Core Insights - Better Choice Company Inc. (BTTR) shares have declined 9.4% since the earnings report for Q4 2024, contrasting with a 1.9% decline in the S&P 500 index during the same period [1] - The company reported a net loss per share of 50 cents for Q4 2024, an improvement of 97% year over year [2] - Revenues increased by 26% year over year to $7.2 million, with net losses narrowing by 90% to $1.6 million [3] Financial Performance - Adjusted EBITDA was negative at $0.7 million, but showed year-over-year improvement, indicating cost discipline and operational efficiencies [3] - Gross margin expanded by 2,705 basis points to 36%, driven by stronger volumes and improved terms with manufacturing partners [3] - For the full year 2024, Better Choice reported a net loss of $0.2 million, significantly narrower than the $22.8 million loss in 2023, with loss per share improving to 10 cents from $32.29 [8] Operational Metrics - The company achieved a 32% year-over-year growth in sales through Amazon and Chewy, emphasizing a shift towards higher-margin digital sales channels [4] - SG&A expenses were reduced by 22% in 2024, contributing to a 10% increase in gross profit dollars despite a decline in topline revenue [5] - Inventory was reduced by over 40% year-over-year while maintaining service levels above 95% [4] Strategic Initiatives - CEO Kent Cunningham highlighted 2024 as a transformative year, with strong growth in e-commerce platforms and successful promotions [6] - The company is focusing on high-return e-commerce partners and has exited unprofitable sales channels, which has contributed to improved financial performance [7] - Better Choice entered into an agreement to sell its Halo Asia business for $6.5 million in cash, plus a 3% royalty on future sales [9] Future Outlook - The company expects to close its acquisition of SRx Health Solutions in April, which is anticipated to create a leading global health and wellness platform [10]
BTTR Stock Down 9% Despite Narrowing Q4 Losses and E-Commerce Gains