ChromaDex Corporation Announces Q4 and Full-Year 2024 Financial Results
ChromaDex Corporation (NASDAQ: CDXC) has released its financial results for the fourth quarter and full fiscal year 2024, demonstrating a robust performance marked by increased revenue, improved profitability, and significant strategic advancements. AnnouncesThe company continues to solidify its position as a leader in the health and wellness industry, particularly through its flagship product, Tru Niagen®.
Fourth Quarter 2024 Financial Performance
ChromaDex reported total net sales of $29.1 million for the fourth quarter of 2024, reflecting a 37% increase compared to the same period in 2023. Sales from Tru Niagen® contributed $22.7 million, representing a 29% year-over-year growth. This strong sales performance was primarily driven by e-commerce growth and increased consumer demand.
The company achieved a gross margin of 62.5%, marking an improvement of 150 basis points from the prior year quarter’s 61.0%. Announces This improvement was attributed to favorable product and business mix, as well as enhanced efficiency in labor and overhead utilization.
Operating expenses for the quarter totaled $11.1 million, a 15% decrease compared to the prior year. Notably, general and administrative (G&A) expenses declined by $4.4 million, largely due to a $3.5 million reversal of previously accrued royalties and license maintenance fees, as well as a $1.3 million recovery of credit losses linked to a legal settlement with Elysium Health, LLC.
ChromaDex recorded a record net income of $7.2 million for the quarter, a substantial improvement from the modest $0.1 million reported in the prior year period. Basic and diluted earnings per share stood at $0.09, reflecting a significant turnaround from the approximately break-even results in the fourth quarter of 2023. Additionally, adjusted EBITDA, a non-GAAP measure, rose to $3.4 million, showing an increase of $2.1 million year-over-year.
Full Year 2024 Financial Performance and Key Highlights
For the full fiscal year, ChromaDex delivered total net sales of $99.6 million, marking a 19% increase compared to 2023. Sales of Tru Niagen® reached $76.8 million, a 10% year-over-year rise, while Niagen ingredient sales surged by 82% to $19.2 million. Announces These gains underscore the company’s effective market penetration and sustained consumer interest in its product offerings.
The company reported an annual gross margin of 61.8%, up from 60.8% in the prior year. Selling and marketing expenses improved by 200 basis points as a percentage of net sales, reflecting the company’s ongoing efforts to optimize operational efficiency.
General and administrative expenses declined by $6.6 million for the year, due in part to the previously mentioned reversals and recoveries. Net income for 2024 reached $8.6 million, a remarkable turnaround from a net loss of $4.9 million in 2023. AnnouncesThis resulted in earnings per share of $0.11, compared to a loss of $0.07 per share in the prior year.
Adjusted EBITDA for the year was reported at $8.5 million, an increase of $6.6 million year-over-year. Additionally, ChromaDex generated positive operating cash flows of $12.1 million, concluding the year with $44.7 million in cash and no debt, positioning the company well for future growth and investment opportunities.
Strategic Advancements and Product Development
A key highlight of 2024 was the launch of Niagen Plus, a new product line featuring pharmaceutical-grade Niagen®. AnnouncesThese products, including Niagen IV and injectables, are compounded and distributed by U.S. FDA-registered 503B outsourcing facilities and are available by prescription at participating wellness clinics. As of the end of 2024, Niagen Plus products were available at over 475 leading wellness clinics across the United States.
Additionally, ChromaDex achieved critical regulatory milestones during the year. Announces The company received Orphan Drug and Rare Pediatric Disease Designations from the U.S. Food and Drug Administration (FDA) for Nicotinamide Riboside (NR). This designation supports ChromaDex’s ongoing efforts to develop NR as a potential treatment for Ataxia Telangiectasia (AT), a rare genetic disorder that affects neurological and immune function. AnnouncesThe company continues to engage with the FDA to advance its Investigational New Drug (IND) application for this indication.
CEO Commentary and Outlook for 2025
Commenting on Announces the company’s strong performance, Rob Fried, Chief Executive Officer of ChromaDex, stated: “ChromaDex proudly delivered record-breaking financial results in 2024, with fourth-quarter net sales reaching $29.1 million, up 37% year-over-year, and net income reaching $7.2 million. Announces For the full year, we reported total net sales of $99.6 million, representing a 19% increase, and achieved a net income of $8.6 million along with $12.1 million in operating cash flow.”
Fried emphasized that the company’s strong cash position of $44.7 million and debt-free status provide a solid foundation to navigate challenges, capitalize on emerging opportunities, and drive sustained success in 2025 and beyond.
Detailed Operational Performance Overview
Fourth Quarter Operational Metrics
- Net Sales: Increased by 37% to $29.1 million, driven by a $5.0 million boost in Tru Niagen® sales and a $2.9 million rise in Niagen ingredient sales.
- Gross Margin: Improved by 150 basis points to 62.5%, benefiting from favorable product mix and operational efficiencies.
- Operating Expenses: Declined by 15% to $11.1 million, primarily due to reductions in G&A expenses.
- Net Income: Jumped to $7.2 million, compared to just $0.1 million in the prior year quarter.
- Earnings Per Share: Increased to $0.09 from approximately break-even in Q4 2023.
- Adjusted EBITDA: Reached $3.4 million, reflecting a $2.1 million improvement.
Full-Year Operational Metrics
- Net Sales: Increased by 19% to $99.6 million, with Tru Niagen® sales growing by 10% and Niagen ingredient sales rising by 82%.
- Gross Margin: Rose to 61.8%, up 100 basis points from the prior year.
- Operating Expenses: Decreased by 4% to $53.9 million.
- Net Income: Improved significantly to $8.6 million, reversing a net loss of $4.9 million in 2023.
- Earnings Per Share: Jumped to $0.11 from a loss of $0.07 per share in the prior year.
- Adjusted EBITDA: Surged to $8.5 million, reflecting a $6.6 million improvement.
- Operating Cash Flow: Positive $12.1 million, compared to $7.1 million in the prior year.
- Cash and Cash Equivalents: Ended the year at $44.7 million, compared to $27.3 million in 2023.
