Edible Garden Reports a 324% Year-Over-Year Increase in Gross Profit for Nine-Month Period Ending September 2024
Rhea-AI Summary
Edible Garden reported strong financial performance with a 324% increase in gross profit to $1.7 million for the first nine months of 2024. The company's strategic shift from lower-margin floral and lettuce products led to a 27% gross profit margin expansion in Q3 2024. Cut herbs sales grew 55% year-over-year for the first nine months. Q3 2024 revenue was $2.6 million, down from $3.3 million in Q3 2023. The company raised $5.65 million through an S1 offering, using $3.2 million to pay down debt. Edible Garden expanded its partnership with Walmart, introducing Hydro Basil and launching Vitamin Whey products on Walmart Marketplace.
Positive
- 324% increase in gross profit for first nine months of 2024
- 55% increase in cut herbs sales year-over-year
- 27% gross profit margin expansion in Q3 2024
- Raised $5.65 million through S1 offering
- Reduced debt by $3.2 million
- Expanded partnership with Walmart
Negative
- Q3 2024 revenue decreased to $2.6M from $3.3M year-over-year
- Net loss of $2.1M in Q3 2024
- $215,000 revenue delay due to hurricane disruption
News Market Reaction 1 Alert
On the day this news was published, EDBL declined 12.00%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Healthy Core Business Operations - Year-to-Date Cut Herbs Sales Up
Conference Call to Be Held Today at 8:00 am ET
BELVIDERE, N.J., Nov. 13, 2024 (GLOBE NEWSWIRE) -- Edible Garden AG Incorporated (“Edible Garden” or the “Company”) (Nasdaq: EDBL), a leader in controlled environment agriculture (CEA), locally grown, organic and sustainable produce and products, today provided a business update and reported financial results for the three months ended September 30, 2024.
Jim Kras, Chief Executive Officer of Edible Garden, commented, " We are pleased to report another strong quarter. Earlier this year, we made a strategic shift away from lower margin floral and lettuce products. This decision continues to pay dividends, highlighted by a
“Our core business is stronger than ever, as demonstrated by a
“We also strengthened our balance sheet through our September S1 offering, raising approximately
"Our partnership with Walmart continues to grow in meaningful ways, including the introduction of our sustainably grown Hydro Basil, showcased through a custom-designed Basil Station display that integrates seamlessly into Walmart’s produce sections without disrupting existing planograms. Additionally, we have launched Edible Garden’s Vitamin Whey line of whey and plant protein powders, under the Vitamin Whey® and Vitamin Way® brands, on Walmart Marketplace. This move not only broadens consumer access to our Vitamin Whey products but also paves the way for expanding our offerings on Walmart’s platform, with plans to include our shelf-stable Pulp line of gourmet, sustainable sauces, and chili-based products, along with other shelf-stable items currently in development. The growth potential on Walmart Marketplace is tremendous, and we are confident our innovative products will resonate with the evolving tastes of a widening consumer base. We believe that this deepening collaboration with Walmart will boost Edible Garden’s revenue growth in 2024 and beyond."
"Our Pulp Flavors line of USDA organic, fermented and sustainable line of gourmet sauces experienced sales growth in the third quarter of 2024 as we continue to add to our existing distribution network which includes prominent retailers such as Target, Whole Foods, Meijer, Morton Williams, Dierbergs Markets, Woodman’s, and distributors like KeHE and UNFI. With the global sauces and condiments market projected by Research and Markets to grow from
"We also introduced our innovative Kick Sports Nutrition line, offering premium performance products tailored for today’s health-conscious athletes. Kick. is designed to meet the evolving priorities of athletes who are increasingly mindful of their nutritional intake. According to IMARC Group, the global sports nutrition market is projected to grow from
“The Company also received grants from the USDA Organic Certification Program, providing key support to offset organic certification and processing costs at our facilities in Belvidere, NJ, and Grand Rapids, MI. These funds will also fuel R&D for new organic product innovations, aligning with our Zero-Waste Inspired® mission. This partnership with the USDA strengthens our commitment to sustainable, local, and organic agriculture, reinforcing our role as a leader in controlled environment farming and our dedication to positively impacting the industry and the communities we serve.”
