Healthier Choices Management Corp. Reports First Quarter 2024 Financial Results
First Quarter Record Sales of $15.9 Million, Up 17%, over Q1 2023
First Quarter Record Gross Profit of $6.0 Million Up 23%, over Q1 2023
HOLLYWOOD, FL, May 10, 2024 -- Healthier Choices Management Corp. (OTC Pink: HCMC) today announced financial results for the first quarter ended March 31, 2024.
First Quarter 2024 Results Highlights:
Net sales from operations for the three-month period ended March 31, 2024, amounted to a record $15.9 million, compared to $13.6 million, an approximately $2.3 million and 17% increase versus the same period in 2023.
Gross Profit from operations increased by approximately $1.1 million for the three-month period ended March 31, 2024, amounting to a record $6.1 million, compared to $4.9 million for the same period in 2023, a 23% year-over-year increase.
Net Loss for the three-month period ended March 31, 2024, amounted to approximately $2.9 million versus a $1.9 million loss for the same period last year, a 50% increase. It should be noted that over $1.1 million in non-cash expenses were incurred during the three-month period ended March 31, 2024.
Adjusted EBITDA loss amounted to $1.3 million versus $1.6 million when compared to the same period last year, an improvement of 17% when compared to the same period last year.
Jeffrey Holman, Chief Executive Officer of HCMC, said, "We continue with strong top line performance as first quarter revenue increased $2.3 million to a first quarter record of $15.9 million. This was driven largely by the Ellwood Thompson acquisition we completed last year. Our top line sales results, coupled with a 200-basis point improvement in first quarter gross margin percent resulted in a record $6.0 million gross profit. These results provide evidence of our ability to execute against our expansion strategy.
Mr. Holman concluded, “We remain focused on our expansion strategy and are confident in our ability to deliver another year of strong growth. This growth, along with continuing efforts to implement synergies across our brands to bring us to bottom line profitability, remain our top priorities.”
Results of Operations
The following table sets forth our Condensed Consolidated Statements of Operations for the three months ended March 31, 2024, and 2023.
Consolidated Balance Sheets:
The following table sets forth our Condensed Consolidated Balance Sheets as of March 31, 2024, and December 31, 2023.
Non-GAAP – Financial Measure
The following discussion and analysis contains a non-GAAP financial measure. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures should be viewed as supplemental to, and should not be considered as alternative to, net income, operating income, and cash flow from operating activities, liquidity or any other financial measures. Non-GAAP financial measures may not be indicative of the historical operating results of the Company nor are they intended to be predictive of potential future financial results. Investors should not consider non-GAAP financial measures in isolation or as substitutes for performance measures calculated in accordance with GAAP.
Management believes stockholders benefit from referring to the Adjusted EBITDA in planning, forecasting, and analyzing future periods. Management uses this non-GAAP financial measure in evaluating its financial and operational decision making and as a means of evaluating period to period comparison.
We define Adjusted EBITDA as loss from operations adjusted for non-cash charges from depreciation and amortization and stock compensation. Management believes Adjusted EBITDA is an important measure of our operating performance because it allows management, investor and analysts to evaluate and assess our core operating results from period to period after removing the impact of significant non-cash charges that effect comparability between reporting periods. Our management recognizes that Adjusted EBITDA has inherent limitations because of the excluded items.
We have included a reconciliation of our non-GAAP financial measure to loss from operations as calculated in accordance with GAAP. We believe that providing the non-GAAP financial measure, together with the reconciliation to GAAP, helps investors make comparisons between the Company and other companies. In making any comparisons to other companies, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to specific definition being used and to the reconciliation between such measures and the corresponding GAAP measure provided by each company under applicable rules of the Securities and Exchange Commission (“SEC”). The table above presents a reconciliation of Adjusted EBITDA to loss from operations, a GAAP financial measure.
About Healthier Choices Management Corp.
Healthier Choices Management Corp. (www.healthiercmc.com) is a holding company focused on providing consumers with healthier daily choices with respect to nutrition and other lifestyle alternatives.
Through its wholly owned subsidiary HCMC Intellectual Property Holdings, LLC, the Company manages and intends to expand its intellectual property portfolio.
Through its wholly owned subsidiaries, Healthy Choice Markets, Inc., Healthy Choice Markets 2, LLC, and Healthy Choice Markets 3, LLC, Healthy Choice Markets IV, LLC, Healthy Choice Markets V, LLC, respectively, the Company operates:
Ada’s Natural Market, a natural and organic grocery store offering fresh produce, bulk foods, vitamins and supplements, packaged groceries, meat and seafood, deli, baked goods, dairy products, frozen foods, health & beauty products, and natural household items (www.Adasmarket.com).
Paradise Health & Nutrition’s three stores that likewise offer fresh produce, bulk foods, vitamins, and supplements, packaged groceries, meat and seafood, deli, baked goods, dairy products, frozen foods, health & beauty products, and natural household items (www.ParadiseHealthDirect.com).
Mother Earth’s Storehouse, an organic and health food and vitamin chain in New York’s Hudson Valley, which has been in existence for over 40 years (www.MotherEarthStorehouse.com).
Greens Natural Foods’ eight stores in New York and New Jersey, offering a selection of 100% organic produce and all-natural, non-GMO groceries and bulk foods; a wide selection of local products; an organic juice and smoothie bar; a fresh foods department, which offers fresh and healthy “grab & go” foods; a full selection of vitamins & supplements; as well as health and beauty products(www.Greensnaturalfoods.com).
Ellwood Thompson’s, an organic and natural health food and vitamin store located in Richmond, Virginia. Ellwood Thompson’s has served the Carytown community for the past 35 years, focusing on a commitment to local vendors, products, and services. (www.ellwoodthompsons.com).
Through its wholly owned subsidiary, Healthy Choice Wellness, LLC, the Company (1) operates Healthy Choice Wellness Center in Kingston, NY and (2) has a licensing agreement for a Healthy Choice Wellness Center located at the Casbah Spa and Salon in Fort Lauderdale, FL.
Through its wholly owned subsidiary, Healthy U Wholesale, the Company sells vitamins and supplements, as well as health, beauty, and personal care products on its website www.TheVitaminStore.com.
Additionally, the Company markets its patented Q-Unit™ and Q-Cup® technology. Information on these products and the technology is available on the Company’s website at www.theQcup.com.
Forward Looking Statements.
This press release contains forward-looking statements within the meaning of that term in the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). Additional written or oral forward-looking statements may be made by the Company from time to time in filings with the Securities and Exchange Commission (SEC) or otherwise. Statements contained in this press release that are not historical facts are forward looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and are based on management’s estimates, assumptions and projections and are not guarantees of future performance. The Company assumes no obligation to update these statements. Forward looking statements may include, but are not limited to, projections or estimates of revenue, income, or loss, exit costs, cash flow needs and capital expenditures, statements regarding future operations, expansion or restructuring plans, including our recent exit from, and winding down of our wholesale distribution operations. In addition, when used in this release, the words “anticipates,” “believes,” “estimates,” “expects,” “intends,” and “plans” and variations thereof and similar expressions are intended to identify forward looking statements.
Factors that may affect our future results of operations and financial condition include, but are not limited to, fluctuations in demand for our products, the introduction of new products, our ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of our liquidity and financial strength to support its growth, and other information that may be detailed from time-to-time in our filings with the SEC.
Contact Information:
Healthier Choices Management Corp.
3800 North 28th Way, #1
Hollywood, FL 33020
305-600-5004
Email: ir@hcmc1.com