Healthy Extracts Achieves Milestone with First-Ever Positive Adj. EBITDA

In the ever-evolving landscape of plant-based nutraceuticals, Healthy Extracts Inc. (OTCQB:HYEX) has emerged as a standout performer, reporting record financial results for 2024. The company's net revenue surged by 25% to $3.1 million, marking a significant milestone with its first-ever positive Adjusted EBITDA of $61,000 ($0.02 per share). This financial triumph is not just a number on a balance sheet; it's a testament to the company's strategic initiatives and market positioning in the competitive nutraceuticals sector.



The company's president, Duke Pitts, attributed this success to strong performance across direct-to-consumer channels and growing momentum with retail partners. Healthy Extracts achieved a top three ranking in its category on Amazon, a feat driven by "well-tuned marketing efforts." This ranking is more than just a badge of honor; it's a reflection of the company's ability to leverage key sales channels effectively.

One of the standout operational highlights is the 72% increase in direct-to-consumer subscription customers and 77% growth in Amazon Subscribe & Save customers. These figures are not just numbers; they represent a strategic shift that has significantly impacted the company's long-term growth prospects. In July 2024, Healthy Extracts transitioned from a "buy-two-get-one-free" model to a direct-to-consumer subscription-based model. This shift resulted in a dramatic reduction in the customer churn rate from 5% to under 3%, which is below the industry average. This reduction in churn rate indicates a higher level of customer satisfaction and retention, which is crucial for sustaining long-term growth.

The subscription-based model not only enhances customer communications but also improves customer retention and extends customer lifetime value (LTV). This is evident from the 80% growth in subscription-based recurring revenue, which strengthens the company's financial stability and provides a predictable revenue stream. The company's president, Duke Pitts, highlighted that "Our anticipated record-breaking revenue and profits for the year reflects strong performance across our direct-to-consumer channels and our strengthening momentum with key retail partners." This momentum is further supported by the company's top three ranking in its category on Amazon, driven by optimized sales and marketing efforts.

These trends significantly impact the company's long-term growth prospects by ensuring a steady revenue stream, improving customer loyalty, and providing opportunities for cross-selling and upselling. The subscription model allows Healthy Extracts to better understand customer preferences and tailor their product offerings accordingly. Additionally, the company's focus on innovation and new product launches, such as the groundbreaking on-the-go hydration solution, easy-to-consume sugar blocker, and revolutionary heart health formulation, will further drive customer acquisition and retention. As Pitts noted, "We enter 2025 with solid cash flow, manageable debt, and a highly favorable capitalization structure. This strong position supports our outlook for another year of record growth." This financial stability and strategic focus on customer retention and innovation position Healthy Extracts for sustained long-term growth.



In conclusion, Healthy Extracts' financial and operational achievements in 2024 reflect a well-executed strategy focused on customer retention, innovative product development, and effective channel management. The company's success in the plant-based nutraceuticals sector is a testament to its ability to leverage key sales channels, enhance customer engagement, and drive long-term growth. As Healthy Extracts continues to innovate and expand its product offerings, it is well-positioned to maintain its momentum and achieve even greater success in the years to come.