Above Food Provides Business Update
Above Food Ingredients Inc. (Nasdaq: ABVE) has provided a business update following its recent Nasdaq listing. The company, which operates a vertically integrated Seed-to-Fork platform, expects to receive approximately US$16.7 million of incremental capital to fund future growth and improve net leverage. Above Food has achieved a strong revenue CAGR of 34% from fiscal year 2021 to 2024.
The company's strategic positioning allows for superior economics, supported by advantageous margins and sustainable long-term growth drivers. Above Food services over 260 clients and has a retail distribution footprint spanning more than 62,000 points. However, financial performance in fiscal year 2024 was negatively impacted by a lack of available working capital, resulting in a net loss of $39.5 million.
Above Food Ingredients Inc. (Nasdaq: ABVE) ha fornito un aggiornamento aziendale a seguito della sua recente quotazione al Nasdaq. L'azienda, che opera su una piattaforma Seed-to-Fork completamente integrata, prevede di ricevere circa 16,7 milioni di dollari USA di capitale incrementale per finanziare la crescita futura e migliorare il leverage netto. Above Food ha registrato un forte CAGR di 34% dai risultati fiscali del 2021 al 2024.
Il posizionamento strategico dell'azienda consente una migliore economia, supportata da margini vantaggiosi e driver di crescita sostenibili a lungo termine. Above Food serve oltre 260 clienti e ha una rete di distribuzione al dettaglio che si estende su più di 62.000 punti. Tuttavia, le performance finanziarie nell'anno fiscale 2024 sono state negativamente influenzate dalla mancanza di capitale circolante disponibile, risultando in una perdita netta di 39,5 milioni di dollari.
Above Food Ingredients Inc. (Nasdaq: ABVE) ha proporcionado una actualización comercial tras su reciente cotización en Nasdaq. La empresa, que opera una plataforma Seed-to-Fork completamente integrada, espera recibir aproximadamente 16,7 millones de dólares estadounidenses de capital adicional para financiar su crecimiento futuro y mejorar su apalancamiento neto. Above Food ha logrado un fuerte CAGR del 34% desde el año fiscal 2021 hasta 2024.
El posicionamiento estratégico de la compañía permite una economía superior, respaldada por márgenes ventajosos y factores de crecimiento sostenibles a largo plazo. Above Food atiende a más de 260 clientes y tiene una red de distribución minorista que abarca más de 62,000 puntos. Sin embargo, el desempeño financiero en el año fiscal 2024 se vio afectado negativamente por la falta de capital de trabajo disponible, resultando en una pérdida neta de 39,5 millones de dólares.
Above Food Ingredients Inc. (Nasdaq: ABVE)는 최근 나스닥 상장 후 비즈니스 업데이트를 제공했습니다. Seed-to-Fork 플랫폼을 완전히 통합하여 운영하는 이 회사는 향후 성장 자금을 지원하고 순 레버리지를 개선하기 위해 약 1,670만 달러의 추가 자본을 받을 것으로 예상하고 있습니다. Above Food는 2021 회계연도부터 2024 회계연도까지 34%의 강력한 CAGR을 기록했습니다.
회사의 전략적 포지셔닝은 유리한 마진과 지속 가능한 장기 성장 요인에 의해 뒷받침되어 뛰어난 경제성을 제공합니다. Above Food는 260명 이상의 고객을 서비스하며 62,000개 이상의 지점에 걸쳐 소매 유통 네트워크를 보유하고 있습니다. 그러나 2024 회계연도의 재무 성과는 이용 가능한 운전 자본 부족으로 인해 부정적인 영향을 받았으며 3,950만 달러의 순손실을 초래했습니다.
Above Food Ingredients Inc. (Nasdaq: ABVE) a fourni une mise à jour commerciale suite à son récent listing sur le Nasdaq. L'entreprise, qui opère une plateforme Seed-to-Fork complètement intégrée, s'attend à recevoir environ 16,7 millions de dollars américains de capital supplémentaire pour financer sa croissance future et améliorer son levier net. Above Food a enregistré une forte CAGR de 34% de l'exercice fiscal 2021 à 2024.
Le positionnement stratégique de l'entreprise permet une économie supérieure, soutenue par des marges avantageuses et des moteurs de croissance durables à long terme. Above Food dessert plus de 260 clients et possède un réseau de distribution au détail couvrant plus de 62 000 points. Cependant, la performance financière au cours de l'exercice fiscal 2024 a été négativement impactée par un manque de capital de travail disponible, entraînant une perte nette de 39,5 millions de dollars.
