Tightening cost and operations: how Better Choice is carving a path toward profitability
The Florida-based pet health and wellness firm improved its gross margin by 31% in 2023 and launched a stock repurchase scheme.
Better Choice’s operating loss improved 47% year-over-year (YoY) to $12.7 million (€11.9M), and net loss improved 40% YoY to $14.7 million (€13.8M).
For the fiscal year 2023, the firm posted net sales of $38.6 million (€36.3M), with a gross profit of $11.8 million (€11M). Net loss improved 42% YoY to $22.8 million (€21.4M) and earnings per share improved 45% YoY to $32.29 (€30.2).
CEO Kent Cunningham attributes the “significant” gross margin improvement to the company’s “strategic pricing initiatives,” a 3% YoY improvement of input costs and “a reflection of operational discipline and unlocking profit through high production supply volumes,” he says.
He attributed the topline decline to “normalizing stock levels” in international markets, “purposefully exiting” unprofitable accounts and the attrition related to the migration of the former TruDog brand to its Halo brand via digital channels in late 2022.
Stock repurchase program
Better Choice Company’s board of directors also announced a stock repurchase program, under which the company intends to buy back up to $5 million (€4.7M) in outstanding common stock up until 31 December 2024.
According to financial news outlet Benzinga, the announcement led to a 22.9% surge in Better Choice Company’s shares on Tuesday, 16 April.
2024 plans
For 2024, the company is planning a “strategic pivot” in its investment allocation toward its digital and marketing strategies in a bid to “drive brand growth and discoverability.”
“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,” adds Cunningham.
Better Choice recently acquired shares in Canadian Aimia Pet Healthco for an undisclosed amount. Following this acquisition, the company plans to enter the glucagon-like peptide 1 (GLP1) market, an ingredient targeted at preventing obesity and, therefore, illnesses associated with overweight pets.
Share this story:
