Sequential Revenue Growth of 33% Quarter-Over-Quarter
Adjusted EBITDA Growth of 255% to $0.2 million1 Year-Over-Year, at 2% Margin1
Net Income Growth of 194% to $1.5 million Year-Over-Year
EPS Growth of 132% to $0.73 Year-Over-Year
TAMPA, Fla., Nov. 12, 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 third quarter ended September 30, 2024 (“Q3 2024”).
THIRD QUARTER 2024 FINANCIAL HIGHLIGHTS
Revenue increased 33% to $11.4 million from the second quarter 2024Gross margin increased 591 basis points year-over-year (“YOY”) to 40%Operating margin improved 1,003 basis points YOY to (10)%Net income increased 194% YOY to $1.5 millionEarnings per share (“EPS”) improved 132% YOY to $0.73$2.6 million gain on extinguishment of debtAdjusted EBITDA increased 255% YOY to $0.2 million1 “For the third quarter of 2024, we exceeded our internal projections across all key financial metrics,” commented Chief Executive Officer, Kent Cunningham. “The most encouraging for me was the double-digit year-over-year growth we saw across our primary Digital customers. We can see our marketing shifts are paying off as we have grown our new-to-brand consumer base, and we know our product performance is delivering as we’ve generated more repeat consumers. In our International channel, we generated 9% year-over-year growth with particularly strong performance across the Asia-Pacific region. We’re excited about the once-in-a-generation demographic shift occurring in Asia, where the pet food market is experiencing rapid growth. “
Nina Martinez, Chief Financial Officer, also commented, “Our ability to achieve 255% growth in adjusted EBITDA1 to a nearly 2% adjusted EBITDA margin1 on the quarter marks the Company’s first profitable quarter in over four years. In addition to the gross margin accretion realized, we generated a $2.7 million gain through the paydown of short-term obligations as we significantly shifted to a healthy working capital position of $9.5 million. The company’s positive financial results with a third consecutive quarter of improved gross margin, as well as second consecutive quarter of net income and EPS growth, gives us confidence that we can deliver significant growth upside as we head into 2025.”
1 Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures. Reconciliation of Adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure, is set forth in the reconciliation table accompanying this release.
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
Better Choice Company Inc.
Unaudited Condensed Consolidated Statements of Operations
(Dollars in thousands) Three Months Ended
September 30, Nine Months Ended
September 30, 2024 2023 2024 2023 Net sales$11,372 $13,117 $27,817 $32,890 Cost of goods sold 6,854 8,681 17,432 21,625 Gross profit 4,518 4,436 10,385 11,265 Operating expenses: Selling, general and administrative 5,645 7,052 14,703 19,721 Total operating expenses 5,645 7,052 14,703 19,721 Loss from operations (1,127) (2,616) (4,318) (8,456)Other income (expense): Interest income (expense), net 6 (344) (536) (952)Change in fair value of warrant liabilities – 1,339 – 1,339 Gain on extinguishment of debt and accounts payable 2,645 – 6,206 – Total other income, net 2,651 995 5,670 387 Income (loss) before income taxes 1,524 (1,621) 1,352 (8,069)Income tax (benefit) expense (2) – 3 – Net income (loss)$1,526 $(1,621) $1,349 $(8,069)Weighted average number of shares outstanding, basic 2,085,715 703,990 1,257,006 697,271 Weighted average number of shares outstanding, diluted 2,085,715 703,990 1,257,006 697,271 Net income (loss) per share, basic$0.73 $(2.30) $1.07 $(11.57)Net income (loss) per share, diluted$0.73 $(2.30) $1.07 $(11.57)
Better Choice Company Inc.
Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands, except share amounts) September 30, 2024 December 31, 2023Assets Cash and cash equivalents$4,743 $4,455 Accounts receivable, net 5,726 4,354 Note receivable 1,450 – Inventories, net 3,930 6,611 Prepaid expenses and other current assets 477 812 Total Current Assets 16,326 16,232 Fixed assets, net 158 230 Right-of-use assets, operating leases 78 120 Goodwill 405 – Other assets 205 155 Total Assets$17,172 $16,737 Liabilities & Stockholders’ Equity Current Liabilities
