Better Choice Company Inc. Announces Second Quarter 2024 Results
Better Choice Company Inc. (NYSE American: BTTR) reported strong Q2 2024 results, with net income increasing 190% to $2.7 million year-over-year. EPS grew 170% to $2.98, and Adjusted EBITDA improved 98% to nearly break-even. The company recognized a $3.6 million gain on extinguishment of debt. Revenue increased 8% to $8.5 million from Q1 2024, while gross margin improved 403 basis points to 38% year-over-year. Operating loss decreased 72% to $(0.7) million. The company's strategic shifts are showing positive results, with 27% growth in the International channel and 11% growth in the Digital channel. Better Choice is focusing on the Halo brand, targeting the $50 billion US & Canada pet food markets and the $30 billion Asia-Pacific region.
Better Choice Company Inc. (NYSE American: BTTR) ha riportato risultati solidi per il secondo trimestre del 2024, con un aumento del reddito netto del 190% a 2,7 milioni di dollari rispetto all'anno precedente. L'EPS è cresciuto del 170% a 2,98 dollari, e l'EBITDA corretto è migliorato del 98%, avvicinandosi al pareggio. L'azienda ha registrato un . I ricavi sono aumentati dell'8% a 8,5 milioni di dollari rispetto al primo trimestre del 2024, mentre il margine lordo è migliorato di 403 punti base portandosi al 38% rispetto all'anno precedente. La perdita operativa è diminuita del 72% a $(0,7) milioni. Le modifiche strategiche dell'azienda stanno mostrando risultati positivi, con una crescita del 27% nel canale internazionale e una crescita dell'11% nel canale digitale. Better Choice si sta concentrando sul marchio Halo, puntando ai mercati del cibo per animali domestici da 50 miliardi di dollari negli Stati Uniti e in Canada e a quelli da 30 miliardi di dollari nella regione Asia-Pacifico.
Better Choice Company Inc. (NYSE American: BTTR) reportó resultados sólidos en el segundo trimestre de 2024, con un aumento del ingreso neto del 190% a 2.7 millones de dólares en comparación con el año anterior. El EPS creció un 170% a 2.98 dólares, y el EBITDA ajustado mejoró un 98% acercándose al punto de equilibrio. La compañía reconoció una ganancia de 3.6 millones de dólares por extinción de deuda. Los ingresos aumentaron un 8% a 8.5 millones de dólares desde el primer trimestre de 2024, mientras que el margen bruto mejoró en 403 puntos básicos alcanzando el 38% interanual. La pérdida operativa disminuyó un 72% a $(0.7) millones. Los cambios estratégicos de la empresa están mostrando resultados positivos, con un crecimiento del 27% en el canal internacional y un crecimiento del 11% en el canal digital. Better Choice se está enfocando en la marca Halo, apuntando a los mercados de alimentos para mascotas de 50 mil millones de dólares en EE. UU. y Canadá y a los 30 mil millones de dólares en la región Asia-Pacífico.
Better Choice Company Inc. (NYSE American: BTTR)는 2024년 2분기 실적이 강력하게 보고되었으며, 순이익이 작년 대비 190% 증가한 270만 달러로 기록되었습니다. EPS는 170% 성장하여 2.98달러에 도달했으며, 조정 EBITDA는 거의 손익 분기점에 도달하며 98% 개선되었습니다. 회사는 부채 소각으로 인한 360만 달러의 이익을 인식했습니다. 수익은 2024년 1분기 대비 8% 증가하여 850만 달러에 달했으며, 총 마진은 작년 대비 403 베이시스 포인트 개선되어 38%에 도달했습니다. 운영 손실은 72% 감소하여 $(70만)으로 감소했습니다. 회사의 전략적 변화가 긍정적인 결과를 보이고 있으며, 국제 채널에서 27% 성장과 디지털 채널에서 11% 성장을 기록했습니다. Better Choice는 Halo 브랜드에 집중하고 있으며, 500억 달러 규모의 미국 및 캐나다의 반려동물 사료 시장과 300억 달러 규모의 아시아-태평양 지역을 목표로 하고 있습니다.
