-Fourth Quarter Sales of $19.7 Million, Up 24%, and Gross Profit of $8.1 Million, up 42%, over Q4 2023
-Full Year Sales of $69.4 Million, Up 25%, and Gross Profit of $27.1 Million Up 33%; over 2023
HOLLYWOOD, FL, March 31, 2025 (GLOBE NEWSWIRE) -- Healthy Choice Wellness Corp. (NYSE-AM: HCWC) today announced financial results for the fourth quarter and twelve months ended December 31, 2024.
Fourth Quarter 2024 Results and Key Highlights:
Record-Breaking Net Sales: Net sales surged 24% to $19.7 million for the three-month period ending December 31, 2024, an impressive $3.8 million jump from $15.9 million in the same period of 2023.
Gross Profit Growth: Gross profit surged 42% to $8.1 million, up a significant $2.4 million from $5.7 million in the previous year’s quarter.
Net Loss from Operations: Net loss from operations shrank to just $0.3 million, a significant improvement from the $7.4 million loss recorded in the fourth quarter of 2023. This previous loss had included a $6.1 million non-cash goodwill write-off.
Adjusted EBITDA: Adjusted EBITDA turned positive at $0.1 million, marking a nearly $1.1 million improvement compared to the $0.95 million loss in the fourth quarter of 2023.
Fiscal Year End 2024 Results and Recent Highlights
Record-Breaking Net Sales for the twelve-month period ended December 31, 2024, amounted to a record $69.4 million, compared to $55.7 million, an approximately $13.7 million increase and a 25% increase versus the same period in 2023.
Gross Profit increased by approximately $6.7 million for the twelve-month period ended December 31, 2024, amounting to a record $27.1 million, compared to $20.3 million for the same period in 2023.
Net Loss from Operations for the twelve-month period ended December 31, 2024, was approximately $1.8 million, compared to a $10.5 million loss for the same period last year. It's important to note that $6.1 million of the $10.5 million loss in 2023 was due to a non-cash write-off of goodwill.
Adjusted EBITDA for the full year ended December 31, 2024 amounted to a loss of $0.2 million, in comparison to $3.0 million for the full year ended December 31, 2023, an improvement of $2.8 million.
Chief Executive Officer of HCWC Jeffrey Holman commented, “Today’s earnings represent a significant milestone for HCWC as we reported our first quarter of Adjusted EBITDA profitability in just our first full quarter as a stand-alone company. Looking ahead, we will continue to make strategic investments that drive long-term impact and enhance our speed and agility. We will strive to maintain the efficiency levels we achieved last year while reporting record revenue of $69.4 million following the acquisition of GreenAcres Market. GreenAcres Market has subsequently driven operational enhancements, raising the bar across all 19 of our stores through the companywide implementation of their long-standing valuable initiatives. As we forge ahead in 2025, we are energized by our strong roadmap and clear vision for the company. We are strategically positioned to drive sustainable growth, seize new opportunities, and create long-term value for all our stakeholders.”
Results of Operations
The following table sets forth our Consolidated Statements of Operations for the three and twelve months ended December 31, 2024 and 2023:
HEALTHY CHOICE WELLNESS CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
For Three Months Ended December 31, 2024 (Unaudited)
For the Years Ended December 31, (Audited)
2024
2023
2024
2023
SALES, NET
$
19,652,407
$
15,850,590
$
69,370,803
$
55,689,793
COST OF SALES
11,539,751
10,141,690
42,305,494
35,341,569
GROSS PROFIT
8,112,657
5,708,900
27,065,309
20,348,224
TOTAL OPERATING EXPENSES
8,434,407
13,128,530
28,842,787
30,872,293
LOSS FROM OPERATIONS
(321,751
)
(7,419,630
)
(1,777,478
)
(10,524,069
)
TOTAL OTHER (EXPENSE) INCOME, NET
(229,038
)
(72,038
)
(2,728,988
)
591,449
NET LOSS
$
(550,789
)
$
(7,491,668
)
$
(4,506,466
)
$
(9,932,620
)
See non-GAAP financial measure discussion
For Three Months Ended December 31, 2024 (Unaudited)
For the Years Ended December 31, (Audited)
2024
2023
2024
2023
ADJUSTED EBITDA
Loss from operations
$
(321,751
)
$
(7,419,630
)
$
(1,777,478
)
$
(10,524,069
)
Depreciation and amortization
428,299
361,130
1,576,457
1,431,816
Goodwill impairment
-
6,104,000
-
6,104,000
ADJUSTED EBITDA
$
106,549
$
(954,500
)
$
(201,021
)
$
(2,988,254
)
Consolidated Balance Sheets:
The following table sets forth our Consolidated Balance Sheets as of December 31, 2024 and 2023:
HEALTHY CHOICE WELLNESS CORP.
CONSOLIDATED BALANCE SHEETS
December 31, 2024
December 31, 2023
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$
2,056,472
$
1,422,580
Other current assets
7,650,485
4,522,201
TOTAL CURRENT ASSETS
9,706,957
5,944,781
OTHER ASSETS
24,405,560
22,487,779
TOTAL ASSETS
$
34,112,517
$
28,432,560
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
11,940,312
8,579,449
OTHER LIABILITIES
19,792,203
10,864,989
TOTAL LIABILITIES
31,732,515
19,444,438
TOTAL STOCKHOLDERS’ EQUITY
2,380,002
8,988,122
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
34,112,517
$
28,432,560
Non-GAAP – Financial Measure
The following discussion and analysis contain a non-GAAP financial measure. 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 generally accepted accounting principles (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 net loss from operations adjusted for non-cash charges from depreciation and amortization, stock compensation, and goodwill impairment. 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
About Healthy Choice Wellness Corp. Healthy Choice Wellness Corp. is a holding company focused on providing consumers with healthier daily choices with respect to nutrition and other lifestyle alternatives.
Through its wholly owned subsidiaries, 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 store 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 (www.ellwoodthompsons.com).
GreenAcres Market, an organic and natural health food and vitamin chain with five store locations in Kansas and Oklahoma. GreenAcres Market is a chain of premier natural foods stores, offering organic and all natural products and vitamins from both top national brands as well as locally sourced specialty brand (www.greenacres.com).
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.
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.
