Better Choice Company Inc. Announces Positive Third Quarter 2024 Results
Better Choice Company reported strong Q3 2024 results with significant growth across key metrics. Revenue increased 33% quarter-over-quarter to $11.4 million, while gross margin improved 591 basis points year-over-year to 40%. The company achieved net income of $1.5 million, marking a 194% increase year-over-year, with EPS growing 132% to $0.73. Notable achievements include a $2.6 million gain on debt extinguishment and Adjusted EBITDA growth of 255% to $0.2 million. The company saw double-digit growth in Digital customers and 9% growth in International channels, particularly in the Asia-Pacific region. This marks the company's first profitable quarter in over four years.
Better Choice Company ha riportato risultati solidi per il terzo trimestre del 2024, con una crescita significativa in vari indicatori chiave. I ricavi sono aumentati del 33% rispetto al trimestre precedente, raggiungendo $11.4 milioni, mentre il margine lordo è migliorato di 591 punti base rispetto all'anno precedente, arrivando al 40%. L'azienda ha raggiunto un utile netto di $1.5 milioni, segnando un incremento del 194% rispetto all'anno passato, con l'EPS in crescita del 132% a $0.73. Tra i risultati notevoli spicca un guadagno di $2.6 milioni dalla cancellazione del debito e una crescita dell'EBITDA rettificato del 255% a $0.2 milioni. L'azienda ha registrato una crescita a doppia cifra nei clienti digitali e un aumento del 9% nei canali internazionali, in particolare nella regione Asia-Pacifico. Questo rappresenta il primo trimestre redditizio dell'azienda dopo oltre quattro anni.
Better Choice Company reportó resultados sólidos en el tercer trimestre de 2024, con un crecimiento significativo en métricas clave. Los ingresos aumentaron un 33% respecto al trimestre anterior, alcanzando $11.4 millones, mientras que el margen bruto mejoró 591 puntos básicos año tras año, llegando al 40%. La empresa alcanzó un ingreso neto de $1.5 millones, lo que representa un incremento del 194% en comparación con el año anterior, con el BPA creciendo un 132% a $0.73. Entre los logros notables se incluye una ganancia de $2.6 millones por extinción de deuda y un crecimiento del EBITDA ajustado del 255% a $0.2 millones. La empresa vio un crecimiento de doble dígito en clientes digitales y un crecimiento del 9% en canales internacionales, particularmente en la región Asia-Pacífico. Este marca el primer trimestre rentable de la empresa en más de cuatro años.
Better Choice Company는 2024년 3분기에 강력한 실적을 발표했으며 주요 지표에서 상당한 성장을 기록했습니다. 매출은 전 분기 대비 33% 증가하여 $11.4 백만에 달했으며, 총 마진은 전년 대비 591bps 개선된 40%를 기록했습니다. 회사는 순이익 $1.5 백만을 달성하여 전년 대비 194% 증가했으며, 주당 순이익(EPS)도 132% 증가하여 $0.73에 달했습니다. 주목할 만한 성과로는 부채 상환으로 인한 $2.6 백만의 이익과 조정 EBITDA가 255% 증가하여 $0.2 백만에 도달한 것이 있습니다. 회사는 디지털 고객에서 두 자릿수 성장률과 아시아-태평양 지역에서 특히 국제 채널에서 9% 성장을 보았습니다. 이는 4년 넘게 회사의 첫 번째 수익성 있는 분기입니다.
Better Choice Company a annoncé des résultats solides pour le troisième trimestre 2024, avec une croissance significative dans des indicateurs clés. Le chiffre d'affaires a augmenté de 33 % par rapport au trimestre précédent, atteignant 11,4 millions de dollars, tandis que la marge brute s'est améliorée de 591 points de base d'une année sur l'autre, atteignant 40 %. L'entreprise a réalisé un bénéfice net de 1,5 million de dollars, marquant une augmentation de 194 % par rapport à l'année précédente, avec un BPA en hausse de 132 % à 0,73 $. Parmi les réalisations notables figure un gain de 2,6 millions de dollars lié à l'extinction de la dette et une croissance de l'EBITDA ajusté de 255 % à 0,2 million de dollars. L'entreprise a connu une croissance à deux chiffres des clients numériques et 9 % de croissance dans les canaux internationaux, en particulier dans la région Asie-Pacifique. Cela marque le premier trimestre rentable de l'entreprise en plus de quatre ans.
