Worksport Reports 1,506% Surge in Q1 Revenue, Announces Forward Guidance

Worksport Ltd. (NASDAQ: WKSP), a leading US-based manufacturer and innovator in hybrid and clean energy solutions for the light truck, overlanding, and global consumer goods sectors, announces its financial results for the first quarter of fiscal year 2024.

Worksport reported a remarkable 1,506% increase in revenue for Q1 2024 compared to Q1 2023, while successfully reducing operational expenses by 4.8% during the same period. The gross margins, primarily driven by private label sales, are expected to see significant improvement in upcoming quarters.

The company will provide forward-looking guidance on May 23, 2024. April 2024 sales have shown promising results, highlighting the company’s accelerating growth. Management is optimistic about their revenue projections through the end of 2024, anticipating a substantial increase from calendar year 2023.

CEO Steven Rossi commented:

“We are thrilled with the early growth and demand from our efforts. Despite challenges such as COVID lockdowns, hyper-inflation, and supply-chain disruptions, we have launched our new factory, developed groundbreaking products, and laid the foundation for rapid growth. This success with our inaugural product indicates the immense potential of our business. We have an amazing team and an innovative product line poised for significant growth in the years ahead. Next week, we will provide forward-looking guidance. 2024 is Worksport’s year.”

Recently, Worksport signaled its stock as undervalued and anticipates robust growth as US production ramps up and the launch of its anticipated clean energy solutions approaches. The company is expanding rapidly and working on numerous grants, including a $2.8 million grant from the State of New York announced last week. Worksport is positioning itself to capitalise on the multi-billion-dollar clean-energy and automotive accessory markets.

Key Highlights for Q1 2024

Significant Growth: Worksport Ltd. reported 1,506% increase in North American sales for Q1 2024 compared to Q1 2023, with revenues rising from $31,925 in Q1 2023 to $512,637 in Q1 2024. US revenue alone saw a 1,766% increase in the same period.

Matured Supply Chain: In Q1 2024, Worksport strategically invested $2.9 million in producing and acquiring inventory, specifically for higher margin products. Holding $6.5 million in inventory, the company anticipates a swift inventory turnover, allowing it to promptly capitalise on growing demand.

B2B Expansion: Worksport has focused on ramping up production and enhancing its product line in Q1 2024. Full-scale US production began in January 2024, with significant progress made since then. The company is preparing to sell its products through leading distributors across the United States, setting up an extensive system during Q1 to drive substantial growth in the second half of 2024.

B2C Sales Campaign: With a fully integrated production process, Worksport officially launched its e-commerce sales at the end of Q1, on March 18, 2024. The B2C campaign is expected to ramp up quickly, significantly contributing to future growth. The company will provide an update on e-commerce sales projections on May 23, 2024.

Clean Energy Product Pipeline: Worksport is positioning itself at the forefront of eco-friendly automotive accessories with upcoming launches of the first-to-market SOLIS Solar Tonneau Cover and the highly anticipated COR Modular Portable Energy System. The company is also progressing on its extreme-climate heat pump, aligning with global shifts towards sustainable energy solutions. Each new product represents a multi-billion-dollar market for Worksport.

North American Expansion: To increase its presence in the US and Canada, Worksport has engaged in several strategic collaborations with leading distributors and mass merchandisers, including an agreement with Dix Performance North to expand its distribution network across Canada. This aligns with the company’s goals to enhance product accessibility and visibility, and efforts in this area will continue.