Edible Garden Reports 21.6% Year-over-Year Revenue Growth for 2023
- 32.8% year-over-year revenue growth for the fourth quarter of 2023.
- 125.8% increase in gross profit in 2023.
- Edible Garden secures two new patents in 2024, emphasizing innovation in AgTech.
- Partnerships with major retailers like Tops Friendly Markets and Uncle Giuseppe's Marketplace.
- Expansion of product lineup and distribution agreements with leading U.S. food retailer.
- Investment in production capabilities and technology enhancements at greenhouse operations.
- Introduction of Pulp sustainable gourmet sauces and chili-based products with wide retail availability.
- Award of two new patents for GreenThumb and Self-Watering Display technology.
- Financial results show revenue growth, increase in gross profit, and improvements in gross and operating margins.
- None.
Insights
The reported 32.8% year-over-year revenue growth and 125.8% increase in gross profit for Edible Garden are significant indicators of the company's market performance and potential for scalability. The expansion of product lines and partnerships with major retailers like Tops Friendly Markets and Uncle Giuseppe's Marketplace, alongside the introduction of innovative products, are likely to have contributed to this growth. The strategic partnership with a leading U.S. food retailer for a 3-year agreement could further solidify the company's market presence and diversify its revenue streams.
However, it is important to note the net loss figures, which, despite an improvement from the previous year, still indicate that the company is in a deficit. This could be a point of concern for potential investors looking for profitability. The company's investment in infrastructure, such as the Edible Garden Heartland facility and the acquisition of two new patents, suggest a focus on long-term growth and innovation. These investments may lead to improved operational efficiencies and reduced dependency on contract growers, which could be beneficial in the long run.
From a market perspective, the company's entry into the global sauces and condiments sector with the Pulp line and the launch of an e-commerce platform for direct consumer sales are moves that could tap into the growing demand for online shopping and niche gourmet products. The growth projection for this sector by Research and Markets indicates that there is potential for significant market expansion.
Analyzing the financial results, the increase in the cost of goods sold and the one-time, non-cash impairment expense are areas that require scrutiny. The increase in costs is attributed to the buildout and staffing of the new facility, inflationary pressures on packaging and labor and higher supplier rates. These factors could squeeze margins if not managed effectively going forward. It is promising, however, that the company managed to reduce selling, general and administrative expenses year-over-year, which reflects cost control measures that could lead to better financial health in the future.
The improvement in gross margin by 270 basis points and the 767 basis point improvement in operating margin are positive signs of management's ability to enhance profitability. The company's strategic decisions to reduce reliance on contract growers and invest in technology and infrastructure appear to be paying off in terms of margin improvement. Still, the overall net loss indicates that the company has not yet reached a break-even point.
Investors might be interested in the adjusted per share amounts, which show a reduction in the net loss per share from the previous year. This suggests an improvement in the company's financial position, although it is essential to consider the potential dilutive effects of any future capital raises or stock splits.
Edible Garden's commitment to sustainable and organic produce is a critical aspect of its business model, aligning with growing consumer trends towards environmentally friendly and health-conscious products. The company's Zero-Waste Inspired® mission and the introduction of Self-Watering Display technology patented in 2024 emphasize its innovative approach to sustainability. This technology not only enhances product shelf life but also aligns with consumer preferences for waste reduction and could potentially attract a consumer base willing to pay a premium for such products.
The company's investment in controlled environment agriculture (CEA) and the acquisition of patents for its GreenThumb greenhouse management system suggest a focus on sustainable growth and operational efficiency. These advancements could position the company favorably in the AgTech industry, which is increasingly important as the sector moves towards sustainable practices. However, the financial impact of these sustainability initiatives on the company's bottom line remains to be seen, as significant investments are often required upfront for long-term gains.
3
Gross Profit Increases
Edible Garden Secures Two New Patents in 2024 Highlighting Company’s Innovation Leadership Position in AgTech; Driving Efficiency and Expected Profitability
Conference Call to Be Held Today at 8:00 am ET.
BELVIDERE, N.J., April 01, 2024 (GLOBE NEWSWIRE) -- Edible Garden AG Incorporated (“Edible Garden” or the “Company”) (Nasdaq: EDBL), a leader in controlled environment agriculture (CEA), locally grown, organic and sustainable produce and products, today provided a business update and reported financial results for the three month and full year periods ended December 31, 2023.
