Naples Soap Company Reports Preliminary 2023 Record Revenues and 2024 Growth Outlook

• Preliminary unaudited 2023 revenues of approximately $12.3 million with over 70% gross margins
• Substantial room for profitable growth based on current platform and infrastructure
• Planned 2024 growth initiatives include:
  • Focus on ecommerce & social media sales
  • Launch of several new product lines in high-growth athletics & pet care markets
  • Custom private label products in partnership with athletes & celebrities

Naples Soap Company, Inc. (OTCQB: NASO), (“the Company”), a pioneering health and wellness brand that offers high-quality skin and hair care products throughout the United States, today reported preliminary unaudited revenue and gross margins for the twelve months ended December 31, 2023 and its strategy for robust growth in 2024, 2025, and beyond.

2023 revenues were up 11% to $12.35 million over the prior year. Approximately $9.0 million, or 73%, of revenues were from Naples Soap Company’s thirteen physical stores in Florida, while $2.4 million, or 20%, was from direct-to-consumer sales on NaplesSoap.com, with the remaining 7% of revenues generated through wholesale to independent boutiques as well as other online direct-to-consumer sales channels. Gross margins by revenue source ranged from 60–80%, with NaplesSoap.com being the highest margin channel.

“During 2023 we continued to grow revenues and brand equity at Naples Soap Company through our traditional channels including our physical stores and ecommerce site. While this has served as a platform for solid consistent growth, we believe there is tremendous opportunity to scale revenues more rapidly through several strategic initiatives that we have been investing in and are set to launch this year,” stated Naples Soap Company CEO, Deanna Wallin. “These initiatives are expected to help us grow revenues into the $15 to $16 million range in 2024, when we expect to return to profitability, and revenues of over $20 million in 2025.”

Focus on ecommerce & social media sales: Naples Soap Company is a well-recognized brand in Florida with a very loyal customer base. Leveraging its warehouse, fulfillment and shipping infrastructure in 2024, Naples Soap Company intends to increase its push through social media, influencers, and digital advertising to drive national traffic to NaplesSoap.com, its highest margin channel which can also serve the largest audience. Driven by social media and convenience, online sales of personal care products continues to grow year over year, generating nearly $54 billion in the U.S. in 2023. This market is relatively untapped for Naples Soap Company and is expected to be a major driver of growth in 2024 and the years ahead.

Launch of pet care product line: With pet ownership on the rise, $100 billion was spent on pet grooming products globally in 2022 and this market is expected to rise to $162 billion by 2031. Naples Soap Company is developing a premium, natural, and cruelty-free pet grooming and care line that it plans to launch as soon as the second half of 2024.

Launch of athletics product lines: Naples Soap Company is pursuing a significant opportunity to create meaningful, custom product lines for athletes, teams, and sports genres using clean, science-backed formulas for better care of an athlete’s most important sports equipment—the body. While the sports and athletics industry continues to grow, there is a dearth of personal care products and brands that specifically cater to the needs of athletes. The Company plans to launch its first products in this category as soon as the second half of 2024.

Custom private label products in partnership with athletes & celebrities: Naples Soap Company is a trusted brand that has consistently developed and launched more than 400 clean, non-toxic, and effective personal care products over 15 years. Leveraging its expertise and brand equity, the Company is now in discussions to develop branded products lines for athletes, celebrities, and influencers.

The foregoing preliminary unaudited financial information for the fiscal year ended December 31, 2023 is based upon estimates and subject to completion of financial closing procedures and independent audit processes. Such financial information has been prepared by management solely on the basis of currently available information. The preliminary unaudited financial information does not represent and is not a substitute for a comprehensive statement of financial results, and actual results may differ materially from these estimates because of final adjustments, the completion of financial closing procedures, including the pending audit of annual financial statements, and other developments after the date of this release.

For more information about Naples Soap Company and their products, visit www.naplessoap.com

About Naples Soap Company, Inc.

Founded in 2009 by Deanna Wallin, Naples Soap Company is a supplier of more than 400 bath, body and personal care products. Products are sold at the Company’s 13 retail locations in Florida. Naples Soap Company products are sold online from the Company’s website at www.naplessoap.com, through other DTC (direct-to-consumer) channels such as Amazon.com and in more than 300 boutiques, spas and stores throughout the United States via the Company’s wholesale division. For more information about Naples Soap Company, visit ir.naplessoap.com.

Forward-Looking Statements

This release includes certain statements that are "forward-looking statements.” All statements in this release, other than statements of historical fact, that address events or developments that are expected to occur, are forward-looking statements. Forward-looking statements are generally, but not always, identified by the words like “anticipate,” “believe,” “expect,” “intend,” “plan,” “will” and variations of the same. Although we believe the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include our need to obtain additional capital or financing to support our business plans, which may not be available on acceptable terms or at all, market prices, competition, risks inherent in the development and launch of potential products and in new market segments, risks relating to the establishment and maintenance of relationships with athletes, celebrities and influencers, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of Naples Soap Company’s management on the date the statements are made. Except as required by applicable securities laws, Naples Soap Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

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