Laird Superfood Reports Second Quarter 2023 Financial Results
- Improved gross margin by 610 basis points
- Record low cash burn of $1.4 million
- Wholesale net sales increased by 2.6% year-over-year
- Gross margin expanded to 24.3%
- Adjusted net loss was $3.3 million
- Net sales decreased to $7.7 million
- E-commerce net sales decreased by 20.1%
- Net loss of $3.5 million
Gross margin improved by 610 basis points and cash burn was a record low of
Second Quarter 2023 Highlights
-
Net sales of
compared to$7.7 million in the prior quarter, and$8.1 million in the prior year period.$8.7 million -
Wholesale contributed
46% of total Net sales and increased2.6% year-over-year, driven by distribution gains in the Retail channel, pricing, as well as velocity improvements behind new packaging and the re-branding campaign launched earlier this year. -
E-commerce contributed
54% of total Net sales and decreased20.1% year-over-year reflecting Amazon sales compression due to inventory out of stocks related to the previously discussed product quality issue experienced in Q1. We expect this out-of-stock issue to be fully resolved in the third quarter. Direct-to-consumer (“DTC”) revenues declined behind a strategic, planned reduction in Marketing spend, reflecting a67% decrease in working media. This was offset by an increase in our subscription base which grew10% sequentially and21% compared to the prior year period. -
Gross margin was
24.3% , compared to23.1% in the first quarter of 2023 and18.2% in the prior year period. This 610 basis point margin expansion was driven by the transition to a variable cost third-party co-manufacturing business model, but was offset by incremental Trade spend intended to drive growth in Retail, specifically around innovation expansion, awareness, and trial. -
Net loss was
, or$3.5 million per diluted share compared to Net loss of$0.38 , or$4.1 million per diluted share, in the first quarter of 2023 and Net loss of$0.45 , or$4.9 million per diluted share, in the prior year period. The improvement is driven by Gross margin expansion, lower Marketing and general and administrative spend.$0.54 -
Adjusted net loss, which is a non-GAAP financial measure, was
, or$3.3 million per diluted share in the second quarter of 2023 compared to$0.36 , or$3.7 million per diluted share in the first quarter of 2023 and$0.40 , or$6.2 million per diluted share in the prior year period. This sequential and prior year improvement was driven by significantly expanded Gross margins and lower Marketing and G&A spend. For more details on non-GAAP financial measures, refer to the information in the Non-GAAP financial measures section of this press release.$0.68
Jason Vieth, Chief Executive Officer, commented, "I am happy to share that we continued to make strong progress against our strategic initiatives and toward breakeven profitability during Q2. As expected, our transition to an outsourced manufacturing and distribution model has already yielded strong improvements in our Cost of Goods Sold, which fell by 18 points year-over-year as we fully overcame the raw material challenge that we had reported during the first quarter results. For the quarter, Gross Margin rose again, beating our Q1 2023 result by 120 basis points, and improving 6.1 points vs. the same period one year ago. This improvement in Gross Margin would have been even stronger in Q2, except for the investments that we have made in Trade Promotion to drive incremental awareness and trial in Retail stores."
"While the overall market remains challenging, we are confident that our strategy to grow the Wholesale channel while significantly reducing our Marketing spend is already bearing fruit, as demonstrated in the
Anya Hamill, Chief Financial Officer, commented, "In the second quarter, we continued to build on the success we achieved in the first quarter from strategic actions implemented last year. For the second quarter in a row, Adjusted gross margin was in the mid-twenties with Q2 Gross margin reaching
