Q1 2025 Edible Garden AG Inc Earnings Call
Unknown Executive: Good morning, everyone, and welcome to the Edible Garden. Incorporated.
Good morning, everyone and welcome to the edible Garden AG incorporated 2025 first quarter business update conference.
Unknown Executive: 5 First Quarter Business At this time, all participants are in floor will be open for questions following the presentation.
At this time all participants are in a listen only mode and the floor will be opened for questions. Following the presentation.
Unknown Executive: If anyone should require operation, please do not hesitate to contact me.
If anyone should require operator assistance during the conference. Please press star zero on your phone keypad. Please note. This conference is being recorded I will now turn the conference over to your host Ted <unk> Investor Relations at Crescendo Communications, Ted the floor is yours.
Unknown Executive: Conference, please press star zero on your.
Ted Ayvas: Note this conference is being I will now turn the conference over to your host, Ted Ayvas, Investor Relations at Crescendo Communications. Ted, thank you.
Ted Ayvas: Good morning and thank you for joining Edible Garden's first quarter 2025 earnings conference call and business update.
Ted: Thanks Jenny.
Jim: Morning, and thank you for joining edible gardening first quarter 2025 earnings conference call and business update on the call with US today are Jim <unk>, Chief Executive Officer available Garden, and Cosmos, the foolish interim Chief financial officer of vegetable Garden earlier.
Ted Ayvas: On the call with us today are Jim Kras, Chief Executive Officer of Edible Garden and Kostas Dafoulas, Interim Chief Financial Officer of Edible Garden. Earlier this morning, the company announced its operating results for the three months ended March 31st, 2025. The press release is posted on the company's website, www.ediblegardenag.com. In addition, the company will file its quarterly report on Form 10-Q with the U.S. Securities and Exchange Commission, which will also be accessible on the company's website as well as the SEC's website at www.sec.gov.
Jim: Earlier this morning, the company announced its operating results for the three months ended March 31, 2025. The press release is posted on the company's website Www Dot edible Garden AG Dot Com. In addition, the company will file its quarterly report on Form 10-Q, with the U S Securities and Exchange Commission, which will also be accessible on the company's web.
Jim: Site as well as the Sec's website at Www Dot M. D. C that go if you have any questions after the call or would like any additional information about the company. Please contact crescendo communications at 2126711020 before Ms aggressive use of company's operating results for the quarter ended March 31.
Ted Ayvas: If you have any questions after the call or would like any additional information about the company, please contact Crescendo Communications at 212-671-1020.
Ted Ayvas: Before Mr. Kras reviews the company's operating results for the quarter ended March 31st, 2025 and provides a business update, we would like to remind everyone that this conference call may contain forward-looking statements. All statements other than statements of historical facts contained in this conference call, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations, are forward-looking statements. The words aim, anticipate, believe, could, expect, may, plan, project, strategy, will, and the negative of such terms and other words in terms of similar expressions are intended to identify forward-looking statements.
Jim: 2025, and provide the business update we would like to remind everyone that this conference call may contain forward looking statements all statements other than statements of historical facts contained in this conference call, including statements regarding our future results of operations and financial position strategy and plans and our expectations for future operation.
Jim: Forward looking statements. The words aim anticipate believe could expect May plan project strategy will and the negative of such terms in other words in terms or similar expressions.
Jim: Are intended to identify forward looking statements.
Ted Ayvas: These forward-looking statements are based largely on the company's current expectations and projections about future events and trends that it believes may affect its financial condition, results of operations, strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to several risks, uncertainties, and assumptions as described in the company's filings with the SEC, including the company's annual report on Swarm 10K for the year ended December 31st, 2024. Because of these risks, uncertainties, and assumptions, the forward-looking events and circumstances discussed in this conference call may not occur and actual results could differ materially and inversely from those anticipated or implied in the forward-looking statement.
Jim: These forward looking statements are based largely on the company's current expectations and projections about future events and trends that it believes may affect its financial condition results of operation strategy short term and long term business operations and objectives and financial needs. These forward looking statements are subject to several risks uncertainties and assumptions.
Jim: As described in the company's filings with the SEC.
Jim: Including the company's annual report on Form 10-K for the year ended December 31 2024.
Jim: Because of these risks uncertainties and assumptions the forward looking events and circumstances discussed in this conference call may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward looking statements.
Ted Ayvas: You should not rely upon forward-looking statements as predictions of future events. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. In addition, neither the company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements.
Jim: You should not rely upon forward looking statements as predictions of future events.
Jim: Although the company believes that the expectations reflected in the forward looking statements are reasonable it cannot guarantee future results level of activity performance or achievements.
