Mr. Paul Antoniadis reports

GOOD NATURED PRODUCTS INC. ANNOUNCES PRELIMINARY UNAUDITED RESULTS FOR THE FOURTH QUARTER AND FULL YEAR ENDED DECEMBER 31, 2022

Good Natured Products Inc. has released preliminary revenue and gross margin estimates for the three months ended Dec. 31, 2022, and year ended Dec. 31, 2022.

Revenue for Q4 2022 is anticipated to be $20.9-million to $22.9-million, which is flat to a decrease of 8.6 per cent compared with $22.9-million for the three months ended Dec. 31, 2021 (Q4 2021). Revenue for FY 2022 is anticipated to be $98.6-million to $100.6-million, an increase of approximately 61 per cent to 65 per cent, compared with $61.1-million for the year ended Dec. 31, 2021 (FY 2021).

Variable gross margin, a non-GAAP (generally accepted accounting principles) measure, for Q4 2022 is anticipated between 31.5 per cent and 33.5 per cent, compared with 30.5 per cent for Q4 2021. Gross margin is estimated between 24 per cent and 26 per cent for Q4 2022, compared with 23.3 per cent for Q4 2021. Variable gross margin for FY 2022 is anticipated to be between 31 per cent and 33 per cent, compared with 32.2 per cent for FY 2021. Gross margin for FY 2022 is anticipated between 24 per cent and 26 per cent, compared with 25.6 per cent for FY 2021.

The company's cash balance at Dec. 31, 2022, is anticipated to be approximately $11.8-million, compared with $10.6-million for FY 2021.

The company plans to release FY 2022 results in April, 2023.

"Our team and partners delivered record annual revenue and stable comparative gross margins in the face of very challenging macroeconomic conditions in 2022. This is a testament to the company's ability to successfully adjust to a changing operating environment and I want to thank all our team members, partners and customers for their support over the past year," stated Paul Antoniadis, chief executive officer of Good Natured. "Demand for sustainable, earth-friendly packaging, especially within staple goods categories like food and medical, remained resilient, and our sales pipeline continues to be very robust in these areas. As we'd anticipated, industrial product sales remained soft through the fourth quarter as customers worked through high inventory levels in the face of continued fluctuation in demand levels."

The preliminary results set forth above are based on an initial review of the company's financial results for Q4 2022 and FY 2022 and are subject to change. Final reported results could differ from these preliminary results following the completion of year-end accounting procedures, final adjustments and other developments arising between now and the time that the company's financial results are finalized, and such changes could be material. The company's independent auditor, Deloitte LLP, has not audited, reviewed or performed any procedures with respect to the accompanying preliminary financial results and other data, and accordingly does not express an opinion or any other form of assurance with respect thereto. The preliminary results have been prepared by, and are the responsibility of, the company's management, and were approved by management on Jan. 30, 2023. In addition, these preliminary results are not a comprehensive statement of the company's financial results for Q4 2022 and FY 2022. They should not be viewed as a substitute for audited financial statements prepared in accordance with International Financial Reporting Standards and are not necessarily indicative of the company's results for any future period.

The Good Natured corporate profile can be found at the company's website.

About Good Natured Products Inc.

Good Natured is passionately pursuing its goal of becoming North America's leading earth-friendly product company by offering the broadest assortment of plant-based products made from rapidly renewable resources instead of fossil fuels. The company is focused on making it easy and affordable for business owners and consumers to shift away from petroleum to better everyday products that use more renewable materials, less fossil fuel and no chemicals of concern.

Good Natured offers over 400 products and services through wholesale, direct to business and retail channels. From plant-based home organization products to certified compostable food containers, bio-based industrial supplies and medical packaging, the company is focused on making plant-based products more readily accessible to people as a means to create meaningful environmental and social impact.

We seek Safe Harbor.