Core Viewpoint - Edible Garden (NASDAQ:EDBL) reported its second-quarter earnings, showing a significant improvement in earnings per share compared to expectations, despite a slight decline in revenue [1][2]. Financial Performance - The company reported diluted earnings per share of -$1.21, which is better than the expected -$4.21 and an improvement from -$4.83 in the same quarter last year [1]. - Revenue for the quarter was $4.27 million, which fell short of the expected $4.43 million and showed only a slight increase from $4.22 million reported in Q2 2023 [2]. Innovations and Strategies - CEO Jim Kras highlighted the implementation of new proprietary innovations in packaging and shipping aimed at extending product shelf life, reducing spoilage, and driving cost savings for retail partners [2][3]. - The innovations include a patented self-watering in-store display, which aligns with the company's Zero-Waste Inspired® mission [3]. Market Reaction - Following the earnings report, EDBL stock experienced heavy trading with over 22 million shares changing hands, significantly higher than the average daily trading volume of about 714,000 shares [3]. - As of Wednesday morning, EDBL stock was up 10.1% [4].

Edible Garden AG Incorporated (NASDAQ:EDBL) Q2 2024 Earnings Conference Call August 14, 2024 8:00 AM ET Company Participants Ted Ayvas - Investor Relations James Kras - Chief Executive Officer Kostas Dafoulas - Interim Chief Financial Officer Conference Call Participants Anthony Vendetti - Maxim Group Operator Good morning, everyone and welcome to the Edible Gardens Second Quarter 2024 Business Update Conference Call. At this time, all participants have been placed on a listen-only mode. And we will open fo ...

Financial Performance - Edible Garden reported a 157% increase in gross profit, driven by a 61% growth in cut herbs and a 30% increase in vitamins & supplements for Q2 2024[2] - Revenue for the quarter ended June 30, 2024, totaled $4.3 million, compared to $4.2 million for the same period in 2023, primarily due to growth in core products[3] - Revenue for the three months ended June 30, 2024, was $4,268,000, a slight increase from $4,221,000 for the same period in 2023, representing a growth of 1.1%[13] - Gross profit for the three months ended June 30, 2024, was $1,566,000, compared to $553,000 for the same period in 2023, indicating a significant increase of 184.3%[13] - The cost of goods sold for the three months ended June 30, 2024, was $2,702,000, down from $3,668,000 in the same period last year, showing a decrease of 26.4%[13] Cost Management - Cost of goods sold decreased to $2.7 million in Q2 2024 from $3.7 million in Q2 2023, reflecting a decline in reliance on third-party growers[4] - Selling, general and administrative expenses were $2.7 million for Q2 2024, up from $2.4 million in Q2 2023, mainly due to a one-time bonus charge and higher fees[4] - Selling, general, and administrative expenses rose to $2,748,000 for the three months ended June 30, 2024, up from $2,380,000 in the same period last year, reflecting an increase of 15.5%[13] - Loss from operations for the three months ended June 30, 2024, was $(1,182,000), an improvement from $(1,827,000) for the same period in 2023, reflecting a reduction of 35.4%[13] Net Loss and Earnings - Net loss for Q2 2024 was $1.9 million, or ($1.21) per share, compared to a net loss of $638 thousand, or ($4.83) per share, in Q2 2023[4] - The net loss for the three months ended June 30, 2024, was $1,932,000, compared to a net loss of $638,000 for the same period in 2023, representing a deterioration of 202.5%[13] - Net income per common share for the three months ended June 30, 2024, was $(1.21), compared to $(4.83) for the same period in 2023[13] Strategic Initiatives - The company expanded its distribution network, including partnerships with UNFI Distributors and Hemingways, reaching over 30,000 retail locations[2] - New product launches included Garden Starters for home gardening, responding to the needs of 35% of American households that grow their own food[2] - Edible Garden implemented proprietary innovations in packaging and shipping to extend product shelf life and reduce spoilage[2] - The company is committed to community involvement and ESG initiatives through partnerships that enhance employability for individuals with disabilities[3] Other Financial Metrics - Gross margin improved to 36.7% in Q2 2024, up from 13.1% in Q2 2023, due to a strategic pivot away from third-party growers[1] - Total other income (expenses) for the three months ended June 30, 2024, was $(750,000), compared to $1,189,000 for the same period in 2023, indicating a decline of 163.0%[13] - Interest expense, net, for the three months ended June 30, 2024, was $(419,000), compared to $(44,000) for the same period in 2023, indicating an increase of 850.0%[13] - The weighted-average number of common shares outstanding for the three months ended June 30, 2024, was 1,590,188, significantly higher than 132,074 for the same period in 2023[13]

Core Insights - Edible Garden AG Incorporated will host a conference call on August 14, 2024, to discuss financial results for the quarter ended June 30, 2024, and provide a business update [1] Company Overview - Edible Garden is a leader in controlled environment agriculture (CEA), focusing on locally grown, organic, and sustainable produce and products [4] - The company operates state-of-the-art greenhouses and processing facilities in Belvidere, New Jersey, and Grand Rapids, Michigan, and has a network of contract growers near major U.S. markets [4] - Edible Garden's proprietary GreenThumb 2.0 software optimizes growing in vertical and traditional greenhouses while aiming to reduce pollution-generating food miles [4] - The company offers a range of products, including plant and whey protein powders under the Vitamin Way® and Vitamin Whey® brands, as well as sustainable food flavoring products like Pulp gourmet sauces [4]

