Revenue Increased 60.5% Over Prior-Year Level
ISLAND PARK, N.Y., March 14, 2022 (GLOBE NEWSWIRE) — Global Diversified Marketing Group Inc., a Delaware corporation (the “Company”; OTC: GDMK), reported results today for its fiscal year ended December 31st, 2021.
Financial highlights for the full year ended December 31st, 2021, compared to the full year ended December 31st, 2020, were as follows:
Revenue increased to $2,665,017 in 2021 compared to $1,660,726 in 2020, an increase of 60.5%.
Gross profit margin was 38.9% in 2021 compared to 39.1% in 2020.
The net loss of $1,213,879 for the year ended December 31st, 2021, includes non-cash stock-based compensation of $1,121,592 expense paid to consultants and employees, compared to one-time non-operating stock-based compensation of $26,020,400 relating to the issuance of super-voting preferred stock to the Company’s Chief Executive Officer, and $168,529 in stock-based compensation to consultants during 2020. Excluding those charges, the Company’s Adjusted Net Profit (Loss) was a loss of $92,287 for the 2021 period compared to a net profit of $33,868 in 2020, or a decrease of $126,155.
Operational Achievements in 2021
Launched with a major national club store in the Northeast in the first quarter.
Entered nutraceutical segment and launched three new SKUs in a gummy form.
Reduced our dependence on invoice factoring.
Paul Adler, Chairman, and CEO stated, “Our ability to deliver record results year after year has demonstrated that we can operate efficiently, as well as significantly grow our revenues to record levels, even during a difficult operating environment. Despite the effects of the Covid-19 pandemic, we were able to achieve record revenue growth in 2021, with steady gross margins.
During 2021, we invested in infrastructure by hiring a top-notch executive to a newly formed Director of Operations position. Additionally, we were impacted by the worldwide supply chain issues, which resulted in the tripling of our shipping and logistics cost. These additional costs impacted our profitability. However, our strong inventory management systems helped mitigate the impact of these additional costs. In 2022 we expect to leverage our overhead and have signed an agreement with a larger and more efficient warehouse, which will enable us to handle more containers than we were previously constrained from doing in our previous location.
Mr. Adler further stated, “This is just the early stages of our planned future growth. We have built a strong foundation and plan to take our growth to the next level. We look forward to further achievements in 2022.”
About Global Diversified Marketing Group
Headquartered in Island Park, NY – Global Diversified Marketing Group Inc operates as a global multi-line consumer packaged goods (“CPG”) company with branded product lines and is a food and snack manufacturer, importer and distributor in the United States, Canada, and Europe. The Company operates in the snacks market segment and offers Italian Wafers, Italian filled croissants, French Madeleines, Wafer Pralines, shelf-stable Macarons, and other gourmet snacks. The company sells its products directly through various distribution channels comprising specialty, grocery retailers, food-service distributors, direct store delivery (“DSD”) as well as the vending, pantry, and the micro-market segment.
Safe Harbor Statement
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words “could,” “believe,” “anticipate,” “intend,” “estimate,” expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations, and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations, or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results could differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company’s filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
Non-GAAP Financial Measures
This press release contains a non-GAAP financial measure. The Company believes that, in addition to other financial measures, “Adjusted Net Profit (Loss)” is an appropriate indicator to assist in the evaluation of its operating performance on a period-to-period basis. “Adjusted Net Profit (Loss)” should be considered as a supplement to, not a substitute for, operating income, net income or other financial performance measures prepared in accordance with U.S. generally accepted accounting principles.
Global Diversified Marketing Group Inc
Paul Adler, President & CEO