Better Choice Company Inc. reported a decline in net sales for the three months ended September 30, 2024, totaling $11.4 million, down 13% from $13.1 million in the same period of 2023. For the nine months ended September 30, 2024, net sales were $27.8 million, a decrease of 15% compared to $32.9 million in the prior year. The decline in sales was attributed to reduced performance in the digital and brick-and-mortar channels, with digital sales dropping from $4.5 million to $3.5 million year-over-year for the quarter, and brick-and-mortar sales falling from $2.2 million to $0.8 million.

Despite the decrease in sales, the company achieved a gross profit of $4.5 million for the third quarter, a slight increase from $4.4 million in 2023. However, gross profit for the nine-month period decreased to $10.4 million from $11.3 million. The gross margin improved to 40% for the third quarter, up from 34% in the previous year, indicating better cost management.

Better Choice reported a loss from operations of $1.1 million for the third quarter, significantly improved from a loss of $2.6 million in the same period last year. For the nine months, the loss from operations was $4.3 million, down from $8.5 million in 2023. The company recorded a gain of $2.6 million from the extinguishment of debt and accounts payable during the third quarter, contributing to a net income of $1.5 million, a turnaround from a net loss of $1.6 million in the prior year. For the nine months, net income was $1.3 million compared to a loss of $8.1 million in 2023.

The company’s cash and cash equivalents increased to $4.7 million as of September 30, 2024, from $4.5 million at the end of 2023. Total liabilities decreased significantly to $6.9 million from $13.8 million, primarily due to the forgiveness of a $5 million term loan and $2.6 million in accounts payable as part of a settlement with Alphia Inc.

Strategically, Better Choice completed the acquisition of Aimia Pet Healthco, Inc. for $0.4 million in February 2024, aimed at expanding its product offerings. The company also exited the direct-to-consumer channel as of June 1, 2024, to enhance profitability. Additionally, a public offering in July 2024 raised approximately $5.3 million, which will support ongoing operations and growth initiatives. The company has authorized a stock repurchase plan for up to $5 million through December 31, 2024.