Healthier Choices Management Corp. Reports Second Quarter 2024 Financial Results

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Sales of $15.6 million for the Second Quarter; $2.0 million Year-Over-Year Growth

Gross Margin of $5.9 million for the Second Quarter; $0.8 million Year-Over-Year Growth

HOLLYWOOD, FL, Aug. 06, 2024 (GLOBE NEWSWIRE) — Healthier Choices Management Corp. (OTC Pink: HCMC) today announced its financial results for the second quarter ended June 30, 2024.

Second Quarter 2024 Results and Recent Highlights:

  • Net sales from operations for the three-month period ended June 30, 2024, amounted to $15.6 million, compared to $13.6 million, an approximately $2.0 million and 15% increase versus the same period in 2023.
  • Gross margin from operations increased by approximately $0.8 million for the three-month period ended June 30, 2024, amounting to $5.9 million, compared to $5.1 million for the same period in 2023, a 16% year-over-year increase.
  • Adjusted EBITDA (Loss) for the three-month period ended June 30, 2024, amounted to approximately ($0.9 million) versus ($1.7 million) for the same period last year, a 44% year-over-year improvement.

Six Months 2024 Results and Recent Highlights:

  • Net sales from operations for the six-month period ended June 30, 2024, amounted to a record $31.5 million, compared to $27.1 million, an approximately $4.4 million and a 16% increase versus the same period in 2023.
  • Gross margin from operations increased by approximately $2.0 million for the six-month period ended June 30, 2024, amounting to $12.0 million, compared to $10.0 million for the same period in 2023, a 20% year-over-year increase.
  • Adjusted EBITDA (Loss) for the six-month period ended June 30, 2024, amounted to approximately ($2.2 million) versus ($3.2) million for the same period last year; a $1 million improvement versus the same period in 2023.

Jeffrey Holman, Chairman and CEO of HCMC, expressed his satisfaction with the company’s performance in the second quarter. “Our long-term strategy for sales growth is starting to show results, as evidenced by our positive sales figures.” Mr. Holman added, “The consistent increase in revenue and gross margin year over year highlights our ongoing progress. This strong second-quarter performance boosts our confidence in the strategic direction of HCMC.”

Results of Operations:

The following table sets forth our Condensed Consolidated Statements of Operations for the three and six- months ended June 30, 2024 and 2023:

  HEALTHIER CHOICES MANAGEMENT CORP.
  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
  (UNAUDITED)
               
  Three Months Ended   Six Months Ended
  June 30,   June 30,
    2024       2023       2024       2023  
Total sales, net $ 15,594,749     $ 13,574,896     $ 31,489,226     $ 27,134,640  
               
Total cost of sales   9,698,161       8,493,213       19,538,274       17,138,566  
               
GROSS PROFIT   5,896,588       5,081,683       11,950,952       9,996,074  
               
Total operating expenses   8,344,526       8,261,343       17,203,543       15,158,780  
               
LOSS FROM OPERATIONS   (2,447,938 )     (3,179,660 )     (5,252,591 )     (5,162,706 )
               
Total other income (expense), net   (58,740 )     526,905       (115,234 )     602,650  
               
NET INCOME (LOSS) FROM CONTINUING OPERATIONS $ (2,506,678 )   $ (2,652,755 )   $ (5,367,825 )   $ (4,560,056 )
               
See non-GAAP financial measure discussion              
  Three Months Ended   Six Months Ended
  June 30,   June 30,
    2024       2023       2024       2023  
               
Adjusted EBITDA              
Loss from operations $ (2,447,938 )   $ (3,179,660 )   $ (5,252,591 )   $ (5,162,706 )
Depreciation and amortization   378,146       374,022       757,694       747,485  
Stock compensation   1,135,083       1,126,750       2,261,833       1,176,750  
Adjusted EBITDA $ (934,709 )   $ (1,678,888 )   $ (2,233,064 )   $ (3,238,471 )


Consolidated Balance Sheets

The following table sets forth our Condensed Consolidated Balance Sheets for the periods ended June 30, 2024 and December 31, 2023:

HEALTHIER CHOICES MANAGEMENT CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
       
  June 30, 2024   December 31, 2023
  (UNAUDITED)    
ASSETS      
CURRENT ASSETS      
Cash and cash equivalents $ 3,353,326   $ 5,081,086
Other current assets   7,687,655     6,644,172
TOTAL CURRENT ASSETS   11,040,981     11,725,258
       
Other assets   16,571,410     19,244,321
       
TOTAL ASSETS $ 27,612,391   $ 30,969,579
       
LIABILITIES, CONVERTIBLE STOCK, AND STOCKHOLDERS’ EQUITY      
       
CURRENT LIABILITIES      
Other current liabilities $ 13,630,478   $ 12,230,939
TOTAL CURRENT LIABILITIES   13,630,478     12,230,939
       
Other liabilities   9,218,689     10,869,424
       
TOTAL LIABILITIES   22,849,167     23,100,363
       
TOTAL CONVERTIBLE STOCKS AND STOCKHOLDERS’ EQUITY   4,763,224     7,869,216
       
TOTAL LIABILITIES, CONVERTIBLE STOCK, AND STOCKHOLDERS’ EQUITY $ 27,612,391   $ 30,969,579


Non-GAAP Financial Measure

The following discussion and analysis contain a non-GAAP financial measure. A non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles (GAAP). Non-GAAP financial measures should be viewed as supplemental to, and should not be considered as alternative to, net income, operating income, and cash flow from operating activities, liquidity, or any other financial measures. Non-GAAP financial measures may not be indicative of the historical operating results of the Company nor are they intended to be predictive of potential future financial results. Investors should not consider non-GAAP financial measures in isolation or as substitutes for performance measures calculated in accordance with GAAP.