"Despite the progress made improving the middle of our P&L, we had higher promotional spend in Q2 as we increased support of our Wholesale channel distribution as well as inventory out-of-stocks that impacted our Amazon performance. We expect to resolve these issues during Q3, but are updating our guidance to reflect Net sales in the range of
|
|
Three Months Ended June 30, |
||||||||||||||
|
|
2023 |
|
2022 |
||||||||||||
|
|
$ |
|
% of Total |
|
$ |
|
% of Total |
||||||||
Coffee creamers |
|
$ |
4,636,807 |
|
|
|
60 |
% |
|
$ |
4,694,975 |
|
|
|
54 |
% |
Hydration and beverage enhancing supplements |
|
|
998,309 |
|
|
|
13 |
% |
|
|
1,296,779 |
|
|
|
15 |
% |
Harvest snacks and other food items |
|
|
1,845,016 |
|
|
|
24 |
% |
|
|
1,713,441 |
|
|
|
20 |
% |
Coffee, tea, and hot chocolate products |
|
|
1,973,437 |
|
|
|
26 |
% |
|
|
1,568,142 |
|
|
|
18 |
% |
Other |
|
|
124,952 |
|
|
|
2 |
% |
|
|
419,390 |
|
|
|
5 |
% |
Gross sales |
|
|
9,578,521 |
|
|
|
125 |
% |
|
|
9,692,727 |
|
|
|
112 |
% |
Shipping income |
|
|
259,843 |
|
|
|
2 |
% |
|
|
291,410 |
|
|
|
3 |
% |
Returns and discounts |
|
|
(2,114,273 |
) |
|
|
(27 |
)% |
|
|
(1,310,131 |
) |
|
|
(15 |
)% |
Sales, net |
|
$ |
7,724,091 |
|
|
|
100 |
% |
|
$ |
8,674,006 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
||||||||
E-commerce |
|
|
4,139,373 |
|
|
|
54 |
% |
|
|
5,178,819 |
|
|
|
60 |
% |
Wholesale |
|
|
3,584,718 |
|
|
|
46 |
% |
|
|
3,495,187 |
|
|
|
40 |
% |
Sales, net |
|
$ |
7,724,091 |
|
|
|
100 |
% |
|
$ |
8,674,006 |
|
|
|
100 |
% |
|
|
Six Months Ended June 30, |
||||||||||||||
|
|
2023 |
|
2022 |
||||||||||||
|
|
$ |
|
% of Total |
|
$ |
|
% of Total |
||||||||
Coffee creamers |
|
$ |
9,754,167 |
|
|
|
62 |
% |
|
$ |
10,149,382 |
|
|
|
56 |
% |
Hydration and beverage enhancing supplements |
|
|
1,669,159 |
|
|
|
11 |
% |
|
|
2,754,210 |
|
|
|
15 |
% |
Harvest snacks and other food items |
|
|
3,598,042 |
|
|
|
23 |
% |
|
|
3,400,232 |
|
|
|
19 |
% |
Coffee, tea, and hot chocolate products |
|
|
3,942,732 |
|
|
|
25 |
% |
|
|
3,384,327 |
|
|
|
19 |
% |
Other |
|
|
154,681 |
|
|
|
1 |
% |
|
|
657,713 |
|
|
|
4 |
% |
Gross sales |
|
|
19,118,781 |
|
|
|
122 |
% |
|
|
20,345,864 |
|
|
|
113 |
% |
Shipping income |
|
|
563,069 |
|
|
|
2 |
% |
|
|
539,602 |
|
|
|
3 |
% |
Returns and discounts |
|
|
(3,844,821 |
) |
|
|
(24 |
)% |
|
|
(2,871,447 |
) |
|
|
(16 |
)% |
Sales, net |
|
$ |
15,837,029 |
|
|
|
100 |
% |
|
$ |
18,014,019 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
||||||||
E-commerce |
|
|
8,567,054 |
|
|
|
54 |
% |
|
|
10,602,770 |
|
|
|
59 |
% |
Wholesale |
|
|
7,269,975 |
|
|
|
46 |
% |
|
|
7,411,249 |
|
|
|
41 |
% |
Sales, net |
|
$ |
15,837,029 |
|
|
|
100 |
% |
|
$ |
18,014,019 |
|
|
|
100 |
% |
Balance Sheet and Cash Flow Highlights
The Company had
Net cash used in operating activities was
2023 Outlook
We are updating our guidance for the full year of 2023 to reflect recent results, management’s revised near-term outlook, and the current economic environment. Net sales for 2023 are now expected to be in the range of
Conference Call and Webcast Details
The Company will host a conference call and webcast at 5:00 p.m. ET today to discuss results. Participants may access the live webcast on the Laird Superfood Investor Relations website at https://investors.lairdsuperfood.com under “Events”.
About Laird Superfood
Laird Superfood, Inc. creates award-winning, plant-based superfood products that are both delicious and functional. The Company's products are designed to enhance your daily ritual and keep consumers fueled naturally throughout the day. The Company was co-founded in 2015 by the world's most prolific big-wave surfer, Laird Hamilton. Laird Superfood's offerings are environmentally conscientious, responsibly tested and made with real ingredients. Shop all products online at lairdsuperfood.com and join the Laird Superfood community on social media for the latest news and daily doses of inspiration.
