Business
Hydrofarm Holdings Group Announces Second Quarter 2024 Results
Restructuring and Cost Savings Initiatives Continue to Yield Substantial Expense Reductions Reaffirms 2024 Outlook on Key Metrics SHOEMAKERSVILLE, Pa., Aug.
About this update from Hydrofarm Holdings Group, Inc.
[{"type":"text","content":"Restructuring and Cost Savings Initiatives Continue to Yield Substantial Expense Reductions Reaffirms 2024 Outlook on Key Metrics SHOEMAKERSVILLE, Pa., Aug. 08, 2024 (GLOBE NEWSWIRE) -- Hydrofarm Holdings Group, Inc. (“Hydrofarm” or the “Company”) (Nasdaq: HYFM), a leading independent manufacturer and distributor of branded hydroponics equipment and supplies for controlled environment agriculture, today announced financial results for its second quarter ended June 30, 2024. Second Quarter 2024 Highlights vs. Prior Year Period: Net sales decreased to $54.8 million compared to $63.1 million.Gross Profit Margin decreased to 19.8% of net sales compared to 23.0%.Adjusted Gross Profit Margin(1) decreased to 24.4% of net sales compared to 27.0%.Net loss increased to $23.5 million compared to $12.9 million.Adjusted EBITDA(1) decreased to $1.7 million compared to $2.5 million.Cash from operating activities and Free Cash Flow(1) were $3.8 million and $3.4 million, respectively.Completed the previously announced IGE Asset Sale(2) in May 2024. (1) Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted SG&A, Adjusted SG&A as a percent of net sales, Adjusted EBITDA, and Free Cash Flow are non-GAAP measures. For reconciliations of non-GAAP to GAAP measures see the “Reconciliation of Non-GAAP Measures” accompanying the release. (2) Asset Sale references the sale of assets related to the production of the Company’s Innovative Growers Equipment (“IGE”) branded durable equipment products. Bill Toler, Chairman and Chief Executive Officer of Hydrofarm, said, “In the second quarter we delivered positive Adjusted EBITDA(1) for the fourth time in the last five quarters, illustrating the effectiveness of our restructuring plan and related cost savings efforts. We also increased our Adjusted Gross Profit Margin(1) on a sequential basis, as we continue to strategically focus on higher margin proprietary brands and enhancing our operational efficiency. Year to date, we delivered $1.7 million of improvement in Adjusted EBITDA(1) and this was notably our lowest first half year over year net sales decline in the last three years. During the quarter we further optimized our manufacturing footprint by streamlining and consolidating operations. We expect these actions to result in additional cost savings via increased utilization and productivity at our r...