Edible Garden Reports Q2 2024 Financial Results includes 157% Increase in Gross Profit

August 14, 2024

DENVER, Colo., Aug 14, 2024 (247marketnews.com)- Edible Garden AG Incorporated (Nasdaq: EDBL) reported its second quarter 2024 financial results, including a reduction in cost of goods sold to $2.7 million for the quarter, compared to $3.7 million for the second quarter of 2023, primarily driven by eliminating large third-party growers.

Jim Kras, Edible Garden’s CEO, stated, “We are pleased to announce another exceptionally strong quarter, as illustrated by a 157% increase in gross profit, fueled by impressive year-over-year growth of 61% in cut herbs and 30% in vitamins & supplements for the second quarter of 2024. Our shift away from the dependence on third-party growers is driving our gross profit margin improvement. With approximately 95% of our fresh product line now produced in our own facilities, gross margin increased to a record 36.7% in the second quarter of 2024, compared to 13.1% for the same period last year. Additionally, we have reviewed our business operations and made a strategic decision to shift away from less profitable business segments, directing our focus and efforts toward more profitable, higher-margin segments. We believe that this shift in strategic focus, combined with the vertical integration of our operations, positions us well to continue improving our results and achieving our goals of positive cash flow and profitability.

“In the second quarter, we expanded the distribution of our Pulp line of USDA organic, fermented, and sustainable gourmet sauces and chili-based products, with the addition of UNFI Distributors, a top North American wholesaler of health and specialty foods serving over 30,000 locations. Through KeHE Distributors and UNFI Distributors, as well as our own e-commerce platform, retailers across the continent now have access to our ‘Bland to Bold’ Pulp products. Our growing roster of major retailers now includes Target, Whole Foods, Meijer, Morton Williams, Dierbergs Markets, Woodman’s and others. According to Research and Markets, the global sauces and condiments product category is expected to grow to $240.7 billion in 2028 from $172.79 billion in 2021, and the response from consumers to the Pulp line has been overwhelmingly positive.

“We also bolstered our distribution through our partnership with Hemingways, which serves over 350 retailers across the Northeast, including an innovative integrated rack program designed to enhance herb displays at their retail locations. We have further expanded our retail network to include Seasons Kosher and Lincoln Market. Lastly, we are excited that our entire product line, including Pulp, is now available at every Brooklyn Fare location in New York City.

“In late April, we launched distribution of our Garden Starters—potted herbs and basil bowls tailored for home gardening—to Midwestern retailers. Originally launched in 2023 to meet the increasing popularity of home gardening, these eco-friendly cultivated herbs respond to the needs of the 35% of American households that grow at least some of their own food, providing them with diverse flavor options for their meals. Our vertically integrated Edible Garden Heartland facility in Grand Rapids, Michigan, now fully manages the production, packaging, and distribution of these products. By placing them next to our cut herbs and sustainably sourced produce in supermarkets, we aim to offer maximum convenience to our customers.

“During the second quarter, we implemented several new proprietary innovations in packaging and shipping to significantly extend the shelf life of our products, reducing spoilage and driving cost savings for our retail partners. These innovations, including our patented self-watering in-store display, differentiate Edible Garden by minimizing waste and ensuring retailers can showcase plants at their peak, aligning with our Zero-Waste Inspired® mission. Furthermore, we launched a comprehensive training program with Abilities of Northwest Jersey Inc., building on our decade-long partnership that integrates dedicated workers with disabilities, benefiting both Edible Garden and these individuals. Our programs provide valuable skills and professional development, enhancing employability and enriching our workforce, while remaining committed to community involvement, local investment, and leadership in ESG and sustainability initiatives.

“The impressive results we achieved in the second quarter and first half of 2024 reflect the tireless efforts and years of hard work by the entire Edible Garden team and our capacity to consistently perform at a high level resulting in high fill rates and an outstanding reputation as a trusted supplier within the industry. This growth also underscores the positive impact that vertical integration has had on our operations.”

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