Avenir Wellness Solutions Reports Second Quarter 2023 Results
New Campaigns Showing Encouraging Results
SHERMAN 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 forward with our efforts to further 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 our Seratopical Revolution product line. theSkimm continues to deliver as we execute on our strategy to build our brands,” said Nancy Duitch, Avenir CEO.
Operational Highlights
Other operational highlights during the second quarter of 2023 included:
All of our MSRP pricing was raised on Amazon with no negative impact and increased sales
Our new beauty subscription program has grown sequentially by 50% quarter over quarter.
New manufacturing resources were added to ensure a more consistent and effective supply chain at better costs, driving our anticipated gross margin expansion.
DNA Complex had its debut launch at the Met Gala with Nicole Kidman in coordination with theSkimm release.
DNA Complex garnering Five-star reviews from our customer base.
Company CEO interview on the NASDAQ with Jane King aired on Newsmax TV, The FOX Business Network and Bloomberg TV in multiple time slots during the quarter generating much interest in the Company as well as driving sales to our ecommerce site.
We have recently enhanced the reach and visibility of our Brand Ambassador, Nicole Kidman, as part of the launch of our 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 the 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
The Company received regulatory approval to officially change its ticker symbol from “CURR” to “AVRW” effective at the stock market opening on August 9, 2023. The ticker symbol change follows the corporate name change to “Avenir Wellness Solutions, Inc.” in October 2022. The name change reflects the renewed focus of the Company with its incubator strategy and continuing efforts to create and commercialize wellness technologies with quality products and brands in the wellness and beauty space. The common stock will continue to be traded on OTC Pink Market and the CUSIP number will not be changing. The Company has reapplied to move its common stock back to the OTCQB now that all delinquent filings have been filed with the U.S. Securities and Exchange Commission.
For further details, please visit our website to review our most recent Form 10-Q filed on August 14, 2023 at: http://www.avenirwellness.com/sec-filings/
About Avenir Wellness Solutions, Inc.
Avenir Wellness Solutions, Inc. (OTC Pink: AVRW) is a broad platform technology company that develops proprietary wellness, nutraceutical, and topical delivery systems which are integrated into our wellness and beauty products and sold directly to the consumer. 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 is part of its incubator strategy in order to monetize its intellectual property as well as expand our product lines utilizing the technology. 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 of beauty, health and wellness, Sera Labs products are sold direct-to-consumer (DTC) via online website orders, including a subscribe and save option, and also sold online and in-store at major national drug, grocery chains, convenience stores, and mass retailers and on Amazon.com. 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.
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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