“We believe we have streamlined our business, eliminating elements that previously limited gross margin and revenue growth and that our core business operations are healthy and performing well. Given the current trends that we are seeing, we feel confident that the fourth quarter of 2024 will deliver significant growth in both margins and revenue, potentially marking one of the strongest quarters in the Company’s history. With a solid foundation and infrastructure in place, we believe we are poised not only to achieve strong results in the coming quarters but also to drive sustained growth and long-term value for our shareholders,” concluded Mr. Kras.
Financial results for the three months ended September 30, 2024
For the three months ended September 30, 2024, revenue totaled
Cost of goods sold totaled
Selling, general and administrative (“SG&A”) expenses were
Net loss was
The complete financial results for the three months ended September 30, 2024, are available in the Company’s Quarterly Report on Form 10-Q, which will be filed with the Securities and Exchange Commission and available at: www.sec.gov.
Conference Call
Edible Garden will host a conference call today at 8:00 A.M. Eastern Time to discuss the Company’s financial results for the quarter ended September 30, 2024, as well as the Company’s corporate progress and other developments.
The conference call will be available via telephone by dialing toll-free +1 877-545-0523 for U.S. callers or +1 973-528-0016 for international callers and entering access code 493366. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2914/51613 or on the investor relations section of the company’s website, https://ediblegardenag.com/presentations/.
A webcast replay will be available on the investor relations section of the Company’s website at https://ediblegardenag.com/presentations/ through November 13, 2025. A telephone replay of the call will be available approximately one hour following the call, through Wednesday, November 27, 2024, and can be accessed by dialing +1 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering access code 51613.
ABOUT EDIBLE GARDEN®
Edible Garden AG Incorporated is a leader in controlled environment agriculture (CEA), locally grown, organic, and sustainable produce and products backed by Zero-Waste Inspired® next generation farming. Offered at over 5,000 stores in the US, Edible Garden is disrupting the CEA and sustainability technology movement with its safety-in-farming protocols, use of sustainable packaging, patented GreenThumb software and self-watering in-store displays. The Company currently operates its own state-of-the-art greenhouses and processing facilities in Belvidere, New Jersey and Grand Rapids, Michigan, and has a network of contract growers, all strategically located near major markets in the U.S. Its proprietary GreenThumb 2.0 patented (US Nos.: US 11,158,006 B1, US 11,410,249 B2 and US 11,830, 088 B2) software optimizes growing in vertical and traditional greenhouses while seeking to reduce pollution-generating food miles. Its proprietary patented (U.S. Patent No. D1,010,365) Self-watering display is designed to increase plant shelf life and provide an enhanced in-store plant display experience. Edible Garden is also a developer of ingredients and proteins, providing an accessible line of plant and whey protein powders under the Vitamin Way® and Vitamin Whey® brands. In addition, the Company’s Kick Sports Nutrition line features premium performance products that cater to today’s health-conscious athletes. Furthermore, Edible Garden offers a line of sustainable food flavoring products such as Pulp gourmet sauces and chili-based products. For more information on Pulp products go to https://www.pulpflavors.com/. For more information on Vitamin Whey® products go to https://vitaminwhey.com/. For more information on Edible Garden go to https://ediblegardenag.com/.
Forward-Looking Statements
This press release contains forward-looking statements, including with respect to the Company’s ability to improve its financial results, the Company’s growth strategies, the Company’s ability to expand its existing customer relationships and into new product lines, and its performance as a public company. The words “believe,” “design,” “expect,” “objective,” “plan,” “potential,” “project,” “seek,” “will,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including market and other conditions and the Company’s ability to achieve its growth objectives, and other factors set forth in the Company’s filings with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K for the year ended December 31, 2023 and subsequent quarterly reports on Form 10-Q. Actual results might differ materially from those explicit or implicit in the forward-looking statements. The Company undertakes no obligation to update any such forward-looking statements after the date hereof to conform to actual results or changes in expectations, except as required by law.
