

Record
Fourth Quarter 2024 Highlights
Net Sales of$11.6 million compared to$9.2 million in the corresponding prior year period, representing 26% growth.- E-commerce sales increased by 12% year-over-year and contributed 58% of total
Net Sales , with significant improvements in media efficiency in this channel. The growth was driven by strong sales on Amazon.com, building on the momentum over the previous three quarters. - Wholesale sales increased by 52% year-over-year and contributed 42% of total
Net Sales , driven by growth in grocery due to distribution expansion and velocity improvement at shelf, led by club sales outlets. - Gross Margin was 38.6% compared to 40.4% in the corresponding prior year period. This margin contraction was driven primarily by increased gross to net sales promotional spend related to prior periods, including higher slotting expenses due to distribution expansion.
- Net Loss was
$0.4 million , or$0.04 per diluted share, compared to Net Income of$0.1 million , or$0.02 per diluted share, in the corresponding prior year period. The Net Loss in the fourth quarter of 2024, compared to the Net Income in the prior year period, was driven mostly by higher operating expenses, namely stock-based compensation reflective of our stock performance and other personnel costs, partially offset by increased net sales. - Adjusted EBITDA, which is a non-GAAP financial measure, was
$0.2 million , or$0.01 per diluted share, compared to$0.3 million , or$0.03 per diluted share, in the corresponding prior year period. The decrease was driven primarily by increased personnel costs. For more details on non-GAAP financial measures, refer to the information in the non-GAAP financial measures section of this press release.
Fiscal Year 2024 Highlights
Net Sales of$43.3 million compared to$34.2 million in the corresponding prior year period, representing 27% growth.- E-commerce sales increased by 32% year-over-year and contributed 59% of total
Net Sales , with significant improvements in media efficiency in this channel. Sales on Amazon.com and the DTC platform contributed to e-commerce channel growth, driven by growth in subscription revenue and repeat customer purchases, as well as higher order values. - Wholesale sales increased by 19% year-over-year and contributed 41% of total
Net Sales , driven by velocity improvement in retail and club outlets and distribution expansion in grocery, as well as more efficient promotional spend. - Gross Margin was 40.9% compared to 30.1% in the corresponding prior year period. This margin expansion of 1,071 basis points was driven by the full benefit realization of the transition to a variable cost third-party co-manufacturing business model, favorable product costs, settlement recoveries, as well as planned reductions in promotional trade spend.
- Net Loss was
$1.8 million , or$0.18 per diluted share, compared to Net Loss of$10.2 million , or$1.09 per diluted share, in the corresponding prior year period. The improvement was driven byNet Sales growth, Gross Margin expansion, and lower marketing and general and administrative ("G&A") costs. - Adjusted EBITDA was
($0.7) million , or ($0.07 ) per diluted share, compared to($9.0) million , or ($0.96 ) per diluted share, in the corresponding prior year period. This improvement was driven byNet Sales growth, Gross Margin expansion, and lower marketing and G&A costs. For more details on non-GAAP financial measures, refer to the information in the non-GAAP financial measures section of this press release.
