Avenir Wellness Solutions Reports Third Quarter 2023 Results
New Campaigns Showing Encouraging Results
SHERMAN OAKS, CA / ACCESSWIRE / November 14, 2023 / Avenir Wellness Solutions, Inc. (OTCQB:AVRW) ("Avenir" or the "Company"
, a proprietary broad platform technology and wellness company, today announced results for the third fiscal quarter ended September 30, 2023.
Key financial highlights for the second quarter included the following:
Net revenue in the third quarter of 2023 increased sequentially from Q2 2023 to $1.0 million but decreased year-over-year due to the delay in receiving the expected remainder of the asset sale proceeds. Sales are expected to increase during the fourth quarter and into 2024.
Gross margin increased 80 basis points quarter-to-quarter with further expansion expected in the fourth quarter of 2023 with an increase in higher margin direct-to-consumer sales and the launch of our new beauty product releases as well as our new marketing initiatives.
Gross margin for the third quarter decreased by 740 basis points to 72.6% in 2023 compared to the same period in 2022 due to a shift in sales channel mix with a higher proportion of wholesale sales to Amazon and Walmart which have benefitted in 2023 from our advertising initiatives.
SG&A expenses (excluding non-cash charges) for the third quarter decreased by $721 thousand in 2023 compared to 2022 driven by increased spend on advertising and promotion of $74 thousand, offset in part by lower overhead by $795 thousand.
Net operating loss from continuing operations (excluding non-cash charges) improved by $30 thousand in 2023. Cost reductions and operating leverage are expected to help narrow the operating loss (excluding non-cash charges) in the fourth quarter.
"Our products continue to maintain sales levels which is encouraging given that we have been unable to fully execute on our marketing initiatives pending receipt of the balance of the proceeds from the July 2022 asset sale. As mentioned in our second quarter earnings announcement, the proceeds from the July 2022 asset sale allow us to invest in the future of the Company, but the delay in receiving the balance of the proceeds continued to have an impact on our operating performance. We expect accelerating sales will reaffirm the improving overall trajectory of the business. Further, our margin expansion initiatives continue to deliver results with improvement from second quarter, and we are moving forward with our efforts to further reduce SG&A expenses and to maximize operating leverage.
Fine tuning our SEO and successful monthly campaigns like theSkimm continue to deliver as we execute on our strategy to build our brands," said Nancy Duitch, Avenir CEO.
Other operational highlights during the third quarter of 2023 included:
Our new beauty subscription program has grown sequentially by 50% quarter over quarter.
Our DNA Complex hero product continues to perform as our subscription based grows.
Wholesale sales led by Amazon and Walmart continue to grow with all the positive product reviews. Amazon was a particular bright spot with volume growth despite retail price increases to match our ecommerce site which increased margins to 85%.
Governance and Reporting Update
The Company regained compliance with the requirements of the OTCQB Standards and fulfilled all of the OTC Markets Group's requirements for the re-listing of its common stock on the OTCQB. On September 14, 2023, the OTC Markets Group notified us that our common stock would be moved from the OTC Pink Market back to the OTCQB, which became effective September 15, 2023.
For further details, please visit our website to review our most recent Form 10-Q filed on November 14, 2023 at: http://www.avenirwellness.com/sec-filings/
About Avenir Wellness Solutions, Inc.
Avenir Wellness Solutions, Inc. (OTCQB:AVRW) is a broad platform technology company that develops proprietary wellness, nutraceutical, and topical delivery systems which are integrated into our wellness and beauty products and sold directly to the consumer. The technology, which is based on (15) fifteen current patents, offers a number of unique immediate- and controlled-release delivery vehicles designed to improve product efficacy, safety, and consumer experience for a wide range of active ingredients. The Company will continue down the path of creating new technologies that is part of its incubator strategy in order to monetize its intellectual property as well as expand our product lines utilizing the technology. As a vertically integrated platform company, Avenir looks to partner or license its IP technology with wellness companies worldwide. For more information visit: http://www.avenirwellness.com
About The Sera Labs, Inc.
Sera Labs, a wholly owned subsidiary of Avenir, is a trusted leader in the health, wellness, and beauty sectors of innovative products with cutting-edge technology. Sera Labs creates high-quality products that use science-backed, proprietary formulations. More than 25 products are sold under the brand names Seratopical™, Seratopical Revolution™, SeraLabs™, and Nutri-Strips™. Sera Labs sells its products at affordable prices, making them easily accessible on a global scale. Strategically positioned in the growth market categories of beauty, health and wellness, Sera Labs products are sold direct-to-consumer (DTC) via online website orders, including a subscribe and save option, and also sold online and in-store at major national drug, grocery chains, convenience stores, and mass retailers and on Amazon.com. For more information visit: http://www.seralabshealth.com
and follow Sera Labs on Facebook, Instagram and TikTok at @seratopical as well as on X (Twitter) at @sera_labs.
Forward Looking Statement
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, which statements are subject to considerable risks and uncertainties. Forward-looking statements include all statements other than statements of historical fact contained in this press release, including statements regarding the future growth and success of our organization. We have attempted to identify forward-looking statements by using words such as "anticipate," "believe," "could," "estimate," "expected," "intend," "may," "plan," "predict," "project," "should," "will," or "would," and similar expressions or the negative of these expressions.
Forward-looking statements represent our management's current expectations and predictions about trends affecting our business and industry and are based on information available as of the time such statements are made. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy or completeness. Forward-looking statements involve numerous known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements predicted, assumed or implied by the forward-looking statements. Some of the risks and uncertainties that may cause our actual results to materially differ from those expressed or implied by these forward-looking statements are described in the section entitled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as well as in our Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission.
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by applicable law, we expressly disclaim any intent or obligation to update any forward-looking statements, or to update the reasons actual results could differ materially from those expressed or implied by these forward-looking statements, whether to conform such statements to actual results or changes in our expectations, or as a result of the availability of new information.
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SOURCE: Avenir Wellness Solutions, Inc. (f/k/a Cure Pharmaceutical Holding Corp.)
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