The Healing Company Achieves Revenue of $8.9 Million for Fiscal 2023 and Positive Adjusted EBITDA for Chopra and Your Super
· Chopra achieves three-fold sequential increase in revenue for the fiscal 2023 fourth quarter, and Your Super achieves positive adjusted EBITDA^1 in fiscal 2023 for the first time in company history
· Collectively, The Healing Company portfolio served nearly half a million people this year, advancing its mission to bring integrated healing to the world
NEW YORK, NY, Oct. 23, 2023 (GLOBE NEWSWIRE) -- The Healing Company Inc. (OTC: HLCO) today provided a business update and reported financial results for the fiscal year ended June 30, 2023.
The Healing Company posted revenue of $8.9 million for fiscal 2023, and sequential revenue for the fiscal 2023 fourth quarter increased by 5% to $3.3 million compared to the third quarter of fiscal 2023. Operating expenses were reduced by 11% for the fiscal 2023 fourth quarter compared to the third quarter of fiscal 2023, and annualized operating expenses were further reduced by nearly $1.8 million in August 2023.
“We are pleased to report that we achieved record revenue and positive adjusted EBITDA^1 in each segment, excluding one-time, non-recurring expenses, driven by prudent investment, disciplined growth, and reduced operating expenses,” said Simon Belsham, CEO and Co-Founder of The Healing Company. “These strong financial results in a foundational year reflect our rigorous approach to establish The Healing Company as a leading provider of integrated healing products and experiences, as well as our commitment to achieving long-term, sustainable profitability.”
The Healing Company continues to advance its mergers & acquisitions strategy within the wellness, supplement, and nutraceuticals sectors, identifying and acquiring high-impact healing brands, and working to grow them sustainably.
Belsham stated, “In less than a year since welcoming leading plant-based superfoods brand Your Super into our portfolio, the business achieved a historic milestone of positive adjusted EBITDA, affirming the strength of our business model. Our recent acquisition of Chopra in March 2023, founded by Time 100’s Most Influential People awardee Dr. Deepak Chopra, is already demonstrating strong performance with a significant threefold revenue increase for the fiscal 2023 fourth quarter compared to the previous quarter.”
In addition to its mergers and acquisitions strategy, The Healing Company is rigorously focused on driving organic growth through new product development, powerful storytelling, broadening distribution, and strategic partnerships.
Driven by resounding demand for science-backed products, The Healing Company announced positive clinical data proving Your Super’s Moon Balance superfood blend reduced menstrual symptoms in 86% of trial participants—reflecting its commitment to developing leading healing products with proven clinical benefits.
With heightened consumer interest in holistic Ayurvedic treatments—a $9.2 billion market expanding at a 15% compound annual growth rate (CAGR)^2—the continued enthusiasm for Chopra’s products was evidenced by the successful launch and growth of the Chopra Renew & Restore Detox Kit, and the limited release of Chopra Signature Body Oils, which sold out within weeks of its debut and will be reintroduced next month. Moreover, the Chopra Health Retreat at CIVANA Wellness Resort & Spa in Arizona was recently honored with the 2023 Women's Health Travel Award for Best Yoga Retreat worldwide—an accolade that illustrates the company’s successful strategy of building a community of world-class healing services, products, and experiences.
“Looking ahead, we will continue to identify and evaluate synergistic and accretive acquisition targets, and have a robust pipeline of potential targets rooted in scientific principles that resonate with customers,” said Belsham. “With a steadfast focus on science-backed healing products, services, content, and experiences, we are poised to continue shaping the landscape of well-being, fostering a culture of health, and delivering transformative experiences.”
Most recently, The Healing Company forged a partnership with Althea DRF Lifesciences, a leading Ayurvedic innovator and sister company to the largest Ayurvedic company, Dabur, with a $12 billion market capitalization. The partnership is designed to propel the company’s growth and product development and will enable The Healing Company to seamlessly combine traditional Ayurvedic principles with the cutting-edge research methodologies of modern biotechnology. The companies’ initial focus will be on the creation of seven products aiming to address brain health, anxiety management, sleep optimization, immunity enhancement, cardiovascular, and men's and women's health, with the first products from the partnership planned for release in the current fiscal year.
“We are committed to our mission of bringing integrated healing to the world and helping millions improve their quality of life. This past quarter, our products, services, and experiences helped nearly 250,000 people—a 16% increase from the prior quarter—and took our impact to nearly half a million customers this fiscal year. With the need and appetite for better health and healing solutions on the rise—a $450 billion market growing at more than 5% annually in the United States^3—we are primed to become a leading contender in the health and wellness sector, a market forecast to reach $7 trillion by 2025^4,” concluded Mr. Belsham.
