Stryve Foods, Inc. Reports Fiscal 2024 Second Quarter Results

Core Insights - Stryve Foods, Inc. reported its lowest adjusted EBITDA loss in company history, with a 34.8% year-over-year improvement, indicating effective business transformation initiatives [1][3][9] - The company achieved a gross margin of 27.4%, reflecting an expansion of approximately 10 percentage points compared to the prior year [1][2] - For fiscal year 2024, Stryve updated its net sales guidance to a range of $23 million to $26 million, representing a year-over-year growth of 30.0% to 46.9% [5] Financial Performance - Net sales for the second quarter of 2024 reached $6.2 million, showing a sequential growth of 34.4% and a year-over-year increase of 3.0% [2][8] - Gross profit for the second quarter was $1.7 million, up from $1.1 million in the same period last year, primarily due to an improved sales mix and better facility utilization [9][10] - The operating loss narrowed to $2.2 million in Q2 2024, compared to a loss of $3.4 million in Q2 2023 [9][10] Strategic Initiatives - The company is focused on operational efficiency and cost management, which has led to improved gross margins despite higher commodity costs [3][6] - Stryve's strategic transformation is entering its third phase, with significant operational improvements and plans for accelerated growth [3][4] - Management emphasized the importance of expanding distribution and enhancing gross margins as part of their ongoing strategy [4][6] Capital and Funding - In Q2 2024, Stryve closed approximately $3.0 million in convertible promissory notes, with $1.7 million from insider and related party participants, to support working capital needs [7] - The company continues to manage its capital efficiently while making strategic investments in high-potential areas [6] Year-to-Date Performance - For the six months ended June 30, 2024, net sales totaled $10.8 million, a 1.2% increase compared to the same period last year [10] - The year-to-date gross profit was $2.7 million, up from $2.0 million in the prior year, driven by an improved sales mix [10]