Starco Brands Announces Second Quarter 2024 Results and Business Update
Starco Brands (OTCQB: STCB) reported Q2 2024 results with net revenue of $15.6 million and margins of 37%. The company focused on integrating acquisitions, finding efficiencies, and expanding distribution. Key highlights include:
- Whipshots® expanded to 46 states, secured 1,257 Kroger points of distribution, and landed Costco and Dave & Buster's deals.
- Skylar grew within Sephora, entered Anthropologie, and launched on Costco.com.
- Soylent launched Complete Protein Powder and achieved the highest repurchase rate in the adult nutrition category.
- Winona Popcorn Spray expanded retail distribution and plans to launch new flavors.
The company expects top-line growth in H2 2024 and substantial growth in 2025-2026.
Starco Brands (OTCQB: STCB) ha riportato i risultati del secondo trimestre 2024 con un fatturato netto di 15,6 milioni di dollari e margini del 37%. L'azienda si è concentrata sull'integrazione delle acquisizioni, sulla ricerca di efficienze e sull'espansione della distribuzione. I punti salienti includono:
- Whipshots® si è espanso in 46 stati, ha assicurato 1.257 punti di distribuzione Kroger e ha firmato accordi con Costco e Dave & Buster's.
- Skylar è cresciuto all'interno di Sephora, è entrato in Anthropologie e ha lanciato su Costco.com.
- Soylent ha lanciato la Complete Protein Powder e ha raggiunto il più alto tasso di riacquisto nella categoria nutrizione per adulti.
- Winona Popcorn Spray ha ampliato la distribuzione al dettaglio e prevede di lanciare nuovi gusti.
L'azienda prevede una crescita del fatturato nella seconda metà del 2024 e una crescita sostanziale nel 2025-2026.
Starco Brands (OTCQB: STCB) reportó resultados del segundo trimestre de 2024 con ingresos netos de 15.6 millones de dólares y márgenes del 37%. La compañía se centró en integrar adquisiciones, encontrar eficiencias y expandir la distribución. Los aspectos destacados incluyen:
- Whipshots® se expandió a 46 estados, aseguró 1,257 puntos de distribución en Kroger y logró acuerdos con Costco y Dave & Buster's.
- Skylar creció dentro de Sephora, ingresó a Anthropologie y se lanzó en Costco.com.
- Soylent lanzó Complete Protein Powder y logró la tasa de recompra más alta en la categoría de nutrición para adultos.
- Winona Popcorn Spray amplió la distribución en el comercio minorista y planea lanzar nuevos sabores.
La compañía espera un crecimiento en la línea superior en la segunda mitad de 2024 y un crecimiento sustancial en 2025-2026.
Starco Brands (OTCQB: STCB)는 2024년 2분기 결과를 발표하며 순수익 1,560만 달러와 37%의 마진을 기록했습니다. 회사는 인수 통합, 효율성 찾기, 배급 확대에 집중했습니다. 주요 하이라이트는 다음과 같습니다:
- Whipshots®는 46개 주로 확장되었고, 1,257개의 Kroger 배급 포인트를 확보했으며 Costco 및 Dave & Buster's와 계약을 체결했습니다.
- Skylar는 Sephora 내에서 성장했으며, Anthropologie에 진입하고 Costco.com에 론칭했습니다.
- Soylent는 Complete Protein Powder를 출시하고 성인 영양 카테고리에서 가장 높은 재구매율을 달성했습니다.
- Winona Popcorn Spray는 소매 배급을 확대했으며 새로운 맛을 출시할 계획입니다.
회사는 2024년 하반기 매출 성장을 예상하며, 2025-2026년에는 상당한 성장을 기대하고 있습니다.
