Healthy Choice Wellness Corp. Reports 27.5% Revenue Growth but Incurred Net Loss in Q1 2025

Healthy Choice Wellness Corp. (HCWC) reported its financial results for the first quarter of 2025, revealing a net sales increase of 27.5% to $20.3 million, up from $15.9 million in the same period last year. The growth was primarily driven by the acquisition of GreenAcres Market in July 2024, which contributed approximately $3.7 million to grocery sales, alongside a $0.7 million increase in same-store sales attributed to a successful new customer loyalty program. Despite the revenue growth, the company recorded a net loss of $712,410, slightly higher than the loss of $701,463 reported in the prior year.

The cost of sales for the quarter rose to $12.4 million from $9.8 million, reflecting the impact of the GreenAcres acquisition and increased same-store costs. Gross profit improved to $7.9 million, with a gross margin increase of approximately 0.7% compared to the previous year. Operating expenses also rose to $8.3 million, up from $6.7 million, largely due to $1.3 million in expenses related to the GreenAcres acquisition and a $0.5 million increase in professional fees.

As of March 31, 2025, HCWC's total assets stood at $34.1 million, a slight decrease from $34.1 million at the end of 2024. The company reported current liabilities of $13.4 million, up from $11.9 million, primarily due to increased accounts payable and accrued expenses. The company’s cash and cash equivalents decreased to $1.8 million from $2.1 million, and it reported negative working capital of $2.4 million. The increase in liabilities and decrease in cash were attributed to ongoing operational costs and the financial implications of the recent acquisition.

In terms of strategic developments, HCWC has been focusing on expanding its market presence through acquisitions and enhancing customer engagement via loyalty programs. The company operates multiple retail brands, including Ada’s Natural Market and Greens Natural Foods, and has plans for further geographic expansion. The company’s employee headcount has also increased, reflecting its growth strategy and operational needs.

Looking ahead, HCWC anticipates continued challenges in achieving profitability, as indicated by its ongoing net losses and negative working capital. The company is committed to improving its operational efficiency and financial performance, leveraging its recent acquisitions and customer loyalty initiatives to drive future growth. Management remains focused on addressing its liquidity needs and enhancing its internal controls following the recent spin-off from Healthier Choices Management Corp.