NEW YORK — Better Choice Company Inc., producer of Halo, on Nov. 10 reported its third quarter financial results for the three-month period ended Sept. 30. By focusing on various sales channels, including brick-and-mortar, e-commerce and direct-to-consumer, Better Choice overcame a challenging operational environment, according to Lionel F. Conacher, interim chief executive officer.
Third quarter gross sales totaled $14.2 million and net sales totaled $11.9 million, a decrease from $13.2 million year-over-year. Gross profit and adjusted gross profit margins improved 35% and 37%, respectively.
“This represents a six-point improvement from the second quarter of 2022 and a 12-point improvement from the fourth quarter of 2021,” Conacher said. “Subsequent to the third quarter, we also made meaningful improvements to our balance sheet by extending and upsizing our current revolving credit facility to $13.5 million.”
In the first nine months of 2022, net sales totaled $45.4 million, an increase from $35 million year-over-year, and gross profit totaled $31.8 million, an increase from $22.4 million year-over-year.
Following its third quarter performance, Better Choice updated its year-to-date 2022 financials. Gross sales for 2022 totaled $53.7 million and adjusted net sales totaled $45.9 million.
The company also detailed year-to-date 2022 net sales across its various sales channels. International net sales totaled $19.7 million, e-commerce net sales totaled $11 million, brick-and-mortar net sales totaled $9.6 million, and direct-to-consumer sales totaled $5.1 million.
“Despite what has been a challenging operating environment so far this year, we have the foundation in place to be able to compete and grow across all of our distribution channels,” Conacher said. “We have committed brick-and-mortar retail partners, a network of international distributors, a recurring base of online subscribers, strong e-commerce partners and co-manufacturing partners with the capacity to support our growth, and a banking relationship that allows us to strategically deploy working capital.
“Going forward, it is our plan to focus on execution, reduce our quarterly cash burn and grow to ultimately deliver a return to shareholders,” Conacher added.
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