“This has been a foundational year for The Healing Company, with two milestone acquisitions and substantial achievements in growth and profitability,” added Kay Koplovitz, Board Chair of The Healing Company, and media pioneer and founder of USA Network. “With the leadership team’s deep industry knowledge, diverse range of perspectives, and commitment to championing science-backed healing products and experiences, The Healing Company is primed for growth and firmly on course to change the paradigm in integrated health.”
The Healing Company’s complete financial results are available in its Annual Report on Form 10-K, which has been filed with the U.S. Securities & Exchange Commission.
Footnotes
1. Adjusted EBITDA is a non-GAAP measure; important disclosures about, and reconciliations of, non-GAAP measures to their most directly comparable GAAP measures, including adjusted EBITDA, are provided in the "Non-GAAP Financial Measures" section of this press release.
2. Market Research Future: Ayurveda Market
3. McKinsey Future of Wellness Survey
4. Global Wellness Institute - The Global Wellness Economy: Looking Beyond COVID
*About The Healing Company*
The Healing Company Inc. was founded with a bold aim: Bring integrated healing to the world. Compelled by the global healthcare crisis and a deep belief in a different way—one which draws on conventional medicine and ancient wisdom, science and nature—the company looks to democratize access to integrated healing methods, while helping the world evolve how it thinks about health and healthcare. To do so, the company is building a community of powerful healing brands, identifying, acquiring, and helping scale the reach and impact of the world’s highest potential healing practices & products.
The Healing Company’s investors and advisors include global wellbeing icon Dr. Deepak Chopra, MD, media pioneer Kay Koplovitz, and Social Chain & Thirdweb founder and Dragons Den member Steven Bartlett. For more information, visit http://www.healingcompany.com.
*Non-GAAP Financial Measures*
To provide investors with additional information regarding its financial results, the Company has provided certain financial measures that are not recognized under U.S. generally accepted accounting principles ("GAAP") in this press release, including: earnings or loss before interest, taxes, depreciation and amortization ("EBITDA"), EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin,
The Company calculates EBITDA, a non-GAAP financial measure, as net income or loss excluding depreciation and amortization, interest expense, net and income taxes. EBITDA margin represents EBITDA as a percentage of net sales. The Company calculates adjusted EBITDA, a non-GAAP financial measure, by further excluding non-cash items for stock-based compensation expenses, one-time expenses (including severance and consulting), change in fair value of warrant liability, and transaction-related costs. Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of net sales.
EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin should be viewed as measures of operating performance that are supplements to, and not substitutes for, operating income or loss, net income or loss and other GAAP measures of income and loss. The Company has included EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin in this press release because they are key measures used by the Company's management to evaluate and compare the Company's financial and operational performance over multiple periods, identifying trends affecting the Company's business, formulating business plans and making strategic decisions. In particular, the exclusion of certain expenses or income in calculating adjusted EBITDA facilitates operating performance comparability across reporting periods by removing the effect of non-cash expenses and certain non-recurring variable charges. In addition, the Company believes that providing each of EBITDA and adjusted EBITDA helps investors make comparisons between The Healing Company and other companies that may have different capital structures, different tax rates and different forms of employee compensation. Each of EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin has inherent limitations because of the excluded items, and may not be directly comparable to similarly titled metrics used by other companies.
*Forward-looking statements:*
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements which are not historical facts are forward-looking statements. The Company makes forward-looking public statements concerning its expected future financial position, results of operations, cash flows, financial requirements, business strategy, products and services, potential future financings, acquisition and scaling of future brands and or project and its anticipated financing plans, growth opportunities, plans and objectives of management for future operations, including statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions that are forward-looking statements. Such forward-looking statements are estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements; foreign exchange and other financial markets; changes in the interest rates on borrowings; hedging activities; changes costs of goods; changes in the investments and expenditure levels; litigation; legislation; environmental, judicial, regulatory, political and competitive developments in areas in which The Healing Company operates. There can be no assurance that The Healing Company will achieve the above stated brand acquisitions and scaling of those brands or the closing of any required financing. The reader should refer to the risk disclosures set out in the periodic reports and other disclosure documents filed by The Healing Company from time to time with the Securities and Exchange Commission.
*Communications:*
Jacalyn Lee
The Healing Company
Email: jacalyn@healingcompany.com
*Investor Relations:*
Crescendo Communications, LLC
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Email: hlco@crescendo-ir.com