Healthy Choice Wellness Corp. Reports 24.5% Sales Growth and Strategic Changes for Fiscal Year 2024

Healthy Choice Wellness Corp. (HCWC) reported a significant increase in financial performance for the fiscal year ending December 31, 2024, with total sales reaching $69.4 million, up from $55.7 million in 2023, marking a growth of approximately 24.5%. The company’s gross profit also improved, rising to $27.1 million from $20.3 million, reflecting a gross margin increase driven by the full-year operations of recently acquired stores, including Ellwood Thompson’s and GreenAcres Market. Despite these gains, HCWC reported a net loss of $4.5 million, an improvement from the $9.9 million loss reported in the previous year, indicating a positive trend in operational efficiency.

The company underwent significant changes during the fiscal year, including the completion of its spin-off from Healthier Choices Management Corp. on September 14, 2024, which allowed HCWC to operate as an independent publicly traded entity. This strategic move was accompanied by a successful equity financing round, securing $13.25 million from investors, which is expected to support future growth initiatives. Additionally, HCWC expanded its footprint by acquiring GreenAcres Market in July 2024, further enhancing its market presence in the natural and organic grocery sector.

Operationally, HCWC employed approximately 450 individuals across its retail and corporate operations as of December 31, 2024. The company operates 19 retail locations across Florida, New York, New Jersey, Virginia, Kansas, and Oklahoma, with a focus on providing high-quality natural and organic products. The company has also transitioned its customer loyalty program to a VIP membership structure, which is anticipated to enhance customer engagement and drive sales. However, same-store sales experienced a decline of $1.7 million, indicating challenges in maintaining customer traffic in existing locations.

The filing highlights that HCWC's liquidity needs have been met through its initial public offering and financing agreements, although the company continues to face challenges with negative working capital of $2.2 million. Management has outlined plans to improve operating margins and reduce costs, including evaluating non-performing stores and expanding through acquisitions. The company is also focused on enhancing its cybersecurity measures and internal controls, which were identified as areas needing improvement following an assessment of its financial reporting processes.

Looking ahead, HCWC aims to leverage its recent acquisitions and expand its store base while increasing sales from existing customers through targeted marketing and enhanced customer service initiatives. The company remains optimistic about the growth potential in the natural and organic grocery market, driven by increasing consumer demand for healthier food options. However, it acknowledges the competitive landscape and the need for ongoing operational improvements to achieve profitability in the future.