Jim: In addition, neither the company nor any other person assumes responsibility for the accuracy and completeness of any of these forward looking statements. The company disclaims any duty to update any of these forward looking statements except as required by law. All forward looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements as well as others.
Ted Ayvas: The company disclaims any duty to update any of these forward-looking statements except as required by law. All forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements, as well as others made on this conference call. You should evaluate all forward-looking statements made by the company in the context of these risks and uncertainties.
Jim: Made on this conference call you should evaluate all forward looking statements made by the company in the context of these risks and uncertainties.
James Kras: Having said that, I would now like to turn the call over to Mr. Jim Kras, Chief Executive Officer of Edible Garden, Jim. Thanks, guys. Good morning, and thank you to everyone for joining us today. We're pleased to report that Q1 2025 marked a strong start to the year, reflecting the continued momentum behind a strategic transformation. Our realignment towards higher margin, shelf-stable products such as Kick Sports Nutrition, Pickle Party, Squeezeables, Pulp, and Vitamway is gaining traction and the results are becoming increasingly visible across our business. We also made meaningful progress expanding our national retail presence. During the quarter, we launched or strengthened our relationships with several major retailers, including Wal-Mart, Stop and Shop, Wakefront, ShopRite, and Burcutt Superfoods.
Jim: Having said that I would now like to turn the call over to Mr. Jim <unk>, Chief Executive Officer of vegetable Garden Jim.
Jim: Thanks, guys. Good morning, and thank you to everyone for joining us today.
Jim: We're pleased to report that Q1, 2020, fives and marked a strong start to the year.
Jim: In fact, with the continued momentum behind our strategic transformation.
Jim: Our realignment towards higher margin shelf stable products, such as Kipp sports nutrition, Pickled party squeezable pulp and by the way has gained traction and the results are becoming increasingly visible across our business.
Jim: We also made meaningful progress expanding our national retail presence during.
Jim: During the quarter, we launched or strengthened our relationships with several major retailers, including Walmart.
Jim: Stop and shop Wake Fund shop, right and broke out Superfoods these relationships and driving growth across both our fresh and non perishable categories. While also leveraging our patented in store merchandising solutions, such as our saltwater and displays and reinforcing our omni channel strategy.
James Kras: These relationships are driving growth across both our fresh and non-perishable categories, while also leveraging our patented in-store merchandising solutions, such as our self-watering displays and reinforcing our omni-channel strategy. Total revenue declined $414,000 to $2.7 million in the first quarter. This decline was primarily attributed to our strategic decision to exit lower-margin floral and lettuce categories. Cut herb sales rose 13% on a seasonal basis, highlighting sustained consumer demand for freshness and convenience. This deliberate shift in our product mix is already contributing to margin expansion and setting the stage for scalable, profitable growth, highlighting the traction in our non-perishable portfolio where revenue rose 15% year over year.
Jim: Total revenue declined $414002 7 million in the first quarter. This decline was primarily attributed to our strategic decision to exit lower margin floral and lettuce categories.
Jim: <unk> sales rose, 13% on a seasonal basis highlighted highlighting sustained consumer demands for freshness and convenience.
Jim: Deliberate shift in our product mix is already contributing to margin expansion and setting the stage for scalable profitable growth highlighting the traction in our nonperishable portfolio, where revenue rose 15% year over year.
James Kras: Each of our non-perishable shelf-stable brands have contributed to this performance. Kick Sports Nutrition achieved a milestone with new brick and mortar replacement at a major Midwest big box retailer. The brand includes Clean Labeled Whey and plant-based protein powders with planned expansion into pre- and post-workout formulas and hydration products. These offerings support performance, recovery, and overall wellness for today's health-conscious consumers. Pickle Party, created in partnership with Herman Pickle Company, is the world's first functional pickle, fermented, refrigerated, and gut health focused. Featuring kosher and non-GMO ingredients, it's launching across all superfood stores. and has secured pre-orders at Foodtown, Lincoln Market, ahead of summer season.
Jim: Each are nonperishable shelf stable brands contributed to this performance kicks.
Jim: Kick sports nutrition she'd been milestone with new brick and mortar placement at a major Midwest Big box retailer.
Jim: <unk> includes clean labeled way and plant based protein powders with planned expansion into pre and post workout formulas and hydration products. These offerings support performance recovery and overall wallets for todays health conscious consumers take a party.
Jim: Created in partnership with pharmaceutical company is the world's first functional pickle fermented refrigerated and gut health focused featuring kosher and non GMO non GMO ingredients, it's launching across all broke hot foods Super food stores.