Mr. Jim Kras, Chief Executive Officer of Edible Garden, commented, “We are extremely pleased to report a
“We have further leveraged our platform to enrich and broaden the scope of our offerings. We recently partnered with Tops Friendly Markets, bringing our sustainable herbs to 149 stores across New York, Pennsylvania, and Vermont. Furthermore, we have also added Uncle Giuseppe's Marketplace, part of RBest Produce, which is now offering Edible Garden herbs in their 12 locations throughout New York and New Jersey. The addition of these two retailers significantly boosts our presence in the Northeastern U.S. In February, we entered into 3-year agreements with a leading major U.S. food retailer, enabling us to expand our product lineup in their stores. This expansion includes a variety of products such as potted and fresh-cut herbs, fresh-cut basil, and wheatgrass. More than just expanding our product offerings, this partnership will see the introduction of fresh and innovative displays aimed at boosting the brand’s visibility and prominence on the retailers’ shelves. We also began distributing two innovative flavors from our Vitamin Whey collection to Meijer locations throughout the Midwest earlier this year, as part of the kickoff for our nationwide expansion plan. These collaborations highlight the Company’s commitment to enhancing our relationships with retail partners, to better meet their needs and make shopping easier for their customers. Additionally, we enhanced our production capabilities at our greenhouse operations in New Jersey and Michigan, which has led to a decreased dependency on contract growers, allowing us greater control and flexibility in our operations.
Moreover, our investment in Edible Garden Heartland has been rewarding, incorporating advanced technologies such as our proprietary GreenThumb greenhouse management system, which significantly improved the efficiency of our supply chain, allowing the Company to ship tens of thousands of fall ornamentals just in time for the fall gardening season. We anticipate increased profit margins from the ornamentals sector and are confident that expanding this line of business will have a positive effect on the Company's overall profitability.”
“A mere year ago, we unveiled Pulp, our cutting-edge collection of sustainable gourmet sauces and chili-based products, and entered into the global sauces and condiments sector—a sector projected to grow from
“Earlier this year, the US Patent Trademark Office awarded Edible Garden two patents. The first patent pertains to GreenThumb, a web-based greenhouse management and demand planning system that enables the Company to enhance our supply chain efficiency which has led to improved shipping and fill rates, alongside notable sales growth. This is the third distinct patent awarded to this advanced system. The second patent issued in February highlights our commitment to innovation through our proprietary Self-Watering Display technology. This technology has been a game-changer for the Company, extending plant shelf life, ensuring freshness, and reducing spoilage at retail outlets. Aligned with our Zero-Waste Inspired® mission, these self-watering displays allow retailers to showcase plants at their peak, minimizing waste and delivering superior products to customers. These patents are a testament to Edible Garden's leading role in the AgTech industry, further demonstrating the Company’s unwavering commitment to leading-edge innovation. Through the deployment of advanced technologies such as these, these patents are driving operational efficiency and expected profitability, highlighting Edible Garden's commitment to sustainable development and its position as a leader in agricultural technology.”
Financial results for the three months ended December 31, 2023
For the fourth quarter ended December 31, 2023, revenue totaled
Cost of goods sold was
Selling, general and administrative expenses were
Net loss was
Financial results for the year ended December 31, 2023
For the year ended December 31, 2023, revenue totaled
Cost of goods sold was
Gross profit increased by
Selling, general and administrative expenses were
Net loss was
The complete financial results for the year ended December 31, 2023, are available in the Company’s Annual Report on Form 10-K, which will be filed with the Securities and Exchange Commission and available at: www.sec.gov.
Conference Call
Edible Garden will host a conference call today at 8:00 A.M. Eastern Time to discuss the Company’s financial results for the fourth quarter and year ended December 31, 2023, as well as the Company’s corporate progress and other developments.
The conference call will be available via telephone by dialing toll-free 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and using entry code: 297232. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2914/50246 or on the investor relations section of the Company’s website at https://ediblegardenag.com/presentations.
A webcast replay will also be available on the Company’s Investors section of the website at https://ediblegardenag.com/presentations through April 1, 2025. A telephone replay of the call will be available approximately one hour following the call, through Monday, April 15, 2024, and can be accessed by dialing 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering conference ID: 50246.
ABOUT EDIBLE GARDEN®
Edible Garden AG Incorporated is a leader in controlled environment agriculture (CEA), locally grown, organic and sustainable produce and products backed by Zero-Waste Inspired® next generation farming. Offered at over 5,000 stores in the US, Edible Garden is disrupting the CEA and sustainability technology movement with its safety-in-farming protocols, use of sustainable packaging, patented GreenThumb software and self-watering in-store displays. The Company currently operates its own state-of-the-art greenhouses and processing facilities in Belvidere, New Jersey and Grand Rapids, Michigan, and has a network of contract growers, all strategically located near major markets in the U.S. Its proprietary GreenThumb 2.0 patented (US Nos.: US 11,158,006 B1, US 11,410,249 B2 and US 11,830, 088 B2) software optimizes growing in vertical and traditional greenhouses while seeking to reduce pollution-generating food miles. Its proprietary patented (U.S. Patent No. D1,010,365) Self-watering display is designed to increase plant shelf life and provide an enhanced in-store plant display experience. Edible Garden is also a developer of ingredients and proteins, providing an accessible line of plant and whey protein powders under the Vitamin Way® and Vitamin Whey® brands. In addition, the Company offers a line of sustainable food flavoring products such as Pulp gourmet sauces and chili-based products. For more information on Edible Garden go to https://ediblegardenag.com/.