Investor Contacts:
Crescendo Communications, LLC
212-671-1020
EDBL@crescendo-ir.com
(tables follow)
| EDIBLE GARDEN AG INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in thousands, except shares) | ||||||||
| September 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 2,214 | $ | 510 | ||||
| Accounts receivable, net | 1,665 | 1,249 | ||||||
| Inventory, net | 1,437 | 678 | ||||||
| Prepaid expenses and other current assets | 78 | 210 | ||||||
| Total current assets | 5,394 | 2,647 | ||||||
| Property, equipment and leasehold improvements, net | 3,266 | 3,893 | ||||||
| Finance lease right-of-use assets | 125 | - | ||||||
| Intangible assets, net | 44 | 47 | ||||||
| Other assets | 34 | 69 | ||||||
| TOTAL ASSETS | $ | 8,863 | $ | 6,656 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||
| LIABILITIES: | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and other accrued expenses | $ | 3,487 | $ | 2,517 | ||||
| Current maturities of finance lease liabilities | 40 | - | ||||||
| Short-term debt, net of discounts | 1,343 | 387 | ||||||
| Total current liabilities | 4,870 | 2,904 | ||||||
| Long-term liabilities: | ||||||||
| Long-term debt, net of discounts | 649 | 4,040 | ||||||
| Long-term finance lease liabilities | 85 | - | ||||||
| Total long-term liabilities | 734 | 4,040 | ||||||
| Total liabilities | 5,604 | 6,944 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| STOCKHOLDERS’ EQUITY (DEFICIT): | ||||||||
| Common stock ( | 2 | 1 | ||||||
| Series A Convertible Preferred stock ( | - | - | ||||||
| Additional paid-in capital | 41,298 | 29,971 | ||||||
| Obligation to issue shares | 191 | - | ||||||
| Accumulated deficit | (38,232 | ) | (30,260 | ) | ||||
| Total stockholders’ equity (deficit) | 3,259 | (288 | ) | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | $ | 8,863 | $ | 6,656 | ||||
(1) Adjusted to reflect stock splits
| EDIBLE GARDEN AG INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except share and per-share information) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue | $ | 2,584 | $ | 3,289 | $ | 9,985 | $ | 9,965 | ||||||||
| Cost of goods sold | 1,885 | 3,277 | 7,696 | 9,425 | ||||||||||||
| Gross profit | 699 | 12 | 2,289 | 540 | ||||||||||||
| Selling, general and administrative expenses | 2,189 | 2,387 | 8,823 | 7,458 | ||||||||||||
| Loss from operations | (1,490 | ) | (2,375 | ) | (6,534 | ) | (6,918 | ) | ||||||||
| Other income (expenses) | ||||||||||||||||
| Interest expense, net | (409 | ) | (57 | ) | (944 | ) | (334 | ) | ||||||||
| Gain (Loss) from extinguishment of debt | (164 | ) | - | (498 | ) | 70 | ||||||||||
| Employee retention credit | - | - | - | 1,233 | ||||||||||||
| Other income / (loss) | - | 1 | 4 | 1 | ||||||||||||
| Total other income (expenses) | (573 | ) | (56 | ) | (1,438 | ) | 970 | |||||||||
| NET LOSS | $ | (2,063 | ) | $ | (2,431 | ) | $ | (7,972 | ) | $ | (5,948 | ) | ||||
| Less: Series A Preferred Dividend | - | - | - | (4 | ) | |||||||||||
| NET LOSS ATTRIBUTABLE TO COMMON STOCK | $ | (2,063 | ) | $ | (2,431 | ) | $ | (7,972 | ) | $ | (5,952 | ) | ||||
| Net Income / (Loss) per common share - basic and diluted (1) | $ | (0.65 | ) | $ | (13.83 | ) | $ | (4.73 | ) | $ | (47.72 | ) | ||||
| Weighted-Average Number of Common Shares Outstanding Basic and Diluted (1) | 3,160,392 | 175,762 | 1,686,432 | 124,733 | ||||||||||||
(1) Adjusted to reflect stock splits
FAQ
What was Edible Garden's (EDBL) gross profit increase in the first nine months of 2024?
How much revenue did EDBL generate in Q3 2024?
How much did Edible Garden's cut herbs sales grow in 2024?
How much capital did EDBL raise in their September 2024 offering?