Management believes stockholders benefit from referring to the Adjusted EBITDA in planning, forecasting, and analyzing future periods. Management uses this non-GAAP financial measure in evaluating its financial and operational decision making and as a means of evaluating period to period comparison.

We define Adjusted EBITDA as net loss from operations adjusted for non-cash charges from depreciation and amortization and stock compensation. Management believes Adjusted EBITDA is an important measure of our operating performance because it allows management, investor, and analysts to evaluate and assess our core operating results from period to period after removing the impact of significant non-cash charges that effect comparability between reporting periods. Our management recognizes that Adjusted EBITDA has inherent limitations because of the excluded items.

We have included a reconciliation of our non-GAAP financial measure to loss from operations as calculated in accordance with GAAP. We believe that providing the non-GAAP financial measure, together with the reconciliation to GAAP, helps investors make comparisons between the Company and other companies. In making any comparisons to other companies, investors need to be aware that companies use different non- GAAP measures to evaluate their financial performance. Investors should pay close attention to specific definition being used and to the reconciliation between such measures and the corresponding GAAP measure provided by each company under applicable rules of the Securities and Exchange Commission.

About Healthier Choices Management Corp.

Healthier Choices Management Corp. (www.hcmc1.com) is a holding company focused on providing consumers with healthier daily choices with respect to nutrition and other lifestyle alternatives. 

Through its wholly owned subsidiary HCMC Intellectual Property Holdings, LLC, the Company manages and intends to expand its intellectual property portfolio.

Healthy Choice Wellness Corp. is a holding company focused on providing consumers with healthier daily choices with respect to nutrition and other lifestyle alternatives. 

Through its wholly owned subsidiaries, the Company operates:

   
  • Ada’s Natural Market, a natural and organic grocery store offering fresh produce, bulk foods, vitamins and supplements, packaged groceries, meat and seafood, deli, baked goods, dairy products, frozen foods, health & beauty products and natural household items (www.Adasmarket.com).
   
  • Paradise Health & Nutrition’s three stores that likewise offer fresh produce, bulk foods, vitamins, and supplements, packaged groceries, meat and seafood, deli, baked goods, dairy products, frozen foods, health & beauty products and natural household items (www.ParadiseHealthDirect.com).
   
  • Mother Earth’s Storehouse, an organic and health food and vitamin chain in New York’s Hudson Valley, which has been in existence for over 40 years (www.MotherEarthStorehouse.com).
   
  • Greens Natural Foods’ eight stores in New York and New Jersey, offering a selection of 100% organic produce and all-natural, non-GMO groceries and bulk foods; a wide selection of local products; an organic juice and smoothie bar; a fresh foods department, which offers fresh and healthy “grab & go” foods; a full selection of vitamins & supplements; as well as health and beauty products. (www.Greensnaturalfoods.com).
   
  • Ellwood Thompson’s, an organic and natural health food and vitamin store located in Richmond, Virginia. (www.ellwoodthompsons.com).
  • GreenAcres Market, an organic and natural health food and vitamin chain with five store locations in Kansas and Oklahoma. GreenAcres Market is a chain of premier natural foods stores, offering organic and all natural products and vitamins from both top national brands as well as locally sourced specialty brand (www.greenacres.com).

Through its wholly owned subsidiary, Healthy Choice Wellness, LLC, the Company operates a Healthy Choice Wellness Center in Kingston, NY and has a licensing agreement for a Healthy Choice Wellness Center located at the Casbah Spa and Salon in Fort Lauderdale, FL. The Company continues to seek out locations for new Healthy Choice Wellness Centers but there are not currently any agreements in place for the opening of any new locations.

Through its wholly owned subsidiary, Healthy Choice Wellness II, LLC, the Company entered a joint venture with an established healthcare provider, and the joint venture is in the process of creating a structure whereby it will engage in telemedicine evaluations of patients for semaglutide therapy. The operation will encompass, generally: medical evaluations of patients; treatment of patients with semaglutide; coordination with providers and patients.

Through its wholly owned subsidiary, Healthy U Wholesale, the Company sells vitamins and supplements, as well as health, beauty and personal care products on its website www.TheVitaminStore.com.

Forward Looking Statements.

This press release contains forward-looking statements within the meaning of that term in the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). Additional written or oral forward-looking statements may be made by the Company from time to time in filings with the Securities and Exchange Commission (SEC) or otherwise. Statements contained in this press release that are not historical facts are forward looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and are based on management’s estimates, assumptions and projections and are not guarantees of future performance. The Company assumes no obligation to update these statements. Forward looking statements may include, but are not limited to, projections or estimates of revenue, income, or loss, exit costs, cash flow needs and capital expenditures, statements regarding future operations, expansion or restructuring plans, including our recent exit from, and winding down of our wholesale distribution operations. In addition, when used in this release, the words “anticipates,” “believes,” “estimates,” “expects,” “intends,” and “plans” and variations thereof and similar expressions are intended to identify forward looking statements.

Factors that may affect our future results of operations and financial condition include, but are not limited to, fluctuations in demand for our products, the introduction of new products, our ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of our liquidity and financial strength to support its growth, and other information that may be detailed from time-to-time in our filings with the SEC.

Contact Information:
Healthier Choices Management Corp.
3800 North 28TH Way, #1 Hollywood, FL 33020
305-600-5004
Email: [email protected]

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