RUM Reports Annual Financial Results with Increased Net Comprehensive Income for the Year Ended December 31, 2023 - Seite 2

The company's net income for the 12-month period ending December 31, 2023, rose to $463,062, marking a substantial increase from $277,529 in the preceding year. This notable improvement is attributed to the strategic focus on enhancing gross margins, reflecting the efficacy of the Company's operational strategies.

Despite a slight decrease in sales, with figures for the 12-month period ending December 31, 2023, showing a 4.0% decline compared to the same period in 2022, the Company continues to demonstrate resilience in a competitive market landscape. Factors contributing to this decrease include heightened competition in specific markets and the divestiture of one store in October 2022.

In the face of rising interest rates, the Company remained steadfast in its commitment to reducing bank debt. The prime rate escalated from 6.45% at the close of 2022 to 7.2% by December 31, 2023. Demonstrating fiscal prudence, the company achieved a remarkable 35% reduction in bank debt, bringing the total to $2,011,684 for the 12-month period ending December 31, 2023.

Currently, 19 of the company's stores operate under the Great Canadian Liquor ("GCL") brand, a move that has been instrumental in creating a consistent brand message while attracting both existing and new customers. By leveraging the GCL brand, these stores offer a wider variety of product listings that resonate with consumers, at budget friendly prices. For stores that have not transitioned to the GCL brand, the Company adopts a targeted strategy aimed at optimizing gross margins based on factors such as geographical location, consumer demographics, and competitive dynamics.

Central to Company's efforts is its centralized ordering system, enabling management to continually optimize product offerings to meet customer preferences. This approach ensures that each store's product selection remains distinct and tailored to local tastes, aligning with the company's commitment to high-volume, low-priced operations.

Looking ahead the Company remains steadfast in its commitment to delivering an exceptional in-store experience. In 2024, the company will introduce a new point-of-sale system designed to streamline operations, empower its team, and elevate the overall customer experience.

SUBSEQUENT EVENT

Subsequent to December 31, 2023, the Company closed one underperforming store.

Detailed information in the form of the Company's consolidated financial statements and Management Discussion and Analysis are available under the Company's profile on SEDAR+ at www.sedarplus.com and also on the Company's website at www.ruminvestor.com. After accessing the website, please choose the "Investor Relations" tab to view Annual Reports.