Jim: And that's true of preorders that foodtown linker market ahead of summer season Squeezable.
James Kras: Squeezables. Our shelf-stable, stern-paced line has successfully completed its pilot and is moving into full-scale production. Our line of organic, fermented, gourmet hot sauces and chili-based condiments continues to gain momentum in the premium condiments category and resonates with consumers seeking healthy, elevated alternatives to traditional sauces. Vitamin Whey and Vitamin Whey offer a growing portfolio of whey and plant-based protein powders designed to support recovery, overall wellness, and daily nutritional needs. The brand continues to combine advanced supplementation with consumer-friendly taste and value. Following a successfully established retail presence, we launched a dedicated e-commerce platform at vitaminwhey.com to broaden access and accelerate brand growth.
Jim: A shelf stable staring pays line has successfully completed its pilot and is moving into full scale production.
Jim: Paul.
Jim: A lot of organic fermented gourmet hotspots in Chile based condiments continues to gain momentum and the premium condiments category and resonates with consumers seeking healthy elevated alternatives to traditional sources.
Jim: Vitamin weighing vitamin way offer a growing portfolio of way in plant based protein powders with design designed to support recovery overall wellness and daily nutritional needs. The brand continues to combine advanced implementation with consumer friendly taste and value.
Jim: Following a successfully established retail presence, we launched a dedicated ecommerce platform that vitamin way dot com its broad access and accelerate brand growth.
James Kras: Gross profit increased 283% year-over-year, nearly quadrupling from Q1 2024, while gross margin improved to 3.2% from 0.7%. This improvement reflects stronger cost control and improved skew mix.
Jim: Gross profit increased 283% year over year, nearly quadrupling from Q1, 'twenty 'twenty four while gross margin improved to three point to present, some 0.7%. This improvement reflects strong cost control and improved SKU mix.
James Kras: One of the most transforming milestones of the year announced just yesterday was our $15.5 million acquisition from Natural Shrimp Farms. Funded through a mix of preferred equity and institutional investment, this deal strengthens our balance sheet without increasing debt and further extends our vertically integrated model. The acquisition includes a fully operational aquaculture facility in Fort Dodge, Iowa, and two patented water treatment technologies. These patented innovations will be integrated into our greenhouse operations to enhance water efficiency and reduce environmental impact, complementing our ongoing nano-bubble irrigation trials with Persea, New Jersey Institute of Technology, the EPA and the USDA, which have already shown up to a 55% increase in yield and a 30% reduction in harvest cycle time.
Jim: One of the most transforming milestones of the year announced just yesterday was a 15.55 million dollar acquisition from natural shrimp farms, so well funded through a mix of preferred equity and its institutional investment. This deal strengthens our balance sheet without increasing debt and further extends our vertically integrated model the acquisition that was it.
Jim: Fully operational Aqua culture facility in Fort Dodge, Iowa, and two patents in water treatment technologies.
Jim: These patented innovations will be integrated into our greenhouse operations that have enhanced water efficiency and reduce environmental impact complementing our ongoing ano bubble irrigation trials would pose a new Jersey Institute of technology apology.
Jim: Institute of New Jersey Institute of Technology, the EPA and the USDA, which have already shown up to a 55% increase in yield and a 30% reduction in harvest cycle time.
James Kras: In addition, the Iowa facility offers valuable infrastructure for expanded R&D, warehousing, and potential nutraceutical development, supporting our goals around vertical integration, sustainability, and long-term innovation.
Jim: In addition, the Iowa facility offers valuable infrastructure for expanded R&D warehousing and potential nutraceutical development supporting our goals around its vertical integration sustainability and long term innovation.
James Kras: Our commitment to sustainability remains central to our identity. Through initiatives like Walmart's Project Gigaton, we helped avoid nearly 11,800 metric tons of virgin plastic in 2024, conserved over 28,000 gallons of diesel and diverted 103 tons of food through donation programs. We're proud to be recognized in the Food Tech 500 as a top 50. Company and continued to lead the way in our controlled environment agriculture with real measurable impact.
Jim: Our commitment to sustainability remains central tied our identity through initiatives like Walmart's project Gigaton. We helped avoid nearly 11800 metric tons of Virgin plastic in 2024th conserved over 28000 gallons of diesel and diverse 103 tons of food donation progress we're proud to be.
Jim: Recognizing the food Tech 500, as a top 50.
Jim: Company and continue to lead the way in our controlled environment agriculture with real measurable impact.
James Kras: With a focused strategy, brand momentum, and an even stronger operational foundation, we believe Edible Garden is well positioned to deliver long-term value for our customers, partners, and shareholders.
