ChromaDex Corp (CDXC) Reports Growth in Net Sales and Positive Adjusted EBITDA in Q3 2023
ChromaDex Corp (NASDAQ:CDXC) announces a 14% increase in net sales to $19.5 million in Q3 2023.
Gross margin improves to 61.4%, with a positive Adjusted EBITDA of $0.5 million.
Net loss remains stable at $1.0 million, with positive operating cash flows and no debt.
Company expects 14% - 16% revenue growth for the full year 2023.
On November 8, 2023, ChromaDex Corp (NASDAQ:CDXC) released its financial results for the third quarter of 2023, showcasing a year-over-year increase in net sales and a solid gross margin improvement. The company reported total net sales of $19.5 million, up 14% from the prior year quarter, driven primarily by a 19% increase in sales of its flagship product, Tru Niagen. The gross margin for the quarter stood at 61.4%, reflecting a 160 basis point increase from the previous year, attributed to supply chain optimization and economies of scale.
Financial Performance Highlights
ChromaDex Corp (NASDAQ:CDXC) achieved a net loss of $1.0 million, or $(0.01) per share, which remained consistent with the prior year quarter. This stability is notable considering the prior year's results included a one-time Employee Retention Tax Credit of $2.1 million. The company also reported a positive Adjusted EBITDA of $0.5 million, marking a $1.7 million improvement from the third quarter of 2022.
Operational and Strategic Developments
ChromaDex Corp (NASDAQ:CDXC) continued to expand its market reach with the launch of Tru Niagen on iHerb and the introduction of Tru Niagen 1,000 mg. Additionally, a partnership with Zesty Paws to launch a pet supplement featuring Niagen signifies the company's entry into the pet longevity market. A recent clinical study published in Cell Reports further supports the efficacy of the company's products.
Financial Statements Analysis
The company's balance sheet as of September 30, 2023, shows a healthy financial position with $26.8 million in cash and no debt. Net cash inflow from operating activities for the nine months ended September 30, 2023, was $6.5 million, a significant improvement from a net cash outflow of $14.8 million in the prior year. This improvement is largely due to a $10.1 million reduction in net loss and positive cash impacts from inventory management and other operational efficiencies.
Outlook and Investor Relations
Looking ahead, ChromaDex Corp (NASDAQ:CDXC) expects to achieve 14% to 16% revenue growth for the full year 2023. The company anticipates that gross margin will remain stable, and selling and marketing expenses as a percentage of net sales will decrease due to new customer acquisition strategies. Investments in research and development are set to increase, while general and administrative expenses are projected to be flat or down by $1 million year over year.
ChromaDex Corp (NASDAQ:CDXC) will hold a live webcast to discuss the third-quarter financial results and provide a business update. Investors and interested parties can access the webcast and financial exhibits on the Investors Relations section of ChromaDexs website.
ChromaDex Corp (NASDAQ:CDXC) continues to focus on financial discipline and operational efficiency, which is reflected in its Q3 2023 financial results. With a strong financial position and strategic initiatives in place, the company is poised for continued growth and innovation in the healthy aging market.
For more detailed information and to stay updated on ChromaDex Corp (NASDAQ:CDXC)'s latest developments, please visit chromadex.com.
Explore the complete 8-K earnings release (here) from ChromaDex Corp for further details.
This article first appeared on GuruFocus.
