-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 ...

Financial Performance - Net sales increased by $4.4 million to $20.3 million for the three months ended March 31, 2025, compared to $15.9 million for the same period in 2024, driven by the acquisition of GreenAcres Market and a $0.7 million increase in same-store sales [160]. - Gross profit for the three months ended March 31, 2025, was $7.9 million, with a gross margin increase of approximately 0.7% compared to the same period in the prior year [160]. - Operating expenses rose to $8.3 million for the three months ended March 31, 2025, an increase of $1.6 million primarily due to the acquisition of GreenAcres Market and higher professional fees [161]. - The net loss for the three months ended March 31, 2025, was $0.7 million, slightly higher than the net loss of $0.7 million for the same period in 2024 [159]. - Adjusted EBITDA for the three months ended March 31, 2025, was $20,315, a significant improvement from an adjusted EBITDA of $(238,605) in the same period of 2024 [177]. Cash Flow and Financial Position - Cash provided by operating activities was approximately $1.1 million for the three months ended March 31, 2025, a significant improvement from a cash outflow of $2.5 million in the same period in 2024 [164]. - As of March 31, 2025, the company had cash of approximately $1.8 million and negative working capital of $2.4 million [156]. - The company has operating lease obligations totaling $13.3 million as of March 31, 2025, with an expected increase in rent expense due to new leases and variable payments [163]. Business Operations - The acquisition of GreenAcres Market in July 2024 contributed significantly to the increase in grocery sales and operating expenses [160][161]. - The company operates a total of 19 retail stores across Florida, New York, New Jersey, Virginia, Kansas, and Oklahoma, focusing on natural and organic products [157]. - The company does not consider its business to be seasonal, suggesting stable demand throughout the year [180]. Future Outlook and Risks - The company expects to continue incurring losses for the foreseeable future, indicating ongoing challenges in achieving profitability [169]. - Forward-looking statements include expectations regarding retail expansion and future product demand, highlighting strategic growth areas [182]. - The company acknowledges that actual results may differ from forward-looking statements due to various factors, including stock price and customer acceptance [184]. Cybersecurity - Cybersecurity is recognized as critical to the company's success, with ongoing evaluations of threats and their potential impacts on operations and financial condition [181]. - The board oversees cybersecurity risks through quarterly updates, emphasizing the importance of data protection in the company's strategy [181]. Accounting Policies - The company has not made material changes to its critical accounting policies compared to the 2024 Annual Report, ensuring consistency in financial reporting [179]. Expenses - Interest expense increased to $297,731 in Q1 2025 from $103,072 in Q1 2024, indicating higher borrowing costs [177]. - Depreciation and amortization expenses rose to $429,990 in Q1 2025, compared to $363,141 in Q1 2024, reflecting increased asset utilization [177].

Core Insights - Healthy Choice Wellness Corp. reported record first-quarter 2025 sales with positive same-store sales growth for the three months ended March 31, 2025 [1][2] - The company's overall sales increased to $20.3 million, up $4.4 million from the previous year, while same-store sales grew by 3% [3] Financial Performance - Gross profit for the first quarter of 2025 reached $7.9 million, an increase of $1.8 million compared to the same period last year [3] - The positive financial performance was attributed to the impact of the customer loyalty program and a focus on enhancing customer experience [2] Future Outlook - The company is excited about the potential of integrating AI to further personalize services and deepen understanding of customer needs [2]

Core Insights - Healthy Choice Wellness Corp. (HCWC) reported exceptional first-quarter results for 2025, showcasing significant growth in sales and gross margin [1][2] - The company achieved a record $20.3 million in sales, reflecting a 28% year-over-year increase, and gross profit rose to approximately $7.9 million, marking a 30% year-over-year growth [3] Sales and Gross Margin Highlights - HCWC's sales growth of 28% resulted in a $1.9 million increase in gross profit, demonstrating the effectiveness of the company's strategic direction and operational efficiencies [2][3] - The gross profit increase of $1.8 million compared to the previous year indicates strong performance and commitment to delivering value to customers and shareholders [3] Strategic Outlook - The CEO expressed optimism about sustaining the positive growth trajectory through targeted acquisitions and operational efficiencies [2] - The company believes that its growth strategy, combined with favorable market dynamics, will support continued success throughout 2025 [2]

