Stryve Foods, Inc. Reports Fiscal 2024 First Quarter Results
Stryve Foods (NASDAQ: SNAX) reported its fiscal 2024 first-quarter results, highlighting a 23.2% year-over-year increase in retail sales velocity and a 35.2% improvement in adjusted EBITDA loss. Net sales for Q1 stood at $4.6 million, flat compared to the previous year, with a gross profit of $1.0 million, despite higher commodity costs.
The company's strategic focus on quality core revenue streams and cost structure improvements resulted in an operating loss reduction to $3.0 million from $4.2 million year over year. Net loss improved to $3.9 million or $1.42 per share, from $4.6 million or $2.23 per share in Q1 2023. Adjusted EBITDA loss also narrowed to $2.3 million from $3.5 million a year ago. The company reiterated its fiscal 2024 net sales guidance of $24 million to $30 million.
Stryve secured $1.6 million in convertible bridge notes in April 2024 to support its working capital. CEO Chris Boever emphasized the company's progress and future growth, particularly in healthier, high-protein snacks.
- Retail sales velocity increased by 23.2% year-over-year.
- Adjusted EBITDA loss improved by 35.2% year-over-year.
- Gross profit rose to $1.0 million from $0.96 million in Q1 2023.
- Operating loss reduced to $3.0 million from $4.2 million year-over-year.
- Net loss improved to $3.9 million or $1.42 per share from $4.6 million or $2.23 per share in Q1 2023.
- Adjusted EBITDA loss narrowed to $2.3 million from $3.5 million in the prior year.
- Stryve reiterated its fiscal 2024 net sales guidance of $24 million to $30 million.
- Secured $1.6 million in convertible bridge notes to support working capital.
- Net sales for Q1 were flat at $4.6 million, showing no year-over-year growth.
- Higher commodity beef costs impacted gross profit.
- Operating loss of $3.0 million indicates ongoing financial challenges.
- Net loss of $3.9 million or $1.42 per share, though improved, still significant.
- Interest expense of $0.6 million and a non-cash loss of $0.3 million affected other expenses.
- Discontinuation of certain retail programs and low-quality revenue streams impacted overall sales.
Insights
The first quarter of 2024 results for Stryve Foods indicate a mixed yet overall positive financial performance. From the financial perspective, net sales remained flat at
More notably, the Adjusted EBITDA loss improved by 35.2% year-over-year, bringing it down to
It is also worth noting the operating loss decreased from
In summary, while the flat net sales might seem concerning at first glance, the improved margins and reduced losses are positive indicators. If this trend continues, it can set the company on a more profitable path in the long term. Investors should watch for continued improvements in these metrics in subsequent quarters.
Stryve Foods' performance in retail channels is notable. Retail dollar sales increased by
The latest 4-week SPINS data showing a
Retail sales velocity measures how quickly products move off the shelves and an increase in this metric suggests higher consumer acceptance and a successful branding refresh. The increase in market share also indicates that Stryve is outpacing competitors in the meat snack category. Investors should be encouraged by these metrics as they reflect a successful transformation strategy that is resonating well with consumers. However, it's important to monitor if this trend sustains in the long term.
Stryve Foods has been undergoing a strategic transformation which appears to be paying off. The company has rationalized its topline to focus on high-quality revenue streams, discontinuing underperforming products and enhancing its core offerings. This strategic shift is reflected in the improved Adjusted EBITDA and reduced losses.
The reiteration of the net sales guidance range of
However, the reliance on external factors like beef prices and the need for convertible bridge notes to fund working capital are potential risks. The bridge notes, while necessary for funding new distribution, also indicate that the company is still in a capital-intensive phase.
Overall, the company's strategic focus on improving unit economics and operational efficiencies alongside a stronger product mix is positive. Investors should watch for continued execution of these strategies and improvements in financial metrics over the coming quarters.
Retail Sales Velocity Increasing +
Improved Adj. EBITDA Loss by
Reiterating Net Sales Guidance Range of
PLANO, Texas, May 14, 2024 (GLOBE NEWSWIRE) -- Stryve Foods, Inc. (“Stryve” or “the Company”) (NASDAQ: SNAX), an emerging healthy snacking platform and leader in the air-dried meat snack industry in the United States, today reports financial and operating results for the three months ended March 31, 2024.