Above Food Ingredients Inc. (Nasdaq: ABVE) hat ein Geschäftsupdate nach seiner jüngsten Nasdaq-Börsennotierung bereitgestellt. Das Unternehmen, das eine vollständig integrierte Seed-to-Fork-Plattform betreibt, erwartet, etwa 16,7 Millionen US-Dollar an zusätzlichem Kapital zu erhalten, um zukünftiges Wachstum zu finanzieren und die Netto-Verschuldung zu verbessern. Above Food hat von dem Geschäftsjahr 2021 bis 2024 eine starke CAGR von 34% erreicht.
Die strategische Positionierung des Unternehmens ermöglicht eine überlegene Wirtschaftlichkeit, unterstützt durch vorteilhafte Margen und nachhaltige Wachstumsfaktoren. Above Food bedient über 260 Kunden und besitzt ein Einzelhandelsvertriebsnetz, das mehr als 62.000 Punkte umfasst. Die finanzielle Leistung im Geschäftsjahr 2024 wurde jedoch negativ von einem Mangel an verfügbarem Working Capital beeinflusst, was zu einem Nettoverlust von 39,5 Millionen US-Dollar führte.
- Revenue CAGR of 34% from fiscal year 2021 to 2024
- Expected to receive approximately US$16.7 million of incremental capital
- Diverse customer base of over 260 clients
- Retail distribution footprint spanning more than 62,000 points
- Disruptive Agriculture segment capable of producing US$650 million in revenues
- Net loss of $39.5 million in fiscal year 2024
- Revenue decreased from $293 million in FY 2023 to $273 million in FY 2024
- Negative gross profit of $4.4 million in fiscal year 2024
- Adjusted gross profit margin of negative 0.5% in fiscal year 2024
- Total gross debt of $42.9 million as of June 30, 2024
Insights
Above Food's business update reveals a complex financial picture with both challenges and potential. The company's 34% revenue CAGR from FY2021 to FY2024 is impressive, demonstrating strong market traction. However, the decline in revenue from
The negative gross profit of
On a positive note, the anticipated
Investors should closely monitor Above Food's ability to leverage its vertically integrated model to improve margins and cash flow generation. The company's potential to capture a share of the
Above Food's 'Seed-to-Fork' platform positions the company uniquely in the evolving food industry landscape. The integration of regenerative agriculture, value-added ingredients manufacturing and consumer products addresses critical challenges in global food security and aligns with the growing 'better-for-you' trend.
The company's strategic control of key supply chain entry points, including proprietary seed genetics, could provide a significant competitive advantage. This vertical integration has the potential to yield superior economics and sustainable long-term growth, particularly as the company scales operations.
Above Food's diverse customer base of over 260 clients and retail distribution across more than 62,000 points demonstrates strong market penetration. The production capacity in the Disruptive Agriculture segment alone, capable of generating
However, the company's ability to capitalize on these opportunities will depend on its execution and financial management. The recent financial results indicate challenges in optimizing revenue mix and managing working capital, which could hinder growth if not addressed effectively.
Investors should watch for Above Food's progress in leveraging its assets, improving cash flow generation and potentially pursuing strategic acquisitions to expand its reach. The company's performance in the coming quarters will be important in determining whether it can translate its innovative model into sustainable financial success in the competitive food industry.
Combination of strategic transactions expected to provide approximately US
Management will host a conference call and webcast today at 4:30 p.m. ET
REGINA, Saskatchewan, July 25, 2024 (GLOBE NEWSWIRE) -- Above Food Ingredients Inc. (Nasdaq: ABVE, ABVE.W) (“Above Food” or the “Company”), an innovative food company leveraging its vertically integrated supply chain to deliver differentiated ingredients and consumer products, today announced a business update following its recently completed business combination transaction and Nasdaq listing.
Management Commentary
“At Above Food, we're not just another player in the food industry – we are breaking boundaries and disrupting tradition. Above Food is revolutionizing the entire food chain with our unique Seed-to-Fork platform. This innovative approach integrates regenerative agriculture, value-added ingredients manufacturing and consumer products, which positions us to address the powerful secular ‘better-for-you’ trends, global food security challenges and supply chain fragility,” stated Lionel Kambeitz, Founder, President, Chief Executive Officer, and Executive Chairman of Above Food.
“We are excited to share our compelling story with the investment community and demonstrate our ability to drive momentum in our specialty ingredients business, generate improved margins and leverage the utilization of our asset base to increase our revenues in the coming years. We've achieved a strong revenue CAGR of
Mr. Kambeitz concluded, “We look forward to providing our update for the first half of fiscal year 2025 in connection with the release of our first half fiscal year 2025 financial results in the coming months that we expect will underscore Above Food's significant value and potential. With a robust pipeline of strategic acquisition opportunities that can expand the geographies and markets we reach, coupled with multiple avenues for organic growth and margin expansion opportunities, we believe Above Food represents a compelling investment opportunity.”
