Avenir Wellness Solutions Reports First Quarter 2023 Results with Strong Sequential and Year Over Year Revenue Increases and Continued High Gross Margins
New Product Showing Encouraging Early Results
SHERMAN OAKS, CA / ACCESSWIRE / July 31, 2023 / Avenir Wellness Solutions, Inc. (OTC:CURR) (“Avenir” or the “Company”), a proprietary broad platform technology and wellness company, today announced results for the quarter ended March 31, 2023.
Key operational highlights for the first quarter included the following:
Net revenue in the first quarter of 2023 increased 15.1% year-over-year and 35.6% sequentially from Q4 2022 to $1.2 million with further increases expected in the second half of the year.
Gross margins for the first quarter improved by 102 basis points to 78.9% in 2023 compared to the same period in 2022 with expectations of continuing high margin sales with the launch of new products and marketing initiatives.
SG&A expenses (excluding non-cash charges) for the first quarter increased by $0.5 million in 2023 compared to 2022 driven by increased investment spend on advertising and promotion.
Net operating loss from continuing operations (excluding the non-cash charges) decreased by $0.5 million in 2023.
Cost reductions and operating leverage are expected to help narrow the operating loss (excluding non-cash charges) in the second half.
“We are very pleased with our results and accelerating sales in the first quarter which reflect the improving trajectory of the business. The proceeds from the July 2022 asset sale allowed us to continue to invest in the future of the Company, however, the delay in receiving the balance of the proceeds versus our expectations will have a negative impact on our second quarter. Our margin expansion initiatives continue to deliver results, and we are moving forward with our efforts to reduce SG&A expenses and to maximize operating leverage.
We are also very excited by the continued success of the advertising and marketing campaigns for DNA Complex, which is our new addition to the Seratopical Revolution family of products. DNA Complex, which boasts a proprietary delivery system technology developed for the Company by Rob Davidson and his team, has gone viral with Beauty editors praising this instant line reducer in InStyle, People, Glamour, Zoe Report, Vogue, theSkimm, ET Online and many more,” said Nancy Duitch, Avenir CEO.
Operational Highlights
Other operational highlights during the first quarter of 2023 included:
The Company is focused on becoming the future of wellness and beauty with its long-term growth strategy to increase revenue with high margins by using its incubator strategy, product development and marketing and through strategic partnerships and geographic licensing deals. These initiatives, along with the Company’s relationships with Nicole Kidman and other major social media influencers, have also helped propel its health and beauty brands to become household names and the Company to become a genuine house of recognizable and respected quality brands.
We have recently enhanced the reach and visibility of our Brand Ambassador, Nicole Kidman, as part of the launch of our transformational Seratopical Revolution marketing campaigns and the unveiling of our revolutionary new product, DNA Complex. The Company recently received prominent mentions of our DNA Complex along with the rest of the Seratopical Revolution line after the Oscars, the Academy of Country Music Awards and the Met Gala.
Here are some exciting examples of our positive coverage:
THE OSCARS
New Beauty March 12 “This Tightening Gel Is the Secret to Nicole Kidman’s Smooth Skin”
THE ACADEMY OF COUNTRY MUSIC AWARDS
New Beauty May 11 “The Under-Eye Product Nicole Kidman Uses to Prevent Concealer Creasing”
THE MET GALA
Page Six May 2 “Best beauty and makeup looks of the 2023 Met Gala – and how to shop them”
Glamour May 2 “The Best Makeup Looks on the Met Gala 2023 Red Carpet”
Governance and Reporting Update
On April 19, 2023, Avenir announced the appointment of Urish Popeck & Co., LLC as its new independent registered public accounting firm. Urish Popeck has a highly respected reputation in the financial accounting industry and the decision to engage them was unanimously approved by our Board of Directors and Audit Committee. Their immediate assignment was to complete the audit of our financial statements for the fiscal year ended December 31, 2022, and on July 28, 2023, the Company filed its 2022 Annual Report on Form 10-K and its March 31, 2023 Quarterly Report on 10-Q.