Q1 2024 – Improved Mix and Growing Momentum
The Company has continued its strategic transformation in the first quarter of 2024 showing meaningful year-over-year improvements in sales mix with higher gross margins, lower operating expenses, and significantly narrowed losses resulting in the Company’s the lowest loss quarter ever in terms of Adjusted EBITDA. Management’s strategy has been to transform the business to put it in a position to reap the benefits of high-quality growth and operating leverage. The Company rationalized its topline considerably throughout the last two years in an effort to focus on quality core revenue streams, cut back underperforming SKUs and accounts. In doing so, it has strengthened its unit economics and looks to ramp the last phase of the overall transformation in 2024, accelerating quality growth.
Retail Performance
In measured channels, the Company’s retail brands in the aggregate continue to outperform the overall meat snack category and that trend has continued to accelerate. Recent 12-Week SPINS data reflects meaningful year-over-year improvement in measured channels for the Stryve family of brands with retail dollar sales increasing
Chris Boever, Chief Executive Officer, commented, “The first quarter of 2024 marks the next phase of transformation for Stryve Foods. With the significant improvements we have made on costs, capabilities, process, and quality mostly behind us, we are excited and energized about the future, executing the strategy supporting our vision to redefine the snacking industry with healthier, high-protein solutions that meet the evolving needs of today's consumers.”
Reiterating Fiscal Year 2024 Outlook
For fiscal year 2024, Stryve Foods reiterates its net sales guidance in the range of
Alex Hawkins, Chief Financial Officer, said, “Our net sales were largely flat year-over-year in Q1, however, we believe the makeup of that revenue is improved and aligned with our strategic focus on our quality core revenue streams. The benefit of those strategic actions is evident in our achievement of improved gross profit despite higher commodity costs year over year. Further, absent any significant externality or significant increase in beef prices, we should see both our gross and Adj. EBITDA margins continue to improve as our volumes increase throughout the year benefitting from our improved mix, productivity, and retooled cost structure which was strategically redesigned with operating leverage in mind.”
Convertible Bridge Notes
The Company previously announced on April 9th, 2024, the closing of approximately
First Quarter 2024 Highlights
- Net sales of
$4.6 million , similar to the first quarter a year ago. Net sales were largely flat in part due to the Company’s discontinuation of certain retail programs, rationalization of low-quality revenue, which included the discontinuation of slow-moving and margin losing items some of which was still present in the prior year period. However, the Company’s packaging transitions, improved sell-through, and growth in quality core accounts offset the majority of the rationalized revenues in the first quarter. - Gross profit of
$1.0 million compared to gross profit of$0.96 million in the 2023 first quarter. First quarter 2024 improved performance is primarily attributable to improved mix partially offset by higher commodity beef costs than in the prior year period. Other factors contributing to the first quarter of 2024’s gross profit include under absorption of fixed costs in the Company’s manufacturing facilities as a result of the strategic rationalization efforts of management, and phase-out of legacy items. - Operating loss of (
$3.0) million for the first quarter of 2024, compared to operating loss of ($4.2) million in the 2023 first quarter. - Other Expense of
$0.9 million for the 2024 first quarter includes$0.6 million of interest expense and approximately$0.3 million of a non-cash loss on the extinguishment of debt related to the accounting treatment of the repricing of the warrants connected to the extension of the promissory notes issued on April 19, 2023. - Net loss of (
$3.9) million , or ($1.42) per share for the first quarter of 2024 as compared to a net loss of ($4.6) million , or ($2.23) per share, in the 2023 first quarter. - Adjusted loss per share3 of (
$1.20) for the first quarter of 2024, which compares favorably to adjusted loss per share of ($2.14) for the year-ago period. - Adjusted EBITDA loss3 of (
$2.3) million for the 2024 first quarter, compared to ($3.5) million in the prior year quarter.
1 Source: SPINS data for the 12-week period ending March 24th, 2024.
2 Source: SPINS data for the 4-week period ending March 24th, 2024.
3 Adjusted EBITDA and adjusted loss per share are a non-GAAP financial measure as defined and reconciled to GAAP below.
Conference Call
The Company will conduct a conference call today at 4:30 p.m. Eastern Time to discuss financial and operating results for the first quarter ended March 31, 2024. To access the call live by phone, dial 1-800-717-1738 or 1-646-307-1865 at least 10 minutes before the call and ask to be joined into the Stryve call. A replay will be available through May 28, 2024, by dialing 1-844-512-2921 or 1-412-317-6671 and using the replay PIN number: 1154614#. A webcast of the call will also be available live and for later replay on the Company’s Investor Relations website at https://ir.stryve.com/news-events.