Forward-Looking Statements
This press release contains forward-looking statements, including with respect to the Company’s ability to improve its financial results, the Company’s growth strategies, the Company’s ability to expand into new product lines, and its performance as a public company. The words “anticipate,” “believe,” “design,” “expect,” “objective,” “opportunity,” “potential,” “project,” “seek,” “will,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including market and other conditions and the Company’s ability to achieve its growth objectives. The Company undertakes no obligation to update any such forward-looking statements after the date hereof to conform to actual results or changes in expectations, except as required by law.
Investor Contacts:
Crescendo Communications, LLC
212-671-1020
EDBL@crescendo-ir.com
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| EDIBLE GARDEN AG INCORPORATED | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands, except shares) | ||||||||
| December 31, | December 31, | |||||||
| 2023 | 2022 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 510 | $ | 110 | ||||
| Accounts receivable, net | 1,249 | 1,105 | ||||||
| Inventory, net | 678 | 586 | ||||||
| Prepaid expenses and other current assets | 210 | 62 | ||||||
| Total current assets | 2,647 | 1,863 | ||||||
| Property, equipment and leasehold improvements, net | 3,893 | 4,891 | ||||||
| Intangible assets, net | 47 | 50 | ||||||
| Other assets | 69 | 161 | ||||||
| TOTAL ASSETS | $ | 6,656 | $ | 6,965 | ||||
| LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||
| LIABILITIES: | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and other accrued expenses | $ | 2,517 | $ | 2,787 | ||||
| Short-term debt | 387 | 2,042 | ||||||
| Total current liabilities | 2,904 | 4,829 | ||||||
| Long-term liabilities: | ||||||||
| Long-term debt, net of discounts | 4,040 | 4,282 | ||||||
| Long-term lease liabilities | - | 34 | ||||||
| Total long-term liabilities | 4,040 | 4,316 | ||||||
| Total Liabilities | 6,944 | 9,145 | ||||||
| COMMITMENTS AND CONTINGENCIES (Note 12) | ||||||||
| STOCKHOLDERS' DEFICIT: | ||||||||
| Common stock ( | 1 | - | ||||||
| Series A Convertible Preferred stock ( | - | - | ||||||
| Additional paid-in capital | 29,971 | 17,892 | ||||||
| Accumulated deficit | (30,260 | ) | (20,072 | ) | ||||
| Total Stockholders' Deficit | (288 | ) | (2,180 | ) | ||||
| TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ | 6,656 | $ | 6,965 | ||||
| (1) Adjusted to reflect the stock splits | ||||||||
| EDIBLE GARDEN AG INCORPORATED | |||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
| (in thousands, except share and per-share information) | |||||||
| Years Ended December 31, | |||||||
| 2023 | 2022 | ||||||
| Revenue | $ | 14,049 | $ | 11,552 | |||
| Cost of goods sold | 13,227 | 11,188 | |||||
| Gross profit | 822 | 364 | |||||
| Selling, general and administrative expenses | 10,009 | 9,368 | |||||
| Impairment loss | 686 | - | |||||
| Loss from operations | (9,873 | ) | (9,004 | ) | |||
| Other income / (expense) | |||||||
| Interest expense, net | (390 | ) | (2,033 | ) | |||
| Gain (Loss) from extinguishment of debt | 70 | (826 | ) | ||||
| Other income / (loss) | 5 | (590 | ) | ||||
| Total other income / (expense) | (315 | ) | (3,449 | ) | |||
| NET LOSS | $ | (10,188 | ) | $ | (12,453 | ) | |
| Net Income / (Loss) per common share - basic and diluted (1) | $ | (3.08 | ) | $ | (48.68 | ) | |
| Weighted-Average Number of Common Shares Outstanding - Basic and Diluted (1) | 3,303,955 | 255,776 | |||||
| (1) Adjusted to reflect the stock splits | |||||||
FAQ
What was the year-over-year revenue growth for Edible Garden AG Incorporated in the fourth quarter of 2023?
What was the percentage increase in gross profit for Edible Garden AG Incorporated in 2023?
How many new patents did Edible Garden AG Incorporated secure in 2024?
Which major retailers did Edible Garden AG Incorporated recently partner with?
What financial improvements did Edible Garden AG Incorporated see in 2023?