For further details, please visit our website to review our most recent Form 10-K and Form 10-Q filed on July 28, 2023 at: http://www.avenirwellness.com/sec-filings/
About Avenir Wellness Solutions, Inc.
Avenir Wellness (OTC: CURR) is a broad platform technology company that develops proprietary wellness, nutraceutical, and topical delivery systems. The technology, which is based on (15) fifteen current patents, offers a number of unique immediate- and controlled-release delivery vehicles designed to improve product efficacy, safety, and consumer experience for a wide range of active ingredients. The Company will continue down the path of creating new technologies that will be part of its incubator strategy in order to monetize its IP. As a vertically integrated platform company, Avenir looks to partner or license its IP technology with wellness companies worldwide. For more information visit: www.avenirwellness.com.
About The Sera Labs, Inc.
Sera Labs, a wholly owned subsidiary of Avenir, is a trusted leader in the health, wellness, and beauty sectors of innovative products with cutting-edge technology. Sera Labs creates high-quality products that use science-backed, proprietary formulations. More than 25 products are sold under the brand names Seratopical™, Seratopical Revolution™, SeraLabs™, and Nutri-Strips™. Sera Labs sells its products at affordable prices, making them easily accessible on a global scale. Strategically positioned in the growth market categories beauty, health & wellness, Sera Labs sells products direct-to-consumer (DTC) via online website orders, including opt-in subscriptions, and under private label to multi-level marketers. Sera Labs products are also sold online and in-store at major national drug, grocery chains, convenience stores, and mass retailers. For more information visit: www.seralabshealth.com and follow Sera Labs on Facebook and Instagram at @seratopical, as well as on Twitter at @sera_labs.
The Sera Labs, Inc. (“Sera Labs”), a wholly-owned subsidiary of Avenir, is a trusted leader in the wellness and beauty sectors utilizing cutting edge technology and high-quality products that use science-backed, proprietary formulations. More than 25 products are sold under the brand names Seratopical™, Seratopical Revolution™, SeraLabs™, and Nutri-Strips™. Sera Labs sells its products at affordable prices, making them easily accessible on a global scale and is strategically positioned to grow its beauty and wellness products into household brands. Sera Labs products are sold Direct to Consumer with a subscribe and save option, as well as in major national drug, grocery and mass retailers. For more information visit: Seratopicalrevolution.com, Seratopical.com, Seralabshealth.com and follow Sera Labs on Facebook and Instagram at @seratopical, as well as on Twitter at @sera_labs.
Forward Looking Statement
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, which statements are subject to considerable risks and uncertainties. Forward-looking statements include all statements other than statements of historical fact contained in this press release, including statements regarding the future growth and success of our organization. We have attempted to identify forward-looking statements by using words such as “anticipate,” “believe,” “could,” “estimate,” “expected,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will,” or “would,” and similar expressions or the negative of these expressions.
Forward-looking statements represent our management’s current expectations and predictions about trends affecting our business and industry and are based on information available as of the time such statements are made. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy or completeness. Forward-looking statements involve numerous known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements predicted, assumed or implied by the forward-looking statements. Some of the risks and uncertainties that may cause our actual results to materially differ from those expressed or implied by these forward-looking statements are described in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as well as in our Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission.
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by applicable law, we expressly disclaim any intent or obligation to update any forward-looking statements, or to update the reasons actual results could differ materially from those expressed or implied by these forward-looking statements, whether to conform such statements to actual results or changes in our expectations, or as a result of the availability of new information.
CONTACTS:
Media
Autumn Communications
E: seratopical@autumncommunications.com
T: (212) 206-9780
Investor Relations
Hanover International Inc.
T: (760) 564-7400
E: investor@avenirwellness.com
SOURCE: Avenir Wellness Solutions, Inc. (f/k/a Cure Pharmaceutical Holding Corp.)
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