Jim: The focus strategy brand momentum and an even stronger operational foundation, we believe edible gardens is well positioned to deliver long term value for our customers partners and shareholders.
Causes: Like like I would now like to turn the call over to cause this divorce, our interim CFO, who will review the financial results for the quarter ended March 31st 2025 causes.
Kostas Dafoulas: I would now like to turn the call over to Kostas Dafoulas, our interim CFO, who will review the financial results for the quarter ended March 31st, 2025. Thanks, Jim. And good morning, everyone. For the quarter ended March 31 2025. Revenue totaled $2.7 million, a decrease of 13.2% percent compared to 3.1 million for the three months ended March 31 2024. This decline was primarily driven by the company's strategic exit from the lower margin floral and lettuce product. nonperishable revenue, however, grew 15% year over year in the quarter, a clear indication that our innovative shelf stable brands like Kix, Forced Nutrition, Pickle Party, Squeezables, Pulp, and Vitamin Way are resonating with customers.
Speaker Change: Thanks, Jim and good morning, everyone for the quarter ended March 31 2025.
Causes: Revenue totaled $2.7 million.
Causes: So it's 13, 2% compared to $3 1 million for the three months ended March 31 2024. This.
Causes: This decline was primarily driven by the company's strategic exit from the lower margin floral and let us products.
Causes: Non perishable revenue, however grew 15% year over year in the quarter, a clear indication that our innovated shelf stable brands like <unk> sports nutrition pick party squeeze the bowls pulp and vitamin way are resonating with customers.
Kostas Dafoulas: Cost of goods sold was $2.6 million for the first quarter of 2025 compared to $3.1 million for the same period in 2024. The decrease reflects the decreased revenue in the quarter and as we've seen previously in Q1. Gross profit increased to $88,000 compared to $23,000 in the prior year period representing an increase of approximately 283% year over year. Gross margin improved to 3.2% up from 0.7% in 2024, reflecting early returns from the company shift to higher margin shelf to stable product. Selling general and administrative expenses were $3.3 million for the quarter, down from $3.9 million in the prior year period.
Causes: Cost of goods sold was $2 6 million for the first quarter of 2025 compared to $3 1 million for the same period in 2024.
Causes: The decrease reflects the decreased revenue in the quarter and as.
Causes: As we've seen previously in Q1.
Causes: Gross profit increased to 88000 compared to 23000 in the prior year period, representing an increase of approximately 283% year over year.
Causes: Gross margin improved to three 2% up from 7% in 2024.
Causes: That being early returns from the company shifts to higher margin shelf stable product lines.
Causes: Selling general and administrative expenses were $3 3 million for the quarter down from $3 9 million in the prior year period the.
Kostas Dafoulas: The reduction was primarily attributable to lower personnel costs as we continue to optimize our cost structure and the roll off of severance expenses incurred in the first quarter of 2024 related to executive transition. Net loss was $3.3 million for the first three months ended March 31, 2025, compared to a net loss of $4 million for the first three months ended March 31, 2024. The year-over-year improvement in net loss was primarily driven by cost reductions, along with increased contribution from higher margin, non-perishable products.
Causes: The reduction was primarily attributable to lower personnel costs as we continue to offset optimize our cost structure and the roll off of severance expenses incurred in the first quarter of 2024 related to executive transitions.
Causes: Net loss was $3 3 million for the first three months ended March 31, 2025, compared to a net loss of $4 million for the first three months ended March 31 2024.
Causes: The year over year improvement in net loss was primarily driven by cost reductions along with increased contribution from higher margin non perishable product sales.
Unknown Executive: With that, operator, please open the line for questions. Thank you very much.
Speaker Change: With that operator, please open the line for questions.
Speaker Change: Thank you very much we will now be opening the floor for questions. If you would like to ask a question. Please press star one on your phone keypad now a confirmation tone will indicate that your line is and Nicky you May press star two if he would like to remove your question from Nicky So any participants using speaker equipment.
Unknown Executive: We will now be opening the floor. to ask a question please press star 1 on your Information Tone will indicate. 2, if you would like to remove. Please wait a moment.
Speaker Change: It may be necessary to pick up your handset before pressing the keys. Please wait a minute also we poll for questions.
Speaker Change: Okay.
Speaker Change: Thank you very much.
Speaker Change: Your first question is coming from Anthony Vendetti of the maximum great. Anthony Your line is live.
Anthony Vendetti: from Anthony Vendetti of the Vendetti, your line is Thank you.
Speaker Change: Thank you good morning.
