Global Diversified Marketing Group, Inc. (OTC: GDMK) operates as a food and snack manufacturer, Importer & distributor through its subsidiary in the United States, Canada, and Europe. GDMK offers Italian Wafers, Italian Filled Croissants, French Madeleines, Wafer Pralines, Shelf Stable Macarons and other gourmet snacks. GDMK sells its products direct and through various distribution channels comprising specialty, grocery retailers and food-service distributors, DSD as well as vending, pantry and micro market segments.
GDMK has an attractive share structure with only about 14 million OS and the company is very diligent about keeping its financial reporting status current with all required filings.
Ø GDMK Integrates Acceptance of Cryptocurrencies on 360WORLDSNACKS.COM
On August 31st GDMK announced a milestone step in enhancing its sales process by integrating acceptance of cryptocurrencies as a new payment option on the company’s established 360worldsnacks.com site. In today’s evolving marketplace modern consumers appreciate the most versatile options to exercise their purchasing power. Allowing the use of cryptocurrencies will afford customers a new, more flexible and innovative way to order from the extensive GDMK line of well-loved snack treats for every occasion.
GDMK management believes the more tools they give consumers, the better interaction and acceptance they will have while shopping. GDMK will also review an integration where consumers would be able to choose earning their rewards in cryptocurrency or via a discount on their order. By giving GDMK customers an option to earn crypto rewards on the items they already love, there is every reason to expect that this benefit will motivate their loyalty and interaction with the company as well as encourage a higher level of patronage from existing and new customers.
Ø GDMK Achieves 120% Year Over Year Quarterly Revenue Growth
On August 10th GDMK reported excellent financial results for its second fiscal quarter ended June 30th, 2021.
Highlights for the three months ended June 30th, 2021, compared to three months ended June 30th, 2020, were as follows:
- Revenue increased to $556,579 compared to $253,341, an increase of 120% over 2020 period.
- Gross profit margin improved to 43.1% in 2021 compared to 23.9% in same period in 2020.
Highlights for six months ended June 30th, 2021, compared to six months ended June 30th, 2020, were as follows:
- For the six months ended June 30th, 2021, revenues more than doubled to $1,379,979 compared to $593,302 in 2020 with 133% increase over 2020 period.
- Gross profit margin improved to 41.6% in 2021 compared to 38.5% in 2020
Paul Adler, Chairman, and CEO of GDMK stated, “Our ability to deliver consistent top line growth shows significant strength in our product lines and development of our business. We continue to break quarterly record revenues and demonstrate significant growth for our shareholders. We achieved a significant increase in our revenue with higher gross margins. Overall, we are pleased with our record performance and look forward to growing our business with potential acquisitions and entrance into other segments of the business.”
Ø CEO Paul Adler Updates, NASDAQ Up-Listing, Sales, Growth and 2021 Second Half Highlights
On June 9th GDMK presented a letter to shareholders from Chairman and CEO Paul Adler which included the following highlights:
GDMK owns a portfolio of trademarked brands; Biscottelli, Dolcibono, Bonbon de Paris, Coco Bliss and Fruttata. GDMK manufactures numerous SKUs under each brand in the snack item category, which are produced out of Italy, France, Eastern Europe, Greece, and other countries. The products are imported into the United States, and GDMK has direct relationships with Fortune 500 companies.
Over the past several months GDMK has been working with a major consumer club store giving product placement in their Northeast locations. GDMK looks to expand this relationship.
Up-listing to the NASDAQ is a next strategic step for GDMK. The NASDAQ listing should provide greater liquidity for shareholders, attract institutional investors, increase the visibility of GDMK and raise its overall profile.
The listing of GDMK shares on the NASDAQ will be subject to several regulatory requirements, including review of the Company and acceptance for listing by NASDAQ. Of course, there can be no assurance that NASDAQ acceptance will be granted but GDMK management is very optimistic about its prospects and is making every effort to improve the likelihood of a NASDAQ listing sometime in 2021.
Looking at the 2nd half of 2021 and beyond, GDMK has seen a growing demand for its products and expect this trend to continue. Financial results for GDMK so far this year have shown record growth. First-quarter results generated a 142% revenue increase over prior-year levels. Additionally, GDMK posted record profits after excluding non-cash stock-based compensation.
During the first quarter, GDMK launched its “360worldsnacks.com” marketplace, a unique one-stop-shop for variety of snacks. The goal at the GDMK marketplace is to stock 500 SKUs of domestic and international snacks for consumers to enjoy and provide a convenient two-day free shipping option on all size orders. GDMK will continue to expand its client base and heavily market its e-commerce platform to reach a 7-figure scale with a focus on generating organic growth, and also looking for synergistic acquisition targets that align with its business model in the e-commerce space.
Ø Placement with Major National Club Store and First Purchase Order
On January 27th GDMK announced the company has successfully secured placement with National Club Store Chain for its premium snack product to be stocked and sold in the US North East Region. The first purchase order has already been received.
GDMK will continue to work to build the program into higher quantity and more diverse orders as both companies go forward together. Back on September 1st GDMK had reported that it was in talks with Costco Wholesale Corp (COST), a major club store chain which operates over 500 locations in the United States. Hence, the new placement and 1st purchase order just announced is highly likely with Costco.