Q2 2024 Laird Superfood Inc Earnings Call

August 7, 2024

Operator: Attention everyone: please remain holding. The call will begin momentarily. Again, please remain holding.

Unknown Executive: Attention, everyone. Please remain holding. The call will begin momentarily. Again, please remain holding. The call will begin momentarily.

Attention, everyone. Please remain holding. The call will begin momentarily. Again, please remain holding. The call will begin momentarily.

Operator: and please remain holding; the call will begin momentarily. Transcribed by Transcription Outsourcing, LLC.

Unknown Executive: Good afternoon. Thank you for attending today's Laird Superfood Inc. Second quarter, 2024 financial results.

Jaylen: Good afternoon. Thank you for attending today's Laird Superfood, Inc. second quarter 2024 financial results. My name is Jaylen. I'll be a moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. And I'd like to pass the conference over to our host, Trevor Rousseau. You may proceed.

Jaylen: The call will begin momentarily. George Kelly, David. Good afternoon. Thank you for attending today's Laird Superfood, Inc. second quarter 2024 financial results. My name is Jaylen. I'll be the moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. And I'd like to pass the conference over to our host, Trevor Rousseau. You may proceed.

Trevor Rousseau: Good afternoon. Thank you for attending today's Laird Superfood, Inc. second quarter 2024 financial results. My name is Jaylen. I'll be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I'd now like to pass the conference over to our host, Trevor Rousseau. You may proceed.

Jaylen: My name is Jaylen. I'll be a moderator for today. All lines will be muted during the presentation portion of the call. With an opportunity for questions and answers at the end.

Trevor Rousseau: I'll now like to pass the conference over to our host, Trevor Rousseau. You may proceed.

Trevor Rousseau: Thank you and good afternoon.

Trevor Rousseau: Thank you and good afternoon. Welcome to Laird Superfood's second quarter 2024 earnings conference call and webcast. On today's call are Jason Vieth, Laird Superfood's President and Chief Executive Officer, and Anya Hamill, our Chief Financial Officer. By now, everyone should have access to the company's second quarter earnings release, which was filed today after market close. It is available in the Investor Relations section of Laird's Superfoods website at www.lairdsuperfoods.com. Before we begin, please note that during this call, management may make forward-looking statements within the context of federal security.

Trevor Rousseau: Welcome to Laird Superfood's second quarter 2024 earnings conference call and webcast. On today's call are Jason Vieth, Laird Superfood's President and Chief Executive Officer, and Anya Hamill, our Chief Financial Officer. By now, everyone should have access to the company's second quarter earnings release, which was filed today after market closed. It is available on the Investor Relations section of Laird Superfood's website at www.LairdSuperfood.com.

Trevor Rousseau: Thank you and good afternoon. Welcome to Laird Superfood's second quarter 2024 Earnings Conference Call and Webcast.

Trevor Rousseau: On today's call are Jason Vieth, Laird Superfoods' President and Chief Executive Officer, and Anya Hamill, our Chief Financial Officer. By now, everyone should have access to the company's second quarter earnings release, which was filed today after market close. It is available in the Investor Relations section of Laird's Superfoods website at www.lairdsuperfoods.com.

Speaker Change: On today's call are Jason Vieth, Laird Superfood's President and Chief Executive Officer, and Anya Hamill, our Chief Financial Officer.

Speaker Change: By now, everyone should have access to the company's second-quarter earnings release, which was filed today after market close. It is available on the Investor Relations section of Laird Superfood's website at www.lairdsuperfood.com.

Trevor Rousseau: Before we begin, please note that during this call, management may make forward booking statements within the context of federal securities laws. These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ materially from those described in these policies and statements. Please refer to today's catch release and other findings with the SEC for detailed discussions on these risks and uncertainties.

Trevor Rousseau: These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could cause actual results to be different from those described in these bulletin statements. Please refer to today's press release and other filings with the SEC for a detailed discussion of these risks and concerns. With that, I'll turn the call over to Jason.

Speaker Change: Before we begin, please note that during this call, management may make forward-looking statements within the context of federal securities laws.

These statements are based on management's current expectations and beliefs, and involve risks and uncertainties that could cause actual results to differ materially than those described in these bulletin statements.

Please refer to today's press release and other filings with the SEC for a detailed discussion of these risks and uncertainties.

Jason Vieth: For that, I'll turn the call over to Jason. Thank you, Trevor. Good afternoon, and thank you to all of our investors that continue to follow and support us. And a kind welcome to those of you who are just joining the journey. Today, I am thrilled to share that the Laird Superfood growth story has once again put up results that should be the envy of the industry. During the second quarter, we grew the net sales of our business by an impressive 30% versus the same period one year ago, which marks an eight-point acceleration versus the 22% sales growth that we had reported during Q1 of this year.

Jason Vieth: Thank you, Trevor. Good afternoon, and thank you to all of our investors that continue to follow and support us, and a kind welcome to those of you who are just joining the journey. Today, I am thrilled to share that the Laird Superfood growth story has once again put up results that should be the envy of the industry. During the second quarter, we grew the net sales of our business by an impressive 30% versus the same period one year ago, which marks an eight point acceleration versus the 22% sales growth that we had reported during Q1 of this year.

With that, I'll turn the call over to Jason.

Jason: Thank you, Trevor. Good afternoon and thank you to all of our investors that continue to follow and support us and a kind welcome to those of you who are just joining the journey.

Jason Vieth: Net sales growth during the second quarter was once again led by our e-commerce segment, which grew by 47% year over year. Our sales through Amazon once again led the way with an eye-popping 80% growth rate in Q2, driven by our continued improvement in product availability, marketing effectiveness, and inventory management. We had our most successful Prime Days event in the history of Laird Superfood this year and are excited for the opportunity that we now have to build on that success with new consumers that have just joined our franchise.

Jason: Today, I am thrilled to share that the Laird Superfood growth story has once again put up results that should be the envy of the industry.

Jason Vieth: During the second quarter, we grew the net sales of our business by an impressive 30% versus the same period one year ago, which marks an eight point acceleration versus the 22% sales growth that we had reported during Q1 of this year. Net sales growth during the second quarter was once again led by our e-commerce segment, which grew by 47% year over year. In this case, I am happy to share that we were able to come to a mutually agreeable and long-term beneficial agreement with this supplier.

Speaker Change: During the second quarter, we grew the net sales of our business by an impressive 30% versus the same period one year ago, which marks an eight-point acceleration versus the 22% sales growth that we had reported during Q1 of this year.

Jason Vieth: Net sales growth during the second quarter was once again led by our e-commerce segment, which grew by 47% year over year. Our sales through Amazon once again led the way with an eye-popping 80% growth rate in Q2, driven by our continued improvement in product availability, marketing effect of this, and inventory management. We had our most successful Prime Days event in the history of the Laird Superfood this year and are excited for the opportunity that we now have to build on that success with new consumers that just entered our franchise. During Q2, our DTC business grew by an impressive 32%, which you'll recognize as an acceleration from the already strong 25% growth that we had reported in this channel during the first quarter.

Speaker Change: Net sales growth during the second quarter was once again led by our e-commerce segment, which grew by 47% year-over-year.

Speaker Change: Our sales through Amazon once again led the way with an eye-popping 80% growth rate in Q2, driven by our continued improvement in product availability, marketing effectiveness, and inventory management.

Laird Superfood: We had our most successful Prime Days event in the history of Laird Superfood this year, and are excited for the opportunity that we now have to build on that success with new consumers that just entered our franchise.

Jason Vieth: During Q2, our DTC business grew by an impressive 32%, which you'll recognize as an acceleration from the already strong 25% growth that we had reported in this channel during the first quarter. With approximately half of our DTC sales now coming from subscriptions, we have built a predictable revenue model that fosters stronger customer relationships and increased brand affinity by our consumers. Beginning in 2024, we have focused our DTC channel on providing cultivated content, unique products, and programming from Laird and Gabby, and our consumers are demonstrating that they value these. On the wholesale side of our business, we grew net sales by 9% year-over-year during Q1, just narrowly missing another quarter of double-digit growth in this channel.

Speaker Change: During Q2, our DTC business grew by an impressive 32%, which you'll recognize as an acceleration from the already strong 25% growth that we had reported in this channel during the first quarter.

Jason Vieth: With approximately half of our DTC sales now coming from subscriptions, we have built a predictable revenue model that fosters stronger customer relationships and increased brand affinity by our consumers.