Forward-Looking Statements
This press release and the conference call referencing this press release contain “forward-looking” statements, as that term is defined under the federal securities laws, including but not limited to statements regarding Laird Superfood’s future financial performance and growth. These forward-looking statements are based on Laird Superfood’s current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause Laird Superfood’s actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement. We expressly disclaim any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
The risks and uncertainties referred to above include, but are not limited to: (1) the effects of global outbreaks of pandemics or contagious diseases or fear of such outbreaks, including on our supply chain, the demand for our products, and on overall economic conditions and consumer confidence and spending levels; (2) volatility regarding our revenue, expenses, including shipping expenses, and other operating results; (3) our ability to acquire new direct and wholesale customers and successfully retain existing customers; (4) our ability to attract and retain our suppliers, distributors and co-manufacturers, and effectively manage their costs and performance; (5) effects of real or perceived quality or health issues with our products or other issues that adversely affect our brand and reputation; (6) our ability to innovate on a timely and cost-effective basis, predict changes in consumer preferences and develop successful new products, or updates to existing products, and develop innovative Marketing strategies; (7) adverse developments regarding prices and availability of raw materials and other inputs, a substantial amount of which come from a limited number of suppliers outside
LAIRD SUPERFOOD, INC. |
||||||||||||||||
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Sales, net |
|
$ |
7,724,091 |
|
|
$ |
8,674,006 |
|
|
$ |
15,837,029 |
|
|
$ |
18,014,019 |
|
Cost of goods sold |
|
|
(5,848,023 |
) |
|
|
(7,096,068 |
) |
|
|
(12,087,085 |
) |
|
|
(14,486,271 |
) |
Gross profit |
|
|
1,876,068 |
|
|
|
1,577,938 |
|
|
|
3,749,944 |
|
|
|
3,527,748 |
|
General and administrative |
|
|
|
|
|
|
|
|
||||||||
Impairment of goodwill and long-lived assets |
|
|
— |
|
|
|
100,426 |
|
|
|
— |
|
|
|
8,126,426 |
|
Other expense |
|
|
2,616,177 |
|
|
|
2,535,099 |
|
|
|
5,614,621 |
|
|
|
6,337,743 |
|
Total general and administrative expenses |
|
|
2,616,177 |
|
|
|
2,635,525 |
|
|
|
5,614,621 |
|
|
|
14,464,169 |
|
Research and product development |
|
|
82,324 |
|
|
|
116,467 |
|
|
|
166,190 |
|
|
|
220,300 |
|
Sales and marketing |
|
|
|
|
|
|
|
|
||||||||
Advertising |
|
|
1,155,789 |
|
|
|
1,567,465 |
|
|
|
2,316,997 |
|
|
|
3,359,202 |
|
Related party marketing agreements |
|
|
125,198 |
|
|
|
22,750 |
|
|
|
264,525 |
|
|
|
33,250 |
|
Other expense |
|
|
1,552,185 |
|
|
|
2,162,787 |
|
|
|
3,345,698 |
|
|
|
4,332,190 |
|
Total sales and marketing expenses |
|
|
2,833,172 |
|
|
|
3,753,002 |
|
|
|
5,927,220 |
|
|
|
7,724,642 |
|
Total operating expenses |
|
|
5,531,673 |
|
|
|
6,504,994 |
|
|
|
11,708,031 |
|
|
|
22,409,111 |
|
Operating loss |
|
|
(3,655,605 |
) |
|
|
(4,927,056 |
) |
|
|
(7,958,087 |
) |
|
|
(18,881,363 |
) |
Other income (expense) |
|
|
149,109 |
|
|
|
22,536 |
|
|
|
320,103 |
|
|
|
(156,785 |
) |
Loss before income taxes |
|
|
(3,506,496 |
) |
|
|
(4,904,520 |
) |
|
|
(7,637,984 |
) |
|
|
(19,038,148 |
) |
Income tax expense |
|
|
(750 |
) |
|
|
— |
|
|
|
(13,172 |
) |
|
|
(5,774 |
) |
Net loss |
|
$ |
(3,507,246 |
) |
|
$ |
(4,904,520 |
) |
|
$ |
(7,651,156 |
) |
|
$ |
(19,043,922 |