Revenue Disaggregation
|
| Three Months Ended | ||||||||||||
|
| 2024 |
| 2023 | ||||||||||
|
| $ |
| % of Total |
| $ |
| % of Total | ||||||
Coffee creamers |
| $ | 6,521,777 |
|
| 56 | % |
| $ | 4,831,008 |
|
| 52 | % |
Coffee, tea, and hot chocolate products |
|
| 3,196,314 |
|
| 28 | % |
|
| 1,924,368 |
|
| 21 | % |
Hydration and beverage enhancing supplements |
|
| 2,318,791 |
|
| 20 | % |
|
| 1,533,728 |
|
| 17 | % |
Harvest snacks and other food items |
|
| 1,550,974 |
|
| 13 | % |
|
| 2,084,375 |
|
| 23 | % |
Other |
|
| 73,179 |
|
| 1 | % |
|
| 148,422 |
|
| 2 | % |
Gross sales |
|
| 13,661,035 |
|
| 118 | % |
|
| 10,521,901 |
|
| 115 | % |
Shipping income |
|
| 132,900 |
|
| 1 | % |
|
| 121,870 |
|
| 1 | % |
Discounts and promotional activity |
|
| (2,187,736 | ) |
| (18 | )% |
|
| (1,436,383 | ) |
| (16 | )% |
Sales, net |
| $ | 11,606,199 |
|
| 101 | % |
| $ | 9,207,388 |
|
| 100 | % |
|
| Year Ended | ||||||||||||
|
| 2024 |
| 2023 | ||||||||||
|
| $ |
| % of Total |
| $ |
| % of Total | ||||||
Coffee creamers |
| $ | 23,088,363 |
|
| 53 | % |
| $ | 20,425,029 |
|
| 60 | % |
Coffee, tea, and hot chocolate products |
|
| 11,184,525 |
|
| 26 | % |
|
| 7,968,956 |
|
| 23 | % |
Hydration and beverage enhancing products |
|
| 9,207,964 |
|
| 21 | % |
|
| 5,320,039 |
|
| 16 | % |
Harvest snacks and other food items |
|
| 6,215,989 |
|
| 14 | % |
|
| 6,883,980 |
|
| 20 | % |
Other |
|
| 172,788 |
|
| 0 | % |
|
| 435,388 |
|
| 1 | % |
Gross sales |
|
| 49,869,629 |
|
| 114 | % |
|
| 41,033,392 |
|
| 120 | % |
Shipping income |
|
| 506,732 |
|
| 1 | % |
|
| 899,921 |
|
| 3 | % |
Discounts and promotional activity |
|
| (7,081,224 | ) |
| (15 | )% |
|
| (7,709,115 | ) |
| (23 | )% |
Sales, net |
| $ | 43,295,137 |
|
| 100 | % |
| $ | 34,224,198 |
|
| 100 | % |
Balance Sheet and Cash Flow Highlights
We had
Cash provided by operating activities was
2025 Outlook
In 2025, management's strategy is to drive growth well in excess of the consumer goods and food industry averages:
- Management re-affirms
Net Sales growth in the 20% to 25% range on a full-year basis, driven by continued expansion across Wholesale accounts and further penetration of consumers on e-commerce platforms. Gross Margin is expected to hold in the upper 30s, despite commodities cost pressures. - Adjusted EBITDA is targeted to be break even on a full-year basis.
- We expect
$1 to$2 million of negative operating cash flow in order to invest into inventory to support top line growth and to minimize out-of-stocks.
Conference Call and Webcast Details
We will host a conference call and webcast at
About
Forward-Looking Statements
This press release and the conference call referencing this press release contain “forward-looking” statements, as that term is defined under the federal securities laws, including but not limited to statements regarding Laird Superfood’s anticipated expansion across its platforms, channels, products, and geographies, cash runway, future financial performance, and growth. Such forward-looking statements may be identified by words such as "anticipates," "believes," "continues," "could," "estimates," "expects," "intends," "may," "outlook," "plans," "potential," predicts," "projects," "seeks," "should," "will," "would", or the antonyms of these terms or other comparable terminology. These forward-looking statements are based on Laird Superfood’s current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause Laird Superfood’s actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement. We expressly disclaim any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