Better Choice Company Inc. (NYSE American: BTTR) a annoncé des résultats solides pour le deuxième trimestre de 2024, avec une augmentation du revenu net de 190 % à 2,7 millions de dollars par rapport à l'année précédente. Le BPA a augmenté de 170 % à 2,98 $, et l'EBITDA ajusté a progressé de 98 % pour atteindre presque le seuil de rentabilité. L'entreprise a enregistré un bénéfice de 3,6 millions de dollars sur l'extinction de sa dette. Les revenus ont augmenté de 8 % à 8,5 millions de dollars par rapport au premier trimestre 2024, tandis que la marge brute s'est améliorée de 403 points de base pour atteindre 38 % par rapport à l'année précédente. La perte d'exploitation a diminué de 72 % à $(0,7) million. Les changements stratégiques de l'entreprise montrent des résultats positifs, avec une croissance de 27 % dans le canal international et une croissance de 11 % dans le canal numérique. Better Choice se concentre sur la marque Halo, ciblant les marchés des aliments pour animaux de compagnie d'une valeur de 50 milliards de dollars aux États-Unis et au Canada, ainsi que les 30 milliards de dollars de la région Asie-Pacifique.
Better Choice Company Inc. (NYSE American: BTTR) meldete starke Ergebnisse für das zweite Quartal 2024, mit einem Nettoeinkommen, das um 190% auf 2,7 Millionen Dollar gestiegen ist im Vergleich zum Vorjahr. Das EPS wuchs um 170% auf 2,98 Dollar, und das bereinigte EBITDA verbesserte sich um 98% und näherte sich dem Break-Even. Das Unternehmen erkannte einen Gewinn von 3,6 Millionen Dollar aus der Schuldentilgung. Der Umsatz stieg um 8% auf 8,5 Millionen Dollar im Vergleich zum ersten Quartal 2024, während die Bruttomarge um 403 Basispunkte auf 38% im Vergleich zum Vorjahr verbessert wurde. Der Betriebverlust verringerte sich um 72% auf $(0,7) Millionen. Die strategischen Veränderungen des Unternehmens zeigen positive Ergebnisse, mit einem 27%igen Wachstum im internationalen Kanal und einem 11%igen Wachstum im digitalen Kanal. Better Choice konzentriert sich auf die Marke Halo und zielt auf die Märkte für Haustierfutter mit einem Wert von 50 Milliarden Dollar in den USA und Kanada sowie auf die 30 Milliarden Dollar in der Region Asien-Pazifik.
- Net income increased 190% to $2.7 million year-over-year
- EPS grew 170% to $2.98 year-over-year
- Adjusted EBITDA improved 98% to nearly break-even
- $3.6 million gain on extinguishment of debt
- Revenue increased 8% to $8.5 million from Q1 2024
- Gross margin improved 403 basis points to 38% year-over-year
- Operating loss decreased 72% to $(0.7) million
- International channel grew 27% from Q1 2024
- Digital channel grew 11% year-to-date
- Year-over-year topline softness due to strategic exits of unprofitable customers
- Closing of legacy Halo Pets Direct-to-Consumer channel, which was a double-digit negative EBITDA channel
Insights
Better Choice Company's Q2 2024 results show significant improvement in profitability despite a slight decline in revenue. The 190% increase in net income to
The company's operational improvements are evident in the 403 basis points increase in gross margin to
Overall, while the financial health is improving, sustainable revenue growth will be key for long-term success.
Better Choice's strategic pivot towards premium pet food aligns well with current market trends. The company is targeting the intersection of two major trends in the
The 27% quarter-over-quarter growth in the International channel and 11% growth in the Digital channel are promising signs. However, the overall revenue decline suggests challenges in traditional retail channels. The company's focus on profitability over revenue growth in the short term may be prudent, but it needs to find a balance to ensure long-term market share growth.
The pet food market remains highly competitive and Better Choice will need to continue innovating and improving its marketing to stand out in the premium segment.
