SUMR Brands Reports Q1 2021 Financial Results

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SUMR Brands, a manufacturer of infant and juvenile products, announced financial results for the fiscal first quarter ended April 3, 2021.

Net sales were $36.2 million in the first quarter versus $40.3 million in the prior-year period, a decline that reflected ongoing supply chain constraints and logistical issues, which have impeded product getting to market

Revenue rose double-digit across certain categories, including potties, gates, and boosters, but this was more than offset by weakness internationally and with certain retailers where product could not reach end consumers.

“While first quarter revenue was similar to that of the 2020 fourth quarter, sales were heavily impacted by supply chain constraints that undermined a significant increase in customer demand,” said Stuart Noyes, CEO. “Even as last year’s pandemic-related disruptions continued to subside, the ongoing challenges tied to supplier shipments handicapped our ability to get product to market on time. This had a negative impact on top line growth and reduced inventory levels substantially. We are, however, addressing these complex problems as rapidly as possible, mitigating issues where feasible and planning farther into the future to reduce shortages.

“At the same time we have continued to actively manage costs, resulting in higher Adjusted EBITDA than the fourth quarter and, in tandem, further reductions to debt. To address ongoing pressure from freight and other expenses, we are also looking at price increases wherever possible. We are pleased to see that recent stimulus measures, and the forthcoming child tax credit – as well as a generally strengthening economy – are having a positive impact on domestic consumption; we will make every effort to meet this pent-up demand in the quarters to come.”

See the full financial report here.