About Stryve Foods, Inc.
Stryve is a premium air-dried meat snack company that is conquering the intersection of high protein, great taste, and health under the brands of Braaitime®, Kalahari®, Stryve®, and Vacadillos®. Stryve sells highly differentiated healthy snacking and food products in order to disrupt traditional snacking and CPG categories. Stryve’s mission is “to help Americans eat better and live happier, better lives.” Stryve offers convenient products that are lower in sugar and carbohydrates and higher in protein than other snacks and foods. Stryve’s current product portfolio consists primarily of air-dried meat snack products marketed under the Stryve®, Kalahari®, Braaitime®, and Vacadillos® brand names. Unlike beef jerky, Stryve’s all-natural air-dried meat snack products are made of beef and spices, are never cooked, contain zero grams of sugar*, and are free of monosodium glutamate (MSG), gluten, nitrates, nitrites, and preservatives. As a result, Stryve’s products are Keto and Paleo diet friendly. Further, based on protein density and sugar content, Stryve believes that its air-dried meat snack products are some of the healthiest shelf-stable snacks available today. Stryve also markets and sells human-grade pet treats under the brands Two Tails and Primal Paws, made with simple, all-natural ingredients and
Stryve distributes its products in major retail channels, primarily in North America, including grocery, convenience store, mass merchants, and other retail outlets, as well as directly to consumers through its ecommerce websites and through the Amazon and Wal*mart platforms. For more information about Stryve, visit www.stryve.com or follow us on social media at @stryvebiltong.
* All Stryve Biltong and Vacadillos products contain zero grams of added sugar, with the exception of the Chipotle Honey flavor of Vacadillos, which contains one gram of sugar per serving.
Cautionary Note Regarding Forward-Looking Statements
Certain statements made herein are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “anticipate”, “may”, “will”, “would”, “could”, “intend”, “aim”, “believe”, “anticipate”, “continue”, “target”, “milestone”, “expect”, “estimate”, “plan”, “outlook”, “objective”, “guidance” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters, including, but not limited to, statements regarding Stryve’s plans, strategies, objectives, targets and expected financial performance. These forward-looking statements reflect Stryve’s current views and analysis of information currently available. This information is, where applicable, based on estimates, assumptions and analysis that Stryve believes, as of the date hereof, provide a reasonable basis for the information and statements contained herein. These forward-looking statements involve various known and unknown risks, uncertainties and other factors, many of which are outside the control of Stryve and its officers, employees, agents and associates. These risks, uncertainties, assumptions and other important factors, which could cause actual results to differ materially from those described in these forward-looking statements, include: (i) the inability to achieve profitability due to commodity prices, inflation, supply chain interruption, transportation costs and/or labor shortages; (ii) the ability to recognize the anticipated benefits of the Business Combination or meet financial and strategic goals, which may be affected by, among other things, competition, supply chain interruptions, the ability to pursue a growth strategy and manage growth profitability, maintain relationships with customers, suppliers and retailers and retain its management and key employees; (iii) the risk that retailers will choose to limit or decrease the number of retail locations in which Stryve’s products are carried or will choose not to carry or not to continue to carry Stryve’s products; (iv) the possibility that Stryve may be adversely affected by other economic, business, and/or competitive factors; (v) the effect of the COVID-19 pandemic on Stryve; (vi) the possibility that Stryve may not achieve its financial outlook; (vii) risks around the Company’s ability to continue as a going concern and (viii) other risks and uncertainties described in the Company’s public filings with the SEC. Actual results, performance or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those projections and forward-looking statements are based.