Starco Brands (OTCQB: STCB) a annoncé des résultats pour le deuxième trimestre 2024 avec un chiffre d'affaires net de 15,6 millions de dollars et des marges de 37 %. L'entreprise s'est concentrée sur l'intégration des acquisitions, la recherche d'efficacités et l'expansion de la distribution. Les faits saillants comprennent :
- Whipshots® s'est étendu à 46 États, a sécurisé 1 257 points de distribution chez Kroger et a conclu des accords avec Costco et Dave & Buster's.
- Skylar a connu une croissance au sein de Sephora, est entré chez Anthropologie et s'est lancé sur Costco.com.
- Soylent a lancé la Complete Protein Powder et atteint le taux de rachat le plus élevé dans la catégorie de nutrition pour adultes.
- Winona Popcorn Spray a élargi sa distribution au détail et prévoit de lancer de nouveaux saveurs.
L'entreprise s'attend à une croissance du chiffre d'affaires dans la seconde moitié de 2024 et à une croissance substantielle en 2025-2026.
Starco Brands (OTCQB: STCB) hat die Ergebnisse für das 2. Quartal 2024 mit Nettoeinnahmen von 15,6 Millionen Dollar und Margen von 37% veröffentlicht. Das Unternehmen konzentrierte sich auf die Integration von Akquisitionen, die Suche nach Effizienzen und die Expansion des Vertriebs. Zu den wichtigsten Highlights gehören:
- Whipshots® wurde auf 46 Bundesstaaten ausgeweitet, sicherte sich 1.257 Vertriebsstellen bei Kroger und erzielte Verträge mit Costco und Dave & Buster's.
- Skylar wuchs innerhalb von Sephora, trat bei Anthropologie ein und wurde auf Costco.com gestartet.
- Soylent launchte das Complete Protein Powder und erreichte die höchste Wiederkaufrate in der Kategorie Erwachsenennahrung.
- Winona Popcorn Spray erweiterte die Einzelhandelsverteilung und plant die Einführung neuer Geschmacksrichtungen.
Das Unternehmen erwartet ein Umsatzwachstum in der zweiten Hälfte von 2024 und ein erhebliches Wachstum in den Jahren 2025-2026.
- Whipshots expanded to 46 states and secured major distribution deals with Kroger, Costco, and Dave & Buster's
- Skylar grew within Sephora, entered Anthropologie, and launched on Costco.com
- Soylent achieved the highest repurchase rate in the adult nutrition category at 62.9%
- Winona Popcorn Spray expanded retail distribution and plans to launch new flavors
- Soylent segment gross profit increased from $2.4 million to $3.3 million year-over-year
- Reported net revenue decreased from $17.5 million in Q2 2023 to $15.6 million in Q2 2024
- Gross profit declined from $6.9 million in Q2 2023 to $5.7 million in Q2 2024
- Reported unadjusted net loss increased from $6.0 million in Q2 2023 to $11.6 million in Q2 2024
- Adjusted EBITDA decreased from a gain of $0.1 million in Q2 2023 to a loss of $1.2 million in Q2 2024
- Starco Brands segment revenue decreased from $4.2 million to $2.1 million year-over-year
Reported Net Revenue of
Distribution Expansion and New Products Paves Way for Growth in Second Half of Fiscal Year 2024
Conference Call to be Held at 1:30 p.m. PT Today
Management Comments
Starco Brands Chairman & CEO Ross Sklar said: “The first half of this year has been about integrating our acquisitions and finding efficiencies across the board while building out our shared service platform, positioning our company for long-term success. We’ve also made significant strides in strategically investing in our businesses, optimizing our marketing spend, and significantly expanding our distribution footprint. We have extended national distribution for every single one of our brands and have simultaneously broadened our product portfolios through line extensions and entry into adjacent categories. These initiatives leverage our core strengths: cross-category R&D capabilities and IP creation, manufacturing, innovative marketing, and diversified retail and ecommerce knowledge. As we enter the peak seasonal period for several of our brands, we believe all this investment and groundwork is slated to drive top-line growth in the second half of this year and, more importantly, sets the stage for substantial and sustained growth in 2025 and 2026. Our team’s dedication and strategic focus have positioned this machine to capitalize on the opportunities created and deliver long-term value to our shareholders.”
