Healthy Choice Wellness Corp. Announces Record First Quarter 2025 Financial Results
MWN-AI** Summary
Healthy Choice Wellness Corp. (NYSE-AM: HCWC) has announced impressive financial results for the first quarter of 2025, highlighting significant growth across key performance indicators. For the quarter ending March 31, 2025, the company recorded a net sales figure of $20.3 million, a remarkable 27% increase from $15.9 million in the same period of 2024. This surge in revenue has been attributed to successful acquisitions and robust same-store sales as well as enhanced vendor collaborations across its 19 retail locations.
Moreover, the company's gross profit also saw a substantial leap, reaching $7.9 million, up 30% from $6.1 million in the prior year. Despite this growth in revenue and profit, Healthy Choice reported a net loss of approximately $0.7 million, consistent with the previous year's figures. Notably, the adjusted EBITDA showed a positive shift, amounting to $20,315, marking an improvement of over 109% compared to a $0.2 million loss in Q1 2024.
CEO Jeffrey Holman expressed enthusiasm for the results, emphasizing the company's dedication to expansion and leveraging synergies across its brands to foster ongoing profitability. He noted improvements in operational efficiencies, reducing shrinkage and spoilage, which positively influenced gross profit margins.
The company operates multiple retail outlets, including Ada’s Natural Market and Greens Natural Foods, focusing on healthier consumer choices in nutrition and lifestyle products. With this solid performance, Healthy Choice Wellness Corp. is optimistic about sustaining growth momentum into the rest of 2025 and beyond. The results underline the company's commitment to delivering shareholder value while navigating the evolving market landscape.
MWN-AI** Analysis
Healthy Choice Wellness Corp. (NYSE-AM: HCWC) has reported a remarkable performance for the first quarter of 2025, as indicated by its record sales of $20.3 million — a 27% increase year-over-year from Q1 2024. Notably, this growth momentum is accompanied by an encouraging 30% rise in gross profit, reaching $7.9 million. With the announcement of a positive adjusted EBITDA, even though the net loss has remained steady at approximately $0.7 million, this signals an improving operational trend, bolstered by effective cost management and strategic acquisitions.
Investors should take note that despite the net loss, the company is showcasing operational resilience and a robust expansion strategy. CEO Jeffrey Holman's comments on leveraging synergies across the company’s brands highlight a focus on long-term value creation. The company's emphasis on growth in same-store sales and vendor programs contributes to its optimistic outlook for the upcoming quarters.
However, potential investors should exercise caution regarding HCWC’s current liabilities, which stood at $13.4 million in March 2025, slightly higher than the previous year. The increase in operating expenses could also signal pressure on margins, despite the company's ability to generate higher sales. Maintaining operational efficiency should remain a priority for Healthy Choice as it navigates this growth trajectory.
In light of the positive financial metrics and the strategic initiatives outlined, the current market conditions seem favorable for HCWC. Investors considering an entry point into Healthy Choice Wellness Corp. may find value, particularly if they are willing to adopt a long-term perspective. Moreover, ongoing improvements in efficiency could lead to enhanced profitability, making HCWC a compelling investment opportunity in the growing health and wellness sector.
In conclusion, while the financial results present a promising outlook for Healthy Choice Wellness Corp., diligent monitoring of operational expenses and management strategies will be crucial for sustained growth.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
- First Quarter Record Sales of $20.3 Million, Up 27%, over Q1 2024
-First Quarter Record Gross Profit of $7.9 Million, Up 30%, over Q1 2024
- First Quarter Positive Adjusted EBITDA
HOLLYWOOD, FL, May 12, 2025 (GLOBE NEWSWIRE) -- Healthy Choice Wellness Corp. (NYSE-AM: HCWC) today announced financial results for the first quarter ended March 31, 2025.
First Quarter 2025 Results Highlights:
- Net sales from operations for the three-month period ended March 31, 2025, amounted to a record $20.3 million, compared to $15.9 million, an approximate $4.4 million and 27% increase versus the same period in 2024.
- Gross Profit from operations increased by approximately $1.8 million for the three-month period ended March 31, 2025, amounting to a record $7.9 million, compared to $6.1 million for the same period in 2024, a 30% year-over-year increase.
- Net Loss for the three-month period ended March 31, 2025, amounted to approximately $0.7 million, unchanged from prior year.