Unknown Executive: Attention, everyone. Please remain holding. The call will begin momentarily. Again, please remain holding. The call will begin momentarily.

Speaker Change: With approximately half of our DTC sales now coming from subscriptions, we have built a predictable revenue model that fosters stronger customer relationships and increased brand affinity by our consumers.

Jason Vieth: Summers. Beginning in 2024, we have focused our DTC channel on providing cultivated content, unique products, and programming from Laird and Gabby, and our consumers are demonstrating that they value it. On the wholesale side of our business, we grew net sales by 9% year over year during Q1, just narrowly missing another quarter of double-digit growth in this channel. Retail scanner sales for our Laird Superfood brand were once again up even more than our net sales at plus 30% across the conventional multi outlet plus natural channel for the 12-week period ending June 16. Retail scanner data demonstrated that all of our product segments grew once again during the second quarter, with our coffee and instant latte products leading growth in this channel at 53 and 48% retail sales growth, respectively.

Speaker Change: Beginning in 2024, we have focused our DTC channel on providing cultivated content, unique products and programming from Laird and Gabby, and our consumers are demonstrating that they value it.

Unknown Executive: Good afternoon. Thank you for attending today's Laird Superfood Inc, second quarter, 2024 financial results.

Speaker Change: On the wholesale side of our business, we grew net sales by 9% year-over-year during Q1, just narrowly missing another quarter of double-digit growth in this channel.

Trevor Rousseau: My name is Jaylen. I'll be a moderator for today. All lines will be muted during the presentation portion of the call.

Jason Vieth: Retail scanner sales for our Laird Superfood brand were once again up even more than our net sales at plus 30% across the conventional multi-outlet plus natural channel for the 12-week period ending June 16. Retail scanner data demonstrated that all of our product segments grew once again during the second quarter, with our coffee and instant latte products leading growth in this channel at 53 and 48% retail sales growth respectively.

Speaker Change: retail scanner sales for our layred superfood brand were once again up even more than our net sales at plus thirty percent across the conventional multi-outlet plus natural channel for the twelve week period ending june sixteenth

Unknown Executive: With an opportunity for questions and answers at the end.

Trevor Rousseau: I'll now like to pass the conference over to our host Trevor Rousseau. You may proceed. Thank you and good afternoon.

Speaker Change: Retail scanner data demonstrated that all of our product segments grew once again during the second quarter with our coffee and instant latte products leading growth in this channel at 53 and 48 percent retail sales growth respectively.

Trevor Rousseau: Welcome to Laird Superfood's second quarter, 2024 earnings conference call and webcast. On today's call are Jason Vieth, Laird Superfood's president and chief executive officer and Anya Hamill, our chief financial officer. By now, everyone should have access to the company's second quarter earnings release, which was filed today after market closed. It is available on the investor relations section of Laird Superfood's website at www.LairdSuperfood.com.

Jason Vieth: On the operation side, I'm pleased to share that we once again outperformed our target of 40% growth margin by achieving a 41.8% growth margin during the quarter. Our supply chain team has done an incredible job of procuring the highest quality ingredients from around the world at the best prices and has built a network of highly competent professional partners among our various co-manufacturers. We are currently in the process of implementing a total margin management or TMM program, and I am confident that our team will be able to identify additional cost savings as we expand and grow our business from here.

Jason Vieth: On the operations side, I'm pleased to share that we once again outperformed our target of 40% gross margin by achieving a 41.8% gross margin during the quarter. Our supply chain team has done an incredible job of procuring the highest quality ingredients from around the world at the best prices and has built a network of highly competent professional partners among our various co-manufacturers. We are currently in the process of implementing a total margin management, or TMM, program.

Speaker Change: On the operations side, I'm pleased to share that we once again outperformed our target of 40% gross margin by achieving a 41.8% gross margin during the quarter.

Unknown Executive: Before we begin, please note that during this call, management may make forward booking statements within the context of federal securities laws. These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ materially from those described in these policies and statements. Please refer to today's catch release and other findings with the SEC for detailed discussions on these risks and uncertainties.

Speaker Change: Our supply chain team has done an incredible job of procuring the highest quality ingredients from around the world at the best prices, and has built a network of highly competent professional partners among our various co-manufacturers.

Speaker Change: We are currently in the process of implementing a Total Margin Management, or TMM, program, and I am confident that our team will be able to identify additional cost savings as we expand and grow our business from here.

Jason Vieth: For that, I'll turn the call over to Jason. Thank you Trevor. Good afternoon and thank you to all of our investors that continue to follow and support us. And a kind welcome to those of you who are just joining the journey. Today, I am thrilled to share that the Laird Superfood growth story has once again put up results that should be the envy of the industry. During the second quarter, we grew the net sales of our business by an impressive 30% versus the same period one year ago, which marks an eight point acceleration versus the 22% sales growth that we had reported during Q1 of this year.

Jason Vieth: And I am confident that our team will be able to identify additional cost savings as we expand and grow our business from here. In addition to the outstanding operational results that I've just shared, I'm pleased to announce that we were able to settle our outstanding legal claim due to rancid coconut milk powder that was received from one of our suppliers last year. In this case, I am happy to share that we were able to come to a mutually agreeable and long-term beneficial agreement with this supplier.

Jason Vieth: In addition to the outstanding operational results that I have just shared, I am pleased to announce that we were able to settle our outstanding legal claim due to rancid coconut milk powder that had been received from one of our suppliers last year. In this case, I am happy to share that we were able to come to a mutually agreeable and long-term beneficial agreement with this supplier. We really step forward to support our business on this matter. The result for Layered Superfood will be $475,000 of cash to be recouped over the next six months. Q2 was, by all measures, a very successful quarter for Layered Superfood, and while we are extremely pleased with the financial results, we are even more excited about the future opportunities that we are building.

Speaker Change: In addition to the outstanding operational results that I have just shared, I am pleased to announce that we were able to settle our outstanding legal claim due to rancid coconut milk powder that had been received from one of our suppliers last year.

Jason Vieth: We really stepped forward to support our business on this matter. The result for Laird Superfood will be $475,000 of cash to be recouped over the next six months. Q2 was, by all measures, a very successful quarter for Laird Superfood. While we are extremely pleased with the financial results, we are even more excited about the future opportunities that we have. As consumers continue to seek out the healthiest, most natural foods that are available to them, Laird Superfood is perfectly positioned to capitalize on this trend with our expanding portfolio of premium products. With that, I will now turn it over to Anya to discuss our second quarter results in more detail.

Jason Vieth: We really stepped forward to support our business on this matter. As consumers continue to seek out the healthiest, most natural foods that are available to them, Laird Superfood is perfectly positioned to capitalize on this trend with our expanding portfolio of premium products.

Speaker Change: In this case, I am happy to share that we were able to come to a mutually agreeable and long-term beneficial agreement with this supplier, who really stepped forward to support our business on this matter.

Speaker Change: The result for Laird Superfood will be $475,000 of cash to be recouped over the next six months.

Jason Vieth: Net sales growth during the second quarter was once again led by our e-commerce segment, which grew by 47% year over year. Our sales through Amazon once again led the way with an eye popping 80% growth rate in Q2 driven by our continued improvement in product availability, marketing effect of this and inventory management. We had our most successful prime days event in the history of the Laird Superfood this year and are excited for the opportunity that we now have to build on that success with new consumers that just entered our franchise.

Speaker Change: Q2 was by all measures a very successful quarter for Laird Superfood and while we are extremely pleased with the financial results, we are even more excited about the future opportunities that we are building.

Jason Vieth: As consumers continue to seek out the healthiest, most natural foods that are available to them, Layered Superfood is perfectly positioned to capitalize on this trend with our expanding portfolio of premium products.

Speaker Change: As consumers continue to seek out the healthiest, most natural foods that are available to them, Laird's Superfood is perfectly positioned to capitalize on this trend with our expanding portfolio of premium products.

Anya Hamill: With that, I will now turn it over to Anya to discuss our second quarter results in more detail. Thank you, Jason, and good afternoon, everyone. As Jason noted, in the second quarter, we have continued to make progress, executing the strategy we articulated earlier in the year, which is to return the business to growth while improving profitability. I am pleased to share with you that our second quarter results have exceeded our operating plan on every key metric. That sales grew 30% to 10.0 million compared to 7.7 million in the prior year period, and were up by 0.1 million sequentially versus the first quarter of 2024.

Speaker Change: With that, I will now turn it over to Anya to discuss our second quarter results in more detail.

