Healthier Choices Management Corp (OTCMKTS: HCMC) Reported Net Loss of $0.696 Million in 1Q 2021

Healthier Choices Management Corp (OTCMKTS: HCMC) focuses on providing healthy daily choices to the customers regarding nutrients. The company announced its first-quarter 2021 performance, where it reported a loss of $696,000 ($0.696 million).

Reported loss at the operating level: Healthier Choice reported $3.5 million in revenue in the first quarter of 2021, down 14% compared to the corresponding period last year. Last year’s sales were supported by a surge in the grocery segment in March due to COVID-19. The absence of incremental sales from the grocery segment in the first quarter of 2021 impacted overall revenue. 

The company took several initiatives on the costing front. As a result, total expenses during the period under consideration also declined 15% compared to the corresponding period last year to $2 million. Despite the decline in the cost, Healthier Choices reported a loss at the adjusted EBITDA level of $394,000 ($0.394 million). The loss narrowed down compared to the first quarter of 2021.

Operating efficiency a key focus: The cost control initiatives and improvement in operating efficiency helped the company narrow down operating (Adjusted EBITDA) loss. As a result, the company reported a loss of $0.696 million at a net operating level, a mere 1% lower than the last year. 

Management indicated that the performance of the first quarter was on the expected line. Further, the company stated that continuous focus on optimizing cost structure, expected to yield better returns in the time to come. The company continues to focus on improving its core operations. The company has taken several initiatives such as simplifying the business structure and focussing more on improving efficiency, enabling the company to deliver strong operating performance in the medium to long term. In addition, the company’s focus on improving its overall sales (as nutrients are in high demand) will help the company narrow down its loss further in the coming quarter and return to black.

The industry is closely monitoring its steps and how it will help the company profit from loss. As the improvement in profitability is expected to enhance the shareholder value.