LOS ANGELES--(BUSINESS WIRE)--BRAVADA International Ltd (https://www.Bravada.com) (Pink Sheets: BRAV) announced today its full year financial results for fiscal year 2020. Highlights of the Company’s financial results are as follows:
- Gross revenue for 2020 was $4,088,966.
- Net income for 2020 was $399,752.
- Increased inventory in Q4 by $233,372 - Website and product line expansion
- Paid off $63,070 of debt.
- Return rate of 1.4% - The average return rate for online purchases is 20 - 30%. The highest is in the clothing and footwear categories, according to data from GlobalData.
The Cost of Goods for the 4th quarter came in higher than previous quarters as higher cost face masks and PPE acquired earlier in the year were sold during Q4. The cost of goods (COGS) are expected to drop significantly in the first quarter of 2021 as new lower priced inventory replaced the Company’s high volume products at lower costs levels.
Fourth Quarter Highlights
The Company saw a noticeable sales drop at the conclusion of the federal elections on November 3. It impacted all of the Company’s websites and product categories. October was fairly robust although it was still slightly weaker than anticipated. The Company believes that this was due to the pre-election media hype that consumed much of the country. November and December were noticeably weaker across all categories with a noticeable drop on November 3 and beyond.
The Company had exceptional success with its PPE and face mask business having many high-profile customers that included professional sports teams in the NFL, MLB, NBA, and NHL, in addition to a number of nationally recognized TV shows on various cable channels and Hollywood production companies. The Company believes that this business will continue into 2021 however, we expect that the PPE and face mask business will continue to decline with time.
Fiscal Year 2021
The Company is not providing any guidance for the fiscal year 2021 given the uncertainties associated with its new website launches and their potential performance. The Company is not forecasting any major revenue from its new websites in fiscal year 2021 as the process of SEO will most certainly be longer given the crowded sectors that they are in: pet supplies and women’s fashion. BRAVADA has had significant success in developing its websites as authority sites in their sectors and with it, excellent first page Google page results in a vast number of keywords. This does not mean that the Company will not have any significant progress with its SEO in 2021, it is that the Company is not forecasting any in this fiscal year to be prudent.
The Company’s full financial results will be available at 1:30 PDT. BRAVADA asks shareholders to review the full 2020 Disclosure Statement as the Company provides a significant amount of information concerning its operations. The Company’s financial results can be found here:
BRAVADA International is an internet and media company that owns and curates online properties through a proprietary methodology of creating, developing and operating retail and wholesale websites that provide an exciting blend of consumer level and B2B products and services.
Certain matters discussed in this announcement contain statements, estimates and projections about the growth of BRAVADA International’s business, corporate growth, and related business strategy. Such statements may constitute forward-looking statements within the meaning of the federal securities laws. Factors or events that could cause actual results to differ may emerge from time-to-time. BRAVADA International undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The recipient of this information is cautioned not to place undue reliance on forward-looking statements.