Better Choice (BTTR) Q3 Earnings call transcript Nov 12, 2024
1min read Better Choice Company's Q3 financial results presentation highlighted the company's strategic pivots and operational improvements, which have led to significant improvements in profitability and growth. The company reported a profitable quarter for the first time in years, demonstrating a positive shift in its financial health.
Strategic Pivots and Growth
The Better Choice Company's strategy of focusing on strategic pivots and operational improvements has proven successful, as evidenced by the 33% quarter-over-quarter sales growth to $11.4 million. This growth was driven by a combination of factors, including improved gross margins, operational efficiencies, and a shift towards digital channels.
The company's focus on digital customers has been a key driver of growth, with double-digit year-over-year growth across its primary digital platforms. This growth was particularly notable in the Asia Pacific region, where the company saw a 9% year-over-year increase in sales. The company is also capitalizing on demographic shifts in Asia, where the pet food market is experiencing rapid growth, and plans to expand its footprint in this region.
Operational Improvements and Financial Health
The company's operational improvements have been a major contributor to its financial health. By improving average fill rates to 97% and reducing inventory by 48% year-over-year, the company has demonstrated operational discipline and the ability to execute its strategy effectively. These improvements have led to a 600 basis point increase in gross margin and a 2% adjusted EBITDA margin accretion for the quarter.
The company's focus on rightsizing the business has also paid off, as evidenced by a $2.7 million gain through the paydown of short-term obligations. This has significantly improved the company's working capital position and provided flexibility for future growth.
Looking Ahead: Acquisition and Future Growth
Looking ahead, the company's acquisition of SRx Health is expected to position Better Choice as a leading global health and wellness company, providing better products and solutions for pets, people, and families. This acquisition is expected to yield operational efficiencies and synergies, as well as provide near- and long-term growth opportunities.
In conclusion, Better Choice Company's Q3 financial results demonstrate the success of its strategic pivots and operational improvements, which have led to significant improvements in profitability and growth. The company's focus on digital channels, operational efficiencies, and strategic acquisitions position it well for continued growth and success in the future.