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Synergy CHC Corp. (SNYR)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue declined year over year on FOCUSfactor packaging transition and retailer de‑inventorying; management emphasized the transition is now behind the Company and expects top- and bottom-line growth in 2025 .
  • Versus S&P Global consensus, revenue was slightly below and EPS underperformed, while EBITDA trailed; the variance was driven by mix, a one-time $0.875M Vision SKU return, and de‑inventorying tied to the rebrand (consensus figures marked with asterisks sourced from S&P Global; see tables) .
  • Cost discipline continued: Q4 operating expenses fell 20% y/y; debt was reduced by $4.5M in Q4, and total liabilities fell ~$6.6M for the year .
  • Catalysts into 2025 include seven new Flat Tummy GLP‑1 support products launched in Q1, scaling RTD beverages, expanded retail distribution (BJ’s, Publix), and international expansion plans .

What Went Well and What Went Wrong

What Went Well

  • Eighth consecutive profitable quarter; full-year profitability sustained despite rebranding headwinds. “We had another full year of profitability, marking our eighth consecutive profitable quarter” — Jack Ross, CEO .
  • Retail distribution broadened: FOCUSfactor now in all 267 BJ’s Wholesale Clubs and two SKUs in all 1,200 Publix stores, increasing shelf presence and potential sell-through .
  • Balance sheet traction: Q4 operating expenses -20% y/y; total liabilities decreased to $33.0M at year-end from $39.5M in 2023; inventory lowered y/y, reflecting better working capital management .

What Went Wrong

  • Q4 gross margin compressed to 63.3% (vs. 82.3% in Q4’23), reflecting product mix and a tough compare to a one-time 2023 gain; also impacted by the packaging transition and de‑inventorying .
  • Q4 net income fell to $105.7K (from $2.6M y/y) with diluted EPS of $0.01 as revenue headwinds and margin mix outweighed lower opex .
  • A specific one-time $0.875M Vision SKU return pressured the quarter; excluding it, revenue would have been ~$11.2M (still below prior-year) — CFO commentary .

Financial Results

Headline Metrics: Q4 2023 → Q3 2024 → Q4 2024 vs Consensus (Q4 2024)

MetricQ4 2023Q3 2024Q4 2024Consensus (Q4 2024)*
Revenue ($USD)$13.2M $7.13M $10.3M $10.55M*
Gross Margin %82.3% 67.2% 63.3% NA
Operating Income ($USD)$4.4M $1.05M $1.4M NA
Net Income ($USD)$2.6M $0.78M $0.106M NA
Diluted EPS ($)$0.34 $0.10 $0.01 $0.10*
EBITDA ($USD)$4.5M $1.3M $1.7M $1.83M*
Adjusted EBITDA ($USD)$(0.3)M NA$2.8M NA
  • Notes: The y/y gross margin delta is inflated by a one-time $2.2M gain in Q4’23; excluding that, Q4’23 GM would have been ~65.3%, closer to Q4’24 levels . A one-time Vision SKU return of $0.875M reduced Q4’24 revenue; excluding it, revenue would have been ~$11.2M .
  • Asterisk indicates S&P Global estimates. Values retrieved from S&P Global.

KPIs and Balance Sheet Snapshot

KPIFY 2023 YEQ3 2024FY 2024 YE
Cash & Equivalents ($USD)$0.633M $0.259M $0.688M
Accounts Receivable ($USD)$2.106M $4.072M $5.321M
Inventory ($USD)$3.726M $1.911M $1.717M
Total Liabilities ($USD)$39.545M $37.339M $32.974M
Debt Reduction ($USD)—Reduced $1.1M in Q3 Reduced $4.5M in Q4

Non-GAAP Reconciliations (select items)