Investor Relations Contact:
Investor Relations
ir@stryve.com
-Financial Statements Follow-
| Stryve Foods, Inc. | ||||||||
| Condensed Consolidated Statement of Operations | ||||||||
| (In thousands, except share and per share data) | ||||||||
| For The Three Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| Unaudited | ||||||||
| SALES, net | $ | 4,598 | $ | 4,646 | ||||
| COST OF GOODS SOLD (exclusive of depreciation shown separately below) | 3,582 | 3,683 | ||||||
| GROSS PROFIT | 1,016 | 963 | ||||||
| OPERATING EXPENSES | ||||||||
| Selling expenses | 1,597 | 1,969 | ||||||
| Operations expense | 353 | 514 | ||||||
| Salaries and wages | 1,607 | 2,163 | ||||||
| Depreciation and amortization expense | 462 | 552 | ||||||
| Total operating expenses | 4,019 | 5,197 | ||||||
| OPERATING LOSS | (3,003 | ) | (4,234 | ) | ||||
| OTHER (EXPENSE) INCOME | ||||||||
| Interest expense | (583 | ) | (399 | ) | ||||
| Loss on extinguishment of debt | (334 | ) | - | |||||
| Change in fair value of Private Warrants | - | 8 | ||||||
| Other expense | - | (14 | ) | |||||
| Total other (expense) income | (917 | ) | (405 | ) | ||||
| NET LOSS BEFORE INCOME TAXES | (3,920 | ) | (4,639 | ) | ||||
| Income tax expense | 9 | 3 | ||||||
| NET LOSS | $ | (3,929 | ) | $ | (4,643 | ) | ||
| Loss per common share: | ||||||||
| Basic and diluted | $ | (1.42 | ) | $ | (2.23 | ) | ||
| Weighted average shares outstanding: | ||||||||
| Basic and diluted | 2,775,259 | 2,085,514 | ||||||
| Stryve Foods, Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (in thousands) | ||||||||
| March 31, | December 31, | |||||||
| 2024 | 2023 | |||||||
| (unaudited) | (audited) | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalent | $ | 280 | $ | 369 | ||||
| Accounts receivable, net | 2,320 | 2,092 | ||||||
| Inventory, net | 5,021 | 5,200 | ||||||
| Prepaid expenses and other current assets | 537 | 720 | ||||||
| Total current assets | 8,158 | 8,381 | ||||||
| Property and equipment, net | 6,765 | 7,151 | ||||||
| Right of use assets, net | 4,506 | 4,610 | ||||||
| Goodwill | 8,450 | 8,450 | ||||||
| Intangible assets, net | 4,059 | 4,120 | ||||||
| TOTAL ASSETS | $ | 31,938 | $ | 32,712 | ||||
| LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable | $ | 6,334 | $ | 4,460 | ||||
| Accrued expenses | 2,447 | 2,688 | ||||||
| Current portion of lease liability | 376 | 362 | ||||||
| Line of credit, net of debt issuance costs | 3,796 | 3,568 | ||||||
| Promissory notes payable, net of debt discount and debt issuance costs | 2,914 | 2,914 | ||||||
| Promissory notes payable due to related parties, net of debt discount and debt issuance costs | 1,175 | 1,175 | ||||||
| Current portion of long-term debt and other short-term borrowings | 479 | 606 | ||||||
| Total current liabilities | 17,521 | 15,773 | ||||||
| Long-term debt, net of current portion, net of debt issuance costs | 3,421 | 3,475 | ||||||
| Lease liability, net of current portion | 4,270 | 4,372 | ||||||
| Financing obligation - related party operating lease | 7,500 | 7,500 | ||||||
| TOTAL LIABILITIES | 32,712 | 31,120 | ||||||
| COMMITMENTS AND CONTINGENCIES (Note 12) | ||||||||
| STOCKHOLDERS' (DEFICIT) EQUITY | ||||||||
| Preferred stock - | - | - | ||||||
| Class A common stock - | - | - | ||||||
| Class V common stock - | - | - | ||||||
| Additional paid-in-capital | 139,447 | 137,885 | ||||||
| Accumulated deficit | (140,221 | ) | (136,293 | ) | ||||
| TOTAL STOCKHOLDERS' (DEFICIT) EQUITY | (774 | ) | 1,592 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | $ | 31,938 | $ | 32,712 | ||||
| Stryve Foods, Inc. | ||||||||
| Condensed Consolidated Statement of Cash Flows | ||||||||
| (In thousands) | ||||||||
| For The Three Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| (unaudited) | ||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss | $ | (3,929 | ) | $ | (4,643 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation expense | 402 | 491 | ||||||
| Amortization of intangible assets | 60 | 61 | ||||||
| Amortization of debt issuance costs | 55 | 40 | ||||||
| Amortization of right-of-use asset | 104 | 99 | ||||||
| Loss on extinguishment of debt | 335 | - | ||||||
