Edible Garden AG rporated(US:EDBL)2025-11-14 14:02Financial Data and Key Metrics Changes - Revenue for Q3 2025 increased by 9% year-over-year to $2.8 million, compared to $2.6 million in Q3 2024, driven by strong performance in the shelf-stable product portfolio [14][7] - Gross profit totaled approximately $0.3 million, down from $0.7 million in the prior year, due to higher labor, freight, and raw material costs [14] - Net loss for the quarter was $4 million, compared to a net loss of $2.1 million in Q3 2024 [15] Business Line Data and Key Metrics Changes - The shelf-stable product portfolio grew by 54% year-over-year in Q3, with notable brands like KICK Sports Nutrition, Vitamin Way, Pulp, and Pickle Party contributing to this growth [14][7] - Core herb portfolio saw significant growth, with Hydrobasil up 21% and Wheatgrass up 59% year-over-year [14] Market Data and Key Metrics Changes - The functional food and beverage market is projected to grow from approximately $400 billion to $610 billion by 2030, indicating a strong market opportunity for the company [9] - In the U.S., sales of natural, organic, and functional products are expected to reach $386 billion by 2028, reinforcing the company's strategic alignment with market trends [9] Company Strategy and Development Direction - The company is evolving towards a consumer packaged goods (CPG) model, focusing on non-perishable product expansion and higher-value branded portfolio [7] - Strategic partnerships with major retailers like Kroger and Fresh Market are being strengthened, expanding the company's retail footprint [8] - The company is pursuing new categories such as nutraceuticals, sustainable proteins, and functional foods, guided by a zero-waste approach [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for continued growth, emphasizing disciplined execution and product innovation [13] - The current political environment is pushing for less processed foods, creating opportunities for the company to align with consumer demand for clean-label products [28] Other Important Information - The company has refinanced its outstanding debt, securing lower interest rates and more favorable terms, which is expected to reduce annual interest expenses [15] - The company ended the quarter with $0.8 million in cash and equivalents, down from $3.5 million at year-end 2024 [15] Q&A Session Summary Question: Utilization of the Natural Shrimp facility - Management discussed the facility's impressive location and its potential for R&D on next-generation products, including nutraceuticals and food [22][24] Question: Opportunities with grocery stores - Management confirmed that major grocery chains like ShopRite, Kroger, and Fresh Market represent significant opportunities moving into 2026, driven by demand for clean-label products [27][28] Question: Margin related to private label products - Management indicated that while private label products may have lower margins, they provide volume and long-term relationships with major retailers, which are crucial for business growth [31][32]