Srx Health Solutions Inc (SRXH) 2025 Q1 法說會逐字稿

Good day and welcome to the SRx Health Solutions 2025 first quarter financial results conference call. (Operator Instructions) Please note, this event has been recorded.

大家好，歡迎參加 SRx Health Solutions 2025 年第一季財務業績電話會議。（操作員指示）請注意，此事件已被記錄。

I would now like to turn the conference over to Mr. Valter Pinto, Managing Director. Please go ahead.

現在我想將會議交給董事總經理瓦爾特·平托先生。請繼續。

Thank you, operator, and welcome everyone to the SRx Health Solutions first quarter 2025 financial results conference call. Joining me today are Ken Cunningham, Chief Executive Officer; Nina Martinez, Chief Financial Officer. The company's financial results press release has been posted to the Investor Relations section of the website, and our Form 10-Q will be filed with the SEC.

謝謝接線員，歡迎大家參加 SRx Health Solutions 2025 年第一季財務業績電話會議。今天與我一起出席的還有執行長肯·坎寧安 (Ken Cunningham) 和財務長尼娜·馬丁內斯 (Nina Martinez)。該公司的財務業績新聞稿已發佈到網站的投資者關係部分，我們的 10-Q 表將提交給美國證券交易委員會 (SEC)。

Please note that remarks made today may include forward-looking statements subject to a variety of assumptions, risks, and uncertainties. The company's actual results may differ materially from those contemplated by such statements. For more detailed discussion, please refer to the forward-looking statements in the company's financial results press release and SEC filings.

請注意，今天的言論可能包括前瞻性陳述，受各種假設、風險和不確定性的影響。本公司的實際結果可能與此類聲明所預期的結果有重大差異。如需了解更詳細的討論，請參閱公司財務績效新聞稿和美國證券交易委員會 (SEC) 文件中的前瞻性陳述。

Also during the call today, we will discuss our non-GAAP financial measures. Reconciliations of these non-GAAP items to the most directly comparable GAAP financial measures will be provided in the company's press release and made available on the Investor Relations section of the company's website.

此外，在今天的電話會議中，我們將討論我們的非公認會計準則財務指標。這些非 GAAP 項目與最直接可比較的 GAAP 財務指標的對帳將在公司新聞稿中提供，並在公司網站的投資者關係部分提供。

I'd now like to turn the call over to Kent Cunningham. Kent, please go ahead.

現在我想把電話轉給肯特·坎寧安。肯特，請繼續。

Thank you, Valter, and thank you everyone for joining us today to discuss our first quarter, 2025 financial and operating results. I'm joined on today's call by Nina Martinez, our Chief Financial Officer. I'll give a business update and then Nina will cover our financials in more detail.

謝謝你，瓦爾特，也謝謝大家今天加入我們討論我們 2025 年第一季的財務和營運業績。我們的財務長 Nina Martinez 也參加了今天的電話會議。我將提供業務更新，然後 Nina 將更詳細地介紹我們的財務狀況。

The first quarter of 2025 represents our last full quarter of financial results from only our Halo brand. Our merger with SRx closed on April 24, 2025, and thus going forward will report consolidated financial results for our Halo brand and SRx Health.

2025 年第一季是我們僅來自 Halo 品牌的最後一個完整季度的財務業績。我們與 SRx 的合併於 2025 年 4 月 24 日完成，因此未來將報告我們的 Halo 品牌和 SRx Health 的合併財務表現。

For the first quarter of 2025, our pet food business generated $7.2 million in net sales, and we delivered gross profit margins of 33%, which stayed consistent year-over-year. During the quarter, international sales accounted for approximately 56% of total revenue.

2025 年第一季度，我們的寵物食品業務淨銷售額為 720 萬美元，毛利率為 33%，與去年同期持平。本季度，國際銷售額約佔總收入的56%。

In April, we closed on the sale of Halo Asia for $8.1 million in total gross proceeds, which includes $6.5 million in cash at closing, along with a 3% royalty on sales over the next five years guaranteed by a minimum royalty payment of $330,000 per year or $1.65 million in total.

今年 4 月，我們以 810 萬美元的總收益完成了 Halo Asia 的出售，其中包括交易結束時的 650 萬美元現金，以及未來五年銷售額的 3% 特許權使用費，每年最低特許權使用費為 33 萬美元，總計 165 萬美元。

We also agreed in principle to a 5.5% royalty agreement in Asia with our existing partner on all sales of the Halo Elevate brand. Despite quarterly sales decreasing year over year, Halo's performance was highlighted by 10% point of sale growth year over year across our primary digital platforms, Amazon and Chewy.

