Starco Brands Announces Fourth Quarter and Full Year 2024 Results and Business Update

In This Article:

Fiscal Year 2024 Gross Revenue of Approximately $73.0 Million and Net Revenue of $58.7 Million

Company Reached Profitability Threshold on an Adjusted EBITDA Basis

Reduced Fourth Quarter 2024 Operating Expenses by 61% and Annual Operating Expenses by 25%, Excluding Non-Cash Expenses

Distribution Growth and New Roll Outs Pave the Way for Expansion and EBITDA Growth in Fiscal Year 2025

SANTA MONICA, Calif., April 18, 2025--(BUSINESS WIRE)--Starco Brands, Inc. (the "Company" or "Starco Brands") (OTCQB: STCB), developer and acquirer of behavior-changing technologies and brands that spark excitement in the everyday, is providing a business update in conjunction with the filing of its form 10-K for the full year ended December 31, 2024.

Management Comments

Starco Brands Chairman & CEO Ross Sklar said: "Our fourth quarter capped off a transformative year as we deepened our acquisitions integrations and streamlined headcount, logistics and marketing costs, positioning ourselves for profit and further scale. What began as a vision for a unified operational platform has materialized into tangible results and a streamlined machine. With this optimization, the Company expanded retail distribution channels, launched new products, and implemented a financial plan that allows us to turn our inventory with better predictability and quicker. The groundwork we’ve methodically laid out over this past year has established a robust foundation that drastically lowered our fixed costs that is already creating liquidity and is now driving our next phase of growth."

Mr. Sklar continued, "We are strongly positioned in 2025 and for 2026 to capitalize on these accomplishments through our robust new product pipeline and targeted distribution expansion. Along with our US based manufacturing partners and with the operational integration work behind us, we've established the infrastructure necessary to support topline growth that delivers improved margins and free cash."

Fourth Quarter of 2024 Financial Results

Reported net revenue for the fourth quarter of 2024 was $12.1 million, compared to $18.5 million in the fourth quarter of 2023. A large portion of this year-over-year decline was due to year-end one-time reconciliations of balance sheet accounts. While demand remained, the additional decrease in reported net revenue was driven by supply chain pressure and out of stocks predominantly impacting e-commerce sales. Furthermore, we experienced lower retail volumes due to a large retailer merging an entire set in ready-to-drink meal replacement category at a key retailer. Lower Whipshots sales also contributed to the year-over-year decline due to higher inventory stocking orders in the prior year period combined with lower alcohol sales nationally causing distributors to reduce their 2025 inventory plans. These decreases were partially offset by continued growth for the Winona Popcorn Spray line and Art of Sport, our men’s personal care and nutraceutical line.