BELVIDERE, N.J., June 21, 2022 (GLOBE NEWSWIRE) — Edible Garden AG Incorporated (“Edible Garden” or the “Company”) (EDBL, EDBLW), a leader in controlled environment agriculture (ACE), locally grown, organic and sustainable produce and plant-based products, today provided a business update and released financial results for the quarter ended March 31, 2022.
Mr. Jim Kras, Managing Director of Edible Garden, said, “We are pleased to report strong results for the first quarter of 2022. Despite our capital constraints in the first quarter of 2022, revenue increased by 10% compared to the same period last year. year. On the heels of our IPO in May 2022, we believe we are well positioned to accelerate organic growth by capitalizing on our growing brand recognition, strong consumer demand for our products and expanding retail channels.
“Retailers have become very aware of supply chain risks and realize the importance of locally grown produce. Our controlled greenhouses allow us to grow steadily throughout the year by eliminating some of the variability of outdoor farming with our CEA techniques. Plus, GreenThumb, our proprietary, patented greenhouse management and demand planning system, helps us track plants through the supply chain, improving efficiency while reducing waste. At the same time, consumers are increasingly looking for fresh, safe, organic and sustainably grown foods. Our closed-loop systems and hydroponic methods use less land, less energy, and less water than old farms, conserving the planet’s finite natural resources, while mitigating contamination from harmful pathogens, such as as salmonella and e-coli without the use of pesticides.
“Looking forward, we believe our recent IPO will allow us to launch new sales and marketing initiatives to further drive brand awareness and growth. Like other companies in our industry, our first quarter results were impacted by labour, material and energy costs. Nonetheless, we have invested heavily in our operations and have built what we believe to be a highly scalable infrastructure. We expect to benefit from significant operating leverage, which should translate into improved margin as revenues continue to grow. Accordingly, we are encouraged by the company’s short and long term prospects. »
For the first quarter ended March 31, 2022, revenues totaled $2.7 million, an increase of $254,000, or 10.2%, compared to $2.5 million for the quarter ended March 31, 2021 The increase in revenue primarily reflects growth within the existing customer base.
Cost of goods sold was $2.8 million for the three months ended March 31, 2022 compared to $2.4 million for the three months ended March 31, 2021. The increase of $466,000 is due increased labor costs related to COVID-19, increased packaging costs due to inflation, and higher costs charged by contract farmers to supply product.
For the three months ended March 31, 2022, the operating loss amounted to $2.1 million, compared to a loss of $1.2 million for the three months ended March 31, 2021. This loss is explained in part by an increase in selling, general and administrative expenses of $733,000. . External professional fees accounted for $420,000 of this increase, of which $400,000 related to non-cash stock-based compensation expense. The Company also incurred higher energy costs due to higher natural gas prices. Net loss was $2.6 million, or $0.51 per share, for the three months ended March 31, 2022, compared to a net loss of $1.2 million, or $0.30 per share. share, for the quarter ended March 31, 2021.
Complete financial results for the three months ended March 31, 2022 are available on the company’s Form 10-Q, which has been filed with the Securities & Exchange Commission and available at: www.sec.gov.
ABOUT THE EDIBLE GARDEN®
Edible Garden AG Incorporated is a leader in locally grown organic leafy greens and herbs, supported by next-generation Zero-Waste Inspired® agriculture. Offered in more than 4,000 stores across the United States, Edible Garden is disrupting CEA’s agriculture and sustainability technology movement with its safety in agriculture protocols, use of sustainable packaging, patented GreenThumb software and self-watering in-store displays. The company currently operates state-of-the-art greenhouses and processing facilities in Belvidere, New Jersey, and partners with growers near major markets in the United States. Its proprietary GreenThumb software optimizes cultivation in vertical and traditional greenhouses while seeking to reduce food-generating pollution. miles. Edible Garden is also an ingredient and protein developer, providing an accessible line of plant-based and whey protein powders under the Vitamin Way® and Vitamin Whey® brands.
This press release contains forward-looking statements, including with respect to the Company’s growth strategies; its ability to control expenses while increasing revenues; its ability to evolve its commercial infrastructure and expand its product lines; distribution network and distribution relationships; and performance as a public company. The words “believe”, “expect”, “intend”, “goal”, “outlook”, “plan”, “seek”, “should”, “strategy”, “will”, and similar expressions are intended to identify the future. – look at the 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. More detailed information about the Company and the risk factors that could affect the making of forward-looking statements is set forth in the Company’s filings with the SEC. Investors and security holders are urged to read these materials free of charge on the SEC’s website at http://www.sec.gov. The Company undertakes no obligation to update these forward-looking statements after the date hereof to conform to actual results or to changes in expectations, except as required by law.
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