10-Q - HEALTHY CHOICE WELLNESS CORP. (0001948864) (Filer)

Fri, May 9, 9:27 PM (2 days ago)

**Healthy Choice Wellness Corp. (HCWC) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $20,259,606 (up 27.7% from $15,894,358 in Q1 2024). - **Gross Profit:** $7,851,910 (up 29.4% from $6,054,377 in Q1 2024). - **Operating Loss:** $(409,675) (improved from $(601,746) in Q1 2024). - **Net Loss:** $(712,410) (slightly worse than $(701,463) in Q1 2024). - **Cash Flow from Operations:** $1,092,748 (improved from $(2,548,569) in Q1 2024). **Key Metrics:** - **Gross Margin:** 38.7% (up from 38.1% in Q1 2024). - **Operating Margin:** -2.0% (improved from -3.8% in Q1 2024). - **Net Margin:** -3.5% (down from -4.4% in Q1 2024). **Cash and Liquidity:** - **Cash and Cash Equivalents:** $1,792,418 (down from $2,056,472 in Q1 2024). - **Working Capital:** Negative $2,435,665 (improved from negative $3,778,776 in Q1 2024). **Debt:** - **Total Debt:** $8,945,746 (down from $9,207,772 in Q1 2024). - **Current Portion of Debt:** $1,697,545 (down from $2,131,336 in Q1 2024). **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by the acquisition of GreenAcres Market and increased same-store sales. - **Cost of Goods Sold:** Increased due to higher sales volume and acquisition-related costs. - **Operating Expenses:** Increased due to acquisition-related costs and higher professional fees. - **Cash Flow:** Improved significantly due to better working capital management and higher operating income. **Trends and Uncertainties:** - **Positive Trends:** Revenue growth, improved gross margin, and better cash flow from operations. - **Uncertainties:** Rising interest rates, inflation, and competitive pressures in the food retail industry. **Future Operations Impact:** - **Expansion Plans:** The company plans to continue expanding its retail footprint and enhancing its wellness centers. - **Cost Management:** The company aims to manage costs effectively and improve operational efficiencies. - **Funding:** The company has secured commitments for equity financing and has a loan agreement in place to support its expansion plans. **Ticker:** HCWC **Note:** Amounts are in thousands, 000s. The company's financial health shows improvement in cash flow and operating margins, but it continues to face challenges in achieving profitability. The company's expansion plans and cost management strategies will be crucial in determining its future performance.