Starco Brands Reports Third Quarter 2024 Financial Results
Starco Brands (OTCQB: STCB) reported Q3 2024 financial results with net revenue of $15.5 million, down from $17.7 million in Q3 2023. Gross margin improved sequentially to 41.2%. The company reported a net loss of $6.3 million, compared to net income of $2.3 million in Q3 2023. Adjusted EBITDA was $0.7 million.
The revenue decline was attributed to strategic reductions in Soylent's e-commerce marketing spend and lower Whipshots sales. The company identified $3 million in cost optimization opportunities through operational efficiencies. Cash position stood at $1.6 million with inventory of $13.2 million as of September 30, 2024.
Starco Brands (OTCQB: STCB) ha riportato i risultati finanziari del terzo trimestre 2024 con un fatturato netto di 15,5 milioni di dollari, in calo rispetto ai 17,7 milioni di dollari del terzo trimestre 2023. Il margine lordo è migliorato sequenzialmente, raggiungendo il 41,2%. L'azienda ha registrato una perdita netta di 6,3 milioni di dollari, rispetto a un utile netto di 2,3 milioni di dollari nel terzo trimestre 2023. L'EBITDA rettificato è stato di 0,7 milioni di dollari.
Il calo dei ricavi è stato attribuito a riduzioni strategiche nella spesa per il marketing dell'e-commerce di Soylent e a minori vendite di Whipshots. L'azienda ha identificato opportunità di ottimizzazione dei costi per 3 milioni di dollari attraverso efficienze operative. La posizione di cassa era di 1,6 milioni di dollari con un inventario di 13,2 milioni di dollari al 30 settembre 2024.
Starco Brands (OTCQB: STCB) informó los resultados financieros del tercer trimestre de 2024 con ingresos netos de 15,5 millones de dólares, en comparación con 17,7 millones de dólares en el tercer trimestre de 2023. El margen bruto mejoró secuencialmente hasta alcanzar el 41,2%. La empresa reportó una pérdida neta de 6,3 millones de dólares, frente a una ganancia neta de 2,3 millones de dólares en el tercer trimestre de 2023. El EBITDA ajustado fue de 0,7 millones de dólares.
La caída en los ingresos se atribuyó a reducciones estratégicas en el gasto de marketing de comercio electrónico de Soylent y a menores ventas de Whipshots. La empresa identificó oportunidades de optimización de costos por 3 millones de dólares a través de eficiencias operativas. La posición de liquidez era de 1,6 millones de dólares con un inventario de 13,2 millones de dólares hasta el 30 de septiembre de 2024.
Starco Brands (OTCQB: STCB)은 2024년 3분기 재무 결과를 발표하며 순수익이 1,550만 달러로, 2023년 3분기 1,770만 달러에서 감소했다고 밝혔습니다. 총 마진은 sequentially로 41.2%로 개선되었습니다. 회사는 630만 달러의 순손실을 기록했으며, 이는 2023년 3분기 230만 달러의 순이익과 비교됩니다. 조정 EBITDA는 70만 달러였습니다.
수익 감소는 Soylent의 전자상거래 마케팅 지출 감소와 Whipshots 판매 감소에 기인했습니다. 회사는 운영 효율성을 통해 300만 달러의 비용 최적화 기회를 확인했습니다. 현금 잔액은 160만 달러였고, 2024년 9월 30일 기준으로 재고는 1,320만 달러였습니다.
Starco Brands (OTCQB: STCB) a annoncé ses résultats financiers pour le troisième trimestre 2024 avec un chiffre d'affaires net de 15,5 millions de dollars, en baisse par rapport à 17,7 millions de dollars au troisième trimestre 2023. La marge brute s'est améliorée séquentiellement à 41,2%. La société a enregistré une perte nette de 6,3 millions de dollars, contre un bénéfice net de 2,3 millions de dollars au troisième trimestre 2023. L'EBITDA ajusté était de 0,7 million de dollars.
Le déclin des revenus a été attribué à des réductions stratégiques des dépenses de marketing de l'e-commerce de Soylent et à une baisse des ventes de Whipshots. L'entreprise a identifié 3 millions de dollars d'opportunités d'optimisation des coûts grâce à des efficiences opérationnelles. La position de trésorerie s'élevait à 1,6 million de dollars avec un inventaire de 13,2 millions de dollars au 30 septembre 2024.