Financial Performance - Fourth quarter sales reached $19.7 million, representing a 24% increase from $15.9 million in Q4 2023, with gross profit rising 42% to $8.1 million from $5.7 million [1][7] - For the full year 2024, sales totaled $69.4 million, a 25% increase compared to $55.7 million in 2023, with gross profit increasing by approximately $6.7 million to $27.1 million from $20.3 million [1][7] - The net loss from operations for Q4 2024 was reduced to $0.3 million, a significant improvement from a $7.4 million loss in Q4 2023, which included a $6.1 million non-cash goodwill write-off [7][8] - Adjusted EBITDA turned positive at $0.1 million for Q4 2024, improving by nearly $1.1 million from a loss of $0.95 million in Q4 2023 [7][9] - For the full year, the net loss from operations was approximately $1.8 million, down from a $10.5 million loss in 2023, with the previous year's loss also impacted by the goodwill write-off [7][8] Strategic Insights - The CEO of Healthy Choice Wellness Corp. highlighted the achievement of Adjusted EBITDA profitability in the first full quarter as a stand-alone company, emphasizing strategic investments for long-term impact [4] - The acquisition of GreenAcres Market has led to operational enhancements across all 19 stores, contributing to record revenue and improved efficiency [4] Balance Sheet Overview - As of December 31, 2024, total assets amounted to $34.1 million, up from $28.4 million in 2023, with current assets increasing to $9.7 million from $5.9 million [11] - Total liabilities rose to $31.7 million from $19.4 million in 2023, while total stockholders' equity decreased to $2.4 million from $9.0 million [11]

Financial Performance - Sales increased by $13.7 million to $69.4 million for the year ended December 31, 2024, compared to $55.7 million in 2023, primarily due to acquisitions[87] - The net loss for the year ended December 31, 2024, was $4.5 million, an improvement of $5.4 million compared to a net loss of $9.9 million in 2023[86] - The company reported a net loss of $4,506,466 for 2024, compared to a net loss of $9,932,620 in 2023, indicating an improvement in financial performance[114] - Adjusted EBITDA for 2024 was $(201,021), a significant improvement from $(2,988,254) in 2023, reflecting enhanced operational efficiency[114] Operating Expenses - Cost of goods sold rose by $5.4 million to $42.3 million in 2024, driven by full-year operations of acquired entities[88] - Total operating expenses decreased by $2.0 million from $30.9 million in 2023 to $28.8 million in 2024, with a significant reduction in goodwill impairment charges[89] - The company did not record any impairment of goodwill in 2024, compared to an impairment of $6,104,000 in 2023, suggesting improved asset valuation[114] - Depreciation and amortization expenses increased to $1,576,457 in 2024 from $1,431,815 in 2023, reflecting higher asset utilization[114] - The company recognized interest expense of $848,651 in 2024, up from $199,681 in 2023, indicating increased borrowing costs[114] - Other net expenses decreased slightly to $(8,552) in 2024 from $(16,230) in 2023, showing a reduction in miscellaneous costs[114] Cash Flow and Liquidity - Net cash used in operating activities was $3.1 million for 2024, compared to $2.5 million in 2023, reflecting ongoing operational challenges[93] - The company had cash of $2.1 million and negative working capital of $2.2 million as of December 31, 2024, indicating liquidity challenges[98] - The net cash used in investing activities was $5.0 million in 2024, primarily for the acquisition of GreenAcres Market[94] - Financing activities provided $8.7 million in cash for 2024, including proceeds from a loan agreement and an initial public offering[95] - The company plans to raise capital from outside investors to fund operating losses and further acquisitions[98] Business Operations - The company does not consider its business to be seasonal, indicating stable revenue expectations throughout the year[100] - The company applies ASC Topic 805 for business combinations, recognizing identifiable assets and liabilities at fair value on acquisition date[108] - Goodwill impairment reviews are conducted annually on September 30, or more frequently if necessary, to assess asset value[107] - Non-GAAP financial measures, such as Adjusted EBITDA, are used by management for planning and evaluating financial performance, but should not be viewed as substitutes for GAAP measures[110] Strategic Financial Maneuvers - The loss on debt extinguishment was $1,888,889 in 2024, with no such loss recorded in 2023, indicating a strategic financial maneuver[114]

