Key Takeaways
- Edible Garden AG reported a 181.3% increase in gross profit and expanded gross margins to 16.7% in FY 2024.
- The company realigned its focus toward higher-margin herb products, exiting lower-margin categories like lettuce and floral.
- Core herb product revenue grew by $1.8 million (16.3%) year-over-year.
- Operational changes included cost reductions, improved internal production, and expansion into new product categories.
- A proposed acquisition of Narayan Group may further scale Edible Garden’s operations globally.
Edible Garden Delivers Higher Margins and Improved Operational Efficiency
Core Herb Business Drives Profit Growth in 2024
Edible Garden (Profile), a controlled environment agriculture (CEA) company specializing in organic and locally grown produce, reported a significant improvement in profitability for the fiscal year ended December 31, 2024. The company’s gross profit rose 181.3% to $2.3 million, up from $0.8 million in 2023, driven largely by strategic shifts in product focus.
Gross margin also improved, rising from 5.9% in 2023 to 16.7% in 2024, reflecting enhanced efficiencies in sourcing, production, and product mix. CEO Jim Kras attributed the performance to Edible Garden’s realignment around its higher-margin herb portfolio and reduced reliance on third-party growers.
“We made the strategic decision to refocus on our core herb business,” said Kras. “This allowed us to improve profitability, streamline operations, and build momentum heading into 2025.”
Edible Garden’s Strategic Realignment Supports Long-Term Profitability
Exit from Lettuce and Floral Categories Lowers Costs
Total revenue for 2024 was $13.9 million, slightly down from $14.0 million in 2023, a result of planned exits from lower-margin product categories including lettuce and floral. However, core herb product sales increased by $1.8 million, reflecting a 16.3% growth rate year-over-year.
Cost of goods sold declined by 12.7%, or $1.7 million, to $11.6 million, supported by the internalization of production at the Edible Garden Heartland facility. The transition away from outsourced production contributed to cost savings of $4.1 million, partially offset by $2.4 million in facility integration costs.
Selling, general, and administrative (SG&A) expenses rose 15.8% to $11.6 million, attributed to legal, audit, and severance costs. The company reported a net loss of $11.1 million, compared to $10.2 million in the prior year, with the increase largely tied to higher SG&A and interest expenses.
Edible Garden AG Expands Product Lines and Retail Presence
New Offerings in Condiments and Sports Nutrition
Innovation remained central to Edible Garden’s strategy in 2024. The company introduced Squeezables, a shelf-stable herb paste, and expanded its footprint in fresh condiments with products like Pulp gourmet sauces and Pickle Party, a collaboration with Hermann Pickle Company.
The launch of Kick. Sports Nutrition, a clean-label fitness supplement line available via Amazon, marked Edible Garden’s entry into the active lifestyle category. A traditional retail rollout is planned for 2025.
The company also expanded its national retail distribution, particularly its USDA Organic herb line, to meet consumer demand for sustainable and locally grown produce.
Proposed Acquisition and Sustainability Recognition
Global Growth and ESG Efforts Underway
Edible Garden is currently pursuing the proposed acquisition of Narayan Group, a European producer of organic coconut and superfood products. If completed, the acquisition would provide vertically integrated capabilities and expand the company’s geographic reach.
In 2024, Edible Garden was ranked in the FoodTech 500, an index of companies innovating at the intersection of food, technology, and sustainability. The company also contributed to the elimination of over 11,800 metric tons of CO₂ emissions through its sustainable packaging and participation in Walmart’s Project Gigaton initiative.
“Our focus on innovation and sustainability is delivering measurable results,” said Kras. “We believe these efforts position Edible Garden for continued growth and long-term shareholder value.”
Edible Garden Ag’s Q4 2024 Summary
Financial Results for the Quarter Ending December 31
- Revenue: $3.9 million, down from $4.1 million in Q4 2023
- Cost of Goods Sold: Flat at $3.8 million
- SG&A Expenses: $2.8 million, up from $2.6 million
- Net Loss: $3.1 million, compared to $3.0 million in Q4 2023
The company stated that the quarterly decline in revenue reflects the company’s strategic realignment rather than a reduction in core business performance.
Outlook for 2025
Edible Garden plans to continue expanding its retail and e-commerce presence, explore strategic acquisitions, and further invest in automation and patented agricultural technologies. The company expects these efforts to support improved margins, cost control, and progress toward long-term profitability.
Read the complete financial results here.