Net Income Increased
EPS Growth of
Adjusted EBITDA Increased
Recognized
TAMPA, Fla., Aug. 13, 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 second quarter ended June 30, 2024 ("Q2 2024").
SECOND QUARTER 2024 FINANCIAL HIGHLIGHTS
- Revenue increased
8% to$8.5 million from the first quarter 2024 - Gross margin increased 403 basis points year-over-year (“YOY”) to
38% - Operating loss improved
72% YOY to$(0.7) million - Operating margin improved 1,605 basis points YOY to (8)%
- Net income increased
190% YOY to$2.7 million - Earnings per share (“EPS”) improved
170% YOY to$2.98 $3.6 million one-time gain on extinguishment of debt- Adjusted EBITDA increased
98% YOY to less than$(0.1) million 1
SIX MONTHS 2024 FINANCIAL HIGHLIGHTS
- Gross margin increased 114 basis points YOY to
36% - Operating loss improved
45% YOY to$(3.2) million - Operating margin improved 101 basis points YOY to (19)%
- Net loss improved
97% YOY to$(0.2) million - EPS improved
98% YOY to$(0.21) - Adjusted EBITDA improved
60% YOY to$(1.4) million 1
"Our second quarter performance demonstrates that our efforts to stabilize operations, revamp channel strategy, and instill greater financial governance are taking shape. We believe there is significant runway for increased Halo growth at both Chewy and Amazon as we continue to shift our investment, move to full funnel activation, and improve our storytelling and share of voice," commented Chief Executive Officer, Kent Cunningham. "We see increased opportunity for the Halo brand across the roughly
Nina Martinez, Chief Financial Officer, also commented, "The company’s positive financial results are a testament to the strong underlying performance and operating leverage we are seeing in the business. The sales momentum and significant adjusted EBITDA1 improvement we saw in the second quarter truly reflect our strategic pivots are working. Our International channel generated
1 Adjusted EBITDA is a non-GAAP measure. Reconciliation of Adjusted EBITDA and to net income (loss), the most directly comparable GAAP financial measure, is set forth in the reconciliation table accompanying this release.
Better Choice Company Inc.
Unaudited Condensed Consolidated Statements of Operations
(Dollars in thousands)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net sales | $ | 8,542 | $ | 10,536 | $ | 16,445 | $ | 19,773 | |||||||
| Cost of goods sold | 5,289 | 6,948 | 10,578 | 12,944 | |||||||||||
| Gross profit | 3,253 | 3,588 | 5,867 | 6,829 | |||||||||||
| Operating expenses: | |||||||||||||||
| Selling, general and administrative | 3,977 | 6,173 | 9,057 | 12,669 | |||||||||||
| Total operating expenses | 3,977 | 6,173 | 9,057 | 12,669 | |||||||||||
| Loss from operations | (724 | ) | (2,585 | ) | (3,190 | ) | (5,840 | ) | |||||||
| Other income (expense): | |||||||||||||||
| Interest expense, net | (180 | ) | (379 | ) | (542 | ) | (608 | ) | |||||||
| Gain on extinguishment of debt | 3,561 | — | 3,561 | — | |||||||||||
| Total other income (expense), net | 3,381 | (379 | ) | 3,019 | (608 | ) | |||||||||
| Income (loss) before income taxes | 2,657 | (2,964 | ) | (171 | ) | (6,448 | ) | ||||||||
| Income tax expense | 3 | — | 5 | — | |||||||||||
| Net income (loss) | $ | 2,654 | $ | (2,964 | ) | $ | (176 | ) | $ | (6,448 | ) | ||||
| Weighted average number of shares outstanding, basic | 890,756 | 694,356 | 838,062 | 693,561 | |||||||||||
| Weighted average number of shares outstanding, diluted | 890,756 | 694,356 | 838,062 | 693,561 | |||||||||||
| Net income (loss) per share, basic | $ | 2.98 | $ | (4.27 | ) | $ | (0.21 | ) | $ | (9.30 | ) | ||||
| Net income (loss) per share, diluted | $ | 2.98 | $ | (4.27 | ) | $ | (0.21 | ) | $ | (9.30 | ) | ||||
Better Choice Company Inc.
Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands, except share amounts)
| June 30, 2024 | December 31, 2023 | ||||||
| Assets | |||||||
| Cash and cash equivalents | $ | 3,293 | $ | 4,455 | |||
| Accounts receivable, net | 4,325 | 4,354 | |||||
| Inventories, net | 3,825 | 6,611 | |||||
| Prepaid expenses and other current assets | 771 | 812 | |||||
| Total Current Assets | 12,214 | 16,232 | |||||
| Fixed assets, net | 179 | 230 | |||||
| Right-of-use assets, operating leases | 92 | 120 | |||||
| Goodwill | 405 | — | |||||
| Other assets | 195 | 155 | |||||
| Total Assets | $ | 13,085 | $ | 16,737 | |||
| Liabilities & Stockholders’ Equity | |||||||
| Current Liabilities | |||||||
| Accounts payable | $ | 6,108 | $ | 6,928 | |||
| Accrued and other liabilities | 1,361 | 2,085 | |||||
| Credit facility, net | 1,582 | 1,741 | |||||
| Term loan, net | — | 2,881 | |||||
| Operating lease liability | 59 | 57 | |||||
| Total Current Liabilities | 9,110 | 13,692 | |||||
| Non-current Liabilities | |||||||
| Operating lease liability | 37 | 67 | |||||
| Total Non-current Liabilities | 37 | 67 | |||||
| Total Liabilities | 9,147 | 13,759 | |||||
| Stockholders’ Equity | |||||||
| Common Stock, | 1 | 1 | |||||
| Additional paid-in capital | 325,455 | 324,319 | |||||
| Accumulated deficit | (321,518 | ) | (321,342 | ) | |||
| Total Stockholders’ Equity | 3,938 | 2,978 | |||||
| Total Liabilities and Stockholders’ Equity | $ | 13,085 | $ | 16,737 | |||
Better Choice Company Inc.
Non-GAAP Measures
Adjusted EBITDA
We define Adjusted EBITDA as EBITDA further adjusted 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.
We present Adjusted EBITDA 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 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 June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income (loss) | $ | 2,654 | $ | (2,964 | ) | $ | (176 | ) | $ | (6,448 | ) | ||||
| Interest expense, net | 180 | 379 | 542 | 608 | |||||||||||
| Income tax expense | 3 | — | 5 | — | |||||||||||
| Depreciation and amortization | 34 | 421 | 68 | 845 | |||||||||||
| EBITDA | 2,871 | (2,164 | ) | 439 | (4,995 | ) | |||||||||
| Non-cash share-based compensation (a) | 159 | 284 | 678 | 1,145 | |||||||||||
| Gain on extinguishment of debt | (3,561 | ) | — | (3,561 | ) | — | |||||||||
| Loss on disposal of assets | — | — | — | 11 | |||||||||||
| Transaction-related expenses (b) | 131 | — | 489 | — | |||||||||||
| Non-recurring strategic branding initiatives (c) | 43 | 18 | 69 | 33 | |||||||||||
| Co-manufacturing partner transition (d) | — | 6 | — | 6 | |||||||||||
| Other single occurrence expenses (e) | 327 | 31 | 457 | 189 | |||||||||||
| Adjusted EBITDA | $ | (30 | ) | $ | (1,825 | ) | $ | (1,429 | ) | $ | (3,611 | ) | |||
| (a) Non-cash expenses related to equity compensation awards. Share-based compensation is an important part of the Company's compensation strategy and without our equity compensation plans, it is probable that salaries and other compensation related costs would be higher. | |||||||||||||||
| (b) Legal fees, professional fees, and other expenses for transaction-related business matters | |||||||||||||||
| (c) Single occurrence expenses related to marketing agency and design, strategic re-branding initiatives, Elevate® launch, product innovation and reformulations | |||||||||||||||
| (d) Single occurrence expenses related to the transition of our largest dry kibble co-manufacturing supplier | |||||||||||||||
| (e) Single occurrence expenses related to employee severance, executive recruitment, and other non-recurring professional fees | |||||||||||||||
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
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