Core Insights - Edible Garden AG Incorporated reported over 30% year-over-year sales growth in its Vitamins and Supplements products for the second quarter, which is expected to positively impact profitability and cash flow from operations [1][5][6] Group 1: Company Performance - The strong performance in Vitamins and Supplements is attributed to an integrated marketing strategy aimed at increasing consumer adoption through promotional and brand awareness activities [2] - The company introduced two new flavors, 'Ice Cream Cake' and 'Orange Creamsicle,' which have reinforced its reputation as the 'Flavor Maker' in the industry [2] - The partnership with Nutracom has been crucial for the company's success, with plans to explore more innovative flavor possibilities [2] Group 2: Company Overview - Edible Garden is a leader in controlled environment agriculture (CEA), focusing on locally grown, organic, and sustainable produce, and operates over 5,000 stores in the U.S. [3] - The company utilizes patented technologies such as GreenThumb software and self-watering displays to optimize growing conditions and enhance product shelf life [3] - Edible Garden also develops plant and whey protein powders under the Vitamin Way® and Vitamin Whey® brands, along with sustainable food flavoring products [3]

Mr. Jim Kras, Chief Executive Officer of Edible Garden, commented, "We are extremely pleased with the strong performance of our Vitamins and Supplements products, which we believe demonstrate that these highermargin products are gaining traction in the market. We believe these results are driven by our integrated marketing strategy designed to increase consumer adoption through a variety of promotional and brand awareness activities. The success of these initiatives is best illustrated by the 30% increase i ...

Core Insights - Edible Garden AG Incorporated has expanded its product availability to Seasons Kosher and Lincoln Market, enhancing its community presence and supporting local producers [4][5] - The company is recognized for its commitment to sustainability and ethical sourcing, offering a range of locally grown, organic, and sustainable produce [2][4] - Edible Garden's innovative technologies, including patented GreenThumb software and self-watering displays, are designed to optimize agricultural practices and reduce environmental impact [2] Group 1: Company Overview - Edible Garden is a leader in controlled environment agriculture (CEA), focusing on locally grown, organic, and sustainable products [2][4] - The company operates state-of-the-art greenhouses and processing facilities in Belvidere, New Jersey, and Grand Rapids, Michigan, along with a network of contract growers [2] - Edible Garden's product offerings include plant and whey protein powders under the Vitamin Way® and Vitamin Whey® brands, as well as sustainable food flavoring products [2] Group 2: Retail Partnerships - The partnership with Seasons Kosher and Lincoln Market aligns with Edible Garden's growth strategy and commitment to community involvement [2][5] - The availability of Edible Garden products at these retailers provides customers with a fresh, locally focused shopping experience [2] - Edible Garden will support the grand opening of Lincoln Market's new store, further demonstrating its commitment to local economic vitality [5]

Seasons Kosher, a local supermarket chain, is celebrated for its extensive range of kosher products, which are distinguished by a commitment to quality and ethical sourcing. Likewise, Lincoln Market, known for its fair pricing and diverse selection of high-quality, organic, and conventional products, will also begin carrying Edible Garden products. "Our dedication to sustainability and community involvement aligns seamlessly with the principles of Seasons Kosher and Lincoln Market, making these retailers a ...

ABOUT EDIBLE GARDEN® This press release contains reference to the Company's fulfillment rate which is a key performance metric management uses to analyze and measure the Company's financial performance and results of operation. Management uses fulfillment rate as a measure of current and future business and financial performance, and it may not be comparable with measures provided by other companies. The Company defines fulfillment rate as the percentage of orders filled in full, relative to the total numbe ...

Core Insights - Edible Garden AG Incorporated reported a preliminary sales increase of over 44% year-over-year for the July 4th holiday period compared to the same period in 2023 [8] - The company achieved a 27.6% year-over-year revenue growth in the first quarter of 2024, which is typically the slowest quarter for the company [8] - The company maintains a high fulfillment rate of 99% during the July 4th period, indicating strong operational efficiency [8] Financial Performance - The preliminary financial data is based on estimates and is subject to further internal review, meaning actual results may differ materially [4][5][6] - The company’s financial closing procedures for the quarter ended June 30, 2024, are not yet complete, and the preliminary information may not reflect year-over-year trends accurately [4][6] Operational Strategy - The company emphasizes vertical integration, producing approximately 95% of its products in company-owned facilities, which has led to margin growth and enhanced operational efficiency [8] - Edible Garden's shipper programs in the Northeast, Mid-Atlantic, and Midwest regions are crucial for meeting customer demands and driving growth [8] Company Overview - Edible Garden is a leader in controlled environment agriculture (CEA), focusing on locally grown, organic, and sustainable produce [9] - The company operates state-of-the-art greenhouses and processing facilities in New Jersey and Michigan, and has a network of contract growers near major U.S. markets [9] - Edible Garden utilizes patented technologies such as GreenThumb software and self-watering displays to optimize production and enhance in-store experiences [9]