Better Choice pany (BTTR) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported annual net revenues of $35 million, down 9% year-over-year due to strategic exits from non-core sales channels [16] - Gross profit margin increased to 37%, up over 600 basis points from the previous year [7][18] - Adjusted EBITDA loss improved by 78% year-over-year to approximately $1.9 million, compared to $8.4 million in 2023 [24] Business Line Data and Key Metrics Changes - The Halo brand achieved a fourth quarter revenue growth of 26% year-over-year, driven by a 32% increase in sales across Amazon and Chewy [8][9] - The company successfully launched Halo on Chewy Canada, contributing to increased consumer demand [10] - SG&A expenses were reduced by 22% year-over-year, reflecting operational improvements [11][20] Market Data and Key Metrics Changes - International revenue grew by 18%, with significant growth in the Asia Pacific region [17] - The company noted a shift in consumer buying habits towards e-commerce, with a focus on key digital platforms [12][17] Company Strategy and Development Direction - The company is focused on a turnaround strategy to improve profitability and lay the foundation for sustained growth [7] - A definitive agreement was signed to sell Halo in Asia for $6.5 million in cash and a 3% royalty on sales over the next five years [13][14] - The Board approved a royalty distribution plan of up to 55% of annual royalties to shareholders [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's momentum entering 2025, with a focus on profitable revenue growth and expanding margins [27] - The acquisition of SRx Health is expected to yield operational efficiencies and growth opportunities [30][31] Other Important Information - The company achieved a significant reduction in operating expenses, with a 43% decrease in total operating expenses year-over-year [22] - Cash and cash equivalents as of December 31, 2024, were $3 million, with a net working capital position of $7.9 million [25][26] Q&A Session Summary - The Q&A session was concluded without any recorded questions or answers [33]