Year-to-Date Business Highlights
Whipshots®
-
In Q2, Whipshots expanded into new markets such as
Alabama ,North Carolina andPennsylvania . Whipshots is now available across 46 states and theDistrict of Columbia . -
Whipshots has landed 1,257 points of distribution in Kroger with new authorizations that will go into effect in the fall of 2024 with the potential for the brand to be in
77% of the stores in authorized states. -
Whipshots has landed Costco and is kicking off the relationship in
Louisiana leading to a larger program in Q4 and in 2025. - Whipshots landed a store wide deal with Dave & Buster’s in its 162 locations across 44 states. Whipshots will be featured on the menu as a topper on specific cocktails, or as a shot itself.
- The brand has a number of partnerships lined up for Q3 and Q4 that the Company will expand on in the coming months.
Skylar
- Skylar bolstered its executive ranks with the hiring of Alex Alston as Vice President of Sales and Marketing. Alston brings a wealth of experience honed over two decades in the realms of beauty and luxury e-commerce. After a distinguished tenure at L’Oreal, where Alex Alston was groomed for leadership roles, he spearheaded the successful launches of Charlotte Tilbury and r.e.m beauty (Ariana Grande). Alston also held senior marketing positions at NET-A-PORTER and Rose Inc.
- Skylar is growing within Sephora and has new authorizations to enter the rapidly growing Sephora @ Kohl’s channel. With a successful launch on the Sephora @ Kohl’s e-commerce platform, the brand now has the potential to be on shelf in the over 850 Sephora @ Kohl’s locations.
- Skylar secured distribution in Anthropologie for both online and in brick-and-mortar retail, with 70 locations beginning in Q3.
- In Q3, Skylar landed Costco. First launching on Costco.com the company received one of its largest purchase orders in this division’s history.
- Skylar rolled out the Hair & Body Mist format of its popular Boardwalk Delight to skylar.com and sephora.com, as well as Sephora brick-and-mortar retail locations.
-
In June 2024, Skylar launched a new summer fragrance, Citrus Reverie, marking the start of the brand’s “Endless Summer” campaign. The new fragrance launched at a star-studded influencer and media event held at the Company’s headquarters in
Hollywood, CA. - In July, Skylar hired CLDPR as its first-ever PR firm. In just over a month, the firm has already secured several premium media and top-tier celebrity/influencer placements.
-
Skylar initiated a Scent of the Day (#SOTD) sorority rush program to capitalize on the nationwide cultural impact rush has experienced on TikTok. The program includes influencer outreach, sampling, and partnerships with TikTok,
Windsor , and Petal & Pup.
Soylent
-
In Q2, Soylent rounded out its protein portfolio with the launch of Soylent Complete Protein Powder, making the brand a serious player in the protein supplement market. Industry experts project this rapidly expanding sector will grow to
$47 billion - Soylent executed its first-ever Walmart Featured Space and Sales (FSS) display program during May 2024 in the adult nutrition/pharmacy set in 500 stores.
-
Soylent, achieved a significant milestone, in May by achieving the highest repurchase rate of any brand in the adult nutrition category, according to data from Unify+ Panel (Total MULO, 52 weeks ending May 19, 2024). With a remarkable
62.9% of consumers repurchasing Soylent products two or more times, the brand outperforms competitors like Boost (61.9% ), OWYN (57% ), Orgain (54.5% ), and the longtime category leader, Ensure (48.2% ). - Soylent will be rolling out its Complete Meal Ready-to-Drink and seasonal SKUs to Walmart, Meijer, Publix, and Kroger in Q3. Customers will be able to buy seasonal flavors (i.e., Pumpkin Spice) in over 2,000 brick and mortar retail locations nationwide this fall.
- Soylent is currently rolling out with AWG. The brand is currently in 500 stores with 100 new stores being added each month through Q4 and 2025.
