Healthy Extracts Inc. Reports 25% Revenue Growth to $3.1 Million Despite Net Loss

Healthy Extracts Inc. reported a revenue increase of 25% for the fiscal year ending December 31, 2024, generating $3.1 million compared to $2.5 million in 2023. Despite this growth, the company continues to face challenges, posting a net loss of $840,671, an improvement from the previous year's loss of $2.5 million. The cost of revenue also rose, totaling $1.2 million, which reflects a 39% increase from the prior year. The gross profit for 2024 was $1.9 million, up 54% from $1.6 million in 2023, indicating a positive trend in profitability metrics.

Operationally, Healthy Extracts has focused on maintaining its margins and generating positive cash flow. The company has made significant strides in reducing its operating expenses, which fell by 34% to $2.1 million in 2024 from $3.9 million in 2023. This reduction was primarily due to decreased stock-based compensation and consulting fees. The company’s cash position improved significantly, with cash on hand increasing to $112,020 from $19,441 in the previous year, although it still faces liquidity challenges.

Healthy Extracts has been actively pursuing strategic initiatives, including the introduction of new products and the expansion of its sales channels. The company plans to launch additional supplements targeting gut health and hydration in early 2025, leveraging its existing customer base and marketing strategies. The company also aims to enhance its product offerings through potential acquisitions, as the nutraceutical market remains highly fragmented, presenting opportunities for growth.

The company’s operational metrics indicate a stable customer base, with all sales currently concentrated in the U.S. market. Healthy Extracts has also engaged in influencer marketing, partnering with fitness coach Whitney Johns to promote its products, which has contributed to brand awareness and sales. However, the company remains cautious about its competitive landscape, facing challenges from larger, more established firms in the nutraceutical sector.

Looking ahead, Healthy Extracts acknowledges the need for additional capital to sustain its operations and support growth initiatives. The company’s ability to continue as a going concern is contingent upon its success in raising funds through equity or debt financing. Management remains optimistic about future revenue growth driven by new product launches and improved marketing efforts, but recognizes the inherent risks and uncertainties in the market.