Starco Brands, Inc. (OTCQB: STCB) reported a modest increase in revenue for the fiscal year ending December 31, 2024, generating $52.5 million, up from $51.9 million in 2023. This growth of approximately 1% was primarily attributed to a full year of revenue from the acquisition of Soylent, which was completed in February 2023, alongside increased sales from the Winona product line. However, the company experienced a significant decline in related party revenues, which fell by 48% to $6.1 million, largely due to decreased sales of Whipshots amid industry de-stocking and reduced retailer loading.
The company's financial performance showed a marked improvement in net loss, which decreased to $17.3 million in 2024 from $46.4 million in the previous year. This reduction was driven by a $15.3 million decrease in goodwill impairment and a favorable fair value share adjustment of $10.5 million. Operating expenses also saw a substantial decline, dropping from $71.4 million in 2023 to $35.3 million in 2024, primarily due to lower compensation expenses and professional fees associated with prior acquisitions.
Starco Brands has been actively expanding its product offerings through strategic acquisitions, including the purchase of The AOS Group, Skylar Body, and Soylent Nutrition. These acquisitions are intended to enhance the company's portfolio of behavior-changing products and broaden its consumer base. The company has also focused on increasing its sales personnel and marketing efforts, particularly for its Winona and Whipshots brands, which are now distributed in 47 states and the United Kingdom.
Operationally, Starco Brands reported a total of 29 full-time employees as of the end of 2024, with plans to continue leveraging its relationship with The Starco Group for manufacturing efficiencies. The company is also exploring additional financing options to support its growth strategy and address its working capital deficiency, which stood at approximately $14.2 million as of December 31, 2024. Management remains optimistic about future revenue growth and is committed to enhancing operational efficiencies to improve profitability.
Looking ahead, Starco Brands aims to launch new products across various categories, including personal care, nutrition, and household goods, while continuing to evaluate opportunities for further acquisitions. The company acknowledges the challenges posed by market conditions and competition but is focused on executing its growth strategy to enhance shareholder value.
About Starco Brands, Inc.
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