Anya Hamill: Thank you, Jason. And good afternoon, everyone.

Jason Vieth: During Q2, our DTC business grew by an impressive 32% which you'll recognize as an acceleration from the already strong 25% growth that we had reported in this channel during the first quarter. With approximately half of our DTC sales now coming from subscriptions, we have built a predictable revenue model that fosters stronger customer relationships and increased brand affinity by our consumers. Summers. Beginning in 2024, we have focused our DTC channel on providing cultivated content, unique products and programming from Laird and Gabby, and our consumers are demonstrating that they value it.

Anya Hamill: Thank you, Jason, and good afternoon, everyone. As Jason noted, in the second quarter, we have continued to make progress, executing the strategy we articulated earlier in the year, which is to return the business to growth while improving profitability.

Anya Hamill: As Jason noted, in the second quarter, we continued to make progress executing the strategy we articulated earlier in the year, which is to return the business to growth while improving profitability. I am pleased to share with you that our second quarter results exceeded our operating plan on every key metric. Net sales grew 30% to $10.0 million compared to $7.7 million in the prior year period and were up by 0.1 million sequentially versus the first quarter of 2024.

Anya Hamill: I am pleased to share with you that our second quarter results have exceeded our operating plan on every key metric.

Speaker Change: net sales gre thirty percent to ten point zer million compared to seven point seven million in the car year period

Anya Hamill: and were up by 0.1 million sequentially versus the first quarter of 2024. eCommerce channel led the company growth, increasing by 47% year-over-year and accounted for 61% of our total net sales.

Anya Hamill: The e-commerce channel led the company's growth, increasing by 47% year-over-year and accounted for 61% of our total net sales. The Amazon platform had the best quarter in the company's history, delivering an impressive 80% growth, driven by increasing revenue from both subscriptions and new customers, and also lapping last year's inventory out of stocks related to the quality event that took place in Q1 of 2023. DTC platform also grew 32%, driven by a steady increase in subscribers and repeat orders, higher order-to-value, and lower discount rates due to strategic shifts in promotional spend.

Anya Hamill: Ecommerce channel led the company growth, increasing by 47% year-over-year and accounted for 61% of our total net sales. Amazon platform had the best ever quarter in the company's history, delivering an impressive 80% growth, driven by increasing revenue from both subscription and new customers, and also lapping last year's inventory other stocks related to the quality event that took place in Q1 of 2023. DTC platform also grew 32% driven by a steady increase in subscribers and repeat orders, higher order to value, and lower discount rates due to strategic shifts in promotional spend. Wholesale net sales increased by 9% year over year and contributed 39% of total net sales, driven by growth in retail channel of 26% due to new distribution and velocity accelerations, as well as more efficient promotional spend.

Jason Vieth: On the wholesale side of our business, we grew net sales by 9% year over year during Q1, just narrowly missing another quarter of double-digit growth in this channel. Retail scanner sales for our Laird Superfood brand were once again up even more than our net sales at plus 30% across the conventional multi outlet plus natural channel for the 12-week period ending June 16. Retail scanner data demonstrated that all of our product segments grew once again during the second quarter with our coffee and instant latte products leading growth in this channel at 53 and 48% retail sales growth respectively.

Anya Hamill: Amazon platform had the best of a quarter in the company's history delivering an impressive 80% growth.

Speaker Change: driven by increasving revenue from both subscription and new customers and also lap in last year inventory other the stocks related to the quality event that took place in q one of two thousand and twenty-three

Anya Hamill: DTC platform also grew 32% driven by state increase in subscribers and repeat orders, higher order to value, and lower discount rates due to strategic shifts in promotional spend.

Anya Hamill: Wholesale net sales increased by 9% year-over-year and contributed 39% of total net sales, driven by growth in the retail channel of 26% due to new distribution and velocity acceleration, as well as more efficient promotional spend. This was partially offset by the timing of club channel orders shifting into the third quarter. SG&A's percentage of revenue declined 14 points compared to last year as we remain focused on ongoing expense management and committed to improving our bottom line. This robust financial position provides us with the flexibility to support our long-term growth objectives and future investments.

Anya Hamill: Wholesale net sales increased by 9% year over year and contributed 39% of total net sales, driven by growth in retail channel of 26% due to new distribution and velocity accelerations.

Anya Hamill: This was partially offset by timing of club channel orders shifting into the third quarter. Growth margin came in at 42% in the second quarter, which is more than a 17-point improvement on the year-over-year basis. I am pleased to highlight that this is the third consecutive quarter where we have achieved growth margin above the 40% threshold. This consistency underscores the effectiveness of margin improvement initiatives we have implemented over the last 18 months. We charge transition into third-party common manufacturing model, moving to direct sourcing of kilo materials and implementing trade promotion efficiency. These results further support our expectation for sustainably achieving growth margin at or above 40% in the common quarters.

Anya Hamill: as well as more efficient promotional spend. This was partially offset by timing of club channel orders shifting into the third quarter.

Anya Hamill: Gross margin came in at 42% in the second quarter, which is more than a 17 point improvement on a year-over-year basis. I am pleased to highlight that this is the third consecutive quarter where we have achieved growth margin above the 40% threshold. This consistency underscores the effectiveness of margin improvement initiatives we have implemented over the last 18 months, which include transitioning to a third-party co-manufacturing model, moving to direct sourcing of key raw materials, and implementing trade promotion efficiency.

Anya Hamill: Growth margin came in at 42% in the second quarter, which is more than a 17-point improvement on a year-over-year basis.

Jason Vieth: In addition to the outstanding operational results that I have just shared, I am pleased to announce that we were able to settle our outstanding legal claim due to rancid coconut milk powder that had been received from one of our suppliers last year. In this case, I am happy to share that we were able to come to a mutually agreeable and long-term beneficial agreement with this supplier. We really step forward to support our business on this matter. The result for layered superfood will be $475,000 of cash to be recouped over the next six months.

Anya Hamill: I am pleased to highlight that this is the third consecutive quarter where we have achieved growth margin above the 40% threshold. This consistency underscores the effectiveness of margin improvement initiatives we have implemented over the last 18 months.

Anya Hamill: which are transitioning to a third-party co-manufacturing model, moving to direct sourcing of key raw materials, and implementing trade promotion efficiency.

Anya Hamill: These results further support our expectation of sustainably achieving gross margin at or above 40% in the coming quarter. Operating expenses decreased $1.0 million in the second quarter compared to the same period last year, reflecting lower SG&E costs and improved marketing efficiency. SG&A's percentage of revenue declined 14 points compared to last year as we remain focused on ongoing expense management and committed to improving our bottom line. Net loss for the second quarter was $0.2 million, which is a $0.8 million improvement from the first quarter and 93% better than the prior year period.

Anya Hamill: These results further support our expectation for sustainably achieving gross margin at or above 40% in the coming quarters.

Jason Vieth: Q2 was, by all measures, a very successful quarter for layered superfood, and while we are extremely pleased with the financial results, we are even more excited about the future opportunities that we are building. As consumers continue to seek out the healthiest, most natural foods that are available to them, layered superfood is perfectly positioned to capitalize on this trend with our expanding portfolio of premium products.

Anya Hamill: Operating expenses decrease 1.0 million in the second quarter, compared to the same period last year, reflecting lower as Janie costs and improved market and efficiency. As Janie is percentage of revenue declined 14 points compared to last year as we remain focused on ongoing expense management and committed to improving our bottom line. Net loss for the second quarter was 0.2 million, which is 0.8 million improvement from the first quarter, at 93% better than the prior year period. Our balance sheet remains strong with 7.8 million in cash and no debt. I am particularly pleased to report that we have delivered 0.5 million positive cash flow this quarter.

Anya Hamill: Operating expenses decreased $1.0 million in the second quarter, compared to the same period last year, reflecting lower SG&E costs and improved marketing efficiency.

Anya Hamill: SG&A's percentage of revenue declined 14 points compared to last year as we remained focused on ongoing expense management and committed to improving our bottom line.

Anya Hamill: With that, I will now turn it over to Anya to discuss our second quarter results in more detail. Thank you Jason and good afternoon everyone. As Jason noted, in the second quarter, we have continued to make progress, executing the strategy we articulated earlier in the year, which is to return the business to growth while improving profitability.

Anya Hamill: Net loss for the second quarter was $0.2 million, which is $0.8 million improvement from the first quarter and 93% better than the prior year period.