Strategic Business Highlights
Above Food has positioned itself to participate in a transformative shift in the food industry. By integrating regenerative agriculture, value-added ingredients manufacturing, and consumer products into a unified "Seed-to-Fork" platform, the Company addresses critical challenges in global food security.
Above Food has assembled a "Seed-to-Fork" platform that leverages a vertically integrated sourcing model, advanced traceability systems, and a regenerative supply chain. This approach enables the Company to maintain a synergistic portfolio of ingredients and consumer products, setting it apart from traditional food producers and manufacturers.
At the core of Above Food's competitive advantage is its ownership and control of key supply chain entry points. This strategic positioning allows for superior economics, supported by advantageous margins and sustainable long-term growth drivers when operating at scale. The Company's model addresses a vast market opportunity, with a total addressable market exceeding US
Above Food is positioned to scale with existing assets and to become a leading and profitable operator in the industry. The Company services a diverse customer base of over 260 clients and boasts a retail distribution footprint spanning more than 62,000 points. This extensive reach is supported by owned production and efficient processing facilities, which in the Disruptive Agriculture segment alone are capable of producing US
A key differentiator for Above Food is its ownership and control of proprietary seed genetics. The Company is actively engaged in ongoing trait improvements through advanced agronomy, production protocols, and natural genetic selection. This focus on seed technology positions Above Food at the forefront of agricultural innovation and sustainable food production.
Leading this innovative company is an established industry leadership team with extensive experience across the food production ecosystem. The management team’s strong commitment to Environmental, Social, and Governance (ESG) practices and standards ensures that Above Food not only delivers value to shareholders but also contributes positively to society and the environment.
In summary, Above Food's vertically integrated model, market positioning, production capabilities, quality certifications, technological innovations, and experienced leadership team collectively position the Company as a formidable player in the evolving food industry landscape, poised for substantial growth and impact in the years to come.
Select Fiscal Year 2024 Financial Results
The Company filed its Form 20-F with the Securities and Exchange Commission (“SEC”) on July 8, 2024 (link to the filing found here.) Unless otherwise stated, the figures below are presented in U.S. Dollars (USD). The Company’s financial performance in fiscal year 2024 was negatively impacted by a lack of available working capital to continue growing its business. This dynamic also presented the Company with headwinds related to its efforts to optimize its mix of revenues in higher margin areas of the business in the interest of faster cash conversion cycles
Revenue for the fiscal year ended January 31, 2024 was
Gross profit for fiscal year 2024 was negative
Net loss for fiscal year 2024 was
Please refer to the reconciliations of adjusted gross profit to the most comparable metric calculated in accordance with GAAP in this press release below.
Balance Sheet Update
As of January 31, 2024, the Company reported total gross debt of
The gross debt and cash and cash equivalent amounts as of June 30, 2024 are preliminary, unaudited financial results and subject to change. These estimates have been prepared by management, and the Company’s independent registered public accounting firm has not audited or reviewed this preliminary financial data.
Conference Call Details
The Company will host a conference call today, July 25, 2024, at 4:30 p.m. Eastern time. Investors interested in participating in the live call can dial (877) 407-9208 from the U.S. International callers can dial (201) 493-6784. A telephone replay will be available after the call concludes and will be available through August 8, 2024, by dialing (844) 512-2921 from the U.S., or (412) 317-6671 from international locations, and entering confirmation code 13748040.
There also will be a simultaneous, live webcast available on the Investors section of the Company's web site at www.abovefood.com.
About Above Food
Above Food Ingredients Inc. (Nasdaq: ABVE, ABVE.W) is a differentiated, regenerative ingredient company that celebrates delicious products made with real nutritious, flavorful ingredients and delivered with transparency. Above Food’s vision is to create a healthier world — one seed, one field, and one bite at a time. With a robust chain of custody of plant proteins, enabled by scaled operations and infrastructure in primary agriculture and processing, and proprietary seed development capabilities that leverage the power of artificial intelligence driven genomics, Above Food delivers nutritious foods to businesses and consumers with traceability and sustainability. Above Food’s consumer products and brands are available in leading grocers across Canada and the United States.
