good natured Products Inc. (TSXV: GDNP): A North American manufacturer of plant-based products & packaging.
GDNP is a Vancouver-based company that designs, manufactures and distributes renewable, recyclable and compostable plant-based alternatives to everyday products in North America’s packaging and consumer goods markets.
Why we like good natured: it is a legitimate company with an operating business with strong growth prospects that is disrupting a massive and arguably outdated industry. The Company’s current strategy is to grow at >50% per year at stable gross margins while vertically integrating and improving overall profitability. The company has demonstrated discipline in its acquisition strategy by focusing on acquiring EBITDA positive businesses with synergies at reasonable valuations.
Products are on trend (ESG, plant-based, sustainable):
1 - Made out of renewable materials, without chemicals of concern
2 - Perform the same or better than traditional petroleum-based products
3 - Competitively priced
Market Opportunity: Sustainable product sales in the US is a 128.5B market
Strong Growth Profile: 5-year CAGR of 223%
Organic Growth: ~70% in 2018 and 98% in 2019.
M&A: The Company has completed 4 acquisition in 5 years including the recent (and the company’s largest) acquisitions of Shepherd and IPF. 2020 was a banner year of expansion and vertical integration, we envision this continuing into 2021 and beyond.
Strong Management Team: Paul Antoniadis, CEO -Former CEO Best Buy Europe, $5 billion JV with The Carphone Warehouse. Former SVP, Int’l Retail Ops & President China at Best Buy: multi billion sales/sourcing division. VP Sales Dev for Best Buy US, responsible for $30 billion sales strategy.