Jason Vieth: Our balance sheet remains strong, with $7.8 million in cash and no debt. I am particularly pleased to report that we have delivered $0.5 million of positive cash flow this quarter, reflecting our improved performance and effective management of working capital. This robust financial position provides us with the flexibility to support our long-term growth objectives and future investments. We continue to project that we will have enough cash to fund our operations into at least 2026 as we grow our business and make operating improvements that drive us toward breakeven and profitability.

Anya Hamill: Our balance sheet remains strong with $7.8 million in cash and no debt. I am particularly pleased to report that we have delivered $0.5 million positive cash flow this quarter.

Anya Hamill: I am pleased to share with you that our second quarter results have exceeded our operating plan on every key metric. That sales grew 30% to 10.0 million compared to 7.7 million in the prior year period, and were up by 0.1 million sequentially versus the first quarter of 2024. Ecommerce channel led the company growth, increasing by 47% year-over-year and accounted for 61% of our total net sales. Amazon platform had the best ever quarter in the company's history, delivering an impressive 80% growth, driven by increasing revenue from both subscription and new customers, and also lapping last year inventory other stocks related to the quality event that took place in Q1 of 2023.

Anya Hamill: Reflecting our improved performance and effective management of working capital. This robust financial position provides us with the flexibility to support our long-term growth objectives and future investments. We continue to project that we have enough cash to fund our operations into at least 2026 as we grow our business and make operating improvements that drive us towards break-even and profitability. Looking ahead, we are optimistic about the remainder of 2024. We expect continued growth in our core business segments as we remain focused on executing our strategic priorities. We are raising our guidance on both net sales in gross margin.

Anya Hamill: reflecting our improved performance and effective management of working capital.

Anya Hamill: This robust financial position provides us with the flexibility to support our long-term growth objectives and future investments.

Anya Hamill: We continue to project that we have enough cash to fund our operations into at least 2026 as we grow our business and make operating improvements that drive us towards breakeven and profitability.

Jason Vieth: Looking ahead, we are optimistic about the remainder of 2024. We expect continued growth in our core business segments as we remain focused on executing our strategic priorities. We are raising our guidance on both net sales and gross margin. We now expect net sales to be in the range of $40 to $44 million for the full year 2024, which represents 17 to 29 percent growth versus prior years, and Gross Margin is expected to expand to approximately 40 to 41 percent, representing 10 to 11 points of improvement versus 2023. And now, I will turn the discussion back over to Jason for any closing remarks.

Anya Hamill: looking ahead we are optimistic about the remainder of two thousand and twenty four we expect continued growth in our core business segments as we remain focused on executing our strategic priorities

Anya Hamill: We now expect net sales to be in the range of 40 to 44 million for the full year 2024, which represents 17 to 29 percent gross versus prior year. And gross margin is expected to expand to approximately 40 to 41 percent, representing 10 to 11 points improvement versus 2023.

Anya Hamill: We are raising our guidance on both net sales and gross margin. We now expect net sales to be in the range of $40 to $44 million for the full year 2024, which represents 17 to 29% growth versus prior year.

Anya Hamill: DTC platform also grew 32% driven by a steady increase in subscribers and repeat orders, higher order to value, and lower discount rates due to strategic shifts in promotional spend, wholesale net sales increased by 9% year over year, and contributed 39% of total net sales, driven by growth in retail channel of 26% due to new distribution and velocity accelerations, as well as more efficient promotional spend. This was partially offset by timing of club channel orders shifting into the third quarter.

Anya Hamill: and Gross Margin is expected to expand to approximately 40 to 41 percent representing 10 to 11 points improvement versus 2023.

Jason Vieth: And now I will turn the discussion back over to Jason for any close-in remarks. Thank you, Anya, and thank you to everyone on the call, and to all of those that are supporting our journey. We are in an exciting moment for Laird Superfood, one that is now squarely focused on expansion and growth as we introduce our brand of products to more consumers across every class of trade.

Anya Hamill: And now I will turn the discussion back over to Jason for any closing remarks.

Jason Vieth: Thank you, Anya, and thank you to everyone on the call and to all of those that are supporting our journey. We are in an exciting moment for Laird Superfood. Operator, we are now ready to open the call to questions.

Jason Vieth: Thank you, Anya, and thank you to everyone on the call and to all of those that are supporting our journey. We are in an exciting moment for Laird Superfood. One that is now squarely focused on expansion and growth as we introduce our brand and products to more consumers across every class of trade. This concludes our prepared remarks. Operator, we are now ready to open the call to questions.

Jason Vieth: Thank you, Anya, and thank you to everyone on the call and to all of those that are supporting our journey.

Jason Vieth: We are in an exciting moment for Laird Superfood, one that is now squarely focused on expansion and growth as we introduce our brand and products to more consumers across every class of trade.

Anya Hamill: Growth margin came in at 42% in the second quarter, which is more than a 17 point improvement on the year over year basis. I am pleased to highlight that this is the third consecutive quarter where we have achieved growth margin above the 40% threshold. This consistency underscores the effectiveness of margin improvement initiatives we have implemented over the last 18 months. We charge transition into third-party common manufacturing model moving to direct sourcing of kilo materials and implementing trade promotion efficiency.

Unknown Executive: This concludes our prepared remarks. Operator, we are now ready to open the call to questions. We will now begin our question and answer session. At this time, if you would like to ask a question, please press star followed by one or your telephone keypad. If, for any reason, you would like to remove that question, please press star followed by two. Again, to ask a question, it is star one. As a reminder, if you are using the speaker phone, please remember to pick up your handset before asking a question. We'll pause briefly here as questions are registered.

Speaker Change: This concludes our prepared remarks. Operator, we are now ready to open the call to questions.

Operator: We will now begin our question and answer session. At this time, if you would like to ask a question, please press star followed by one on your telephone keypad. If, for any reason, you would like to remove that question, please press star followed by two. Again, to ask a question, it is star one.

Speaker Change: We will now begin our question and answer session. At this time, if you would like to ask a question,

Speaker Change: please press star followed by one on your telephone keypad. If for any reason you would like to remove that question please press star followed by two.

Speaker Change: Again, to ask a question, it is star one. As a reminder, if you're using a speakerphone, please remember to pick up your handset before asking a question. We'll pause briefly here as questions are registered.

Anya Hamill: These results further support our expectation for sustainably achieving growth margin at or above 40% in the common quarters. Operating expenses decrease 1.0 million in the second quarter, compared to the same period last year, reflecting lower as Janie costs and improved market and efficiency. As Janie is percentage of revenue declined 14 points compared to last year as we remain focused on ongoing expense management and committed to improving our bottom line. Net loss for the second quarter was 0.2 million, which is 0.8 million improvement from the first quarter at 93% better than the prior year period.

JP Wallam: Our first question comes from JP Wallam with the company Ross Capitol Partners, JP. Your line is not open. Thanks, and good afternoon, I guess. Maybe if we could just start on the revenue and the guidance, you know, if I think about kind of a lower end of guidance, and I sort of run rate this Q2 number, it gets us just about there. And so maybe if you guys could just talk about, you know, what gives you confidence in raising the guidance and whether you sort of see everything in place to hit that lower bound, or if there's anything in the back half of the year that you're really counting on to accelerate in the last two quarters, and then maybe just if there's anything that you think is worth pointing out in terms of risk to that guidance number.

Operator: Our first question comes from J.P. Wallum with the company Roth Capital Partners. J.P., your line is now open.

Operator: As a reminder, if you're using a speakerphone, please remember to pick up your handset before asking a question. We'll pause briefly here as questions are registered. Our first question comes from J.P. Wallum with the company Roth Capital Partners. J.P., your line is now open.

Operator: Our first question comes from J.P. Wollum with the company Roth Capital Partners. J.P., your line is now open.

J.P. Wallum: Thanks and good afternoon, guys. Maybe if we could just start on the revenue and the guidance, you know, if I think about kind of the lower end of guidance and I sort of run rate, this Q2 number gets us just about there. And so

J.P. Wallum: Thanks and good afternoon, hi guys.

J.P. Wallum: Maybe if we could just start on the revenue and the guidance. You know, if I think about kind of the lower end of guidance, and I sort of run right this Q2 number,

J.P. Wallum: It gets us just about there and so maybe if you guys could just talk about

J.P. Wallum: You know, what gives you confidence in raising the guidance and whether you sort of see

J.P. Wallum: everything in place to hit that lower bound or if there's anything in the back half of the year that you're really counting on to accelerate in the last two quarters and then maybe just if there's anything that you think is worth pointing out in terms of risk to that guidance number.

