Edible Garden Reports Preliminary First Quarter Year-Over-Year Increase in Produce Revenues of 40%; Cut Herb Revenue Increased More Than 200% for the Same Period

Rhea-AI Summary

Edible Garden AG Incorporated reported a 40% year-over-year increase in produce revenues and a more than 200% increase in cut herb revenue for the first quarter. The growth was attributed to investments in equipment, infrastructure, and expanded retail distribution. CEO Jim Kras highlighted sustained strong demand for cut herbs and the company's focus on becoming a vertically integrated herb supplier.

Positive

• Edible Garden AG Incorporated reported a 40% year-over-year increase in produce revenues.
• Cut herb revenue increased by more than 200% compared to the same period last year.
• Investments in equipment and infrastructure, along with expanded retail distribution, contributed to the revenue growth.
• The company experienced a 12-fold increase in herb production.
• CEO Jim Kras emphasized sustained strong demand for cut herbs in 2024.
• Edible Garden focused on becoming a vertically integrated herb supplier to support growth.
• The company invested in coolers to support increased production in New Jersey and Michigan facilities.
• Increased production volume is expected to lead to improved margins and economies of scale.

Negative

• None.

Insights

Financial Analyst

The preliminary financial results from Edible Garden indicate a significant uptick in produce revenue, with a striking 40% increase in overall produce sales and a dramatic ramp-up in cut herb revenue by more than 200%. This performance suggests a robust demand for their products, which is likely attributed to the strategic moves by the company to enhance their production capabilities and expand retail distribution. The company's focus on controlled environment agriculture—a rapidly growing sector in the agri-business—positions them to meet consumer demand for organic and locally sourced foods. It's noteworthy that management expects to reap the benefits of improved margins and economies of scale as production volume ramps up, which may signal enhanced profitability in future quarters. For investors, these factors could translate to a promising outlook, particularly if the company successfully leverages its fixed costs and continues to expand its distribution network.

Sustainability Expert

Edible Garden's commitment to sustainability and organic production reflects a larger consumer trend towards environmentally friendly and health-conscious food choices. The significant growth in revenue, especially from cut herbs, is indicative of a successful alignment with market demand for such products. The Company's investment in controlled environment agriculture technology underscores their initiative to maintain a sustainable, year-round production that aligns with their local, organic ethos. Retail investors may find the company's strategic alignment with these trends compelling, as sustainability becomes increasingly important to consumers, potentially impacting long-term brand loyalty and market share.

BELVIDERE, NJ, April 17, 2024 (GLOBE NEWSWIRE) -- Edible Garden AG Incorporated (“Edible Garden” or the “Company”) (Nasdaq: EDBL, EDBLW), a leader in controlled environment agriculture (CEA), locally grown, organic, and sustainable produce and products, today announced a preliminary first-quarter year-over-year increase in produce revenues of 40% and an increase in cut herb revenue of more than 200% compared to the same period last year. This growth resulted from the Company’s investments in equipment and infrastructure, as well as expanded retail distribution leading to a 12-fold increase in herb production.

Mr. Jim Kras, Chief Executive Officer of Edible Garden, commented, "Following a strong year for cut herb sales in 2023, the Company is experiencing sustained strong demand for cut herbs in 2024 and our distribution network now includes many of the foremost retailers in the nation. These retailers rely on us for our high-quality, locally sourced, organic, and sustainably produced products.  To support our growth, in 2023, we placed a major emphasis on becoming a vertically integrated herb supplier, which included investments in equipment such as coolers to support increased production in both our Belvidere, New Jersey and Grand Rapids, Michigan facilities.  As we increase our production volume and leverage our fixed costs, we expect to benefit from improved margins and economies of scale.”

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 and US 11,410,249 B2) software optimizes growing in vertical and traditional greenhouses while seeking to reduce pollution-generating food miles. 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/.

Preliminary, Unaudited Financial Disclosures
The data presented above is preliminary and unaudited, based upon our estimates, and subject to further internal review by management and compilation of actual results.  The data presented above does not reflect the impact from floral or vitamins and supplements revenue during the quarter and may not be reflective of year-over-year trends in consolidated revenue during the first quarter. Our closing procedures for the quarter ended March 31, 2024, are not yet complete. Our management's estimates are based upon preliminary information currently available from our business and do not include any promotional deductions. While we expect that our results will be consistent with these preliminary and unaudited estimates, our actual results may differ materially from these preliminary estimates.

This preliminary financial information is not a comprehensive statement of our financial results for this period. For example, cut herbs constitute only one component of our overall revenue, which also includes sales from potted herbs, produce and floral products and vitamins and supplements. Our actual results may differ materially from these estimates due to the completion of our financial closing procedures, final adjustments, and other developments that may arise between now and the time the closing procedures for the quarter are completed.

The preliminary results presented above have been prepared by and are the responsibility of our management. Our independent registered public accounting firm has not audited, reviewed, compiled or performed any procedures with respect to the results presented above. Accordingly, our independent registered public accounting firm does not express an opinion or any other form of assurance with respect to these preliminary results.

Forward-Looking Statements
This press release contains forward-looking statements, including with respect to the Company’s overall profitability, ability to expand its distribution network and distribution relationships,  and performance as a public company. The words “estimate,” “expect,” “future,” “may,” “seek,” 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, and other factors set forth in the Company’s filings with the Securities and Exchange Act Commission, including the Company’s annual report on Form 10-K for the year ended December 31, 2023. Actual results might differ materially from those explicit or implicit in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. 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

FAQ

What was the year-over-year increase in produce revenues for Edible Garden AG Incorporated in the first quarter?

Edible Garden AG Incorporated reported a 40% year-over-year increase in produce revenues.

How much did cut herb revenue increase by for Edible Garden AG Incorporated in the first quarter?

Cut herb revenue increased by more than 200% compared to the same period last year for Edible Garden AG Incorporated.

What contributed to the revenue growth for Edible Garden AG Incorporated in the first quarter?

Investments in equipment, infrastructure, and expanded retail distribution contributed to the revenue growth for Edible Garden AG Incorporated.

What did CEO Jim Kras highlight regarding cut herbs for Edible Garden AG Incorporated?

CEO Jim Kras highlighted sustained strong demand for cut herbs in 2024 for Edible Garden AG Incorporated.

What did Edible Garden AG Incorporated focus on to support growth?

Edible Garden AG Incorporated focused on becoming a vertically integrated herb supplier to support growth.

What investments did Edible Garden AG Incorporated make to support increased production?

Edible Garden AG Incorporated invested in coolers to support increased production in New Jersey and Michigan facilities.