| Reserve for credit losses | 154 | 73 | ||||||
| Stock based compensation expense | 270 | 186 | ||||||
| Change in fair value of Private Warrants | - | (8 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (381 | ) | (563 | ) | ||||
| Inventory | 179 | 8 | ||||||
| Income tax receivables and payables, net | 2 | - | ||||||
| Prepaid expenses and other current assets | 183 | 74 | ||||||
| Accounts payable | 1,858 | 1,345 | ||||||
| Accrued liabilities | 4 | 301 | ||||||
| Operating lease obligations | (87 | ) | (90 | ) | ||||
| Net cash used in operating activities | $ | (791 | ) | $ | (2,626 | ) | ||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Cash paid for purchase of equipment | - | (49 | ) | |||||
| Net cash used in investing activities | $ | - | $ | (49 | ) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Proceeds from the issuance of common stock, net | 712 | - | ||||||
| Borrowings on long-term debt | - | 2,000 | ||||||
| Repayments on long-term debt | (22 | ) | (30 | ) | ||||
| Borrowings on short-term debt | 3,923 | 3,360 | ||||||
| Repayments on short-term debt | (3,911 | ) | (2,901 | ) | ||||
| Net cash provided by financing activities | $ | 702 | $ | 2,429 | ||||
| Net change in cash and cash equivalents | (89 | ) | (246 | ) | ||||
| Cash and cash equivalents at beginning of period | 369 | 623 | ||||||
| Cash and cash equivalents at end of period | $ | 280 | $ | 377 | ||||
| SUPPLEMENTAL INFORMATION: | ||||||||
| Cash paid for interest | $ | 405 | $ | 399 | ||||
| NON-CASH INVESTING AND FINANCING ACTIVITY: | ||||||||
| Non-cash commercial premium finance borrowing | $ | - | $ | 291 | ||||
| Common stock issued for accrued expenses | $ | 147 | $ | - | ||||
| Common stock issued for accrued expenses - related party | $ | 100 | $ | - | ||||
| Accrued fixed assets | $ | 16 | $ | - | ||||
Reconciliation of GAAP to Non-GAAP Information
Stryve uses non-GAAP financial information and believes it is useful to investors as it provides additional information to facilitate comparisons of historical operating results, identify trends in operating results, and provide additional insight on how the management team evaluates the business. Stryve’s management team uses EBITDA, Adjusted EBITDA, and Adjusted Earnings Per Share to make operating and strategic decisions, evaluate performance and comply with indebtedness related reporting requirements. Below are details on this non-GAAP measure and the non-GAAP adjustments that the management team makes in the definition of EBITDA, Adjusted EBITDA and Adjusted Earnings Per Share. Stryve believes this non-GAAP measure should be considered along with Net Loss Before Income Taxes, and Net Loss, the most closely related GAAP financial measure. Reconciliation between EBITDA, Adjusted EBITDA, Adjusted Earnings per Share, Net Loss Before Income Taxes, and Net Loss are below:
| For The Three Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| (unaudited) | ||||||||
| (In thousands) | ||||||||
| Net loss before income taxes | $ | (3,920 | ) | $ | (4,639 | ) | ||
| Interest expense | 583 | 399 | ||||||
| Depreciation and amortization expense | 462 | 552 | ||||||
| EBITDA | $ | (2,875 | ) | $ | (3,689 | ) | ||
| Additional Adjustments: | ||||||||
| Loss on Extinguishment of Debt | 334 | - | ||||||
| Stock Based Compensation Expense | 270 | 186 | ||||||
| Adjusted EBITDA | $ | (2,271 | ) | $ | (3,503 | ) | ||
| For The Three Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| (unaudited) | ||||||||
| (In thousands except share and per share information) | ||||||||
| Net loss | $ | (3,929 | ) | $ | (4,643 | ) | ||
| Weighted average shares outstanding | 2,775,259 | 2,085,514 | ||||||
| Basic & Diluted Net Loss per Share | $ | (1.42 | ) | $ | (2.23 | ) | ||
| Additional Adjustments: | ||||||||
| Loss on Extinguishment of Debt | 0.12 | — | ||||||
| Stock Based Compensation Expense | 0.10 | 0.09 | ||||||
| Adjusted Earnings per Share | $ | (1.20 | ) | $ | (2.14 | ) | ||
FAQ
What were Stryve Foods' Q1 2024 net sales?
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How did Stryve Foods' net loss change year-over-year in Q1 2024?