Anya Hamill: Our balance sheet remains strong with 7.8 million in cash and no debt. I am particularly pleased to report that we have delivered 0.5 million positive cash flow this quarter. Reflecting our improved performance and effective management of working capital. This robust financial position provides us with the flexibility to support our long-term growth objectives and future investments. We continue to project that we have enough cash to fund our operations into at least 2026 as we grow our business and make operating improvements that drive us towards breakeling and profitability.

Jason Vieth: Yeah, hey JP, I'll start and then I'll hand it over to you to give you a few more details, but you know, the way you think about our business is there's a bit of seasonality in the second half. There are a couple of big events to take place. One thing to general back from school, from straight back from summer vacation back to school period, that generally has a very positive outcome for us, especially at retail. Typically, what you see is a lot of people that have been away on vacation, leaving some of their healthier habits and joining summer, come back and buckle down, and the start school seems to be time to do that.

Jason Vieth: Yeah, hey, JP. I'll start and then I'll hand it over to Anya to give you a few more details. But you know, the way you think about our business is there's a bit of seasonality in the second half, and there are a couple of big

Speaker Change: Hey JP, I'll start and then I'll hand it over to Anya to give you a few more details, but the way we think about our business is there's a bit of seasonality in the second half.

J.P. Wallum: After a couple of big events that take place, one.

Speaker Change: Being the general back from school, I'm sorry, back from summer vacation, back to school period.

Speaker Change: That generally has a very positive outcome for us, especially at retail.

J.P. Wallum: Typically what you see is a lot of people that have been away on vacation leaving some of their healthier habits, enjoying summer, come back and buckle down, and the start of school seems to be the time that they do that. So in most health and wellness brands,

Anya Hamill: Looking ahead, we are optimistic about the remainder of 2024. We expect continued growth in our core business segments as we remain focused on executing our strategic priorities. We are raising our guidance on both net sales in gross margin. We now expect net sales to be in the range of 40 to 44 million for the full year 2024, which represents 17 to 29 percent gross versus prior year. And gross margin is expected to expand to approximately 40 to 41 percent, representing 10 to 11 points improvement versus 2023.

Jason Vieth: So in most of the wellness brands, there is a similar type of trend. The other thing that happens for us in the second half that it really plays a large role is the startup of our seasonal programs. So we have a couple of seasonal fees that perform very well for us. We do get additional displays at retail with a number of those items. We're really excited about the seasonal program again this year. We've been able to accomplish. from all the channels. And, you know, really what's happening is I'm going to have to keep the continuation of some of these trends.

Speaker Change: there is a similar type of trend. The other thing that happens for us in the second half that really plays a large role is the startup of our seasonal programs.

Speaker Change: So we have a couple of seasonal cues that perform very well for us. We do get additional displays at retail with a number of those items. We're really excited about the seasonal program again this year and what we've been able to accomplish.

Unknown Speaker: of the seasonal program. Again, this year, we've been able to accomplish it.

Jason Vieth: of the seasonal program again this year and what we've been able to accomplish.

Jason Vieth: Selling and Preparation from all the channels. And, you know, really, what's happening in the second half is just a continuation of some of these trends. Amazon is performing incredibly well for us. We continue to build new cohorts. What we're seeing is kind of the gift that keeps giving behind that because once the cohorts are established, you have a market for them, and you provide the product. Obviously, it becomes a lot less expensive to continue to distribute product to them and sort of build awareness against your brand. So all of that happens.

Speaker Change: Now in preparation from all the channels.

Speaker Change: And, you know, really what's happening in the second half is just a continuation of some of these trends. Amazon is performing incredibly well for us. We continue to build new cohorts.

Jason Vieth: Amazon is performing incredibly well for us. We continue to build new cohorts. What we're seeing is kind of that we have to keep giving behind that, because once the cohorts are established, you have a market design, you provide the product; obviously, it comes a lot less expensive. We continue to distribute product to them and sort of build awareness against your brand. So, all of that happens. And then finally, you know, we get to the seasonal period with Black Friday coming in, which is very important to us in BTC and in Amazon. Online shopping behavior really accelerates during that period.

Jason Vieth: And now I will turn the discussion back over to Jason for any close in remarks. Thank you, Anya, and thank you to everyone on the call into all of those that are supporting our journey. We are in an exciting moment for Laird Superfood, one that is now squarely focused on expansion and growth as we introduce our brand of products to more consumers across every class of trade.

Speaker Change: whatwe're seeing is kind of that

Speaker Change: the gift that keeps giving behind that, because once the cohorts are established, you have a market to them, you provide the product.

Speaker Change: obviously it comes along

Speaker Change: ive contincan distribute product them and pri the bbuild awareness against your brand so all of that happens and then finally we get to the

Unknown Executive: This concludes our prepared remarks. Operator, we are now ready to open the call to questions. We will now begin our question and answer session. At this time, if you would like to ask a question, please press star followed by one or your telephone keypad. If for any reason you would like to remove that question, please press star followed by two. Again, to ask a question, it is star one. As a reminder, if you are using the speaker phone, please remember to pick up your handset before asking a question. We'll pause briefly here as questions are registered.

Jason Vieth: And then finally, you know, we get to the seasonal period with Black Friday coming in, which is very important to us and BTC, and Amazon online shopping behavior really accelerates during that period. So we're very bullish, you know; we're a pretty conservative crew by nature. I think you guys probably have come to appreciate that. Take up guidance is fairly easy. Anya, anything you want to add? Yeah, I just want to add, so like you mentioned, Jason, in our e-commerce business, Black Friday and Prime Day are additionally driving a sequential increase in the sales rate versus the first half. And also, our marketing pressure was probably one of the lowest in Q2, and we expect them to have lower marketing pressure in the back half.

Speaker Change: ' will period with black friday coming in she's very importantious tc and an amazon oneline shopping behavior really accelerates starturing that period

Jason Vieth: So, we're very bullish. You know, we're a pretty conservative crew by nature. I think you guys probably come to appreciate that. Let's take up guidance. It's fairly.

Speaker Change: So, we're very bullish, you know, we're a pretty conservative crew by nature. I think you guys probably have come to appreciate that. For us to take up guidance is fairly significant.

Anya Hamill: Yeah, I just add so like you mentioned, Jason, and I'll e-commerce business Black Friday in nine days, additionally driving sequential increase in the sales rate versus the first half. And also, marketing pressure was probably one of the lowest in Q2. And we expect you to have a that's not marketing pressure in the back half. Okay.

Anya Hamill: Anya, anything you want to add? Yeah, I just add, so like you mentioned, Jason, in our e-commerce business, Black Friday and Friday, additionally driving sequential

JP Wallam: Our first question comes from JP Wallam with the company Ross Capitol Partners JP.

Speaker Change: increase in the sales rate versus the first half. And also marketing pressure was probably one of the lowest in Q2. And we expect them to have a set of marketing pressure in the next half of the year.

JP Wallam: Your line is not open. Thanks, and good afternoon, I guess. Maybe if we could just start on the revenue and the guidance, you know, if I think about kind of a lower end of guidance, and I sort of run rate this Q2 number, it gets us just about there. And so maybe if you guys could just talk about, you know, what gives you confidence in raising the guidance and whether you sort of see everything in place to hit that lower bound, or if there's anything in the back half of the year that you're really counting on to accelerate in the last two quarters, and then maybe just if there's anything that you think is worth pointing out in terms of risk to that guidance number.

JP Wallam: Great. That's, that's very helpful.

J.P. Wallum: Great, that's very helpful. And so maybe if I just switch over to gross margin for a minute, I obviously want to commend the job that's been done so far to get all the way to 42%. And so maybe if we can kind of just talk about the margin management program that you highlighted, Jason, you know, am I right in kind of reading through that? Maybe we have sort of reached a, at least a temporary ceiling for kind of the scale, call it the 40 million run rate scale that we're sitting at right now.

JP Wallam: And so maybe if I just switch over to gross margin for a minute, obviously want to commend the job that's been done so far to get all the way to 42%. And so maybe if we can kind of just talk about the margin management program that you highlighted, Jason. You know, am I right in kind of reading through that maybe we have sort of reached a, at least a temporary feeling for kind of the scale called the 40 million run rate scale that we're getting at right now. And that program is a way to kind of do where else we can we can get some margin expansion from.

J.P. Wallum: Okay.