The risks and uncertainties referred to above include, but are not limited to: (1) volatility regarding our revenue, expenses, including shipping expenses, and other operating results; (2) our ability to acquire new direct and wholesale customers and successfully retain existing customers; (3) our ability to attract and retain our suppliers, distributors and co-manufacturers, and effectively manage their costs and performance; (4) effects of real or perceived quality or health issues with our products or other issues that adversely affect our brand and reputation; (5) our ability to innovate on a timely and cost-effective basis, predict changes in consumer preferences and develop successful new products, or updates to existing products, and develop innovative marketing strategies; (6) adverse developments regarding prices and availability of raw materials and other inputs, a substantial amount of which come from a limited number of suppliers outside
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | ||||||||
|
| Year Ended | ||||||
|
| |||||||
|
|
| 2024 |
|
|
| 2023 |
|
Sales, net |
| $ | 43,295,137 |
|
| $ | 34,224,198 |
|
Cost of goods sold |
|
| (25,607,556 | ) |
|
| (23,910,921 | ) |
Gross profit |
|
| 17,687,581 |
|
|
| 10,313,277 |
|
General and administrative |
|
|
|
| ||||
Salaries, wages, and benefits |
|
| 4,367,976 |
|
|
| 4,203,613 |
|
Other general and administrative |
|
| 4,931,033 |
|
|
| 5,589,747 |
|
Total general and administrative expenses |
|
| 9,299,009 |
|
|
| 9,793,360 |
|
Sales and marketing |
|
|
|
| ||||
Marketing and advertising |
|
| 6,484,611 |
|
|
| 7,600,859 |
|
Selling |
|
| 3,825,992 |
|
|
| 3,332,872 |
|
Related party marketing agreements |
|
| 251,061 |
|
|
| 285,172 |
|
Total sales and marketing expenses |
|
| 10,561,664 |
|
|
| 11,218,903 |
|
Total operating expenses |
|
| 19,860,673 |
|
|
| 21,012,263 |
|
Operating loss |
|
| (2,173,092 | ) |
|
| (10,698,986 | ) |
Other income |
|
| 413,255 |
|
|
| 551,064 |
|
Loss before income taxes |
|
| (1,759,837 | ) |
|
| (10,147,922 | ) |
Income tax expense |
|
| (60,324 | ) |
|
| (15,195 | ) |
Net loss |
| $ | (1,820,161 | ) |
| $ | (10,163,117 | ) |
Net loss per share: |
|
|
|
| ||||
Basic and diluted |
| $ | (0.18 | ) |
| $ | (1.09 | ) |
Weighted-average shares of common stock outstanding used in computing net loss per share of common stock, basic and diluted |
|
| 9,946,733 |
|
|
| 9,297,226 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | ||||||||
|
| Year Ended | ||||||
|
|
| 2024 |
|
|
| 2023 |
|
Cash flows from operating activities |
|
|
|
| ||||
Net loss |
| $ | (1,820,161 | ) |
| $ | (10,163,117 | ) |
Adjustments to reconcile net loss to net cash from operating activities: |
|
|
|
| ||||
Depreciation and amortization |
|
| 270,271 |
|
|
| 306,176 |
|
Stock-based compensation |
|
| 1,637,788 |
|
|
| 1,092,146 |
|
Provision for inventory obsolescence |
|
| 599,902 |
|
|
| 1,273,171 |
|
Allowance for credit losses |
|
| (21,094 | ) |
|
| 165,980 |
|
Noncash lease costs |
|
| 142,321 |
|
|
| 152,339 |
|
Other operating activities, net |
|
| 11,370 |
|
|
| 38,098 |
|
Changes in operating assets and liabilities: |
|
|
|
| ||||
Accounts receivable |
|
| (719,445 | ) |
|
| 306,117 |
|
Inventory |
|
| (253,019 | ) |
|
| (1,899,165 | ) |
Prepaid expenses and other current assets |
|
| (267,463 | ) |
|
| 1,244,511 |
|
Operating lease liability |
|
| (128,426 | ) |
|
| (126,434 | ) |
Accounts payable |
|
| 513,066 |
|
|
| 570,094 |
|
Accrued expenses |
|
| 900,392 |
|
|
| (3,725,797 | ) |
Net cash from operating activities |
|
| 865,502 |
|
|
| (10,765,881 | ) |
Cash flows from investing activities |
|
|
|
| ||||
Purchase of property and equipment |
|
| (24,776 | ) |
|
| (144,023 | ) |
Proceeds on sale of property and equipment |
|
| — |
|
|
| 34,330 |
|
Proceeds from sale of assets held-for-sale |
|
| — |
|
|
| 800,000 |
|
Net cash from investing activities |
|
| (24,776 | ) |
|
| 690,307 |
|
Cash flows from financing activities |
|
|
|
| ||||
Common stock issuances, net of taxes |
|
| (70,926 | ) |
|
| (27,422 | ) |
Common stock issuance costs |
|
| (57,475 | ) |
|
| — |
|
Stock options exercised, net of option costs |
|
| 95,021 |
|
|
| — |
|
Net cash from financing activities |
|
| (33,380 | ) |
|
| (27,422 | ) |
