Healthy Choice Wellness Corp. Reports Fourth Quarter 2024 Financial Results and Full Year Fiscal 2024 Results

Rhea-AI Summary

Healthy Choice Wellness Corp. (NYSE-AM: HCWC) has reported strong financial results for Q4 and full year 2024. Fourth quarter highlights include:

• Net sales up 24% to $19.7 million
• Gross profit increased 42% to $8.1 million
• Net loss from operations improved to $0.3 million
• Positive Adjusted EBITDA of $0.1 million

Full year 2024 performance showed:

• Record net sales of $69.4 million, up 25% from 2023
• Gross profit reached $27.1 million, a 33% increase
• Net loss from operations of $1.8 million, improved from $10.5 million loss in 2023
• Adjusted EBITDA loss narrowed to $0.2 million from $3.0 million in 2023

The company achieved its first quarter of Adjusted EBITDA profitability as a standalone company, with successful integration of GreenAcres Market across all 19 stores.

Positive

• Record Q4 net sales growth of 24% to $19.7M
• Q4 gross profit surge of 42% to $8.1M
• First-ever positive quarterly Adjusted EBITDA of $0.1M
• Full-year revenue growth of 25% to $69.4M
• Significant improvement in net loss from operations ($1.8M vs $10.5M)

Negative

• Still operating at a net loss of $0.3M in Q4 2024
• Full-year Adjusted EBITDA remains negative at -$0.2M
• Full-year net loss from operations of $1.8M

Insights

Financial Analyst

HCWC's Q4 and full-year 2024 results reveal a company with accelerating financial momentum and improving operational efficiency. The 24% revenue growth to $19.7 million in Q4 is impressive, but the 42% gross profit growth to $8.1 million is even more significant, indicating substantial margin expansion. This operational leverage is driving the company toward profitability, evidenced by their first-ever positive Adjusted EBITDA quarter at $0.1 million.

The dramatic reduction in operating losses from $7.4 million to just $0.3 million year-over-year demonstrates effective cost control alongside growth. Full-year results show similar strength with 25% revenue growth to $69.4 million and 33% gross profit growth to $27.1 million, narrowing annual operating losses by 83% to $1.8 million.

The GreenAcres Market acquisition appears to be driving both revenue growth and operational improvements across all 19 stores. This successful integration suggests management's capability to create value through M&A rather than simply accumulating revenue.

With a market capitalization of approximately $5.5 million against annual revenue of $69.4 million, the company trades at a remarkably low price-to-sales ratio of about 0.08. This valuation disconnect could represent significant opportunity if HCWC continues its trajectory toward full profitability. The transition to positive EBITDA in Q4 may mark an inflection point for investor perception.

Retail Industry Specialist

HCWC's results demonstrate exceptional execution in the challenging wellness retail sector. The consistent quarterly improvements culminating in Q4's positive Adjusted EBITDA indicate the company has found sustainable operational efficiencies while maintaining robust growth.

The most telling metric is the gross profit outpacing revenue growth (42% vs 24% in Q4), suggesting successful premium positioning, improved inventory management, or beneficial shifts in product mix. In retail, this margin expansion is particularly difficult to achieve while simultaneously growing sales.

The implementation of GreenAcres Market's "long-standing valuable initiatives" across all 19 stores points to intelligent cross-pollination of best practices rather than forced standardization. This approach often yields better results than complete operational mergers in specialty retail.

While still operating at a net loss, the dramatic narrowing of quarterly operating losses from $7.4 million to $0.3 million represents a 96% improvement year-over-year, suggesting full profitability may be within reach in 2025. The company's ability to improve EBITDA by $1.1 million in a single quarter demonstrates powerful operational leverage that should continue if revenue growth maintains its current trajectory.

For a company with just 19 stores generating $69.4 million in annual revenue (approximately $3.65 million per location), these results suggest each store is achieving impressive productivity metrics relative to typical specialty retail operations.

-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.

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 Q4 2024 financial results?

HCWC reported Q4 2024 net sales of $19.7M (up 24%), gross profit of $8.1M (up 42%), and achieved positive Adjusted EBITDA of $0.1M.

How did HCWC perform in full year 2024 compared to 2023?

HCWC achieved record sales of $69.4M (up 25%), gross profit of $27.1M (up 33%), and reduced net loss to $1.8M from $10.5M in 2023.

What operational improvements did HCWC implement in 2024?

HCWC implemented GreenAcres Market's initiatives across all 19 stores, driving operational enhancements and efficiency improvements.

How has HCWC's EBITDA performance improved in 2024?

HCWC achieved its first quarter of positive Adjusted EBITDA in Q4 2024, and reduced full-year EBITDA loss to $0.2M from $3.0M in 2023.