Starco Brands (OTCQB: STCB) berichtete über die finanziellen Ergebnisse des dritten Quartals 2024 mit einem Nettoumsatz von 15,5 Millionen US-Dollar, was einem Rückgang von 17,7 Millionen US-Dollar im dritten Quartal 2023 entspricht. Die Bruttomarge verbesserte sich sequenziell auf 41,2%. Das Unternehmen meldete einen Nettverlust von 6,3 Millionen US-Dollar im Vergleich zu einem Nettogewinn von 2,3 Millionen US-Dollar im dritten Quartal 2023. Das bereinigte EBITDA betrug 0,7 Millionen US-Dollar.
Der Rückgang der Einnahmen wurde auf strategische Kürzungen der Marketingausgaben im E-Commerce von Soylent sowie auf geringere Verkäufe von Whipshots zurückgeführt. Das Unternehmen identifizierte Optimierungsmöglichkeiten für die Kosten in Höhe von 3 Millionen US-Dollar durch betriebliche Effizienz. Die Liquiditätsposition betrug 1,6 Millionen US-Dollar bei einem Inventar von 13,2 Millionen US-Dollar zum 30. September 2024.
- Sequential gross margin improvement to 41.2%
- Positive Adjusted EBITDA of $0.7 million in Q3
- Identified $3 million in cost optimization opportunities
- Soylent segment showed increased revenues due to retail expansion
- Winona Popcorn Spray showed growth through expanded distribution
- Net revenue declined 12.4% YoY to $15.5 million
- Net loss of $6.3 million compared to $2.3 million profit last year
- Marketing, General & Administrative expenses increased to 30% of revenue YTD
- Cash position decreased to $1.6 million from $1.8 million in December 2023
- Whipshots sales declined due to lower inventory stocking orders
Reported Net Revenue of
Planned Distribution Expansion and New Product Pipeline Pave Way for Growth in Fiscal Year 2025
Conference Call to be Held at 1:30 p.m. PT Today
Management Comments
Starco Brands Chairman & CEO Ross Sklar said: “Our third quarter showed strong operational and financial progress, delivering positive Adjusted EBITDA and sequential margin improvement through effective cost management and expanded distribution channels. Throughout 2024, we've focused on building a stronger operational foundation while gathering valuable market intelligence across our brand portfolio. This data-driven approach has provided clear insights into optimal channel strategies and retail partnerships, which will inform our expansion plans and appropriate marketing spend. Our shared services platform is now fully operational, enabling us to identify and remove approximately
Third Quarter of 2024 Financial Results
Reported net revenue for the third quarter of 2024 was
Gross profit was
Marketing, General and Administrative expenses were
Reported unadjusted net loss for the third quarter of 2024 was
First Nine Months of 2024 Financial Results
Reported net revenue for the first nine months of 2024 was
Gross profit was
Marketing, General and Administrative expenses for the first nine months of 2024 increased to
Reported unadjusted net loss for the first nine months 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
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 | ||||||||||||||
| Q3 24 | Q3 23 | FY 24 | FY 23 | ||||||||||||
| Net Income | $ |
(6,257 |
) |
$ |
2,361 |
|
$ |
(22,090 |
) |
$ |
(5,253 |
) |
|||
| Interest expense |
|
303 |
|
|
256 |
|
|
711 |
|
|
617 |
|
|||
| Tax |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||
| Depreciation & Amortization |
|
707 |
|
|
1,015 |
|
|
2,138 |
|
|
1,742 |
|
|||
| Other expense (income) |
|
378 |
|
|
121 |
|
|
740 |
|
|
(212 |
) |
|||
| Fair value share adjustment loss (gain) |
|
5,106 |
|
|
(3,144 |
) |
|
15,703 |
|
|
2,751 |
|
|||
| Stock based compensation |
|
421 |
|
|
477 |
|
|
1,322 |
|
|
1,440 |
|
|||
| Adjusted EBITDA | $ |
658 |
|
$ |
1,086 |
|
$ |
(1,476 |
) |
$ |
1,085 |
|
|||
Balance Sheet
As of September 30, 2024, the Company had approximately
First Nine Months of 2024 Segment Review
Starco Brands: Starco Brands’ segment includes AOS, Whipshots and Winona Popcorn Spray. Segment gross revenues of
Skylar: Segment gross revenues of
Soylent: Segment gross revenues of
Conference Call
The conference call to discuss these results is scheduled for today, Thursday, November 14, 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 www.starcobrands.com for more information.
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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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