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Hydrofarm Holdings Group Inc (HYFM+1.08%). has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in net sales to $44 million from $54.2 million in the same quarter the previous year, primarily due to a decline in product volume and price.
Cost of goods sold for the quarter was $35.5 million, representing 80.6% of net sales, compared to 93.9% in the same quarter of the previous year. This decrease in cost ratio is attributed to restructuring charges and improved productivity.
The company reported a gross profit of $8.5 million for the quarter, compared to $3.3 million in the previous year, with the increase attributed to decreased restructuring charges and higher proprietary brand sales.
Selling, general, and administrative expenses decreased to $17.6 million from $19.5 million, primarily due to cost-saving initiatives and restructuring efforts.
Net loss for the quarter was $13.1 million, down from $19.9 million in the previous year. The improvement is due to a reduction in restructuring charges and operating expenses.
Cash used in operating activities was $3 million, while cash from investing activities was $1.5 million, primarily from the sale of property, plant, and equipment.
Hydrofarm had cash and cash equivalents of $24.4 million as of September 30, 2024. The company continues to focus on restructuring efforts to improve operational efficiency.
The filing also details the company's restructuring plan, including the sale of assets related to durable equipment products and the consolidation of manufacturing facilities.
Hydrofarm is addressing market conditions, including the oversupply in the cannabis industry, which has impacted sales and operations.
The company is working to maintain compliance with Nasdaq listing requirements and is considering options to address its stock price.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Hydrofarm Holdings Group Inc. quarterly 10-Q report dated November 7, 2024. To report an error, please email earnings@qz.com.