Kalera Public Limited Company reported its financial results for the second quarter ending June 30th, 2022 missing earnings per share and revenue estimates.
During the quarter, Kalera earnings grossed USD 1.3 million in revenue (USD 1.84 million were expected) and incurred a net loss of USD 78.7 million caused by a one-time non-cash expense for goodwill impairment of USD 64.3 million, the change in fair value for the contingent value rights earnout of USD 17.3 million, and a one-time expense of USD 7.5 million related to the closing of the Agrico business combination and NASDAQ listing. Adjusted Earnings Before Interest, Tax, Depreciation and amortization were negative USD 14.1 million.
“We are pleased to report significant revenue growth on a year-over-year basis for the second quarter, reflecting momentum in our foodservice sales ahead of retail sales driven by our strategic partnership with US Foods,” said Jim Leighton, President and Chief Executive Officer of Kalera. “In addition, we completed our listing on Nasdaq, delivering on our commitment to investors to provide more liquidity and creating opportunity for new investors to benefit from the first pure-play vertical farm with leading technology and global operations.”
Second Quarter Operational Highlights
- Welcomed Jim Leighton, a food industry veteran, as new President and CEO.
- Commenced operations of a large-scale vertical farming facility in Denver.
- Secured strategic partnership with US Foods and began to leverage their network of 70+ distribution centers, 100+ cash and carry stores, and national footprint.
- Completed listing on Nasdaq, making Kalera the first vertical farm with global operations on the exchange.
- Strengthened balance sheet and improved liquidity.
New loan to fund expansion
The Company also entered a 10-year, $30 million Senior Secured Credit Facility with Farm Credit of Central Florida to support capital expenditures and working capital needs of the entire Company. The facility provides $20 million in available funds for capital expenditures under a Term Loan, and $10 million to support general corporate and working capital purposes under a Revolving Loan.
Subsequent to the close of the quarter, Kalera executed a private placement in the amount of $10 million to increase its liquidity and strengthen its balance sheet.
What is the company expecting?
In their press release, Kalera expects to grow through optimizing their ‘high-tech production capacity for sustainable lettuce, microgreens and herbs in the United States and internationally’. They are also planning on scaling up by building out capabilities.
The market are yet to be determined but they aim for markets with low accessibility to loca and fresh produce.
“We believe our growth will be supported by several key macro and micro drivers including: (1) the growing mainstream acceptance of our products, (2) heightened consumer awareness of the role food and nutrition play in long-term health and wellness, (3) growing awareness of the beneficial impact that vertical farming has on the environment relative to traditional agriculture and (4) increasing concern regarding food security on a global scale. Looking ahead, we will balance growth with disciplined capital deployment to create long-term value for our shareholders.” The company mentions in its press release.