Delivra Health Brands Inc.
FY2025 Beat: Geographic Expansion and Potential M&A in the Works
Published: Oct 9, 2025
Author: FRC Analysts
*Delivra Health Brands Inc. has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions.
Sector: Healthcare | Industry: Drug Manufacturers-Specialty & Generic
Ticker Symbols: DHBUF – NASDAQ DHB.V – TSX
Report Highlights
- DHB’s share price is up 93% YTD, outperforming the S&P Personal Care Index, which fell 7%.
- FY2025 (ended June 30, 2025) revenue grew 8% YoY, beating our estimate by 3%, driven by stronger-than-expected Dream Water sales in the U.S. and Middle East.
- Marketing costs rose 26% YoY to 15% of revenue, reflecting management’s earlier guidance to increase marketing spend to drive growth. Adjusted EPS fell 12% to ($0.02), beating our estimate of ($0.04) due to higher revenue and lower costs.
- DHB sells sleep aid products under the Dream Water brand, and pain relief products under LivRelief and LivRelief Infused brands. Approximately 80% of FY2025 sales came from the U.S. and Middle East (up from 74% in FY2024), with the remaining 20% from Canada. Products are available at over 30k+ distribution points, including retail and pharmacy chains, convenience stores, and airports. DHB is actively expanding distribution in the Middle East, and Latin America to support long-term growth.
- We note that market sentiment for the Personal Care sector is down slightly, with a 3% drop in average sector forward EV/revenue since May 2025. However, the sector is expected to accelerate, with consensus revenue growth rising to 11% in 2025, from 9% in 2024.
- DHB maintains a healthy balance sheet, and is well funded to support its expansion plans. We anticipate robust organic growth, supported by growing awareness of the importance of sleep for mental and physical health, alongside additional expansion through new geographic markets.
- The company is also planning M&A to expand its product portfolio — a strategy we view positively. With robust distribution channels, we believe DHB can quickly increase shelf space for acquired products, boost revenue, and deliver accretive value.
- We’re excited to launch our new video series — Stocks in Real Life — connecting the world of capital markets to relatable, real-world stories and concepts. Check out our first episode, featuring Delivra: https://www.youtube.com/shorts/_yxQOhv_C50
Fundamental Research Corp. Equity Rating Scale:
Fundamental Research Corp. Equity Rating Scale (ratings are not a recommendation to acquire, dispose of, or take no action regarding a security; the definition of our ratings are explained below):
- Buy – Fair value is 12% above the current market price; or risk and reward is favorable
- Hold – Fair value is between 5% to 12% above the current market price
- Sell – Fair value is 5% above, or less, than the current market value; or risk and reward is unfavorable
- Suspended or Rating N/A – Coverage and ratings suspended until more information can be obtained from the company regarding recent events.
Fundamental Research Corp. – Risk Rating Scale:
- (Low Risk) – The company operates in an industry where it has a strong position (for example a monopoly, high market share etc.) or operates in a regulated industry. The future outlook is stable or positive for the industry. The company generates positive free cash flow and has a history of profitability. The capital structure is conservative with little or no debt.
- (Below Average Risk) – The company operates in an industry where the fundamentals and outlook are positive. The industry and company are relatively less sensitive to systematic risk than companies with a Risk Rating of 3. The company has a history of profitability and has demonstrated its ability to generate positive free cash flows (though current free cash flow may be negative due to capital investment). The company’s capital structure is conservative with little to modest use of debt.
- (Average Risk) – The company operates in an industry that has average sensitivity to systematic risk. The industry may be cyclical. Profits and cash flow are sensitive to economic factors although the company has demonstrated its ability to generate positive earnings and cash flow. Debt use is in line with industry averages, and coverage ratios are sufficient.
- (Speculative) – The company has little or no history of generating earnings or cash flow. Debt use is higher. These companies may be in start-up mode or in a turnaround situation. These companies should be considered speculative.
- (Highly Speculative) – The company has no history of generating earnings or cash flow. They may operate in a new industry with new, and unproven products. Products may be at the development stage, testing, or seeking regulatory approval. These companies may run into liquidity issues and may rely on external funding. These stocks are considered highly speculative.
Definition of FRC’s Fair Value Estimate – Our fair value estimate is the theoretical value of the company’s equity using widely accepted methods of valuation such as discount cash flow or comparables. IT IS NOT A TARGET PRICE or PREDICTION OF THE FUTURE STOCK PRICE.
Disclaimers and Disclosure
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Any “forward looking statements” are our best estimates and opinions based upon information that is publicly available and that we believe to be correct, but we have not independently verified with respect to truth or correctness. There is no guarantee that our forecasts will materialize. Actual results will likely vary. The analyst and Fundamental Research Corp.
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The distribution of FRC’s ratings are as follows: BUY (69%), HOLD (3%), SELL / SUSPEND (28%). Yorkton Equity Group Inc.
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