Healthier Choices Management Corp. Reports Fourth Quarter 2022 Financial Results and Full Year Fiscal 2022 Results
4/3/23 8:30 AM ET (GlobeNewswire)Print
Healthier Choices Management Corp. Reports Fourth Quarter 2022 Financial Results and Full Year Fiscal 2022 ResultsGlobeNewswireApril 03, 2023
-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%, andGross 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 2022Results 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 2022Results 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 EndedTwelve Months EndedDecember 31,December 31,2022202120222021Total sales, net$12,309,659$3,198,701$29,267,003$13,319,854Total cost of sales8,256,0052,236,90219,042,7858,027,300GROSS PROFIT4,053,654961,80010,224,2185,292,554Total operating expenses7,720,7883,433,82518,877,30210,033,048LOSS FROM OPERATIONS(3,667,134)(2,472,026)(8,653,084)(4,740,494)Total other income (expense), net1,332,3821,0411,435,473703,035NET LOSS FROM CONTINUING OPERATIONS$(2,334,752)$(2,470,985)$(7,217,611)$(4,037,459)
