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Synergy CHC Reports its Eighth Consecutive Quarter of Profitability and its Fourth Quarter and Full Year 2024 Financial Results
Synergy CHC Corp.Synergy CHC Corp.(US:SNYR) Newsfilterยท2025-03-31 12:00

Core Insights - Synergy CHC Corp. reported its financial results for the year ending December 31, 2024, highlighting a continued profitability streak with eight consecutive profitable quarters despite challenges in the fourth quarter due to retailer de-inventorying related to the FOCUSfactor packaging transition [2][6]. Financial Performance - Fourth quarter revenue was $10.3 million, a decrease of 22% from $13.2 million in Q4 2023. Full year revenue was $34.8 million, down 19% from $42.8 million in 2023 [6]. - Gross margin for Q4 2024 was 63.3%, down from 82.3% in Q4 2023. For the full year, gross margin was 67.9%, a decline of 712 basis points from 75.0% in 2023 [7]. - Income from operations in Q4 2024 was $1.4 million compared to $4.4 million in Q4 2023. For the full year, it was $5.8 million, down from $10.8 million in 2023 [10]. - Net income for Q4 2024 was $105.7 thousand, a significant drop from $2.6 million in Q4 2023. Full year net income was $2.1 million compared to $6.3 million in 2023 [11]. - EBITDA for Q4 2024 was $1.7 million, down from $4.5 million in Q4 2023. For the full year, EBITDA was $6.5 million compared to $10.8 million in 2023 [12]. - Adjusted EBITDA for Q4 2024 was $2.8 million, a substantial increase of 1,033% from $(0.3) million in Q4 2023. For the full year, Adjusted EBITDA was $7.4 million, up 21% from $6.1 million in 2023 [13]. Business Developments - The company successfully rebranded FOCUSfactor and expanded its distribution with BJ's Wholesale Club and Publix, with FOCUSfactor products now available in all 267 BJ's locations and 1,200 Publix stores [6]. - In Q1 2025, Synergy launched seven new products under the Flat Tummy brand, targeting the growing interest in GLP-1 support products [2]. - The company completed its Initial Public Offering (IPO) in October 2024, issuing 1,150,000 shares at $9.00 per share, with trading commencing on the Nasdaq Global Market under the ticker symbol "SNYR" [6]. Balance Sheet and Cash Flow - As of December 31, 2024, Synergy had approximately $687.9 thousand in cash and cash equivalents, an increase from $632.5 thousand as of December 31, 2023. Total liabilities decreased to $33.0 million from $39.5 million [14]. - The company reduced outstanding debt by $4.5 million during the fourth quarter [6]. - Cash used in operating activities for the year ended December 31, 2024, was $4.8 million, a decline from cash provided by operating activities of $421.7 thousand in 2023 [15].