Advantage Solutions Inc. reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with total revenues decreasing by $333.8 million, or 8.6%, to $3.57 billion compared to $3.90 billion in 2023. The company experienced an operating loss of $295.0 million, a stark contrast to the operating income of $46.6 million recorded in the previous year. The net loss from continuing operations also increased to $378.4 million, up from $81.2 million in 2023. Adjusted net income fell slightly by 3.9% to $75.7 million, while adjusted EBITDA increased by 1.1% to $356.0 million, indicating some operational resilience despite the overall downturn.
The decline in revenue was primarily attributed to a significant drop in the Branded Services segment, which saw revenues decrease by $452.1 million, largely due to an intentional client resignation and a challenging economic environment for consumer packaged goods clients. Conversely, the Experiential Services segment reported an increase in revenues of $135.6 million, driven by a rise in event volume, while the Retailer Services segment experienced a modest revenue decline of $17.3 million due to reduced service scope from retailer clients.
Strategically, Advantage Solutions has undergone a transformation, including the divestiture of several business units and a reorganization of its operations into three reportable segments: Branded Services, Experiential Services, and Retailer Services. This restructuring aims to align the company’s capabilities with market demands and improve operational efficiency. The company also recognized substantial impairment charges, including $275.2 million related to goodwill and indefinite-lived assets, reflecting the impact of client losses and the broader economic challenges faced by its clients.
Operationally, Advantage Solutions served over 4,000 clients across more than 100,000 locations, maintaining a workforce of approximately 69,000 employees as of December 31, 2024. The company continues to focus on enhancing its service offerings and leveraging technology to meet evolving client needs. Looking ahead, Advantage Solutions anticipates that its ongoing restructuring efforts and strategic focus on core business areas will position it for improved performance, although it acknowledges the risks associated with market conditions and client procurement strategies.
About Advantage Solutions Inc.
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