Synergy CHC Corp.(US:SNYR)2025-05-15 14:00Financial Data and Key Metrics Changes - The company reported a 30% growth in earnings per share year over year, marking the ninth consecutive quarter of profitability [5] - EBITDA margins expanded to 24.1% compared to 19.7% in the prior period [5] - Net revenue for Q1 2025 was $8.2 million, a 13% decrease from $9.4 million in the same quarter last year [12] - Gross margin increased to 75.4% from 72% year over year [12] - Operating expenses decreased by 15% to $4.2 million from $5 million in the prior year [12] - Net income for Q1 was $876,000 or $0.10 per diluted share, up from $580,000 or $0.08 per diluted share in the previous year [13] Business Line Data and Key Metrics Changes - The RTD beverage segment generated $30,000 in revenue during Q1, with expectations of $2 million in Q2 due to strong orders from Amazon [17][18] - A long-term supplier agreement for Focus Factor products is expected to yield significant cost savings [9] Market Data and Key Metrics Changes - The company has entered a three-year license agreement for the Focus Factor brand in the UAE, expecting revenue generation by Q4 2025 [6] - A wholly owned subsidiary has been established in Mexico, with revenue expected to start in early Q3 [7] Company Strategy and Development Direction - The company plans to expand its global presence by adding new licensees in selected markets where it does not currently operate [6] - The focus remains on growing the Canadian and US convenience store business for RTD beverages [8] - The refinancing of debt is expected to alleviate over $10 million in principal payments in 2025 and extend maturity into 2029 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing discipline around cost management and the strength of the operating model [5] - The company does not expect material impacts from tariffs due to its sourcing strategy [11] Other Important Information - Cash and cash equivalents decreased to $177,900 from $687,900 at the end of 2024 [14] - Total liabilities decreased to $31.3 million from $33 million at the end of 2024 [15] Q&A Session Summary Question: What was the RTD beverage revenue in the quarter and plans for rollout? - The RTD beverage segment generated $30,000 in Q1, with expectations of $2 million in Q2 due to Amazon orders [17] Question: What are the plans for geographic territories and distribution channels? - The focus is primarily on Canada and the US, targeting convenience stores and existing retailers [20] Question: Will G&A expenses rise through the year? - G&A expenses are expected to remain flat as a percentage, with some headcount additions [21] Question: What was the licensing revenue booked in Q1? - The company received a $1.5 million fee for the UAE license agreement, with revenue expected to start in Q4 [23][25]