Starco Brands, Inc. Releases Q2 2024 10-Q Report Highlighting Financial and Operational Performance
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Starco Brands, Inc., a diversified consumer products company, has released its Form 10-Q report for the second quarter of 2024. The report provides a detailed overview of the company's financial performance and operational highlights for the period ending June 30, 2024. Starco Brands operates through three main segments: Starco Brands, Skylar, and Soylent, each contributing to the company's overall revenue and growth strategy.
Financial Highlights
- Revenue from related parties: $15.57 million for the three months ended June 30, 2024, compared to $17.51 million for the same period in 2023, indicating a decrease in sales.
- Gross Profit: $5.70 million for the three months ended June 30, 2024, compared to $6.87 million for the same period in 2023, reflecting a reduction in profitability.
- Loss from operations: $(11.07) million for the three months ended June 30, 2024, compared to $(5.95) million for the same period in 2023, showing an increase in operating losses.
- Net loss: $(11.56) million for the three months ended June 30, 2024, compared to $(5.95) million for the same period in 2023, highlighting a significant increase in net losses.
- Net loss attributable to Starco Brands: $(11.56) million for the three months ended June 30, 2024, compared to $(6.02) million for the same period in 2023.
- Income (loss) per share, basic and diluted: $(0.02) for the three months ended June 30, 2024, compared to $(0.01) for the same period in 2023, indicating a decline in earnings per share.
Business Highlights
- Revenue Segments: The company operates through three main segments: Starco Brands, Skylar, and Soylent. Starco Brands, which includes AOS and Whipshots, generated $6.07 million in gross revenues for the six months ended June 30, 2024. Skylar, focusing on fragrances, reported $3.99 million in gross revenues. Soylent, specializing in nutritional products, achieved $21 million in gross revenues.
- Sales Units: The company reported a significant increase in inventory levels, with finished goods inventory rising from $9.39 million at the end of 2023 to $12.19 million by June 30, 2024. This suggests an increase in production volumes to meet anticipated demand.
- Future Outlook: Management plans to increase top-line revenue for each segment while decreasing overall expenses as a percentage of revenue. This strategy involves realizing synergies from recent acquisitions and utilizing a back-end shared service model to reduce costs.