-
Soylent continues to be the top selling meal replacement shake on Amazon, with
23.6% of total meal replacement market share. Because of this ranking the brand’s return on ad spend in this channel remains high at a 4.5x. The high-margin sales generated by efficient marketing spend and investment on Amazon make this channel a priority focus for the second half of the year. - Soylent has partnered with Feeding America food banks to drive sales and increase donations to those in need in Q3, in celebration of Hunger Action Month.
Winona Popcorn Spray
-
Winona Popcorn Spray Butter flavor continues to expand retail distribution due to its uniqueness, incredible sensory experience, repeat purchase both online and in store and price point. Currently, Winona is distributed at Walmart, HEB, Meijer, AWG, Big Lots and Hy-Vee. The following depicts the brand’s 2024 and 2025 growth path inclusive of the launch of Winona’s new Garlic Butter popcorn spray flavor, which is scheduled to roll out in Q3:
- Walmart rolling out new Garlic Butter flavor nationwide in 2,500 stores in Q3 and increasing to storewide 4,200 stores in the Q1 FY25;
- Stater Bros chainwide in 169 stores across both items in Q3;
- Meijer rollout of 2nd SKU storewide in 260 stores in Q4;
-
Sobeys in
Canada nationwide with both SKUs in 1,400 stores in Q4; - HyVee chainwide in 280 stores across both SKUs in H2 2024
- Albertsons nationwide with both SKUs across 1,700 stores in Q1 FY25;
- American Wholesale Grocers in 500 locations with the potential of growing to 4,000 stores and added placement of garlic; and
- Target nationwide in 1,000 stores in the Q2 FY25;
-
Winona Popcorn Spray has double the category rate in velocity and efficiency ($/TDP) and
10% market share with only30% ACV. - The brand has a long flavor innovation pipeline scheduled for 2025 launch, along with brand expansion into additional retail categories.
Art of Sport (AOS)
- AOS relaunched on Amazon in Q1 focusing on the brand’s best-selling personal care SKUs and scents. The new product line consists of the following SKUs: Antiperspirant, Deodorant, Shampoo & Body Wash, Daily Face Wash and Daily Face Lotion.
-
In Q2, AOS broke into new categories launching its cutting edge AOS Sunscreen and AOS Protein Powder.
- AOS Protein Powder will begin distribution chainwide at Kroger’s 132 Fred Meyer stores in October 2024, with full distribution in all divisions in 2025, equating to over 1,700 stores.
-
AOS continues to grow on Amazon and in Q2 experienced quarter over quarter growth of +
32% . - In Q3, AOS has plans to launch more products in the over-the-counter pharma space, furthering the brand’s goal to “own the locker room”. These products will include a Cooling Muscle Spray and a Cool & Heat Muscle Spray.
- As AOS has demonstrated success within e-commerce, it will look to grow its retail footprint with a strategic mass retailer in the second half of the year.
Second Quarter of 2024 Financial Results
Reported net revenue for the second quarter of 2024 was
Gross profit was
Marketing, General and Administrative expenses were
Reported unadjusted net loss for the second quarter of 2024 was
Non-GAAP Adjusted EBITDA
Adjusted EBITDA, which is net loss adjusted for stock-based compensation, gain on disposal of property and equipment, gain on settlements, interest and other expense, net, depreciation of property and equipment, amortization of intangible assets, (recovery) provision for doubtful accounts, and provision for income taxes and certain other items that impact the periods presented. Adjusted EBITDA is provided so that investors have the same financial data that management uses to assess the Company’s operating results with the belief that it will assist the investment community in properly assessing the ongoing performance of the Company for the periods being reported and future periods. The presentation of this additional information is not meant to be considered a substitute for measures prepared in accordance with
Adjusted EBITDA was a loss of
Adjusted EBITDA is a non-GAAP financial measure. See the supplementary schedules in this press release for a reconciliation thereof to the most directly comparable GAAP measure.
