Q2 2024 Arcadia Biosciences Inc Earnings Call Transcript
Key Points
- Arcadia Biosciences Inc (RKDA) completed two significant transactions in Q2 2024, monetizing part of their wheat IP and generating $4 million in cash from Corteva Agriscience.
- The company successfully sold its GoodWheat business to Above Food Corporation, securing a $6 million promissory note with a three-year term.
- Zola Coconut Water sales increased by 42% in Q2 2024 compared to the same period last year, outpacing the category growth of 27%.
- Cost-saving measures, including headcount reductions and exiting a facility early, are expected to save approximately $2 million annually.
- Arcadia Biosciences Inc (RKDA) expects to cut its cash burn by 50% in 2024 compared to 2023, aiming for a more sustainable financial position.
- Despite the positive growth in Zola, total revenues for Q2 2024 were flat compared to the same period last year.
- The company incurred nearly $0.5 million in M&A fees related to the two transactions, impacting their SG&A expenses.
- GLA oil revenues declined, and the company expects this trend to continue as they sell through remaining inventory.
- The sale of GoodWheat resulted in a loss from discontinued operations of $789,000 in Q2 2024.
- Arcadia Biosciences Inc (RKDA) still needs to achieve a low single-digit market share in the coconut water segment to reach sustainable profitability.
Good afternoon, and welcome to Arcadia Biosciences second quarter 2024 financial results and business highlights conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to Mark Kawakami, Chief Financial Officer at Arcadia. Please go ahead.
Thank you and good afternoon. Joining me on the call today is T J Schaefer, Acadia's President, and Chief Executive Officer. This call is being webcast and you can refer to the company's press release at arcadia bio.com. Before we start, we'd like to remind you that Arcadia Biosciences will be making forward-looking statements on this call based on current expectations and currently available information.
However, since these statements are based on factors that involve risks and uncertainties, the company's actual performance and results may differ materially from those described or implied today. You can review the company's Safe Harbor language in our most
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