Business
Avenir Wellness Solutions Reports Second Quarter 2023 Results
Avenir Wellness Solutions Reports Second Quarter 2023 Results.
About this update from Avenir Wellness Solutions Inc.
[{"type":"text","content":"New Campaigns Showing Encouraging ResultsSHERMAN OAKS, CA / ACCESSWIRE / August 15, 2023 / Avenir Wellness Solutions, Inc. (OTC PINK:AVRW) ("Avenir" or the "Company"), a proprietary broad platform technology and wellness company, today announced results for the second fiscal quarter ended June 30, 2023.Key operational highlights for the second quarter included the following:Net revenue in the second quarter of 2023 decreased slightly year-over-year and sequentially from Q1 2023 to $1.0 million due to the delay in receiving the expected remainder of the asset sale proceeds as well as manufacturing delivery delays due to raw material supply shortages. Sales are expected to increase in the second half of the year.Gross margins for the second quarter decreased by 152 basis points to 71.4% in 2023 compared to the same period in 2022 due to a mix shift with higher wholesale sales at Amazon and Walmart which have benefitted in 2023 from our advertising initiatives. Gross margin expansion is expected in the second half of 2023 with an increase in higher margin direct-to-consumer sales and the launch of our new Beauty product releases including DNA Complex as well as our new marketing initiatives.SG&A expenses (excluding non-cash charges) for the second quarter increased by $171 thousand in 2023 compared to 2022 driven by increased investment spend on advertising and promotion of $549 thousand (which will positively affect results in Q3), offset in part by lower overhead by $378 thousand.Net operating loss from continuing operations (excluding non-cash charges) increased by $450 thousand in 2023. Cost reductions and operating leverage are expected to help narrow the operating loss (excluding non-cash charges) in the second half."While not meeting our expectations in the second quarter, we are encouraged by the early results and accelerating sales heading into the third quarter, which reaffirms the improving overall trajectory of the business. As mentioned in our first quarter earnings announcement, the proceeds from the July 2022 asset sale allowed us to invest in the future of the Company, but the delay in receiving the balance of the proceeds versus our expectations had a negative impact on our second quarter performance. Our margin expansion initiatives continue to deliver results, and we are moving forwar...