Revenue Increased 26.1% Over Prior-Year Levels
ISLAND PARK, N.Y., Feb. 18, 2021 (GLOBE NEWSWIRE) — Global Diversified Marketing Group Inc (OTC: GDMK) reported results for its fiscal year ended December 31st, 2020.
Financial highlights for the full year ended December 31st, 2020, compared to the full year ended December 31st, 2019, were as follows:
Revenue increased to $1,660,726 compared to $1,317,092, an increase of 26.1% over 2019 period
Gross profit margin improved to 39.8% in 2020 compared to 28.2% in 2019.
The net loss for the year ended December 31st, 2020, includes a one-time, non-cash, non-operating charge of $26,020,400 for stock-based compensation expense 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. Excluding those charges, the Company’s Adjusted Net Profit (Loss) was a profit of $33,868 for the 2020 period compared to a loss of ($150,984) in 2019, or an improvement of $184,852.
Operational Achievements in 2020
Secured placement with a major national club store in the Northeast with a launch date late February and working to potentially add other regions as well.
Engaged a full-service marketing firm to launch a new eCommerce site to sell our branded snacks as well as setting up a marketplace for other branded product snacks. High velocity items will be easily added to the marketplace as traffic grows.
Fulfilment facilities secured with two-day shipping throughout the country.
Successfully launched a new line of wafers with five new SKU’s.
“Paul Adler, Chairman, and CEO stated, “We are proud of our significant accomplishments despite the impact of COVID-19 in late March of 2020. We were able to achieve record revenue growth, very significant margin improvements as well as producing an adjusted net operating profit.” Mr. Adler further stated, “This is just the beginning for us. We have spent the last three years building the foundation for the future growth. We look forward to further success in 2021”
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