Jason Vieth: talk about the margin management program that you highlighted adjacason

J.P. Wallum: am i right in kind of reading through that maybe we have sort of reached a at least a temporary feeling for kind of the scale called the forty million run rate scale that werere

J.P. Wallum: And that program is a way to kind of see where else we can get some margin expansion from, or do you think that there's more margin to be had even sort of just as the business is going today?

J.P. Wallum: Sitting at right now and that program is a way to kind of see where else we can we can get some Margin expansion from or do you think that there's more margin to be had even sort of just as the business is going today?

Jason Vieth: Or do you think that there's more margin to be had, even sort of just as the business is going today. Yeah, great question, JP. I think it's a little bit of both. So, you know, this is this mark TMM or HMM holistic margin total margin management concept created by 15 or so years ago. We executed it in past slides on, and I did at companies such as White Wave and So Low, and have a number of ideas that we can drive additional margin expansion behind as those are supply chain. We have a phenomenal supply chain that really does be configured out.

Jason Vieth: Yeah, great question, JP. I think it's a little bit of both. So, you know, this is more TMM or HMM, holistic margin, total margin management concept created about 15 or so years ago.

Jason Vieth: yes dried question jp i think it's a littlebit of both so this is this march tm or hm holistic margin total margin management concept

Jason Vieth: Typically what you see is a lot of people that have been away on vacation, leaving some of their healthier habits and joining summer, come back and buckle down and the start school seems to be time to do that. So in most of the wellness brands, there is a similar type of trend. The other thing that happens for us in the second half that it really plays a large role is the startup of our seasonal programs. So we have a couple of seasonal fees that perform very well for us. We do get additional displays at retail with a number of those items. We're really excited about the seasonal program again this year.

Jason Vieth: We have executed it in past lives. Anya and I did it at companies such as White Wave and Solos and have a number of ideas that we can drive additional margin expansion behind. As does our supply chain. We have a phenomenal supply chain, and we really dug deep and figured out some very strong procurement strategies, co-manufacturing strategies, etc. We have gotten a lot of the low-hanging fruit out. I think that's what you see when you get to, you know, 40% plus gross land and gross margin, to minus land, including distribution. And so you really start, you know, looking, digging under the covers to see what else is there.

Jason Vieth: I created about 15 or so years ago. We executed it in past lives. Onion, I did at companies such as Whiteway and Solos and have a number of ideas that we can drive additional margin expansion behind. As does our supply chain. We have a phenomenal supply chain that's

Jason Vieth: Some very strong procurement strategies come manufacturing strategies, etc. We have gotten along the low and throughout. And I think that's what you see. 40% plus. The land is just margin. So minus land, including distribution. Okay, so you really start, you know, you start looking, digging under the covers. We've identified actually quite a few levers still that we have. But there's some offsets; you know, you're seeing some continued inflation. A couple of commodities are important to us. At this point, as long as we can hold over 40, if we don't mind, 40% is kind of the target that we hold ourselves to. We will be over that, you know, more in some quarters as we were this quarter, but we really don't know. We're not seeing a path that takes us under that.

Speaker Change: milly gbeat and figured out us

Jason Vieth: Very strong procurement strategies, co-manufacturing strategies, etc. We have gotten a lot of the low-hanging fruit out. I think that's what we see. We get to, you know, 40% plus gross land and gross margin.

Jason Vieth: We've been able to accomplish, from all the channels. And, you know, really what's happening is I'm going to have to keep the continuation of some of these trends. Amazon is performing incredibly well for us. We continue to build new cohorts. What we're seeing is kind of that we have to keep giving behind that, because once the cohorts are established, you have a market design, you provide the product, obviously it comes a lot less expensive.

Jason Vieth: It's the Mindless Land, including distribution. And so, you really start, you know, you start looking digging under the covers, and see what else is there. We've identified, actually, quite a few levers still that we have to pull. But there are some offsets, you know, you're seeing some continued inflation, a couple of commodities that are important to us.

Jason Vieth: We've identified actually quite a few levers still that we have to pull, but there are some offsets, you know, you're seeing some continued inflation in a couple of commodities that are important to us. And at this point, as long as we can hold over 40, as we've outlined, 40% is kind of the target that we hold ourselves to. We'll be over that, you know, more in some quarters, as we were this quarter, but we really don't, you know; we're not seeing a path that takes us under that.

Jason Vieth: And at this point, as long as we can hold up for 40, as we've outlined, 40% is...

Jason Vieth: and the target that we hold ourselves to.

Speaker Change: We'll be over that, you know, more in some quarters as we were this quarter, but.

Jason Vieth: We continue to distribute product to them and sort of build awareness against your brand. So, all of that happens. And then finally, you know, we get to the season old period with Black Friday coming in, which is very important to us in BTC and in Amazon, online shopping behavior really accelerates during that period.

Speaker Change: We really don't, you know, we're not seeing a path that takes us under that.

Jason Vieth: And we'll, you know, we recognize this inflation moves up significantly; that will price for that. But right now we don't need to. We're very comfortable. We are. We have some additional levers in front of us, and we'll look into that. 40 ranges forward.

Jason Vieth: And we'll, you know, we recognize if inflation moves up significantly, we'll price for that. But right now, we don't need to. We're very comfortable where we are. We have some additional levers in front of us, and we'll look to keep it in that low 40s range as we go forward.

Jason Vieth: And we'll, you know, we recognize if inflation moves up significantly that we'll price for that, but right now we don't need to. We're very comfortable where we are. We have some additional levers in front of us and we'll look to keep it in that low 40s range as we go forward.

Jason Vieth: for these ranges. Step forward.

JP Wallam: Okay, that sounds great.

Anya Hamill: So, we're very bullish. You know, we're pretty conservative crew by nature. I think you guys probably come to appreciate that. Let's take up guidance. It's fairly. Yeah, I just add so like you mentioned Jason, and I'll e-commerce business Black Friday in nine days, additionally driving sequential increase in the sales rate versus the first half. And also, marketing pressure was probably one of the lowest in Q2. And we expect you to have a that's not marketing pressure in the back half.

J.P. Wallum: Okay, that sounds great. And maybe just to squeeze one last one in, and probably a bit more open ended for you guys. But, you know, I just want to kind of think a little more high level and sort of think about the longer term growth and kind of what levers there are available to really kind of step on revenue growth from here.

Unknown Executive: Okay. Great. That's, that's very helpful.

JP Wallam: And maybe just to squeeze one last one, and probably a bit more open-ended for you guys. But, you know, I just want to kind of think a little more high level and sort of think about the longer-term growth and kind of what leverage they are available to really kind of stepping on revenue growth from here. You know, maybe if you want to kind of just talk about how you're thinking of the right mix of marketing going forward, if there's certain channels that you're seeing as effective marketing going forward, or really if there's just kind of any new product innovation that you think is really kind of catching customers and you want to highlight for sort of the next stage here.

J.P. Wallum: Okay. Yeah, that sounds great. And maybe just to squeeze one last one in, and probably a bit more open-ended for you guys, but...

Speaker Change: You know, I just want to kind of think a little more high level and sort of think about

J.P. Wallum: The longer-term growth and and kind of what levers there are available to really kind of stepping on revenue growth from here

Speaker Change: Maybe if you want to kind of just talk about how you're thinking of the right mix of marketing going forward, if there's certain channels that you're seeing as effective marketing going forward, or really if there's just kind of any new product innovation that you think is

JP Wallam: And so maybe if I just switch over to gross margin for a minute, obviously want to commend the job that's been done so far to get all the way to 42%. And so maybe if we can kind of just talk about the margin management program that you highlighted Jason. You know, am I right in kind of reading through that maybe we have sort of reached a, at least a temporary feeling for kind of the scale called the 40 million run rate scale that we're getting at right now.

Speaker Change: really kind of catching customers and you want to highlight for sort of the next stage here.

Jason Vieth: Yeah. Well, Jay, that really is a good high-level open-ended question. I could probably talk for 20 minutes. I'll try to be a little bit more concise. Having looked at the reality, as we've said many times, we are in the very early earnings where superfood we've got products. You can pick up any of them, turn them over, read the ingredient label and realize not only are they the smallest number of ingredients of any product in the categories, but they're the best and most premium ingredients. They're all ingredients that you know by name. There are no fillers or additives or stabilizers or mulchers.

Jason Vieth: Well, J.P., that really is a

J.P. Wallum: yeah

Jason Vieth: Well, J.I.P., that really is a good, high-level, open-ended question. I could probably talk for 20 minutes, so I'll try to be a little bit more concise.