Net change in cash and cash equivalents |
|
| 807,346 |
|
|
| (10,102,996 | ) |
Cash, cash equivalents, and restricted cash, beginning of period |
|
| 7,706,806 |
|
|
| 17,809,802 |
|
Cash, cash equivalents, and restricted cash, end of period |
| $ | 8,514,152 |
|
| $ | 7,706,806 |
|
Supplemental disclosures of cash flow information |
|
|
|
| ||||
Cash paid for interest |
| $ | 16,027 |
|
| $ | 13,994 |
|
Cash paid for income taxes |
| $ | 63,852 |
|
| $ | 17,625 |
|
Right-of-use assets obtained in exchange for operating lease liabilities |
| $ | — |
|
| $ | 344,382 |
|
Prepaid expenses paid for with a short-term financing arrangement included in accrued expenses |
| $ | 165,543 |
|
| $ | — |
|
CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||||
|
| As of | ||||||
|
|
| ||||||
Assets |
|
|
|
| ||||
Current assets |
|
|
|
| ||||
Cash, cash equivalents, and restricted cash |
| $ | 8,514,152 |
|
| $ | 7,706,806 |
|
Accounts receivable, net |
|
| 1,762,911 |
|
|
| 1,022,372 |
|
Inventory |
|
| 5,975,676 |
|
|
| 6,322,559 |
|
Prepaid expenses and other current assets |
|
| 1,713,889 |
|
|
| 1,285,564 |
|
Total current assets |
|
| 17,966,628 |
|
|
| 16,337,301 |
|
Noncurrent assets |
|
|
|
| ||||
Property and equipment, net |
|
| 58,447 |
|
|
| 122,595 |
|
Intangible assets, net |
|
| 896,123 |
|
|
| 1,085,231 |
|
Related party license agreements |
|
| 132,100 |
|
|
| 132,100 |
|
Right-of-use assets |
|
| 205,703 |
|
|
| 354,732 |
|
Total noncurrent assets |
|
| 1,292,373 |
|
|
| 1,694,658 |
|
Total assets |
| $ | 19,259,001 |
|
| $ | 18,031,959 |
|
Liabilities and Stockholders’ Equity |
|
|
|
| ||||
Current liabilities |
|
|
|
| ||||
Accounts payable |
| $ | 2,137,760 |
|
| $ | 1,647,673 |
|
Accrued expenses |
|
| 3,642,998 |
|
|
| 2,586,343 |
|
Related party liabilities |
|
| 34,947 |
|
|
| 2,688 |
|
Lease liabilities, current portion |
|
| 105,966 |
|
|
| 138,800 |
|
Total current liabilities |
|
| 5,921,671 |
|
|
| 4,375,504 |
|
Lease liabilities |
|
| 140,464 |
|
|
| 243,836 |
|
Total liabilities |
|
| 6,062,135 |
|
|
| 4,619,340 |
|
Stockholders’ equity |
|
|
|
| ||||
Common stock, |
|
| 10,292 |
|
|
| 9,384 |
|
Additional paid-in capital |
|
| 121,304,884 |
|
|
| 119,701,384 |
|
Accumulated deficit |
|
| (108,118,310 | ) |
|
| (106,298,149 | ) |
Total stockholders’ equity |
|
| 13,196,866 |
|
|
| 13,412,619 |
|
Total liabilities and stockholders’ equity |
| $ | 19,259,001 |
|
| $ | 18,031,959 |
|
NON-GAAP FINANCIAL MEASURES (unaudited)
In this press release, we report Adjusted EBITDA and Adjusted EBITDA per diluted share, which are financial measures not required by, or presented in accordance with, accounting principles generally accepted in
Management uses Adjusted EBITDA internally in analyzing the Company’s financial results to assess operational performance and to determine the Company’s future capital requirements. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. The Company believes that both management and investors benefit from referring to Adjusted EBITDA in assessing its performance and when planning, forecasting and analyzing future periods. The Company believes Adjusted EBITDA is useful to investors and others to understand and evaluate the Company’s operating results and it allows for a more meaningful comparison between the Company’s performance and that of competitors. Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider this performance measure in isolation from or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are that Adjusted EBITDA does not reflect, among other things: cash capital expenditures for assets underlying depreciation and amortization expense that may need to be replaced or for new capital expenditures; interest expense; income tax expense from continuing operations; our working capital requirements; the potentially dilutive impact of stock-based compensation; and the provision for income taxes. Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.
