Synergy CHC (SNYR) Q3 2024 earnings summary

Executive summary

• Completed IPO in October 2024, raising $10.35 million gross ($8.4 million net), and began trading on NASDAQ, enhancing liquidity and growth prospects.

• Achieved seventh consecutive quarter of profitability, despite a challenging quarter due to FOCUSfactor re-branding and retailer de-inventorying.

• Q3 2024 revenue was $7.1 million, down from $10.8 million in Q3 2023, mainly due to shipment delays, discontinued products, and rebranding impacts.

• Net income for Q3 2024 was $784,000 ($0.10 per diluted share), compared to $1.3 million ($0.17 per share) last year.

• Announced CFO transition: Stacey Bieber departing, Jaime Fickett appointed Interim CFO.

Financial highlights

• Q3 2024 revenue was $7.1 million, down 34% from $10.8 million in Q3 2023.

• EBITDA for Q3 2024 was $1.3 million, down from $2.2 million year-over-year, a 38% decline.

• Gross margin for Q3 2024 was 67.2%, down from 72% in Q3 2023, mainly due to product mix and lower sales volume.

• Operating expenses fell to $3.7 million from $5.6 million year-over-year, reflecting cost management.

• Nine-month revenue was $24.6 million, down from $29.6 million in the prior year period.

Outlook and guidance

• Expect return to year-over-year growth in Q1 2025 as rebranding impact subsides.

• Focus on organic growth, new product launches, international expansion, and strategic acquisitions in 2025.

• Ready-to-drink beverage expansion and Flat Tummy retail rollout planned for early 2025.

• Investments in FOCUSfactor re-branding expected to drive long-term sustainable growth.