Better Choice Company hat im dritten Quartal 2024 starke Ergebnisse gemeldet, mit einem signifikanten Wachstum in wichtigen Kennzahlen. Der Umsatz stieg im Vergleich zum Vorquartal um 33% auf $11.4 Millionen, während die Bruttomarge um 591 Basispunkte im Jahresvergleich auf 40% zulegte. Das Unternehmen erzielte einen Nettoeinkommen von $1.5 Millionen, was einem Anstieg von 194% im Jahresvergleich entspricht, während das EPS um 132% auf $0.73 wuchs. Zu den hervorzuhebenden Leistungen gehört ein Gewinn von $2.6 Millionen aus der Tilgung von Schulden und ein Anstieg des bereinigten EBITDA um 255% auf $0.2 Millionen. Das Unternehmen verzeichnete ein zweistelliges Wachstum bei digitalen Kunden und ein Wachstum von 9% in internationalen Kanälen, insbesondere in der Region Asien-Pazifik. Dies markiert das erste rentable Quartal des Unternehmens seit über vier Jahren.
- Revenue growth of 33% QoQ to $11.4 million
- Gross margin improvement of 591 basis points YoY to 40%
- Net income increase of 194% YoY to $1.5 million
- EPS growth of 132% YoY to $0.73
- $2.6 million gain from debt extinguishment
- First profitable quarter in over four years
- Working capital position improved to $9.5 million
- Operating margin still negative at -10% despite improvement
Insights
Better Choice Company delivered remarkable financial improvements in Q3 2024, with several key metrics showing strong growth. Revenue jumped
The
The company's strategic focus on the Asia-Pacific region aligns well with significant market opportunities. The pet food market in Asia is experiencing unprecedented growth driven by increasing pet ownership, rising disposable incomes and changing consumer attitudes toward pet care. The successful expansion in this region, evidenced by
The improved new-to-brand consumer metrics and increased repeat customers indicate successful marketing initiatives and product satisfaction. This customer acquisition and retention success is particularly valuable in the competitive pet health and wellness sector, where brand loyalty can drive long-term revenue growth. The company's diverse product portfolio across multiple categories provides multiple growth vectors and helps insulate against category-specific risks.
Sequential Revenue Growth of
Adjusted EBITDA Growth of
Net Income Growth of
EPS Growth of
TAMPA, Fla., Nov. 12, 2024 (GLOBE NEWSWIRE) -- Better Choice Company Inc. (NYSE American: BTTR) (the “Company” or “Better Choice”), a pet health and wellness company, today announced its results for the third quarter ended September 30, 2024 ("Q3 2024").
THIRD QUARTER 2024 FINANCIAL HIGHLIGHTS
- Revenue increased
33% to$11.4 million from the second quarter 2024 - Gross margin increased 591 basis points year-over-year (“YOY”) to
40% - Operating margin improved 1,003 basis points YOY to (10)%
- Net income increased
194% YOY to$1.5 million - Earnings per share (“EPS”) improved
132% YOY to$0.73 $2.6 million gain on extinguishment of debt- Adjusted EBITDA increased
255% YOY to$0.2 million 1
“For the third quarter of 2024, we exceeded our internal projections across all key financial metrics," commented Chief Executive Officer, Kent Cunningham. "The most encouraging for me was the double-digit year-over-year growth we saw across our primary Digital customers. We can see our marketing shifts are paying off as we have grown our new-to-brand consumer base, and we know our product performance is delivering as we've generated more repeat consumers. In our International channel, we generated
Nina Martinez, Chief Financial Officer, also commented, "Our ability to achieve
1 Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures. Reconciliation of Adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure, is set forth in the reconciliation table accompanying this release.
About Better Choice Company Inc.