Core Insights - Healthy Choice Wellness Corp. (HCWC) is focusing on operational efficiencies, new revenue streams, investment in leadership, and enhanced customer engagement to drive growth in 2025 [1][2]. Operational Efficiencies & Proven Retail Strategies - HCWC is implementing industry-leading retail strategies to optimize operations and enhance supply chain efficiencies, which are expected to improve scalability and profitability [2]. - The company anticipates that new tactics will generate a secondary revenue stream that could cover a significant portion of monthly operating expenses by the end of 2025 [2]. New Revenue Streams - HCWC is establishing in-house baking commissaries at various store banners, which will create new revenue and increase foot traffic [3]. - The company plans to launch a wholesale business to supply baked goods to local restaurants and businesses, reinforcing its commitment to local communities [3]. Investment in Leadership - HCWC has expanded its leadership team with key roles aimed at driving growth and operational efficiency, bringing a combined 35 years of industry experience [4][5]. Enhanced Customer Engagement & Loyalty Programs - The company is enhancing customer loyalty through unified rewards programs and targeted marketing campaigns, leveraging data-driven insights to improve promotional effectiveness [4].

Core Insights - Healthy Choice Wellness Corp. (HCWC) has launched a revamped fully-integrated rewards program across all 19 stores to enhance customer engagement and retention [1][2] - The loyalty program aims to provide discounts, special pricing, and promotions, which are expected to drive incremental revenue and customer loyalty [2] Company Overview - HCWC operates 19 natural and organic grocery stores across six states, focusing on healthier daily choices in nutrition and lifestyle alternatives [3] - The company also sells vitamins, supplements, and health products through its subsidiary, Healthy U Wholesale, via its website [3] Loyalty Program Benefits - Studies indicate that loyalty program members generate 12-18% more incremental revenue compared to non-members, highlighting the potential for increased sales through enhanced customer engagement [2] - The unified loyalty program is designed to strengthen customer connections and drive measurable results for HCWC [2]

Core Insights - Healthy Choice Wellness Corp. (HCWC) has launched a revamped fully-integrated rewards program across all 19 stores to enhance customer engagement and retention [1][2] - The loyalty program aims to provide discounts, special pricing, and promotions, which are expected to drive incremental revenue and customer loyalty [2] Company Overview - HCWC operates 19 natural and organic grocery stores across six states, focusing on healthier daily choices in nutrition and lifestyle alternatives [3] - The company also sells vitamins, supplements, and health products through its subsidiary, Healthy U Wholesale, via its website [3] Loyalty Program Details - The new loyalty program is designed to strengthen customer connections and drive measurable results, with studies indicating that loyalty program members can generate 12-18% more incremental revenue compared to non-members [2] - Key benefits of the rewards program include 10% off vitamins and supplements every day, VIP Club Pricing, monthly coupons, and exclusive flash sales [4]

Core Viewpoint - Healthy Choice Wellness Corp. has successfully converted $450,000 of outstanding debt into equity, enhancing its balance sheet and reducing its debt burden [1][2]. Company Overview - Healthy Choice Wellness Corp. is a holding company focused on providing healthier daily choices in nutrition and lifestyle alternatives [2]. - The company operates through its wholly owned subsidiary, Healthy U Wholesale, which sells vitamins, supplements, and health-related products via its website [3]. Financial Impact - The conversion of debt to equity was executed at the current market price without any discounts or warrants, indicating lender confidence in the company [2]. - This transaction is viewed as a positive step towards the company's continued growth and success [2].