Jason Vieth: I mean, look, the reality is, as we've said many times, we are in the very early innings.

Speaker Change: Laird Superfood. We've got

Speaker Change: Products, you can pick up any of them, turn them over.

Speaker Change: Read the ingredient label and realize...

Speaker Change: Not only are they the smallest number of ingredients of any product in their categories, but they're the best and most premium ingredients. They're all ingredients that you know by name. There are no fillers or additives or stabilizers or emulsifiers, you know, we're really

JP Wallam: And that program is a way to kind of do where else we can we can get some margin expansion from. Or do you think that there's more margin to be had even sort of just as the businesses is going today.

Jason Vieth: You know, we're really, really great at putting very healthy food into the packages. And so, you know, for us, we feel like we're just starting to get that message out to the consumers, even the, you know, the consumers that know Layered and that know Gabby. A lot of them don't know we have a food brand. So, marketing is key. We'll continue to go to awareness. Product placement is key. We have very little product placement still across, but the natural and the conventional channels, even less non-conventional, of course. So, we'll continue to make those calls out to retailers.

Jason Vieth: And so, you know, for us, we feel like we're just starting to get that message out to the consumers, even that, you know, the consumers that know Laird and that know Gabby, a lot of them don't know we have a food brand. So marketing is key. We'll continue to build awareness. Product placement is key. We still have very low product placement across both the natural and the conventional channels, even less on the conventional, of course.

Jason Vieth: into the packages. And so, for us, we feel like we're just starting to get that message out to the consumers. Even the consumers that know Laird and that know Gabby, a lot of them don't know we have a food brand. So, marketing is key. We'll continue to build awareness. Product placement is key. We still have very low product placement across both the natural and the conventional channels, even less so in the conventional, of course.

Jason Vieth: really great at putting very healthy food into the packages and

Jason Vieth: Yeah, great question JP. I think it's a little bit of both. So, you know, this is this mark TMM or HMM holistic margin total margin management concept created by 15 or so years ago. We executed it in past slides on and I did at companies such as white wave and so low and have a number of ideas that we can drive additional margin expansion behind as those are supply chain. We have a phenomenal supply chain that really does be configured out.

Jason Vieth: So, you know, for us, we feel like we're just starting to get that message out to the consumers. Even the, you know, the consumers that know Laird and that know Gabby, a lot of them don't know we have a food brand. So, marketing is key. We'll continue to build awareness. Product placement is key. We have very little product placement still across.

Jason Vieth: with the natural and the conventional channels.

Jason Vieth: And so we'll continue to make those calls out to retailers. We're building a brand and portfolio of products that are healthier than any other that we know of in the industry, and we feel really great about that. We think we're right on the right trends, but it takes time, you know, and so we're being patient. We're spending time with retailers, finding the right retailers that it works with, putting the marketing behind it, really leveraging Laird and Gabby into that marketing.

Jason Vieth: Eden Restaurant Conventional, of course, and so we'll continue to make those calls out to retailers. We're building a brand and portfolio of products.

Jason Vieth: We're building a brand, a brand in portfolio products that is healthier than any other than we know of in the industry. And feel really great about that. We think we're right on the right trends, but it takes time, you know. And so, we're being patient. We're spending time with retailers, finding the revenue. He knows it works when putting the marketing behind it, really leveraging layered and Gabby into that marketing. You know, that's been just a tremendous, very tremendous aspect to us in so many ways that founders, innovators, creators, and most of these products. And then, as brand ambassadors and influencers, I just couldn't ask for better partners.

Jason Vieth: that is healthier than any other that we know of in the industry and feel really great about that. We think we're right on the right trends, but it takes time, you know, and so we're being patient. We're spending time with retailers, finding the right retailers that works with.

Jason Vieth: We're spending time with retailers, finding the right retailers that it works with, putting the marketing behind it, really leveraging Laird and Gabby into that marketing. You know, that's been just a tremendous asset to us in so many ways as founders and innovators, creators of most of these products. And then, as brand ambassadors and influencers, I just couldn't ask for better partners. And so we'll continue to really lean in with Laird and Gabby as a way to share how health and wellness and nutrition-oriented our products are. And we're not, you know, that's just in the grocery and online channels that we operate in today. We haven't even started to scratch the surface.

Jason Vieth: Putting the marketing behind it, really leveraging Laird and Gabby into that marketing, you know, that's been a just

Jason Vieth: You know, that's been just a tremendous asset to us in so many ways as founders and innovators, creators of most of these products. And then, as brand ambassadors and influencers, I just couldn't ask for better partners. And so we'll continue to really lean in with Laird and Gabby as a way to share how health and wellness and nutrition-oriented our products are. And then we're not, you know, that's just in the grocery and online channels that we operate in today. We haven't even started to scratch the surface of where this

Jason Vieth: are tremendous, they're tremendous assets to us in so many ways as founders, innovators, creators of most of these products, and then as brand ambassadors, influencers.

Jason Vieth: At this point, as long as we can hold over 40, if we don't mind, 40% is kind of the target that we hold ourselves to will be will be over that, you know, more in some quarters as we were this quarter, but we really don't know we're not seeing a path that takes us under that. And we'll, you know, we recognize this inflation moves up significantly that will price for that. But right now we don't need to. We're very comfortable. We are. We have some additional levers in front of us and we'll look into that. 40 ranges forward.

Jason Vieth: And so, we'll continue to really lean in with layered and gabby as the way to share how health and wellness and nutrition oriented our, our nutrition oriented products are. And then we're not, you know, that's just in the grocery and online channels that we operate in today. We haven't even started to scratch the surface of where this could go until we really get into the food service channel. And we're in the process now of setting that up and looking out at college universities where kids are taking terrible coffee and buck the product. You walk in and it's like, you know, you're the pipe or kids from flocking over from their tables.

Jason Vieth: I just couldn't ask for better partners and so we'll continue to really lean in with Laird and Gabby as a way to share our health and wellness.

Jason Vieth: and nutrition oriented, our nutrition oriented, our products are.

Unknown Executive: Okay, that sounds great.

Jason Vieth: and and then we're not you know that's just in the grocery and online channels that we operate in today we haven't even started it

Jason Vieth: We scratch the surface of where this can go until we really get into the food service channel. And we're in the process now of setting that up and looking out at colleges and universities where kids are drinking terrible coffee and muffled products. You walk in, and it's like, you know, you're the pipe, pipe, or kids come flocking over from their tables.

Speaker Change: scratch the surice of where this can go until we really we didn' a free servicechannel and we're in the process now setting that up and looking out at college universities where kids taking carerible coffee and buffcle product we walk in

JP Wallam: And maybe just to squeeze one last one and probably a bit more open-ended for you guys.

Jason Vieth: And the same thing happens when we go to business and innovation events. So we have all kinds of, you know, business and innovation campuses, all the major tech firms, et cetera, that have large campuses, open commissaries, products that are health and wellness oriented. We fit so incredibly well. And, you know, and then you're talking airlines and hotels and all the places we can go that we haven't even started to go.

Jason Vieth: And the same thing happens when we go to the VNI events. So, we have all kinds of, you know, VNI campuses, all the major tech firms, etc. that have large campuses, filled with commentaries and products or health and wellness oriented. We fit still incredibly well. And, you know, and then, anytime we're airlines and hotels, all the places we can go that we haven't even started to go. So, it's early in the KIP. Now, we're, we're being metered in what we do. We're not going to. We used to, years ago, Laird Superfood would bring in the marketing to be very cautious, as well as, and ROI's are very, very strong, and we're going to grow, we're going to grow smartly, and we do it the right way.

Jason Vieth: It's like, you know, you're the Pied Piper. Kids come flocking over from their tables. And the same thing happens when we go to V&I events.

Jason Vieth: But, you know, I just want to kind of think a little more high level and sort of think about the longer-term growth and kind of what leverage they are available to really kind of stepping on revenue growth from here. You know, maybe if you want to kind of just talk about how you're thinking of the right mix of marketing going forward if there's certain channels that you're seeing as effective marketing going forward, or really if there's just kind of any new product innovation that you think is really kind of catching customers and you want to highlight for sort of the next stage here. Yeah.

Speaker Change: So we have all kinds of, you know, B&I campuses, all the major tech firms, etc. that have large campuses, open promissories, products.

