Q1 2024 Edible Garden AG Inc Earnings Call Transcript
Key Points
- Edible Garden AG Inc reported a significant 27.6% year-over-year increase in revenue for Q1 2024, highlighting strong sales performance.
- The company has successfully transitioned to producing approximately 95% of its fresh products in-house, reducing dependency on third-party growers and enhancing profit margins.
- Edible Garden AG Inc has expanded its retail partnerships, including a notable three-year agreement expected to generate between $18 million and $20 million in revenue, enhancing product distribution and visibility.
- Introduction of new products like the Pulp line of sauces and the expansion into nutraceuticals, diversifying the product portfolio and potentially increasing market share.
- The company has received several grants and patents, supporting innovation and sustainability in its operations, and reinforcing its position in ag-tech.
- Despite revenue growth, Edible Garden AG Inc reported a net loss of $4 million for Q1 2024, which was higher than the previous year's loss of $2.9 million.
- The increase in net loss was partly due to higher Selling, General, and Administrative (SG&A) expenses, which included a one-time $600,000 charge related to the departure of the previous CFO.
- The company is still in the process of optimizing its operations to fully realize the cost benefits of vertical integration, with expected improvements in future quarters.
- While the company has made progress in reducing reliance on contract growers, it is yet to see the full financial benefits of this strategic shift.
- The nutraceutical business segment experienced a soft performance in Q1 2024, although there are expectations for recovery in subsequent quarters.
Good morning, and welcome to Edible Garden first quarter 2024 business update conference call. (Operator Instructions) Please note this conference is being recorded. I will now turn the conference over to your host, Ted Ayvas, Crescendo Communications. Ted, over to you.
Thank you. Good morning. Thank you for joining Edible Garden's quarter ended March 31, 2024, conference call and business update. On the call with us today are Jim Kras, Chief Executive Officer of Edible Garden; and Kostas Dafoulas, Interim Chief Financial Officer of Edible Garden. Earlier this morning, the company announced its operating results for the three months ended March 31, 2024. The press release is posted on the Company's website, www.ediblegarden.com, ediblegardenag.com. In addition, the company has filed its quarterly report on Form 10-Q with the US Securities and Exchange Commission, which can also be accessed on the company's website as well as the SEC's
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