- Adjusted EBITDA amounted to a positive $0.02 million versus a $0.2 million loss when compared to the same period last year, an improvement of over $250,000 or 109% when compared to the same period last year.
Jeffrey Holman, Chief Executive Officer of HCWC, expressed his enthusiasm about the company's outstanding performance in the first quarter. "Our revenue has reached $20.3 million, setting a new record for the first quarter. This impressive growth has been largely fueled by the completion of the successful acquisitions throughout the past couple of years and has been complemented by same store sales increases as well as ongoing growth of our co-op vendor programs throughout all 19 stores . Additionally, our gross profit has soared to nearly $8 million, thanks in part to improvement in buying efficiencies, resulting in lower shrinkage and spoilage."
Mr. Holman emphasized the company's forward-looking strategy, stating, "We are steadfast in our commitment to our expansion strategy and are optimistic about achieving another year of robust growth. Our focus remains on leveraging synergies across our brands to drive continued bottom-line profitability. These efforts are central to our mission of delivering sustained value to our shareholders."
Results of Operations
The following table sets forth our Condensed Consolidated Statements of Operations for the three months ended March 31, 2025, and 2024.
| HEALTHY CHOICE WELLNESS CORP. | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (UNAUDITED) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| SALES, NET | $ | 20,259,606 | $ | 15,894,358 | ||||
| COST OF SALES | 12,407,696 | 9,839,981 | ||||||
| GROSS PROFIT | 7,851,910 | 6,054,377 | ||||||
| TOTAL OPERATING EXPENSES | 8,261,585 | 6,656,123 | ||||||
| LOSS FROM OPERATIONS | (409,675 | ) | (601,746 | ) | ||||
| TOTAL OTHER (EXPENSE) INCOME, NET | (302,735 | ) | (99,717 | ) | ||||
| NET LOSS | $ | (712,410 | ) | $ | (701,463 | ) | ||
| See non-GAAP financial measure discussion | ||||||||
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| ADJUSTED EBITDA | ||||||||
| Loss from operations | $ | (409,675 | ) | $ | (601,746 | ) | ||
| Depreciation and amortization | 429,990 | 363,141 | ||||||
| ADJUSTED EBITDA | $ | 20,315 | $ | (238,605 | ) |
Consolidated Balance Sheets:
The following table sets forth our Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024.
| HEALTHY CHOICE WELLNESS CORP. | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| March 31, 2025 (Unaudited) | December 31, 2024 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 1,792,418 | $ | 2,056,472 | ||||
| Other current assets | 9,124,438 | 7,650,485 | ||||||
| TOTAL CURRENT ASSETS | 10,916,856 | 9,706,957 | ||||||
| OTHER ASSETS | 23,168,353 | 24,405,560 | ||||||
| TOTAL ASSETS | $ | 34,085,209 | $ | 34,112,517 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES | 13,352,471 | 11,940,313 | ||||||
| OTHER LIABILITIES | 18,607,647 | 19,792,203 | ||||||
| TOTAL LIABILITIES | 31,960,118 | 31,732,516 | ||||||
| TOTAL STOCKHOLDERS’ EQUITY | 2,125,091 | 2,380,001 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 34,085,209 | $ | 34,112,517 |
Non-GAAP – Financial Measure
The following discussion and analysis contains a non-GAAP financial measure. Generally, 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 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 loss from operations adjusted for non-cash charges from depreciation and amortization and stock compensation. 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 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 (“SEC”). The table above presents a reconciliation of Adjusted EBITDA to loss from operations, a GAAP financial measure:
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:
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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 strategies is Healthy Choice Wellness Corp. Class A HCWC implementing to sustain its impressive 27% growth in net sales over the previous year, particularly in light of competitive pressures in the health and wellness market?
How does Healthy Choice Wellness Corp. Class A HCWC plan to address its ongoing net loss of $0.7 million while maintaining positive Adjusted EBITDA, and what operational efficiencies are being targeted to improve profitability?
Given the increase in gross profit by 30% to $7.9 million, what specific buying efficiencies or cost management strategies has Healthy Choice Wellness Corp. Class A HCWC identified to continue this trend moving forward?
With the company's expansion strategy in mind, what new markets or types of products is Healthy Choice Wellness Corp. Class A HCWC focusing on to support future growth and shareholder value?
**MWN-AI FAQ is based on asking OpenAI questions about Healthy Choice Wellness Corp. Class A (NYSE: HCWC).
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