Better Choice Company, Inc. Announces Third Quarter 2023 Results

Third Quarter 2023 Revenue Grew 11% Year-Over-Year to $13.1 million
Adjusted EBITDA Growth of 95% Year-Over-Year
EPS Growth of 77% Year-Over-Year

TAMPA, Fla., Nov. 13, 2023 (GLOBE NEWSWIRE) -- Better Choice Company, Inc. (“Better Choice” or the “Company”) (NYSE American: BTTR), a pet health and wellness company, today announced its results for the third quarter ended September 30, 2023 (“Q3 2023”).


  • Revenue increased 24% from second quarter 2023, and 11% year-over-year (“YOY") to $13.1 million
  • Operating loss improved 59% YOY to $(2.6) million
  • Operating margin improved 3,403 basis points YOY to (-20%)
  • Net loss improved 75% YOY to $(1.6) million
  • Earnings (loss) per share (“EPS”) improved 77% YOY to ($0.05)
  • Adjusted EBITDA improved 95% YOY to $(0.1) million1
  • Adjusted EBITDA margin improved 2,311 basis points YOY to (-1%)1


  • Gross margin increased 429 basis points YOY to 34%
  • Operating loss improved 42% YOY to $(8.5) million
  • Net loss improved 46% YOY to $(8.1) million
  • EPS improved 48% YOY to ($0.26)
  • Adjusted EBITDA improved 47% YOY to $(3.8) million1
  • Adjusted EBITDA margin improved 406 basis points YOY to (-11%)1


Better Choice generated $13.1 million in net sales over Q3 2023, with approximately 75% driven by its Halo Holistic® product line. Point-of-sale2 growth and strength of digital presence drove 24% revenue growth from the second quarter of 2023. The Halo Holistic® plant-based vegan products continue to take share across the E-Commerce platform, with the highest organic traffic in the plant-based segment on Chewy. As projected, the Company secured continuity of dry kibble supply through a successful transition to its newest co-manufacturing partner, Alphia, Inc.

“The third quarter was highlighted by our organic digital growth,” commented newly appointed CEO of Better Choice, Kent Cunningham.“ The year-to-date gross margin improvement was fueled by strategic pricing initiatives, and a 3% YOY improvement of average equivalized unit conversion and input costs in the first nine months of 2023. We are focused on keeping product quality and continuous improvement initiatives at the forefront to fuel our future growth trajectory. Our further continued focus on financial and operational discipline is reflected in the 95% Adjusted EBITDA growth during the quarter. We look to close out the remainder of 2023 with a solid footing to build digital momentum and enhanced brand awareness in 2024.”

1 Adjusted EBITDA is a non-GAAP measure. Reconciliation of Adjusted EBITDA and to net income (loss), the most directly comparable GAAP financial measure, is set forth in the reconciliation table accompanying this release.
2 Point-of-sale growth is a non-GAAP measure.

Better Choice Company Inc.
Unaudited Condensed Consolidated Statements of Operations
(Dollars in thousands, except share and per share amounts)

  Three Months Ended September 30,   Nine Months Ended September 30,
    2023       2022       2023       2022  
Net sales $ 13,117     $ 11,865     $ 32,890     $ 45,394  
Cost of goods sold   8,681       7,700       21,625       31,795  
Gross profit   4,436       4,165       11,265       13,599  
Operating expenses:              
Selling, general and administrative   7,052       10,569       19,721       28,225  
Total operating expenses   7,052       10,569       19,721       28,225  
Loss from operations   (2,616 )     (6,404 )     (8,456 )     (14,626 )
Other expenses:              
Interest expense, net   (344 )     (142 )     (952 )     (324 )
Change in fair value of warrant liability   1,339             1,339        
Total other expense, net   995       (142 )     387       (324 )
Net loss before income taxes   (1,621 )     (6,546 )     (8,069 )     (14,950 )
Income tax expense         1             4  
Net loss available to common stockholders $ (1,621 )   $ (6,547 )   $ (8,069 )   $ (14,954 )
Weighted average number of shares outstanding, basic   30,975,556
      29,364,712       30,679,905       29,339,918  
Weighted average number of shares outstanding, diluted   30,975,566       29,364,712       30,679,905       29,339,918  
Net loss per share available to common stockholders, basic $ (0.05 )   $ (0.22 )   $ (0.26 )   $ (0.51 )
Net loss per share available to common stockholders, diluted $ (0.05 )   $ (0.22 )   $ (0.26 )   $ (0.51 )

Better Choice Company Inc.
Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands, except share and per share amounts)

