Healthy Choice Wellness Corp. Announces Record First Quarter 2025 Sales and Gross Margin Performance

Rhea-AI Summary

Healthy Choice Wellness Corp. (NYSEAM: HCWC) reported exceptional first-quarter 2025 results, showcasing significant growth in both sales and gross margin. The natural and organic grocery store operator, with 19 locations across six states, achieved:

• Record sales of $20.3 million, representing a 28% year-over-year increase
• Gross profit of $7.9 million, up $1.8 million or 30% compared to Q1 2024

CEO Jeffrey Holman attributed the strong performance to strategic investments in targeted acquisitions and operational efficiencies. Management expressed confidence in maintaining this positive trajectory throughout 2025, citing strong market dynamics and their proven growth strategy.

Positive

• Record Q1 sales of $20.3M, up 28% YoY
• Gross profit increased 30% YoY to $7.9M
• Strong operational efficiency improvements
• Successful execution of acquisition strategy

Negative

• None.

Insights

Financial Analyst

HCWC's Q1 2025 results represent exceptional performance for this small-cap natural grocery retailer. The 28% year-over-year sales growth to $20.3 million significantly outpaces the organic grocery sector's typical growth rates of 4-6%. More impressively, gross profit increased by 30% to $7.9 million, indicating the company is successfully maintaining pricing power while scaling operations.

With 19 stores across six states, HCWC is generating approximately $1.07 million in quarterly revenue per location. The gross margin stands at approximately 38.9%, which is above average for grocery retailers. This suggests effective inventory management and potentially strong private label penetration.

What's particularly notable is that HCWC is achieving this growth despite its relatively small market capitalization of approximately $4 million. The revenue run rate of over $80 million annually creates an unusually low price-to-sales ratio of about 0.05, indicating potential undervaluation if growth continues.

Management's strategy of targeted acquisitions paired with operational efficiencies appears to be working effectively. The challenge will be maintaining this growth trajectory as the company scales while efficiently managing capital allocation for future acquisitions in a historically low-margin industry.

HOLLYWOOD, FL, April 08, 2025 (GLOBE NEWSWIRE) -- Healthy Choice Wellness Corp. (“HCWC” or the “Company”) (NYSEAM: HCWC), a holding company operating 19 natural and organic grocery stores across six states, today announced exceptional first-quarter results, demonstrating significant growth in sales and gross margin for the period ended March 31, 2025.

First Quarter 2025 Sales and Gross Margin Highlights:

• Strong Sales Growth: HCWC achieved a record $20.3 million in sales for the first quarter of 2025, marking an impressive 28% year-over-year increase.
  
  
• Robust Gross Margin Expansion: The Company achieved approximately $7.9 million in gross profit, marking a significant $1.8 million increase compared to the same period last year, which represents a 30% year-over-year growth.
  

Jeffrey Holman, HCWC CEO and Chairman, elaborated on the Company’s success, stating, “Our record first-quarter performance is a clear validation of the strategic direction management has set and the unwavering dedication of our entire team; we are energized by the momentum we have built. The significant 28% sales growth and the substantial $1.9 million increase in gross profit are a direct reflection of our commitment to delivering exceptional value to our customers and shareholders.”

Mr. Holman went on to say, “We are particularly optimistic about our ability to sustain this positive trajectory. Our strategic investments in targeted acquisitions, combined with our focus on operational efficiencies, are proving to be powerful drivers of growth. He concluded by saying “Looking ahead, we are confident that our proven growth strategy, coupled with the current strong market dynamics, will enable us to achieve continued success throughout 2025. We believe that this positive trend is sustainable and will set the stage for long-term growth.”

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.

Contact Information

Healthy Choice Wellness Corp.
3800 North 28th Way, Hollywood, FL 33020
305-600-5004
Email: ir@hcwc.com

FAQ

What were HCWC's Q1 2025 sales figures and growth rate?

HCWC reported record Q1 2025 sales of $20.3 million, representing a 28% increase compared to Q1 2024.

How much did HCWC's gross profit grow in Q1 2025?

HCWC's gross profit reached $7.9 million, increasing by $1.8 million or 30% year-over-year.

How many stores does HCWC currently operate and in how many states?

HCWC operates 19 natural and organic grocery stores across six states.

What is HCWC's growth strategy for 2025?

HCWC's growth strategy focuses on targeted acquisitions and operational efficiencies, supported by strong market dynamics.