February 2021 - NATURAL INNOVATIONS FOR HEALTHIER HAIR & SKIN - MZ
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
NATURAL INNOVATIONS FOR
HEALTHIER HAIR & SKIN
February 2021
Investor Presentation
OTCQB: RVIV
Forward This presentation contains a number of forward-looking statements within the
meaning of the federal securities laws. The use of words such as "anticipates,"
"expects," "intends," "plans," "confident that" and "believes," among others,
Looking generally identify forward-looking statements.
These forward-looking statements are based on currently available information,
Statements and management's beliefs, projections, and current expectations subject to a
number of significant risks and uncertainties. Factors that could cause actual
results to differ materially from those in the forward-looking statements include,
among other things: (i) Reviv3's ability to grow net sales and adjusted EBITDA
as anticipated; (ii) our ability to fund our operating expenses (iii) potential
difficulties or delays Reviv3 may experience in implementing its cost savings
and efficiency initiatives; (iv) Reviv3's ability to compete effectively with other
hair and skincare companies (v) the concentration of Reviv3's customers,
potentially increasing the negative impact to Reviv3 by changing purchasing or
selling patterns (vi) changes in laws or regulations in the United States and/or in
other major markets, such as China, in which Reviv3 operates, including,
without limitation, with respect to taxes, tariffs, trade policies or product safety,
which may increase Reviv3's product costs and other costs of doing business,
and reduce Reviv3's earnings. Potential investors are urged to consider these
factors carefully in evaluating the forward-looking statements. These forward-
looking statements speak only as of the date hereof. Except as required by law,
Reviv3 does not assume any obligation to update or revise these forward-
looking statements for any reason, even if new information becomes available in
the future.
2
Corporate Overview
• Reviv3 Procare Company (OTCQB: RVIV) is Reviv3 Procare Company
an emerging global e-commerce brand in the OTCQB: RVIV
$90 billion hair care products industry.
Price1 $0.29
• Significant Addressable Market: Hair care
products industry exceeds $90B annually, room Market Cap1 $12.0M
for many winners.
TTM Revenue2 $1.5M
• Clinically Proven: Products independently
confirmed to improve hair and scalp health. Gross Margins (TTM)2 55.8%
• Recurring Revenue Model: High customer Cash2 $0.6M
retention rate across thousands of satisfied
consumers created a large base of high- Total Debt $0.16M
margin, subscription sales.
Shares Outstanding2 41.5M
• Record Growth: 139% sequential revenue
Float 8.0M
growth in Q2 Fiscal 2021 and 1H 2021 sales of
nearly $1 million. Headquarters El Monte, CA
• Global Distribution: Geographically diversified 1) As of January 29, 2021
with sales in the U.S., Canada, the European 2) As of November 30, 2020
Union and Asia.
3
Market Global Hair Care Market2
Opportunity $28.51
15.34
• Organic and natural products are one of the primary “must
haves” for many customers
• Coronavirus has supercharged the Direct-to-Consumer market
for hair care products
2018 2019 2020 2021 2022 2023 2024 2025 2026
Direct to Consumer (D2C) Growth
More than 80% of end consumers $17.5 billion worth of sales in D2C market has been growing rapidly,
are expected to make at least one the US by DTC businesses in with double-digit rates for several
purchase through a D2C brand 2020, marking a 24.3% rise years. It is projected to maintain a
within the next 5 years.3 from 2019.4 further 19.2% growth in 2021.5
Source: 1) Mordor Intelligence 2) Verified Market Research 3) Direct-to-Consumer Purchase Intent Index 4) emarketer 5) Medium
4
Products
Thicker, Stronger Hair
Instant infusion of moisture, shine & the
resiliency that hair needs
5
REVIV3 Three-Part System
Clinically REVIV3 products are clinically tested and proven effective to increase hair
strength by up to 300%, reduce hair breakage, increase volume, thickness
Proven and nourish follicles to promote healthy hair growth.
Real Results Natural Ingredients
Clinically Tested & Proven No Harsh Ingredients,
Formulations to Promote Parabens or Sulfates that Can
Healthy Hair Growth Damage Hair or Follicles
An independent study by a nationally recognized laboratory concluded
REVIV3 hair products:
• Improved scalp health in 100% of participants by restoring pH of the scalp skin
• Significantly stopped breakage and increased hair strength by up to 300%
• Created scalp protection in 100% of participants
• Increased circulation in 100% of participants
• 81.8% of subjects indicated that they would use the product again
• 78.8% would recommend it to a friend or family member
6
Who Reviv3
Competes With
• Primary competitors rely on medical technologies discovered in
the 1980s for hair growth with partial effectiveness; adverse drug
reactions (ADRs) and allergic responses are well documented
• We believe our breakthrough research in natural compounds deliver
far more effective solutions for healthy hair maintenance without
drug related side-effects
• Reviv3 includes optimum levels of active ingredients to achieve
highest levels of efficacy, regardless of cost to Reviv3
• Rapidly expanding market share is the result of customers’ distinctly
positive experience and brand loyalty
• Unrivaled Customer Service – Proprietary Customer Relationship &
Education Management to optimize customer experience and retention
7
Sales [1H 2021]
Sales & • Direct to Consumer vertical fueling
rapid, sustained growth
Customer • Professional Salon & Spas primed to
rebound with business re-openings in
Salon & Spa
Sales
32%
2021
Mix • Anticipate OEM sales growth to
continue in new and existing channels. Direct to OEM
Consumer Sales
• Achieved top 10 bestseller list on 27% 39%
Amazon's Hair Growth Tonic Category
since August 2020.