  September 30, 2023   December 31, 2022
Cash and cash equivalents $ 3,800     $ 3,173  
Restricted cash         6,300  
Accounts receivable, net   8,582       6,744  
Inventories, net   7,541       10,257  
Prepaid expenses and other current assets   992       1,051  
Total Current Assets   20,915       27,525  
Fixed assets, net   258       375  
Right-of-use assets, operating leases   134       173  
Intangible assets, net   8,914       10,059  
Other assets   828       544  
Total Assets $ 31,049     $ 38,676  
Liabilities & Stockholders’ Equity      
Current Liabilities      
Accounts payable $ 7,807     $ 2,932  
Accrued and other liabilities   2,525       2,596  
Line of credit   1,917      
Warrants liabilities   869      
Operating lease liability   56       52  
Total Current Liabilities   13,174       5,580  
Non-current Liabilities      
Line of credit, net         11,444  
Term loan, net   2,714      
Operating lease liability   82       124  
Total Non-current Liabilities   2,796       11,568  
Total Liabilities   15,970       17,148  
Stockholders’ Equity      
Common Stock, $0.001 par value, 200,000,000 shares authorized, 32,077,148 & 29,430,267 shares issued and outstanding as of September 30, 2023, and December 31, 2022, respectively   32       29  
Additional paid-in capital   321,688       320,071  
Accumulated deficit   (306,641 )     (298,572 )
Total Stockholders’ Equity   15,079       21,528  
Total Liabilities and Stockholders’ Equity $ 31,049     $ 38,676  

Better Choice Company Inc.
Non-GAAP Measures

Adjusted EBITDA

We define Adjusted EBITDA as EBITDA further adjusted to eliminate the impact of certain items that we do not consider indicative of our core operations. Adjusted EBITDA is determined by adding the following items to net (loss) income: interest expense, tax expense, depreciation and amortization, share-based compensation, loss on disposal of assets, strategic branding initiatives and product launch expenses, co-manufacturing partner transition, and other non-recurring expenses.

We present Adjusted EBITDA as it is a key measure used by our management and board of directors to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. We believe that the disclosure of Adjusted EBITDA is useful to investors as this non-GAAP measure forms the basis of how our management team reviews and considers our operating results. By disclosing this non-GAAP measure, we believe that we create for investors a greater understanding of and an enhanced level of transparency into the means by which our management team operates our company. We also believe this measure can assist investors in comparing our performance to that of other companies on a consistent basis without regard to certain items that do not directly affect our ongoing operating performance or cash flows.

Adjusted EBITDA does not represent cash flows from operations as defined by GAAP. Adjusted EBITDA has limitations as a financial measure and you should not consider it in isolation, or as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including various cash flow metrics, net (loss) income, gross margin, and our other GAAP results.

The following table presents a reconciliation of net loss, the closest GAAP financial measure, to EBITDA and Adjusted EBITDA for each of the periods indicated (in thousands):

Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
(Dollars in thousands)

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
    2023       2022       2023       2022  
Net loss available to common stockholders $ (1,621 )   $ (6,547 )   $ (8,069 )   $ (14,954 )
Interest expense, net   344       142       952       324  
Income tax expense         1           4  
Depreciation and amortization   416       426       1,262       1,265  
EBITDA   (861 )     (5,978 )     (5,855 )     (13,361 )
Non-cash share-based compensation (a)   473       562
      1,618       2.454
Loss on disposal of assets         23       11       26  
Strategic branding initiatives and product launches (b)   41       277
      73       948
Co-manufacturing partner transition (c)               6        
Other single occurrence expenses (d)   208       2,205
      397       2,390
Launch expensed (e)         43             523  
Adjusted EBITDA $ (139 )   $ (2,868 )   $ (3,750 )   $ (7,020 )
(a) Non-cash expenses related to equity compensation awards. Share-based compensation is an important part of the Company's compensation strategy and without our equity compensation plans, it is probable that salaries and other compensation related costs would be higher.
(b) Single occurrence expenses related to marketing agency and design, strategic re-branding initiatives, Elevate® launch, product innovation and reformulations.
(c) Single occurrence expenses related to the transition of our dry kibble co-manufacturing supplier.
(d) Single occurrence expenses related to legal settlements, employee severance, executive recruitment, and other non-recurring professional fees.
(e) Reflects non-recurring launch expenses related to the Elevate® launch.

About Better Choice Company Inc.

Better Choice Company Inc. is a pet health and wellness company focused on providing pet products and services that help dogs and cats live healthier, happier and longer lives. We offer a broad portfolio of pet health and wellness products for dogs and cats sold under our Halo brand across multiple forms, including kibble, canned food, freeze-dried raw food and treats, vegan dog food and treats, oral care products, toppers and other chews and supplements. We have a demonstrated, multi-decade track record of success and are well positioned to benefit from the mainstream trends of growing pet humanization and consumer focus on health and wellness. Halo’s core products are made with high-quality, thoughtfully sourced ingredients for natural, science-based nutrition. Each innovative recipe is formulated with leading veterinary and nutrition experts to deliver optimal health. For more information, please visit

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. The Company has based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Some or all of the results anticipated by these forward-looking statements may not be achieved. Further information on the Company’s risk factors is contained in our filings with the SEC. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Company Contact:
Better Choice Company Inc.
Kent Cunningham, CEO

Investor Contact:
KCSA Strategic Communications
Valter Pinto, Managing Director
T: 212-896-1254

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Source: Better Choice Company Inc.