Non-GAAP Financial Measures
This press release contains disclosure of the Company's adjusted gross profit and adjusted gross profit margin which are non-GAAP financial measures as defined under SEC rules. As required by SEC rules, the Company has provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures in this press release. The Company believes that presentation of these non-GAAP financial measures improves the transparency of the Company's disclosures and provides a meaningful presentation of the Company's results. These non-GAAP financial measures have limitations as an analytical tool as they do not have a standardized meaning prescribed by U.S. GAAP. The non-GAAP financial measures Above Food uses may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies and, therefore, are unlikely to be comparable to similar measures presented by other companies. Rather, these non-GAAP financial measures are provided as a supplement to corresponding U.S. GAAP measures to provide additional information regarding the results of operations from management’s perspective. Accordingly, non-GAAP financial measures should not be considered a substitute for, in isolation from, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. All non-GAAP financial measures presented in this press release are reconciled to their closest reported U.S. GAAP financial measures.
Reconciliation of Non-GAAP Financial Measures
| Above Food Corp. | ||||
| Adjusted Gross Profit Calculation | ||||
| Year ended January 31, 2024 | ||||
| Gross loss per FS (CAD) | - | 5,898,748 | ||
| Additions (Deductions) - non-recurring/non-core items | ||||
| Gains/losses - foreign exchange and mark to market (CAD) | - | 337,120 | ||
| Inventory impairment/adjustment/write-downs (CAD) | 4,560,789 | |||
| Total additions | 4,223,669 | |||
| Adjusted gross loss (CAD) | - | 1,675,079 | ||
| Avg. USD Exchange Rate for FY24 | 0.7409 | |||
| Adjusted Gross Loss - USD | - | 1,241,075 | ||
| Revenue per Audited FS (CAD) | 368,423,398 | |||
| Avg. USD Exchange Rate for FY24 | 0.7409 | |||
| USD Revenue | 272,966,880 | |||
| Adjusted GP % - USD | - | 0.45% | ||
| Above Food Corp. | ||||
| Adjusted Gross Profit Calculation | ||||
| Year ended January 31, 2023 | ||||
| Gross loss per FS (CAD) | - | 1,279,640 | ||
| Additions (Deductions) - non-recurring/non-core items | ||||
| Gains/losses - foreign exchange and mark to market (CAD) | 7,540,074 | |||
| Inventory impairment/adjustment/write-downs (CAD) | 153,173 | |||
| Total additions | 7,693,247 | |||
| Adjusted gross profit (CAD) | 6,413,607 | |||
| Avg. USD Exchange Rate for FY23 | 0.7646 | |||
| Adjusted Gross Profit - USD | 4,903,744 | |||
| Revenue per Audited FS (CAD) | 396,464,504 | |||
| Avg. USD Exchange Rate for FY23 | 0.7646 | |||
| USD Revenue | 303,130,594 | |||
| Adjusted GP % - USD | 1.62% | |||
Cautionary Statement Regarding Forward-Looking Statements
This press release may contain “forward-looking information” within the meaning of the United States federal securities laws and applicable Canadian securities laws. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” future,” “opportunity,” “plan,” “may,” “should,” “will,” “could,” “will be,” will continue,” and similar expressions and include, without limitation, statements about the ability of or expectations regarding the future performance of our business and operations; expectations regarding revenues, expenses, adjusted gross profit, adjusted gross profit margin and anticipated cash needs, including the financial and operating results of for the six-month period ending July 31, 2024 (and the anticipated release date thereof); expectations regarding cash flow, liquidity and sources of funding, including the ability to raise additional capital; expectations regarding capital expenditures; expectations regarding Above Food's ability to execute its growth strategy; expectations regarding our ability to maintain and enhance our platform and synergistic portfolio of ingredients and consumer products; and expectations regarding our ability to differentiate ourselves from competitors.
Forward-looking statements are based on the current expectations of Above Food's management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on, by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. You should carefully consider all of the risks and uncertainties described in the “Risk Factors” section of the Company’s Form F-4, dated April 8, 2024, which is available on EDGAR at www.sec.gov/edgar.shtml and in other documents filed by the Company from time to time with the United States Securities and Exchange Commission. The foregoing list of risk factors is not exhaustive. There may be additional risks that Above Food presently does not know or that Above Food currently believes are immaterial that could also cause actual results to differ from those contained in forward-looking statements. In addition, forward-looking statements provide Above Food’s expectations, plans or forecasts of future events and views as of the date of this communication. Above Food anticipates that subsequent events and developments will cause Above Food’s assessments to change. However, while Above Food may elect to update these forward-looking statements in the future, Above Food specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Above Food’s assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements. Nothing herein should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results in such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements in this communication, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein.
Contacts
Media:
media@abovefood.com
Investors:
investors@abovefood.com
FAQ
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