Synergy CHC Corp. reported a decline in financial performance for the fiscal year ending December 31, 2024, with total revenues of $34.8 million, down from $42.8 million in 2023. The decrease in revenue was primarily attributed to a rebranding and packaging upgrade for its flagship FOCUSfactor product, which led to a temporary reduction in sales as retailers sold through existing inventory. The company's net income also fell significantly to $2.1 million from $6.3 million in the previous year, reflecting the impact of lower sales and increased operational costs.
In terms of operational metrics, Synergy's FOCUSfactor brand generated $30.8 million in revenue, a decrease from $37.2 million in 2023, while the Flat Tummy brand contributed $4.0 million, down from $5.6 million. The overall gross profit margin decreased to 68% from 75%, largely due to the reduced sales volume. The company managed to reduce its selling and marketing expenses to $13.0 million from $15.2 million, and general and administrative expenses also fell to $4.7 million from $6.1 million, indicating a focus on cost management.
Strategically, Synergy has been expanding its product offerings and geographic reach. The company has launched new products, including ready-to-drink beverages under the FOCUSfactor brand, and is planning further international expansion into markets such as Taiwan and Mexico by 2025. The company also aims to enhance its digital presence and customer engagement through its Flat Tummy mobile app, which has seen approximately 1.9 million unique downloads.
Despite the challenges faced in 2024, Synergy remains optimistic about its future growth prospects. The company plans to continue leveraging its existing retail partnerships and exploring new acquisition opportunities to enhance its brand portfolio. Management has indicated that they are in negotiations to refinance existing debt and are focused on improving cash flow to support ongoing operations. The company’s ability to adapt to market conditions and consumer preferences will be critical as it seeks to recover from the recent downturn and capitalize on emerging opportunities in the health and wellness sector.
About Synergy CHC Corp.
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