Third Party
Online
Customer Profile platforms
12%
70% 40-65 All Income
Female Years Old Spectrums
• Historical customer retention rate of 35-38%
• $240 average customer lifetime value
8
Our
• Direct relationship with customers reduces
D2C distribution inefficiencies and costs by
removing intermediaries and gaining greater
control over profit margins
Platform • Ability to fully utilize available customer data
including patterns, trends, needs, and preferences
of customers, leading to better segmentation and
more cost-effective marketing strategies
• Deeper customer relationships through control
of the entire customer experience, product
education and personalized content
• Enables subscription model with software-like
gross margins and a high retention rate, as well
retention programs such as VIP Memberships and
Rewards Programs
9
Marketing
• Build a trusted brand – “Beautiful hair, beautiful youTM” is
the essence of the Reviv3 Experience
• Increase digital engagement – 2248% increase in YoY
website traffic in the latest quarter to 59,824 unique
users.
• Develop customer loyalty and strong word of mouth -
78% of customers surveyed would recommend reviv3 to
a friend or family member
• Latest innovations in nutrient delivery technology for
highest performance and efficacy
• Expand brand penetration through nationally recognized
salon & spa distribution
10Environmental
Social
Governance
We are socially responsible and understand that
importance to millennials and our shareholders.
Planet People Profit
We use eco-friendly We provide products Our industry is known for
facilities in California free of charge to post tremendous profit
for manufacturing. chemotherapy cancer margins. We manage
patients to help our profits to expand our
prevent hair loss. markets and strengthen
our shareholder position.
11Growth
• Focused on maintaining profitability and internally funding growth
Strategy • Diversify revenue stream and customer base in areas that are least impacted
by the on-going challenges of the pandemic, chiefly through D2C channels
• Taking advantage of reduced competition to streamline operations and seek
potentially accretive acquisitions
• Grow Direct-to-Consumer business and further expand gross margins
• Continued Expansion in key international markets
• Goal to reach over $16 million in sales by 2025 (60%+ CAGR)
12Financials $1.471
Revenues
6 Months Fiscal Year
Ended November 30 Ended May 31
$ in Thousands Fiscal Fiscal Fiscal Fiscal
2021 2020 2020 2019 $993 $1.013
$933
Total Revenue $ 912.5 $ 454.2 $ 1,012.7 992.7
Gross Profit $ 528.4 $ 239.4 $ 531.9 439.7
Gross Margin (%) 57.9% 52.7% 52.5% 44.3% $582
Net Loss $ (16.2) $ (131.0) $ (172.8) (150.0)
Second Quarter Fiscal 2021 Results Compared to Prior Year
• Revenues increased 96% to $644,061
• Gross profit increased 149% to $396,233
• Operating expenses as a percentage of sales decreased to 53%, as
compared to 57% in the prior year
• Cash of $0.6 million as of Nov. 30, 2020
FY 2017 FY 2018 FY 2019 FY 2020 TTM
13Management Jeff Toghraie, CEO & Chairman Jeff has served as our Chairman since May of 2015 and Chief Executive Officer since September 2016. Jeff has also served as Managing Director of Intrepid Global Advisors, an investment and corporate advisory firm specializing in the consumer goods sector since 2012. Jeff was also Head of Pacific Asia Research at Link Capital specializing in hair and skin care product formulations and analysis from 2008 until October 2011. Jeff holds a Bachelor of Science degree in Finance and Master in Business Administration from the University of Utah. Donald Starace, President Donald has served as our President since May 2015. Donald served on the Salon Professional Education Team at Proctor and Gamble from 2008 until 2012 and as the head of Sales and Education for Nioxin Laboratories since September 2001 and was a member of the transition team during the subsequent acquisition of Nioxin by Proctor & Gamble in 2008. Donald was one of the original investors of Bank of New Jersey in 2006 and is a member of Board of Adjustments for the Borough of Fort Lee, New Jersey. Christopher Go, CFO Chris has served as our Corporate Secretary since June 2015 and Chief Financial Officer since March 2020. Chris also serves Vice President of Technology and Finance for PropertyRate, a real estate management and services company since April 2013. Chris also served as Vice President of Operations for TEN Media, a food safety and traceability platform involving Walmart, Safeway, Cal-Marine, Dutch Farms USDA, FDA & Yucaipa Companies from March 2009 until October 2012. Chris has a BS Architecture degree and has a Master in Business Administration (MBA) from the University of Southern California. Jeff Brown, Chief Operating Officer Jeff has served as our Corporate Secretary since May 2015 and Chief Operating Officer since February 2017. Jeff was Chief Operating Officer of Polar Solar, a solar energy solutions company from 2012 to 2016. Jeff served as Senior Vice President of RNA PRO, a cosmetics analytical and formulations laboratory from 2009 until 2012. Mr. Brown holds an MBA from Pepperdine University and received his Bachelors degree from 14 University of California, Irvine.
Key
Takeaways
• Reviv3 Procare Company (OTCQB: RVIV) is an emerging global e-
commerce brand in the $90 billion hair and skin care products industry.
• Significant Addressable Market: Hair care products industry exceeds
$90B annually, room for many winners.
• Clinically Proven: Products independently confirmed to improve hair and
scalp health.
• Recurring Revenue Model: High customer retention rate across
thousands of satisfied consumers created a large base of high-margin,
subscription sales.
• Record Growth: 139% sequential revenue growth in Q2 Fiscal 2021 and
1H 2021 sales of nearly $1 million.
• Global Distribution: Geographically diversified with sales in the U.S.,
Canada, the European Union and Asia.
15Investor Relations Contact
Luke Zimmerman
Senior Vice President
MZ Group - MZ North America
949-385-6449
RVIV@mzgroup.us
9021 Wilshire Blvd., Suite 500
Beverly Hills, CA 90210
www.reviv3.comYou can also read
