TAMPA, FLA. — Better Choice Company Inc. continues to make strides in improving its business as evidenced by the company’s fourth quarter and 2023 financial results, released on April 12.  According to Chief Executive Officer Kent Cunningham, the company improved its gross margin and witnessed adjusted EBITDA growth.

“In 2023, we realized significant gross margin improvement to 31%, fueled by strategic pricing initiatives and a 3% year-over-year improvement of input costs — a reflection of operational discipline and unlocking profit through high production supply volumes,” Cunningham said. “Our further continued focus on financial discipline and a path to profitability is reflected in the 29% adjusted EBITDA growth and significant improvement in cash burn during the year.”

For the fourth quarter of 2023, operating loss improved 47% year-over-year to $12.7 million and operating margin improved 3,800 basis points compared to the fourth quarter of 2022. Net loss also improved 40% to $14.7 million, and earnings loss per share improved 40% to $20.84. Adjusted EBITDA improved 30% to $3.4 million. 

For the full year ended Dec. 31, 2023, net sales decreased to $38,592, compared to $54,660 in 2022. Gross profit also declined to $11,797, compared to $15,261 in 2022. Despite a decrease in net sales and gross profit for 2023, Better Choice reported that gross margin improved 300 basis points to 31% year-over-year. 

Additionally, total operating expenses decreased to $32,976, compared to $54,044 in 2022. Overall, operating loss improved 45% year-over-year to $21.2 million and operating margin improved 1,600 basis points year-over-year to 55%. 

Net loss also improved 42% compared to 2022 to $22.8 million, and adjusted EBITDA improved 32% year-over-year to $8 million. Earnings per share improved 45% to $32.29 in 2023 compared to 2022. 

“The topline decline was a primary result of normalizing stock levels in our international markets, purposefully exiting unprofitable accounts, and attrition related to the late 2022 migration of the former TruDog brand to the Halo brand umbrella in our digital channels,” Cunningham explained.
 “Significant strategic shifts were purposefully made across channels to ensure recoverability and long-term viability of the Halo brand.”

Better Choice has been on a long journey to improve its profitability by appointing new leadership, evaluating interest in its Halo pet food brand, and partnering with co-manufacturer Alphia. According to Cunningham, the company has more strategic initiatives planned to help ensure long-term growth.

“Our 2024 annual operating plan includes a strategic pivot in our digital and marketing investment allocation strategies to drive brand growth and discoverability,” he said. “Looking forward, we are focused on accelerating topline momentum, keeping product quality at the forefront, and continuous improvement initiatives to fuel our future growth trajectory. We closed the year with a solid footing to build upon brand equity and enhanced profitability further in 2024.”

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