FORT WASHINGTON, PA — CCA Industries, Inc. (OTC: CAWW), a health and beauty product manufacturer, announced its Q3 financial results for the period ending August 31, 2024. The company reported a net loss of $444,878, which is slightly better than last year’s loss of $452,394. EBITDA losses improved to $399,175 from $456,962 in 2023.
CEO Christopher Dominello explained that the company is shifting from traditional retail to a hybrid model that focuses on online sales. This transformation aims to reduce reliance on physical stores and stabilize revenue. CCA has cut operating expenses significantly, from $5.1 million to $2.1 million, and increased Amazon sales from $250,000 to over $5 million, achieving profitability.
CCA’s Neutein brain health supplement faced distribution challenges at CVS, but the company is addressing these issues and has made progress with Walmart, which has shown interest following a recent presentation.
To boost profitability, CCA is consolidating its warehouses to Kansas City, expecting a 20% reduction in freight costs. The company plans to raise prices across its product lines to improve margins.
While CCA anticipates continued losses in Q4 due to these changes, it remains optimistic about future profitability driven by successful products like Lobe Miracle, which has seen a 267% sales increase over three years.
As CCA navigates this transformation, it remains focused on strengthening its market position and improving financial outcomes as it heads into 2025.
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