FORT WASHINGTON, PA — CCA Industries, Inc. (OTC: CAWW), a manufacturer of health and beauty products, has announced its financial results for the third quarter ending August 31, 2024. The company posted a net loss of $444,878, slightly less than the $452,394 loss recorded during the same period last year. EBITDA also saw a slight improvement, with a loss of $399,175 compared to a loss of $456,962 in 2023.
CEO Christopher Dominello outlined the company’s ongoing transformation from a traditional brick-and-mortar retailer to a hybrid model emphasizing online sales. This strategic pivot aims to reduce the company’s reliance on physical retail channels and enhance revenue stability. As part of this shift, CCA Industries has significantly cut operating expenses, slashing costs from $5.1 million to $2.1 million. The company has also expanded its Amazon sales from $250,000 to over $5 million, achieving positive profitability.
The rollout of CCA’s Neutein brain health supplement has faced challenges, particularly with distribution at CVS, where initial orders were lower than expected. The company is working with CVS to address these issues and has made promising progress with Walmart, receiving a “New Item Submission Form” following a recent presentation.
To further improve profitability, CCA is consolidating its warehouse operations to a single location in Kansas City, expecting a 20% reduction in freight and related costs. Additionally, the company plans to increase prices across its product lines to alleviate pricing pressures and enhance margins.
Despite these efforts, CCA anticipates continued losses in the fourth quarter as it implements these strategic changes. However, the company is optimistic about future profitability, driven by organic growth from successful products like Lobe Miracle, which has seen a 267% increase in sales over three years.
As CCA Industries navigates its transformation, the company remains focused on strengthening its market position and improving financial outcomes as it heads into 2025.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.