Hydrofarm Holdings Group, Inc. HYFM, which specializes in hydroponics equipment and supplies, reported $54.8 million in net revenue representing a 13.1% year-over-year decrease from $63.1 million.
“In the second quarter, we delivered positive Adjusted EBITDA for the fourth time in the last five quarters, illustrating the effectiveness of our restructuring plan and related cost savings efforts,” said Bill Toler, chairman and CEO.
Q2 2024 Financial Highlights
- Gross profit: $10.9 million, compared to $14.5 million in the same quarter of 2023.
- Net loss: $23.5 million, up from $12.9 million in the prior year’s period.
- Adjusted EBITDA: $1.7 million, compared to $2.5 million in the same quarter of last fiscal year.
- Gross profit margin: 19.8% of net sales, down from 23.0% in the prior year period.
- Adjusted gross profit margin: 24.4% of net sales, down from 27.0% in the same quarter of 2023.
The company completed the previously announced an Innovative Growers Equipment (IGE) asset sale in May 2024, which is expected to lower fixed costs and improve profitability on future sales of proprietary branded IGE products.
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Sales, general and administrative expenses were reduced by 20%, primarily due to decreases in compensation costs, facilities costs and professional fees. Hydrofarm also maintained compliance with debt covenants as of June 30, 2024.
Hydrofarm noted that it is seeking to reduce expenses and consolidate operations, aiming for additional cost savings through increased utilization and productivity at its remaining facilities while remaining confident in its long-term business fundamentals and growth opportunities.
Hydrofarm Price Action
Hydrofarm shares traded 8.78% higher at $0.58 per share at the time of this writing early afternoon on Thursday.
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