) |
Net loss per share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
(0.38 |
) |
|
$ |
(0.54 |
) |
|
$ |
(0.83 |
) |
|
$ |
(2.09 |
) |
Diluted |
|
$ |
(0.38 |
) |
|
$ |
(0.54 |
) |
|
$ |
(0.83 |
) |
|
$ |
(2.09 |
) |
Weighted-average shares of common stock outstanding used in computing net loss per share of common stock, basic and diluted |
|
|
9,284,585 |
|
|
|
9,132,632 |
|
|
|
9,249,738 |
|
|
|
9,114,527 |
|
LAIRD SUPERFOOD, INC. |
||||||||
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS |
||||||||
(Unaudited) |
||||||||
|
|
Six Months Ended June 30, |
||||||
|
|
2023 |
|
|
2022 |
|
||
Cash flows from operating activities |
|
|
|
|
||||
Net loss |
|
$ |
(7,651,156 |
) |
|
$ |
(19,043,922 |
) |
Adjustments to reconcile net loss to net cash from operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
163,532 |
|
|
|
574,361 |
|
Provision for inventory obsolescence |
|
|
627,742 |
|
|
|
140,075 |
|
Impairment of goodwill and other long-lived assets |
|
|
— |
|
|
|
8,126,426 |
|
Other operating activities, net |
|
|
620,226 |
|
|
|
567,740 |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
|
(371,355 |
) |
|
|
24,659 |
|
Inventory |
|
|
(788,462 |
) |
|
|
1,337,457 |
|
Prepaid expenses and other current assets |
|
|
1,328,709 |
|
|
|
1,258,290 |
|
Operating lease liability |
|
|
(62,923 |
) |
|
|
(370,214 |
) |
Accounts payable |
|
|
1,202,716 |
|
|
|
(475,332 |
) |
Accrued expenses |
|
|
(2,529,105 |
) |
|
|
897,620 |
|
Net cash from operating activities |
|
|
(7,460,076 |
) |
|
|
(7,536,658 |
) |
Cash flows from investing activities |
|
|
|
|
||||
Proceeds from sale of investment securities available-for-sale |
|
|
— |
|
|
|
8,513,783 |
|
Other investing activities, net |
|
|
245,706 |
|
|
|
396,667 |
|
Net cash from investing activities |
|
|
245,706 |
|
|
|
8,910,450 |
|
Cash flows from financing activities |
|
|
(19,137 |
) |
|
|
121,090 |
|
Net change in cash and cash equivalents |
|
|
(7,233,507 |
) |
|
|
1,494,882 |
|
Cash, cash equivalents, and restricted cash, beginning of period |
|
|
17,809,802 |
|
|
|
23,049,234 |
|
Cash, cash equivalents, and restricted cash, end of period |
|
$ |
10,576,295 |
|
|
$ |
24,544,116 |
|
Supplemental disclosures of cash flow information |
|
|
|
|
||||
Right-of-use assets obtained in exchange for operating lease liabilities |
|
$ |
344,382 |
|
|
$ |
5,285,330 |
|
Supplemental disclosures of non-cash investing activities |
|
|
|
|
||||
Receivable from sale of assets held-for-sale included in other current assets at the end of the period |
|
$ |
450,351 |
|
|
$ |
— |
|
Imputed interest related to operating leases |
|
$ |
15,036 |
|
|
$ |
96,976 |
|
Amounts reclassified from accumulated other comprehensive loss |
|
$ |
— |
|
|
$ |
61,016 |
|
Amounts reclassified from property, plant, and equipment to fixed assets held-for-sale |
|
$ |
— |
|
|
$ |
947,394 |
|
Amounts reclassified from property, plant, and equipment to intangible assets |
|
$ |
— |
|
|
$ |
153,691 |
|
Purchases of equipment included in deposits at the beginning of the period |
|
$ |
— |
|
|
$ |
372,507 |
|
LAIRD SUPERFOOD, INC. |
||||||||
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS |
||||||||
|
|
As of |
||||||
|
|
June 30,
|
|
December 31,
|
||||
Assets |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash, cash equivalents, and restricted cash |
|
$ |
10,576,295 |
|
|
$ |
17,809,802 |
|
Accounts receivable, net |
|
|
1,814,461 |
|
|
|
1,494,469 |
|
Inventory, net |
|
|
5,857,285 |
|
|
|
5,696,565 |
|
Prepaid expenses and other current assets, net |
|
|
1,651,717 |
|
|
|
2,530,075 |
|
Total current assets |
|
|
19,899,758 |
|
|
|
27,530,911 |
