Healthier Choices Management Corp. Reports Fourth Quarter 2022 Financial Results and Full Year Fiscal 2022 Results
–Fourth Quarter Sales of $12.3 Million, Up 285%, and Gross Profit of $4.0M Up 321%, over Q4 2021
-Full Year Sales of $29.3 Million, Up 120%, and Gross Profit of $10.2 Million Up 93%; over 2021
HOLLYWOOD, FL, April 03, 2023 (GLOBE NEWSWIRE) — Healthier Choices Management Corp. (OTC Pink: HCMC) today announced financial results for the fourth quarter and the twelve-months ended December 31, 2022.
Fourth Quarter 2022 Results and Recent Highlights:
- Net sales from operations for the three-month period ended December 31, 2022, amounted to $12.3 million, compared to $3.2 million, an approximately $9.1 million and 285% increase versus the same period in 2021.
- Gross Profit from Operations increased by approximately $3.1 million for the three-month period ended December 31, 2022, amounting to $4.0 million, compared to $1.0 million for the same period in 2021, a 321% year-over-year increase.
- Net Loss from Continuing Operations for the three-month period ended December 31, 2022, amounted to approximately $2.3 million versus a $2.5 million loss for the same period last year, a 6% improvement. It should be noted that over $1.1 million in non-recurring expenses were incurred during the three-month period ended December 31, 2022.
Fiscal Year End 2022 Results and Recent Highlights
- Net sales from operations for the twelve-month period ended December 31, 2022, amounted to a record $29.3 million, compared to $13.3 million, an approximately $16.0 million increase and a record 120% increase versus the same period in 2021.
- Gross Profit from Operations increased by approximately $4.9 million for the twelve-month period ended December 31, 2022, amounting to a record $10.2 million, compared to $5.3 million for the same period in 2021, a 93% year-over-year increase.
- Net Loss from Continuing Operations for the twelve-month period ended December 31, 2022, amounted to approximately $7.2 million versus a $4.0 million loss for the same period last year, a 79% deterioration in profitability. It should be noted that over $3.0 million in non-recurring charges were incurred during the twelve-month period ended December 31, 2022. The balance of the prior year variance is primarily attributable to the closure of the retail stores in the vapor segment.
Jeffrey Holman, Chief Executive Officer of HCMC, said, “2022 was an outstanding year for Healthier Choices Management Corp. as we executed against our expansion strategy and delivered a record financial performance for total revenue, as well as gross margin. For the full year, we added $16 million in revenue, resulting in a 120% increase in net sales. Gross profit improved 93% resulting in roughly a $5 million increase.”
Mr. Holman concluded, “As we enter 2023, we believe we have a strong game plan and a clear vision for our team to execute on. We are well-positioned to take advantage of investment opportunities across our business lines in 2023, with strong liquidity levels. The team remains disciplined in our cost management, while enhancing our ability to deliver exceptional results for our shareholders.”
Results of Operations
The following table sets forth our Condensed Consolidated Statements of Operations for the three and twelve-months ended December 31, 2022 and 2021:
HEALTHIER CHOICES MANAGEMENT CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Total sales, net | $ | 12,309,659 | $ | 3,198,701 | $ | 29,267,003 | $ | 13,319,854 | ||||||||
| Total cost of sales | 8,256,005 | 2,236,902 | 19,042,785 | 8,027,300 | ||||||||||||
| GROSS PROFIT | 4,053,654 | 961,800 | 10,224,218 | 5,292,554 | ||||||||||||
| Total operating expenses | 7,720,788 | 3,433,825 | 18,877,302 | 10,033,048 | ||||||||||||
| LOSS FROM OPERATIONS | (3,667,134 | ) | (2,472,026 | ) | (8,653,084 | ) | (4,740,494 | ) | ||||||||
| Total other income (expense), net | 1,332,382 | 1,041 | 1,435,473 | 703,035 | ||||||||||||
| NET LOSS FROM CONTINUING OPERATIONS | $ | (2,334,752 | ) | $ | (2,470,985 | ) | $ | (7,217,611 | ) | $ | (4,037,459 | ) | ||||
Consolidated Balance Sheets:
The following table sets forth our Condensed Consolidated Balance Sheets as of December 31, 2022 and 2021:
HEALTHIER CHOICES MANAGEMENT CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
| December 31 , 2022 | December 31 , 2021 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash | $ | 22,911,892 | $ | 26,496,404 | ||||
| Other current assets | 7,396,588 | 2,277,135 | ||||||
| TOTAL CURRENT ASSETS | 30,308,480 | 28,773,539 | ||||||
| Other assets | 24,946,550 | 5,669,948 | ||||||
| TOTAL ASSETS | $ | 55,255,030 | $ | 34,443,487 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| TOTAL CURRENT LIABILITIES | 9,907,366 | 2,523,994 | ||||||
| Other liabilities | 10,419,565 | 2,685,836 | ||||||
| TOTAL LIABILITIES | 20,326,931 | 5,209,830 | ||||||
| CONVERTIBLE PREFERRED STOCK | 14,722,075 | – | ||||||
| STOCKHOLDERS’ EQUITY | 20,206,024 | 29,233,657 | ||||||
| TOTAL LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY | $ | 55,255,030 | $ | 34,443,487 | ||||
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 on its intellectual property portfolio.
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, a two-store 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 & 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)
Through its wholly owned subsidiary, Healthy Choice Wellness, LLC, the Company has in place
licensing agreements for Healthy Choice Wellness Centers located at the Casbah Spa and Salon in Fort Lauderdale, FL, Boston Direct Health in Boston, MA and Green Care Medical Services in Chicago, IL.
These centers offer multiple vitamin drip mixes and intramuscular shots for clients to choose from that are designed to help boost immunity, fight fatigue and stress, reduce inflammation, enhance weight loss, and efficiently deliver antioxidants and anti-aging mixes. Additionally, there are IV vitamin mixes and shots for health, beauty, and re-hydration.(www.HealthyChoiceWellness.com)
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.
Additionally, the Company markets its patented Q-Unit™ and Q-Cup® technology. Information on these products and the technology is available on the Company’s website at www.theQcup.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: ir@hcmc1.com