| Quarter | Year to Date | |||||||||
| Q2 24 | Q2 23 | FY 24 | FY 23 | |||||||
| Net Income | (11,561 |
) |
(5,950 |
) |
(15,831 |
) |
(7,613 |
) |
||
| Interest expense | 209 |
|
264 |
|
408 |
|
361 |
|
||
| Other expense (income) | 284 |
|
(266 |
) |
361 |
|
(333 |
) |
||
| Depreciation & Amortization | 724 |
|
904 |
|
1,430 |
|
911 |
|
||
| Fair value share adjustment loss (gain) | 8,676 |
|
4,717 |
|
10,598 |
|
5,896 |
|
||
| Stock Comp | 417 |
|
480 |
|
900 |
|
963 |
|
||
| Adjusted EBITDA | (1,252 |
) |
149 |
|
(2,135 |
) |
185 |
|
||
Balance Sheet
As of June 30, 2024, the Company had approximately
Second Quarter of 2024 Segment Review
Starco Brands: Segment reported net revenues of
Skylar: Segment reported net revenues of
Soylent: Segment reported net revenues of
Conference Call
The conference call to discuss these results is scheduled for today, Tuesday, August 13, 2024, at 1:30 pm Pacific Time (4:30 pm Eastern Time). Listeners can dial (877) 407-0792 in
Forward-Looking Statements
Any statements in this press release about the Company's future expectations, plans and prospects, including statements about our financing strategy, future operations, future financial position and results, market growth, new product launches and product growth, total revenue, as well as other statements containing the words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "project," "should," "target," "will," or "would" and similar expressions, constitute forward-looking statements within the meaning of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. The Company may not achieve the plans, intentions or expectations disclosed in the Company's forward-looking statements, and you should not place undue reliance on the Company's forward-looking statements. All forward-looking statements are subject to assumptions, risks and uncertainties that may change at any time. Therefore, readers are cautioned that actual results could differ materially from those expressed in forward-looking statements. The Company undertakes no obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as expressly required by law. This cautionary statement entirely qualifies all forward-looking statements in this document.
Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements the Company make as a result of a variety of risks and uncertainties, including risks related to the Company's estimates regarding the potential market opportunity for the Company's current and future products and services, the impact of the COVID-19 pandemic, the competitive nature of the industries in which we conduct our business, general business and economic conditions, our ability to acquire suitable businesses, our ability to successfully launch new products and seize market share, the Company's expectations regarding the Company's sales, expenses, gross margins and other results of operations, and the other risks and uncertainties described in the "Risk Factors" sections of the Company's public filings with the Securities and Exchange Commission on Form 10-K for the year ended December 31, 2023. Copies of our SEC filings are available on our website at www.starcobrands.com. In addition, the forward-looking statements included in this press release represent the Company's views as of the date hereof. The Company anticipates that subsequent events and developments may cause the Company's views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's views as of any date after the date hereof.
About Starco Brands
Starco Brands (OTCQB: STCB) invents consumer products with behavior-changing technologies that spark excitement in the everyday. Today, its disruptive brands include Whipshots®, the world’s only vodka-infused whipped cream; Art of Sport, the body care brand designed for athletes and co-founded by Kobe Bryant; Winona® Pure, the first indulgent theater-popcorn spray powered by air; Skylar, the only fragrance that is both hypoallergenic and safe for sensitive skin; and Soylent, the complete non-dairy nutrition brand. A modern-day invention factory to its core, Starco Brands identifies whitespaces across consumer product categories. Starco Brands publicly trades on the OTCQB stock exchange so that retail investors can invest in STCB alongside accredited individuals and institutions. Visit starcobrands.com for more information.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240813045537/en/
Investor Relations
John Mills
ICR
646-277-1254
John.Mills@icrinc.com
Deirdre Thomson
ICR
646-277-1283
Deirdre.Thomson@icrinc.com
Source: Starco Brands, Inc.
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