29th November 2022
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Corporate Stock Market

Edible Garden (NASDAQ:EDBL) Reports Q3 Results Showing Improved Performance

Edible Garden Salad Kit

Edible Garden’s Heartland Facility – Q3 Acquisition Expected to Begin Operations by Year-End Expanding Capacity to Support up to $20 Million in Annualized Revenue

Edible Garden AG Incorporated (Nasdaq:EDBL, EDBLW) provided a business update and reported financial results for the three- and nine-month periods that ended September 30, 2022.

Mr. Jim Kras, Chief Executive Officer of Edible Garden (NASDAQ:EDBL), commented, “We continue to generate solid year-over-year revenue growth, and believe we can accelerate that growth through the execution of our business strategy and prudent deployment of the capital raised to date.  Importantly, the Company continues to effectively add new retail distribution partners, while expanding penetration within the existing partners.  We have also been diligently working with buying teams at our retail partners to optimize the mix of SKUs at each retailer. The Company is also working aggressively to drive Edible Garden towards our goal of profitability.  Towards this end, the Company plans to further optimize the supply chain, leverage the purchasing power that should come with continued growth, and further enhance the product lines with new, higher-margin, complementary products.  All of these steps should help offset some of the inflationary effects that have impacted the costs of goods across the industry.  Importantly, our Zero-Waste Inspired® mission continues to resonate with both retailers and their customers who are increasingly concerned about the sustainability of the food supply and its effect on the environment.   Edible Garden has taken steps to cut down on food miles by acquiring a greenhouse facility closer to our midwestern customers and will continue to look for new, innovative technologies to further this mission.”

“Among the achievements in the third quarter, the Company acquired a five-acre greenhouse facility in Grand Rapids, Michigan, which will operate as Edible Garden Heartland.  This new, Zero-Waste Inspired® CEA facility, which will utilize our patented GreenThumb software in order to bring products to market in a highly efficient manner, is expected to begin operations by year-end.  This new facility expands the Company’s capacity and is expected to support up to $20 million in annualized revenue.  The facility will house a state-of-the-art research and development center, focused on improving existing products, developing new products and innovations in plant-based protein and nutraceuticals, as well as applying advanced agricultural technologies. It will also be home to the first commercial installation of Edible Garden’s proprietary hybrid vertical growing system. In addition, the Company will partner with the University of Michigan’s School of Environment & Sustainability, a leading research facility in the field of sustainability, and the University’s Erb Institute, to offer students an opportunity to work directly with Edible Garden’s team at the new facility in order to develop and implement initiatives that address the environmental and societal impacts of the food industry, by harnessing the power of sustainable CEA farming.”

“The Company recently introduced three new, greenhouse-grown, salad kits to our list of available SKUs, all containing Edible Garden’s locally grown, sustainable, cut lettuce, along with dressing, croutons, cheese, and more, with the ingredients sourced from local suppliers. Two of the salad kits have already launched in Meijer retail locations across the Midwest and additional kits are currently under development. By growing product closer to the distribution centers, these kits align well with our Zero-Waste Inspired® approach by extending shelf life, reducing shrinkage, and reducing food miles, making this a win-win for our retail partners, their customers and the environment.”

NASDAQ:EDBL Financial results for the three months ended September 30, 2022

Revenues totaled $2.8 million for the third quarter that concluded on September 30, 2022, up 12.5% from the $2.4 million for the three months that ended on September 30, 2021. The rise reflects a surge in the number of current clients.

In comparison to the three months ending September 30, 2021, the cost of goods sold for the three months ending September 30, 2022 was $2.6 million as opposed to $2.3 million. The increase was brought on by the rise in sales.

In comparison to the three months ending September 30, 2021, selling, general, and administrative costs increased to $1.9 million for the three months ending September 30, 2022. Higher labor and compensation costs, as well as other public company expenses that were not spent in 2021, were the main causes of the increase.

For the three months ending September 30, 2022, net loss was $2.1 million, or $0.24 per share, as opposed to a net loss of $1.1 million, or $0.28 per share, for the three months ending September 30, 2021.

NASDAQ:EDBL Financial results for the nine months ended September 30, 2022

Revenues reached $8.5 million for the nine months that ended on September 30, 2022, an increase of 10.0% from $7.7 million for the nine months that ended on September 30, 2021. The rise reflects a surge in the number of current clients.

In comparison to the nine months ended September 30, 2021, the cost of goods sold for the nine months ended September 30, 2022 was $8.2 million as opposed to $7.1 million. The cost of packaging went up because of inflation, labor costs went up because of COVID-19, and contract farmers increased their prices.

In comparison to the nine months ending September 30, 2021, which had a net loss of $3.4 million, or $0.86 per share, the nine months ending September 30, 2022 had a net loss of $9.5 million, or $1.36 per share.

Image provided by Edible Garden Ag (NASDAQ:EDBL) 

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