024, to $10,347,341 as of January 31, 2025.
- Cash Position: Grew significantly by 72.8%, from $1,519,516 to $2,626,915.
- Inventory Levels: Increased by 126.7%, from $1,376,990 to $3,122,031, with all inventory classified as “current,” meaning there was no obsolete stock or provisions required.
These results highlight the financial stability and operational efficiency of Cizzle Brands, positioning the Company for further expansion in the latter half of the fiscal year.
Expanding Retail Presence and Distribution Footprint
Cizzle Brands made significant strides in expanding the distribution network of CWENCH Hydration™. The brand is now available at over 1,800 retail locations across North America. Notably, its distribution is supported by Van Houtte Coffee Services, a subsidiary of Keurig Dr Pepper, which operates a Canada-wide network servicing over 30,000 retail locations. This partnership has been instrumental in reducing logistical overhead costs and increasing the efficiency of product distribution.
The second quarter of fiscal 2025 saw Cizzle Brands secure several key retail partnerships for CWENCH Hydration™, further bolstering the brand’s market presence. Some of the notable additions to its retail network include:
- Metro Ontario
- MacEwen Petroleum
- Canco Petroleum
- Fortinos
- Sport Chek
- Source for Sports
- Life Time Fitness (an upscale chain of fitness resorts with over 160 locations across North America)
These partnerships represent a strategic expansion into both the retail and fitness sectors, enhancing the accessibility of CWENCH Hydration™ to a broader consumer base.
Increasing Consumer Demand and Repeat Purchases
A key indicator of Cizzle Brands’ market traction is the growing re-order rate for CWENCH Hydration™. In a press release dated March 6, 2025, the Company disclosed that every retail account that had been active for at least two months had placed at least one reorder. This trend underscores the strong consumer demand and brand loyalty that CWENCH Hydration™ has been able to establish in a relatively short period.
Additionally, Cizzle Brands’ largest Canadian account reported a remarkable increase in unit sales for its two Hydration Mix versions:
- 10-count version: 72% increase in unit sales from FQ1 2025 to FQ2 2025.
- 315-gram version: 64% increase in unit sales during the same period.
This growth further affirms the strong market positioning of CWENCH Hydration™ and highlights the brand’s ability to drive repeat purchases among consumers.
Investor Relations and Upcoming Webcast
Cizzle Brands has made its full financial results for FQ2 2025, along with the corresponding Management Discussion and Analysis (MD&A), available on SEDAR+. The Company encourages shareholders and interested parties to review these documents for a comprehensive overview of its financial performance.
Additionally, the Company will be hosting a live webcast on Thursday, March 27, 2025, at 4:30 PM ET, where members of the management team will provide further insights into the financial results and discuss upcoming growth initiatives.
- For More Information: Investors are encouraged to refer to the Company’s March 13, 2025 press release or contact Cizzle Brands Investor Relations.
CEO’s Perspective on Growth and Future Outlook
John Celenza, Founder, Chairman, and Chief Executive Officer of Cizzle Brands, shared his thoughts on the Company’s recent performance and future outlook:
“The first half of our fiscal 2025 year has been an incredible success, with our team achieving key milestones in line with our strategic plan. Generating over $5.64 million in net sales in just six months is a testament to the brand strength we are building. As we enter the spring and summer seasons, when hydration product sales typically experience a boost, we are on track to surpass $14 million in net sales by the end of our first full fiscal year.”
Mr. Celenza emphasized the importance of consumer engagement and organic brand growth:
“The momentum we have generated is a direct reflection of our team’s dedication, the superior quality of our products, and the strong consumer response we have received. Our repeat purchase rates continue to rise, and word-of-mouth recommendations are helping us reach new customers every day. Moving forward, we will continue to scale our business through existing distribution channels while selectively adding new ones to support our commercialization strategy.”
“We see significant opportunities for expansion in both Canada and the United States. Our team is actively working on new initiatives to strengthen our market position, and we will be sharing several exciting updates in the coming weeks. We look forward to discussing these financial results and our future plans during our upcoming webcast.”