Better Choice Company Inc. is a pet health and wellness company focused on providing pet products and services that help dogs and cats live healthier, happier and longer lives. We offer a broad portfolio of pet health and wellness products for dogs and cats sold under our Halo brand across multiple forms, including foods, treats, toppers, dental products, chews, and supplements. We have a demonstrated, multi-decade track record of success and are well positioned to benefit from the mainstream trends of growing pet humanization and consumer focus on health and wellness. Our products consist of kibble and canned dog and cat food, freeze-dried raw dog food and treats, vegan dog food and treats, oral care products and supplements. Halo’s core products are made with high-quality, thoughtfully sourced ingredients for natural, science-based nutrition. Each innovative recipe is formulated with leading veterinary and nutrition experts to deliver optimal health. For more information, please visit https://www.betterchoicecompany.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. The Company has based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Some or all of the results anticipated by these forward-looking statements may not be achieved. Further information on the Company’s risk factors is contained in our filings with the SEC. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Company Contact:
Better Choice Company Inc.
Kent Cunningham, CEO
Investor Contact:
KCSA Strategic Communications
Valter Pinto, Managing Director
T: 212-896-1254
Valter@KCSA.com
| Better Choice Company Inc. Unaudited Condensed Consolidated Statements of Operations (Dollars in thousands) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net sales | $ | 11,372 | $ | 13,117 | $ | 27,817 | $ | 32,890 | |||||||
| Cost of goods sold | 6,854 | 8,681 | 17,432 | 21,625 | |||||||||||
| Gross profit | 4,518 | 4,436 | 10,385 | 11,265 | |||||||||||
| Operating expenses: | |||||||||||||||
| Selling, general and administrative | 5,645 | 7,052 | 14,703 | 19,721 | |||||||||||
| Total operating expenses | 5,645 | 7,052 | 14,703 | 19,721 | |||||||||||
| Loss from operations | (1,127 | ) | (2,616 | ) | (4,318 | ) | (8,456 | ) | |||||||
| Other income (expense): | |||||||||||||||
| Interest income (expense), net | 6 | (344 | ) | (536 | ) | (952 | ) | ||||||||
| Change in fair value of warrant liabilities | — | 1,339 | — | 1,339 | |||||||||||
| Gain on extinguishment of debt and accounts payable | 2,645 | — | 6,206 | — | |||||||||||
| Total other income, net | 2,651 | 995 | 5,670 | 387 | |||||||||||
| Income (loss) before income taxes | 1,524 | (1,621 | ) | 1,352 | (8,069 | ) | |||||||||
| Income tax (benefit) expense | (2 | ) | — | 3 | — | ||||||||||
| Net income (loss) | $ | 1,526 | $ | (1,621 | ) | $ | 1,349 | $ | (8,069 | ) | |||||
| Weighted average number of shares outstanding, basic | 2,085,715 | 703,990 | 1,257,006 | 697,271 | |||||||||||
| Weighted average number of shares outstanding, diluted | 2,085,715 | 703,990 | 1,257,006 | 697,271 | |||||||||||
| Net income (loss) per share, basic | $ | 0.73 | $ | (2.30 | ) | $ | 1.07 | $ | (11.57 | ) | |||||
| Net income (loss) per share, diluted | $ | 0.73 | $ | (2.30 | ) | $ | 1.07 | $ | (11.57 | ) | |||||
| Better Choice Company Inc. Unaudited Condensed Consolidated Balance Sheets (Dollars in thousands, except share amounts) | |||||||
| September 30, 2024 | December 31, 2023 | ||||||
| Assets | |||||||
| Cash and cash equivalents | $ | 4,743 | $ | 4,455 | |||
| Accounts receivable, net | 5,726 | 4,354 | |||||
| Note receivable | 1,450 | — | |||||
| Inventories, net | 3,930 | 6,611 | |||||
| Prepaid expenses and other current assets | 477 | 812 | |||||
| Total Current Assets | 16,326 | 16,232 | |||||
| Fixed assets, net | 158 | 230 | |||||
| Right-of-use assets, operating leases | 78 | 120 | |||||
| Goodwill | 405 | — | |||||
| Other assets | 205 | 155 | |||||
| Total Assets | $ | 17,172 | $ | 16,737 | |||
| Liabilities & Stockholders’ Equity | |||||||
| Current Liabilities | |||||||
| Accounts payable | $ | 3,217 | $ | 6,928 | |||
| Accrued and other liabilities | 1,631 | 2,085 | |||||
| Credit facility, net | 1,944 | 1,741 | |||||
| Term loan, net | — | 2,881 | |||||
| Operating lease liability | 60 | 57 | |||||
| Total Current Liabilities | 6,852 | 13,692 | |||||
| Non-current Liabilities | |||||||
| Operating lease liability | 21 | 67 | |||||
| Total Non-current Liabilities | 21 | 67 | |||||
| Total Liabilities | 6,873 | 13,759 | |||||
| Stockholders’ Equity | |||||||
| Common Stock, | 2 | 1 | |||||
| Additional paid-in capital | 330,290 | 324,319 | |||||
| Accumulated deficit | (319,993 | ) | (321,342 | ) | |||
| Total Stockholders’ Equity | 10,299 | 2,978 | |||||
| Total Liabilities and Stockholders’ Equity | $ | 17,172 | $ | 16,737 | |||
Better Choice Company Inc.