我們也原則上與現有合作夥伴達成了在亞洲對 Halo Elevate 品牌所有銷售收取 5.5% 特許權使用費的協議。儘管季度銷售額同比下降，但 Halo 在我們主要的數位平台亞馬遜和 Chewy 上的銷售額同比增長 10%，業績表現突出。

This is promising for Halo as we've implemented strategic initiatives to increase the brand's share of voice, awareness, and new to brand consumers. We also launched a peanut butter main meal product, an extension of our top selling vegan sublimes, the first shipments to PetSmart Canada in the quarter.

這對 Halo 來說是一個好消息，因為我們已經實施了策略性舉措來提高品牌在消費者心目中的話語權、知名度和新鮮度。我們還推出了花生醬主餐產品，這是我們最暢銷的素食產品的延伸，也是本季第一批向 PetSmart 加拿大發貨的產品。

The pet food category continues to show resiliency as pet ownership continues to increase and consumer spending continues to rise with the macro trends of pet humanization, premiumization, and wellness underpinning industry growth, and Halo continues to offer a unique brand positioned for the health conscious consumer seeking the best nutrition for their pets.

隨著寵物擁有量不斷增加，消費者支出不斷上升，寵物人性化、高端化和健康等宏觀趨勢支撐著行業增長，寵物食品類別繼續表現出彈性，而 Halo 繼續為注重健康的消費者提供獨特的品牌，為他們的寵物尋求最佳營養。

During the quarter, we sustained improvement in fill rates to an average fill rate of 98% for the quarter. We realized volume-based cost efficiencies with our co-manufacturing partners resulting in a 33% gross margin consistent with Q1 of last year.

本季度，我們的填充率持續提高，本季平均填充率達到 98%。我們與合作製造夥伴實現了基於數量的成本效率，從而使毛利率達到 33%，與去年第一季持平。

We're working closely with our partners to monitor tariff impacts, and minimal impact is expected as the vast majority of our ingredients and packaging are sourced domestically. We continue to effectively manage our inventory levels with a reduction of approximately 50% in the last 15 months.

我們正在與合作夥伴密切合作，監控關稅的影響，由於我們的絕大多數原料和包裝都是國內採購的，因此預計影響將很小。我們繼續有效管理庫存水平，在過去 15 個月中減少了約 50%。

SG&A also improved dramatically year-over-year, decreasing from $5.1 million to $3.5 million. The decrease was driven primarily by lower marketing and advertising agency fees related to the Halo brand renovation, as well as decreased marketing spend in our international channel.

銷售、一般及行政費用也較去年同期大幅改善，從 510 萬美元降至 350 萬美元。下降的主要原因是與 Halo 品牌革新相關的行銷和廣告代理商費用降低，以及國際通路行銷支出減少。

Profitability improved as a result of all the strategic shifts made over the last 12 months. Therefore, our adjusted EBITDA loss improved 54% year-over-year to a loss of approximately $600,000 compared to a loss of $1.4 million in Q1 of last year.

由於過去 12 個月內進行的所有策略轉變，盈利能力得到了提高。因此，我們的調整後 EBITDA 虧損年增 54% 至虧損約 60 萬美元，而去年第一季的虧損為 140 萬美元。

In conclusion, we've executed a digital first strategy in our domestic business and have continued our marketing investment focus to grow brand awareness and discoverability. We're now focused on optimizing our portfolio and addressing consumer barriers to purchase as we continue to move the business toward profitable growth.

總而言之，我們在國內業務中實施了數位優先策略，並繼續將行銷投資重點放在提高品牌知名度和可發現性上。我們現在專注於優化我們的產品組合併解決消費者的購買障礙，同時繼續推動業務實現獲利成長。

Now let me turn it over to Nina to take you through our financials in more detail.

現在讓我把話題交給妮娜，讓她更詳細地向您介紹我們的財務狀況。

Thanks, Kent, and good afternoon, everyone. Our Q1 2025 net revenue totaled $7.2 million, which is down 9% year-over-year. This decrease in net sales for the three months ended March 31 is primarily attributable to the shutdown of the unprofitable direct to consumer revenue stream in the second quarter of 2024.

謝謝，肯特，大家下午好。我們的 2025 年第一季淨收入總計 720 萬美元，年減 9%。截至 3 月 31 日的三個月淨銷售額下降主要歸因於 2024 年第二季無利可圖的直接面向消費者收入流的關閉。

During the three months ended March 31, gross profit decreased 9% to $2.4 million. However, gross margins stayed consistent at 33% for the quarter compared to Q1 of '24. We continue to actively work with our co-manufacturing and freight partners to generate future cost savings and realize improved gross margins in future periods.

截至 3 月 31 日的三個月內，毛利下降 9% 至 240 萬美元。不過，與 24 年第一季相比，本季的毛利率保持不變，為 33%。我們將繼續積極與我們的聯合製造和貨運合作夥伴合作，以節省未來的成本並在未來實現更高的毛利率。

We can see continued margin variability due to the current economic environment and pricing pressures due to inflationary costs for both ingredients and transportation. We will continue to refine and optimize our overall pricing strategy as we evaluate the future impact of inflation and tariffs to align ourselves with the market.