|
Noncurrent assets |
|
|
|
|
||||
Property and equipment, net |
|
|
155,160 |
|
|
|
150,289 |
|
Fixed assets held-for-sale |
|
|
— |
|
|
|
800,000 |
|
Intangible assets, net |
|
|
1,188,674 |
|
|
|
1,292,118 |
|
Related party license agreements |
|
|
132,100 |
|
|
|
132,100 |
|
Right-of-use assets |
|
|
417,172 |
|
|
|
133,922 |
|
Total noncurrent assets |
|
|
1,893,106 |
|
|
|
2,508,429 |
|
Total assets |
|
$ |
21,792,864 |
|
|
$ |
30,039,340 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Accounts payable |
|
$ |
2,282,983 |
|
|
$ |
1,080,267 |
|
Accrued expenses |
|
|
3,748,178 |
|
|
|
6,295,640 |
|
Related party liabilities |
|
|
34,857 |
|
|
|
16,500 |
|
Lease liabilities, current portion |
|
|
126,580 |
|
|
|
59,845 |
|
Total current liabilities |
|
|
6,192,598 |
|
|
|
7,452,252 |
|
Long-term liabilities |
|
|
|
|
||||
Lease liabilities |
|
|
305,836 |
|
|
|
76,076 |
|
Total long-term liabilities |
|
|
305,836 |
|
|
|
76,076 |
|
Total liabilities |
|
|
6,498,434 |
|
|
|
7,528,328 |
|
Stockholders’ equity |
|
|
|
|
||||
Common stock, |
|
|
9,335 |
|
|
|
9,210 |
|
Additional paid-in capital |
|
|
119,071,283 |
|
|
|
118,636,834 |
|
Accumulated deficit |
|
|
(103,786,188 |
) |
|
|
(96,135,032 |
) |
Total stockholders’ equity |
|
|
15,294,430 |
|
|
|
22,511,012 |
|
Total liabilities and stockholders’ equity |
|
$ |
21,792,864 |
|
|
$ |
30,039,340 |
|
Non-GAAP Financial Measures
In this press release, we report Adjusted gross margin, Adjusted net loss, and Adjusted net loss per diluted share, which are financial measures not required by, or presented in accordance with, accounting principles generally accepted in
These non-GAAP measures are reconciled to the most directly comparable GAAP measures in the table that follows.
LAIRD SUPERFOOD, INC. |
||||||||||||
NON-GAAP FINANCIAL MEASURES |
||||||||||||
(Unaudited) |
||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
||||||
Net loss |
|
$ |
(4,143,910 |
) |
|
$ |
(3,507,246 |
) |
|
$ |
(7,651,156 |
) |
Adjusted for: |
|
|
|
|
|
|
||||||
Strategic organizational shifts |
(a) |
|
(135,380 |
) |
|
|
74,690 |
|
|
|
(60,690 |
) |
Product quality issue |
(b) |
|
491,861 |
|
|
|
— |
|
|
|
491,861 |
|
Company-wide rebranding costs |
(c) |
|
61,451 |
|
|
|
102,355 |
|
|
|
163,806 |
|
Adjusted net loss |
|
$ |
(3,725,978 |
) |
|
$ |
(3,330,201 |
) |
|
$ |
(7,056,179 |
) |
Adjusted net loss per share, diluted: |
|
|
(0.40 |
) |
|
|
(0.36 |
) |
|
|
(0.76 |
) |
Weighted-average shares of common stock outstanding used in computing adjusted net loss per share of common stock, diluted |
|
|
9,213,723 |
|
|
|
9,284,585 |
|
|
|
9,249,738 |
|
|
|
|
|
|
|
|
||||||
(a) Costs incurred as part of the strategic downsizing of the Company's operations, including severances, forfeitures of stock-based compensation, and other personnel costs, IT integration costs, and freight costs to move inventory to third-party facilities. |
||||||||||||
(b) In the first month of the first quarter of 2023, we identified a product quality issue with raw material from one vendor and we voluntarily withdrew any affected finished goods. We incurred costs associated with product testing, discounts for replacement orders, and inventory obsolescence costs. |
||||||||||||
(c) Costs incurred as part of the company-wide rebranding efforts that launched in Q1 2023. |
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
||||||
Net loss |
|
$ |
(14,139,402 |
) |
|
$ |
(4,904,520 |
) |
|
$ |
(19,043,922 |
) |
Adjusted for: |
|
|
|
|
|
|
||||||
Impairment of goodwill and long-lived assets |
(a) |
|
8,026,000 |
|
|
|
100,426 |
|
|
|
8,126,426 |
|
Strategic organizational shifts |