Jason Vieth: are health and wellness oriented. We fit so incredibly well. And you know, and then you're talking airlines and hotels and all the places we can go that we haven't even started to go. So it's early innings, JP, you know, we're being metered in what we do. We're not going to

Jason Vieth: So it's early innings, J&P, you know; we're being metered in what we do. We're not going to spend like we used to years ago at Laird Superfood. We reined in the marketing to be very cautious. Our low ads and ROIs are very, very strong. And we're going to grow. We're going to grow smartly and do it the right way. So that's what you're going to see in the future, in addition to the new product innovation that we haven't yet shared, but we'll be sharing over the next few quarters.

J.P. Wallum: Great. It's very helpful. Best of luck going forward. Thank you.

Jason Vieth: Like we used to years ago at Laird Superfood, we've reined in the marketing to be very cautious. Our LOAS and ROIs are very, very strong, and we're going to grow. We're going to grow smartly, and we do it the right way. So that's what you're going to see in the future, in addition to the new product innovation that we haven't yet shared, but we'll be sharing over the next few quarters.

Jason Vieth: Spend like we used to years ago at Laird Superfood, we reined in the marketing to be very cautious of low ads and ROI's.

Unknown Speaker: Great. It's very helpful. Best of luck going forward. Thank you.

Unknown Speaker: are very, very strong, and we're going to grow, we're going to grow.

Jason Vieth: So that's what you're going to see in the future, in addition to the product innovation that we haven't yet shared, but we'll be sharing.

Unknown Speaker: marartlyy and we do it the right way so that's 's what you're getkingseein the future in addition to the new product innovation that we haven't yet shared but willll be sharing will the next quarters

Jason Vieth: Well, Jay, that really is a good high level open-ended question. I could probably talk for 20 minutes. I'll try to be a little bit more concise. Having looked at the reality, as we've said many times, we are in the very early earnings where superfood we've got products. You can pick up any of them, turn them over, read the ingredient label and realize not only are they the smallest number of ingredients of any product in the categories, but they're the best and most premium ingredients.

Jason Vieth: Have them in next quarters.

JP Wallam: Great, it's very helpful. Best of luck going forward. Thank you.

Speaker Change: Great, it's very helpful. Best of luck going forward.

Speaker Change: Thank you.

Unknown Executive: At this time, there are no other questions registered in Q. Again, if you would like to ask a question, please first of all follow it by one. There are no questions registered in Q.

Operator: At this time, there are no other questions registered in the queue. Again, if you would like to ask a question, please press star followed by 1. There are no questions registered in the queue at this time. I'd like to pass the conference back over to our hosting team for closing remarks.

Speaker Change: At this time, there are no other questions registered in queue. Again, if you would like to ask a question, please press star followed by 1.

Jason Vieth: They're all ingredients that you know by name. There are no fillers or additives or stabilizers or mulchers. You know, we're really really great at putting very healthy food into the packages. And so, you know, for us, we feel like we're just starting to get that message out to the consumers, even the, you know, the consumers that know layered and that know gabby. A lot of them don't know we have a food brand.

Jason Vieth: If it's time, I'd like to pass the conference back over to our hosting team for closing remarks. Well, I don't have a whole lot to say. I think it's been a great quarter, and frankly, are a lot more excited even about what the future has for us.

Speaker Change: There are no questions registered in the queue at this time. I'd like to pass the conference back over to our hosting team for closing remarks.

Jason Vieth: Well, I don't have a whole lot more to say. I think the members speak for themselves this quarter. We had a really great quarter and, frankly, are a lot more excited about what the future has for us. We just completed our strategic growth plan process, shared that with the board, and have just an incredible number of levers in front of us in addition to those that we just outlined a moment ago.

Jason Vieth: Well, I don't have a whole lot more to say, and I think the members speak for themselves this quarter. We had a really great quarter and frankly are a lot more excited even about what the future has for us. We just completed our strategic growth plan process.

Jason Vieth: We just completed our strategic growth plan process. Share that with the board and have just an incredible number of lovers in front of us in addition to those that we just outwearing the moment ago. We'll be coming back over the next quarters to share more on that. Meanwhile, thanks to everybody. We're joining us on this journey. As I mentioned, it is early earnings, and we have a long way to go. We've got a great team, and we're excited to continue to share this with you. Everybody be well, and we'll talk soon. Thank you.

Jason Vieth: So, marketing is key. We'll continue to go to awareness. Product placement is key. We have very little product placement still across, but the natural and the conventional channels, even less non-conventional of course. So, we'll continue to make those calls out to retailers. We're building a brand, a brand in portfolio products that is healthier than any other than we know of in the industry. And feel really great about that. We think we're right on the right trends, but it takes time, you know.

Jason Vieth: Share that with the board and have just an incredible number of lovers

Jason Vieth: in front of us, in addition to those that we just outlined a moment ago. And we'll be coming back over the next quarters to share more on that. Meanwhile, thanks to everybody.

Jason Vieth: And we'll be coming back over the next quarters to share more on that. Meanwhile, thanks to everybody for joining us on this journey. As I mentioned, this is the early innings, and we have a long way to go. We've got a great team, and we're excited to continue to share this with you. So, everybody be well, and we'll talk soon. Thank you.

Jason Vieth: And we'll be coming back over the next quarters to share more on that. Meanwhile, thanks to everybody for joining us on this journey. As I mentioned, this is the early innings. We have a long way to go. We've got a great team, and we're excited to continue to share this with you. So everybody be well, and we'll talk soon. Thank you.

Jason Vieth: we're joining us on this journey as i mentioned it is early earningsso we have a long way to go we've got great team and we're excited to continue shares with you so everybody be well and we'll talkxon thank you

Jason Vieth: And so, we're being patient. We're spending time with retailers, finding the revenue. He knows it works when putting the marketing behind it, really leveraging layered and gabby into that marketing. You know, that's been just a tremendous, very tremendous aspect to us in so many ways that founders, innovators, creators, and most of these products. And then as brand ambassadors and influencers, I just couldn't ask for better partners. And so, we'll continue to really lean in with layered and gabby as the way to share how health and wellness and nutrition oriented our, our nutrition oriented products are.

Unknown Executive: That will conclude today's conference call. Thank you for your participation, and enjoy the rest of your day.

Operator: That will conclude today's conference call. Thank you for your participation, and enjoy the rest of your day.

Operator: That will conclude today's conference call. Thank you for your participation and enjoy the rest of your day.

Jason Vieth: And then we're not, you know, that's just in the grocery and online channels that we operate in today. We haven't even started to scratch the surface of where this could go until we really get into the food service channel. And we're in the process now of setting that up and looking out at college universities where kids are taking terrible coffee and buck the product, you walk in and it's like, you know, you're the pipe or kids from flocking over from their tables.

Jason Vieth: And the same thing happens when we go to the VNI events. So, we have all kinds of, you know, VNI campuses, all the major tech firms, etc, that have large campuses, filled with commentaries and products or health and wellness oriented. We fit still incredibly well. And, you know, and then, anytime we're airlines and hotels, all the places we can go that we haven't even started to go. So, it's early in the KIP.

Jason Vieth: Now, we're, we're being metered in what we do. We're not going to. We used to, years ago, Laird Superfood would bring in the marketing to be very cautious as well as and ROI's are very, very strong and we're going to grow, we're going to grow smartly and we do it the right way.

Jason Vieth: So that's what you're going to see in the future in addition to the product innovation that we haven't yet shared, but we'll be sharing. Have them in next quarters.

JP Wallam: Great, it's very helpful, best of luck going forward. Thank you.

Unknown Executive: At this time, there are no other questions registered in Q. Again, if you would like to ask a question, please first of all follow by one. There are no questions registered in Q.

Jason Vieth: If it's time I'd like to pass the conference back over to our hosting team for closing remarks. Well, I don't have a whole lot to say. I think it's been a great quarter and frankly are a lot more excited even about what the future has for us.

Jason Vieth: We just completed our strategic growth plan process. Share that with the board and have just an incredible number of lovers in front of us in addition to those that we just outwearing the moment ago. We'll be coming back over the next quarters to share more on that. Meanwhile, thanks to everybody. We're joining us on this journey. As I mentioned, it is early earnings and we have a long way to go. We've got a great team and we're excited to continue to share this with you. Everybody be well and we'll talk soon.

Unknown Executive: Thank you.

Unknown Executive: That will conclude today's conference call. Thank you for your participation and enjoy the rest of your day.

Q2 2024 Laird Superfood Inc Earnings Call

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