Non-GAAP Measures
Adjusted EBITDA and Adjusted EBITDA Margin
We define Adjusted EBITDA and Adjusted EBITDA margin to supplement the financial measures prepared in accordance with GAAP. Adjusted EBITDA and Adjusted EBITDA margin adjusts EBITDA to eliminate the impact of certain items that we do not consider indicative of our core operations. Adjusted EBITDA is determined by adding the following items to net (loss) income: interest expense, tax expense, depreciation and amortization, share-based compensation, gain on extinguishment of debt, loss on disposal of assets, transaction-related expenses, and other non-recurring expenses. Adjusted EBITDA margin is determined by dividing Adjusted EBITDA by Net sales.
We present Adjusted EBITDA and Adjusted EBITDA margin as it is a key measure used by our management and board of directors to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. We believe that the disclosure of Adjusted EBITDA and Adjusted EBITDA margin is useful to investors as this non-GAAP measure forms the basis of how our management team reviews and considers our operating results. By disclosing this non-GAAP measure, we believe that we create for investors a greater understanding of and an enhanced level of transparency into the means by which our management team operates our company. We also believe this measure can assist investors in comparing our performance to that of other companies on a consistent basis without regard to certain items that do not directly affect our ongoing operating performance or cash flows.
Adjusted EBITDA does not represent cash flows from operations as defined by GAAP. Adjusted EBITDA has limitations as a financial measure and you should not consider it in isolation, or as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including various cash flow metrics, net (loss) income, gross margin, and our other GAAP results.
The following table presents a reconciliation of net income (loss), the closest GAAP financial measure, to EBITDA and Adjusted EBITDA for each of the periods indicated (in thousands):
| Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income (loss) | $ | 1,526 | $ | (1,621 | ) | $ | 1,349 | $ | (8,069 | ) | |||||
| Interest expense, net | (6 | ) | 344 | 536 | 952 | ||||||||||
| Income tax expense | (2 | ) | — | 3 | — | ||||||||||
| Depreciation and amortization | 31 | 416 | 99 | 1,262 | |||||||||||
| EBITDA | 1,549 | (861 | ) | 1,987 | (5,855 | ) | |||||||||
| Share-based compensation | 84 | 473 | 762 | 1,618 | |||||||||||
| Gain on extinguishment of debt | (2,645 | ) | (6,206 | ) | |||||||||||
| Loss on disposal of assets | — | — | — | 11 | |||||||||||
| Transaction-related expenses (a) | 418 | — | 907 | — | |||||||||||
| Strategic branding initiatives (b) | 33 | 41 | 102 | 73 | |||||||||||
| Co-manufacturing partner transition (c) | — | — | 6 | ||||||||||||
| Other single occurrence expenses (d) | 776 | 208 | 1,232 | 397 | |||||||||||
| Adjusted EBITDA | $ | 215 | $ | (139 | ) | $ | (1,216 | ) | $ | (3,750 | ) | ||||
| (a) Legal fees, professional fees, and other expenses for transaction-related business matters. | |||||||||||||||
| (b) One-time costs related to marketing agency and design, strategic re-branding initiatives, Elevate® launch, product innovation and reformulations | |||||||||||||||
| (c) One-time costs related to marketing agency and design, strategic re-branding initiatives, Elevate® launch, product innovation and reformulations | |||||||||||||||
| (d) One-time costs related to employee severance, executive recruitment, and other non-recurring professional fees | |||||||||||||||
FAQ
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