  • EBITDA Q4’24: $1.67M; reconciliation disclosed (net income + interest + taxes + amortization) .
  • Adjusted EBITDA Q4’24: $2.79M; adjustments include one-time expenses ($0.99M), obsolete inventory ($0.13M), FX, and prior-year gains (supplier settlement) .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue growth (qualitative)FY 2025None providedManagement expects return to top- and bottom-line growth in 2025 Qualitative only
Product roadmap2025None provided7 new Flat Tummy GLP‑1 support products launched in Q1’25 New initiatives
RTD beverages distributionEarly Q2’25 impactNone providedAggressive expansion post successful tests in Canada and Texas New initiatives
International expansion2025None providedExpect operations in three new major international markets New initiatives
  • Company did not provide formal numerical ranges for revenue, margins, opex, OI&E, or tax for FY 2025; commentary was directional/qualitative .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024)Current Period (Q4 2024)Trend
Packaging transition & retailer de‑inventoryingKey driver of Q3 revenue decline; ~“$3M” impact; expected to abate by Q1’25 Continued impact in Q4 but “behind us” entering 2025 Improving
RTD beveragesRobust pilot results; ramp beginning early ’25; 2M cans printed Expanding distribution; expecting “significant results early Q2” Scaling up
GLP‑1 support products (Flat Tummy)7 new SKUs planned for retailers 7 new products launched in Q1’25 Launch executed
Retail distribution (BJ’s, Publix)National rollouts to 267 BJ’s and 1,200 Publix Reinforced; driver of broader footprint Expanded
Margin/mix dynamicsGM 67.2% in Q3; mix-driven GM 63.3% in Q4; mix and tough y/y compare due to ’23 gain Near-term pressure
Balance sheet/debtReduced debt by $1.1M in Q3; +$6.2M net cash from IPO Reduced debt by $4.5M in Q4; total liabilities down y/y Strengthening
IPO/public companyIPO closed Oct ’24 On NASDAQ; CFO appointment finalized Execution continuity

Management Commentary

  • “We had another full year of profitability, marking our eighth consecutive profitable quarter—a testament to the continued strength of our business” — Jack Ross, CEO .
  • “While our fourth quarter results were still impacted by retailer de-inventorying from our FOCUSfactor packaging transition, we saw sequential improvement, and this transition is behind us as we enter 2025.” — Jack Ross, CEO .
  • “In the first quarter of 2025, we launched seven new products under our Flat Tummy brand in response to the growing interest in GLP‑1 support products.” — Jack Ross, CEO .
  • “Additionally, in the fourth quarter, we reduced our debt obligations by $4.5 million.” — Jaime Fickett, CFO .
  • “Fourth quarter revenue was impacted by a one-time $875,000 return related to our Vision SKU… excluding this return, net revenue would have been $11.2 million.” — Jaime Fickett, CFO .

Q&A Highlights

  • The Q4 call consisted of prepared remarks and closing comments; no analyst Q&A session was included in the transcript .

Estimates Context

  • Consensus summary (S&P Global, Q4 2024): Revenue $10.55M*, Primary EPS $0.10*, EBITDA $1.83M*. Actuals: Revenue $10.3M (company), diluted EPS $0.01 (GAAP), EBITDA $1.7M (company) .

  • Result: Revenue slightly below consensus; EPS meaningfully below consensus; EBITDA below consensus — driven by the packaging transition, mix, and the one-time Vision return .

  • Expect estimate revisions to focus on 2025 recovery trajectory (sell-in normalization post rebrand), pace of RTD distribution ramp, GLP‑1 product sell-through, and gross margin normalization toward historical ~68–70% excluding 2023’s one-time benefit .

  • Asterisk indicates S&P Global estimates. Values retrieved from S&P Global.

Key Takeaways for Investors

  • The rebranding-related de‑inventorying has largely run its course; management expects a return to growth in 2025, supported by broadened retail distribution and new product launches .
  • Near-term P&L remains sensitive to product mix and one-time items (e.g., Vision SKU return), which pressured Q4 margins/EPS; watch for mix normalization and sell-in recovery in H1’25 .
  • Balance sheet is improving: liabilities and debt reduced, inventory rightsized; watch cash conversion as AR rose into year-end on timing and larger accounts .
  • Execution catalysts: scaling RTD beverages (early Q2 impact), GLP‑1 support products, and new international markets in 2025 .
  • Governance/continuity positive: appointment of long-tenured finance leader Jaime Fickett as CFO .
  • For modeling, anchor 2025 on volume recovery and incremental distribution rather than price; assume gradual margin normalization absent 2023’s non-recurring gross profit benefit .

Additional Documents Reviewed (Q4 2024 context)

  • 8‑K with Item 2.02 and Press Release (results) and CFO appointment .

  • Earnings call transcript (Q4 2024) and alternate transcript copy .

  • Q3 2024 press release and call for trend analysis .

  • Other relevant press releases (Q4 period context): ROTH Conference attendance (Mar 3, 2025) and results release timing (Mar 20, 2025) .

  • Note: No public SNYR Q2 2024 earnings materials were available in the document set searched (company began public reporting around IPO in Oct 2024) [ListDocuments: 2024-01-01 to 2024-09-30 returned none].