Because of these limitations, you should consider Adjusted EBITDA along with other financial performance measures, including
The following table presents a reconciliation of net income (loss), the most directly comparable financial measure stated in accordance with GAAP, to adjusted EBITDA, for each of the periods presented: | ||||||||||||||||
|
| Three Months Ended |
| Years Ended | ||||||||||||
|
|
| 2024 |
|
|
| 2023 |
|
|
| 2024 |
|
|
| 2023 |
|
Net (loss) income |
| $ | (398,443 | ) |
| $ | 142,923 |
|
| $ | (1,820,161 | ) |
| $ | (10,163,117 | ) |
Adjusted for: |
|
|
|
|
|
|
|
| ||||||||
Depreciation and amortization |
|
| 65,852 |
|
|
| 71,151 |
|
|
| 270,271 |
|
|
| 306,176 |
|
Stock-based compensation |
|
| 564,090 |
|
|
| 273,499 |
|
|
| 1,637,788 |
|
|
| 1,092,146 |
|
Income tax expense |
|
| 12,422 |
|
|
| 2,023 |
|
|
| 60,324 |
|
|
| 15,195 |
|
Interest expense and other (income) expense, net |
|
| (91,298 | ) |
|
| (98,776 | ) |
|
| (413,255 | ) |
|
| (551,064 | ) |
Product quality issue (a) |
|
| — |
|
|
| (69,842 | ) |
|
| (434,329 | ) |
|
| 282,000 |
|
Strategic organizational shifts (b) |
|
| — |
|
|
| 42,030 |
|
|
| — |
|
|
| (13,318 | ) |
Company-wide rebranding costs (c) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 163,806 |
|
Estimated class action lawsuit settlement costs (d) |
|
| — |
|
|
| (95,000 | ) |
|
| — |
|
|
| (95,000 | ) |
Adjusted EBITDA |
| $ | 152,623 |
|
| $ | 268,008 |
|
| $ | (699,362 | ) |
| $ | (8,963,176 | ) |
Net (loss) income per share, diluted: |
| $ | (0.04 | ) |
| $ | 0.02 |
|
| $ | (0.18 | ) |
| $ | (1.09 | ) |
Adjusted EBITDA per share, diluted: |
| $ | 0.01 |
|
| $ | 0.03 |
|
| $ | (0.07 | ) |
| $ | (0.96 | ) |
Weighted-average shares of common stock outstanding used in computing net loss per share of common stock, basic |
|
| 10,288,653 |
|
|
| 9,337,789 |
|
|
| 9,946,733 |
|
|
| 9,297,226 |
|
Dilutive securities |
|
| 1,705,180 |
|
|
| 200,679 |
|
|
| — |
|
|
| — |
|
Weighted-average shares of common stock outstanding used in computing adjusted EBITDA per share of common stock, diluted |
|
| 11,993,833 |
|
|
| 9,538,468 |
|
|
| 9,946,733 |
|
|
| 9,297,226 |
|
(a) In | ||||||||||||||||
(b) Costs incurred and recovered during 2023 as part of the strategic downsizing of our operations, including severances, forfeitures of stock-based compensation, and other personnel costs, IT integration costs, and freight costs to move inventory to third-party facilities. | ||||||||||||||||
(c) Costs incurred as part of the company-wide rebranding efforts that launched in Q1 2023. | ||||||||||||||||
(d) Estimated legal settlement costs related to a class action lawsuit which was included in general and administrative expenses in Q4 2022 and was reversed in Q4 2023 upon dismissal of the suit. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250226333389/en/
Investor Relations Contact
investors@lairdsuperfood.com
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