我們可以看到，由於當前的經濟環境以及原料和運輸成本的通膨導致的價格壓力，利潤率將持續波動。我們將繼續完善和優化我們的整體定價策略，同時評估通貨膨脹和關稅的未來影響，以適應市場。

We significantly reduced operating expenses in Q1 of '25 with an overall SG&A reduction of 32% as a result of our operating discipline and leverage we've created in the business. Sales and marketing costs decreased approximately 42% as we've improved the efficiency and ROI of our marketing investments.

由於我們在業務中建立的營運紀律和槓桿作用，我們在 2025 年第一季大幅削減了營運費用，銷售、一般和行政費用 (SG&A) 總體減少了 32%。由於我們提高了行銷投資的效率和投資回報率，銷售和行銷成本下降了約 42%。

Employee compensation costs decreased approximately 23%, primarily related to reduction in headcount. Outbound freight decreased 96% during the quarter as a result of the shutdown of our DTC channel in June of '24.

員工薪酬成本下降約 23%，主要與員工人數減少有關。由於 2024 年 6 月我們的 DTC 通路關閉，本季出境貨運量下降了 96%。

Share-based compensation decreased 46%, driven by a decrease in the annual board grant, which was postponed until the second quarter. Other G&A costs decreased 20%, driven by a reduction in transaction-related professional fees.

股權激勵費用下降 46%，原因是年度董事會獎勵減少（獎勵延至第二季）。由於交易相關專業費用的減少，其他一般及行政費用下降了 20%。

The first quarter '25 net loss improved 66% year-over-year to $1 million compared to a $2.83 million loss in the first quarter of '24. Our Q1 2025 EPS came in at a loss per share of $0.37, a significant improvement of 90% from the $3.60 loss per share in Q1 of last year.

25 年第一季淨虧損年增 66% 至 100 萬美元，而 24 年第一季的虧損為 283 萬美元。我們的 2025 年第一季每股虧損為 0.37 美元，較去年第一季每股虧損 3.60 美元大幅改善 90%。

Furthermore, as Kent highlighted, in Q1 are adjusted EBITDA loss and proved to a loss of $650,000 as compared to $1.4 million in the first quarter of 2024 and $700,000 in Q4 of '24. This is a testament to Halo's vastly positive turnaround. These improvements highlight our focus on driving operational leverage and positioning the company for continued profitability in the coming quarters.

此外，正如肯特所強調的，第一季調整後的 EBITDA 虧損為 65 萬美元，而 2024 年第一季為 140 萬美元，2024 年第四季為 70 萬美元。這證明了 Halo 的巨大積極轉變。這些改進凸顯了我們對推動營運槓桿的關注，並使公司在未來幾季繼續獲利。

As for liquidity and capital resources, our cash and cash equivalents as of March 31 were $1.1 million and we achieved a networking capital position of $7.2 million. We generated cash and operations of approximately $400,000 a significant improvement from cash used in operations of $1 million in the same quarter last year. This is primarily driven by efficient working capital improvements.

至於流動性和資本資源，截至 3 月 31 日，我們的現金和現金等價物為 110 萬美元，我們的網路資本狀況達到 720 萬美元。我們產生了約 40 萬美元的現金和營運收入，與去年同期 100 萬美元的營運現金使用量相比有顯著改善。這主要是由高效率的營運資本改善所推動的。

Cash used in investing activities was $1.1 million during the quarter, driven by our investment into SRx pre-merger recorded as note receivables on our balance sheet. Cash used in financing activities was $1.2 million during the quarter directly related to net repayments on our line of credit.

本季投資活動所用的現金為 110 萬美元，原因是我們對 SRx 合併前的投資在我們的資產負債表中記錄為應收票據。本季融資活動所用的現金為 120 萬美元，與我們的信用額度淨還款直接相關。

As Kent mentioned, future filings and financial results reported will include the consolidated results for SRx Health and for our legacy Halo brand. Now that the merger has closed. We are optimistic about the future of the company. We look forward to updating the market in the coming months.

正如肯特所提到的，未來的文件和財務報告將包括 SRx Health 和我們傳統 Halo 品牌的綜合表現。現在合併已經完成。我們對公司的未來充滿信心。我們期待在未來幾個月內更新市場。

I would now like to open the call for questions. Operator?

現在我想開始提問。操作員？

(Operator Instructions)

（操作員指示）

As there are no questions, this concludes a question and answer session and today's conference.

由於沒有問題，問答環節和今天的會議到此結束。

Thank you for attending today's presentation. You may not disconnect.

感謝您參加今天的演講。您不能斷開連線。