(b) |
|
(581,351 |
) |
|
|
(803,405 |
) |
|
|
(1,384,756 |
) |
Gain on sale of land held-for-sale |
(c) |
|
— |
|
|
|
(573,818 |
) |
|
|
(573,818 |
) |
Other, net |
(d) |
|
(22,296 |
) |
|
|
— |
|
|
|
(22,296 |
) |
Adjusted net loss |
|
$ |
(6,717,049 |
) |
|
$ |
(6,181,317 |
) |
|
$ |
(12,898,366 |
) |
Adjusted net loss per share, diluted: |
|
|
(0.74 |
) |
|
|
(0.68 |
) |
|
|
(1.42 |
) |
Weighted-average shares of common stock outstanding used in computing adjusted net loss per share of common stock, diluted |
|
|
9,095,441 |
|
|
|
9,132,632 |
|
|
|
9,114,527 |
|
|
|
|
|
|
|
|
||||||
(a) Impairment charges to goodwill and long-lived intangible assets assumed in the acquisition of Picky Bars which occurred Q2 2021, in the amounts of |
||||||||||||
(b) Costs incurred as part of the strategic downsizing of the Company's operations, including severances, forfeitures of stock-based compensation, and other personnel costs arising from the resignations of certain members of executive leadership. |
||||||||||||
(c) Gains on the sale of unused plots of land in |
||||||||||||
(d) Realized losses on the liquidation of all of the Company's available-for-sale securities included in other income in Q1 2022. Recovery of costs incurred in connection with an insurance claim following loss of product during handling by a third party included in cost of goods sold in Q1 2022. |
LAIRD SUPERFOOD, INC. |
||||||||||||
NON-GAAP FINANCIAL MEASURES |
||||||||||||
(Unaudited) |
||||||||||||
|
|
Three Months Ended |
Six Months Ended |
|||||||||
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
||||||
Net sales |
|
$ |
8,112,938 |
|
|
$ |
7,724,091 |
|
|
$ |
15,837,029 |
|
Cost of goods sold |
|
|
(6,239,062 |
) |
|
|
(5,848,023 |
) |
|
|
(12,087,085 |
) |
Gross profit |
|
$ |
1,873,876 |
|
|
$ |
1,876,068 |
|
|
$ |
3,749,944 |
|
Gross margin |
|
|
23.1 |
% |
|
|
24.3 |
% |
|
|
23.7 |
% |
Adjusted for: |
|
|
|
|
|
|
||||||
Strategic organizational shifts |
(a) |
|
-0.2 |
% |
|
|
— |
|
|
|
-0.1 |
% |
Product quality issue |
(b) |
|
4.1 |
% |
|
|
— |
|
|
|
2.6 |
% |
Adjusted gross margin |
|
|
27.0 |
% |
|
|
24.3 |
% |
|
|
26.2 |
% |
(a) Costs incurred as part of the strategic downsizing of the Company's operations, including severances, forfeitures of stock-based compensation, and other personnel costs, and freight costs to move inventory to third-party facilities. |
||||||||||||
(b) In the first month of the first quarter of 2023, we identified a product quality issue with raw material from one vendor and we voluntarily withdrew any affected finished goods. We incurred costs associated with discounts for replacement orders and inventory obsolescence costs. |
|
|
Three Months Ended |
Six Months Ended |
|||||||||
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
||||||
Net sales |
|
$ |
9,340,013 |
|
|
$ |
8,674,006 |
|
|
$ |
18,014,019 |
|
Cost of goods sold |
|
|
(7,390,203 |
) |
|
|
(7,096,068 |
) |
|
|
(14,486,271 |
) |
Gross profit |
|
$ |
1,949,810 |
|
|
$ |
1,577,938 |
|
|
$ |
3,527,748 |
|
Gross margin |
|
|
20.9 |
% |
|
|
18.2 |
% |
|
|
19.6 |
% |
Adjusted for: |
|
|
|
|
|
|
||||||
Other |
(a) |
|
-2.2 |
% |
|
|
— |
|
|
|
-1.1 |
% |
Adjusted gross margin |
|
|
18.7 |
% |
|
|
18.2 |
% |
|
|
18.5 |
% |
(a) Recovery of costs incurred in connection with an insurance claim following loss of product during handling by a third party included in cost of goods sold in Q1 2022. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230809778106/en/
Investor Relations Contact
Trevor Rousseau
trousseau@lairdsuperfood.com
Source: Laird Superfood, Inc.
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