James Kras: Good morning. I was just, I was just wondering, this, this acquisition of natural shrimp, it was completed. Can you talk about what your initial plans are for it?
Anthony Vendetti: I was just wondering with this acquisition of natural said, it's it was completed.
Speaker Change: Hum.
Speaker Change: Can you talk about what's your initial plans are for.
Speaker Change: Sure.
Speaker Change: Natural shrimp and.
Speaker Change: Talk about what synergies are available to you immediately and then down the road with them.
James Kras: cross salad Anthony, good morning. How are you? Okay, and then. Are you able to provide what the revenues were for? Natural Shrimps in 2024, and then would this be gross margin accretive? As of right now, it's fairly nominal, the sales part of the business, it's, you know, it's not going to be I wouldn't say it's going to be, you know, margin accretive, but I think from their existing business, but as we sort of Morph and expand their business, you know, utilizing, like I said, some of the some of the existing space that they have using, you know, I think this is, like I said, this is a large facility that really gives us penetration to markets.
Speaker Change: Cross selling synergies could be.
Anthony Vendetti: Anthony Good morning, how are you.
Speaker Change: Thank you for dialing in.
Speaker Change: Couple of quick things here to answer your question are the two that it was like basically free driving sort of initiatives that all that'll happen immediately at the facility first of all facilities are in a key place for us as we're expanding our relationships with our big you know the big re.
Speaker Change: Taylor's out that are based out there, whether it's target or Wal Mart or Meyer and the facility has considerable warehousing the extent.
Speaker Change: Room for Us, which we need frankly, you know we're in Grand Rapids, and Grand Rapids is get involved and and as we start to shift into more shelf stable products, some of which will require refrigeration those capabilities already existing at this facility. So that I'm excited about.
Speaker Change: There's so those where it's located.
Speaker Change: Okay to kind of give that allow us to continue to stretch out further west allow us to penetrate where we're already strong as a company in the Midwest and getting stronger and start there wasn't some really great programs, especially leading into the second half of the year. These products that require refrigeration will it will be able to be hows, they're transported since.
Speaker Change: A central part of the country. So that's great. The R&D aspect of it I'm extremely excited about shrimp has many therapeutic qualities. In addition to tasting great. So it's kind of twofold. It's not only are we going to continue the innovation that the the existing team has a in order to leverage.
Speaker Change: Better healthier cleaner shrimp and are in an era, where people are concerned about tariffs and whatnot and being able to do things states I'd like that long term.
In a sustainable fashion plays right into what we're known for with being zero isn't what it was always inspired so so that's that's I think just I don't know of another word for that and just very cool and then and then there's and then there's just the you have the opportunity to do.
Speaker Change: To take what we learn from from raising shrimp, there's a bunch of patents that they already have right that'll help us not only in the greenhouse aspect, but also in water treatment, but also just with the nutraceutical business that just continues to accelerate for us.
Speaker Change: As I've mentioned to you in the past that come out of that business, that's where I started between you know twin lab years ago, and then and then they just bought it for three years before we saw a carlyle I'm excited about I'm excited about just a developing new innovative ingredients are utilizing shrimp and and we know that you know it shellfish.
Speaker Change: In general was used for joint care and other growing areas of that that business. So for us. It's a super exciting time, they've been out there quite a few times through due diligence and it's quite a facility and these guys. They've got a real head start on quite a few people in the industry are focusing on.
Speaker Change: As part of the business. So I think we're gonna be able to do quite a few things.
Speaker Change: Okay and then.
Speaker Change:
Speaker Change: Are you able to provide what the revenues were for.
Speaker Change: So for instance in 2024, and then would this be gross margin accretive.
Speaker Change: But as of right now it was a fairly nominal the sales part of the business. It's you know it's not gonna be I wouldn't say, it's gonna be margin accretive, but I think from their existing business, but as we sort of <unk>.
Speaker Change: <unk> Finn and expand their business utilizing like I said some of the some of the existing space that they have using you know the I think this is like I said. This is a large facility that really gives us a penitent penetration into markets.
James Kras: You know, there's there's a lot of excitement around the shrimp shell shells to develop new products and nutraceuticals. So, for us, the existing business is the existing business. It's not it wasn't it was really kind of a demonstration mode and our facility. We're going to accelerate the R&D piece, start to leverage the facility in order to immediately impact our margin as it relates to warehousing and logistics. So, to answer your question, we'll be able to leverage our distribution to accelerate what they're currently doing and their sales as well as leverage the space of the facility to be able to lead to margin accretion.
Speaker Change: There's a there's a lot of hum our excitement around the shrimp sell shells are developing a new product in nutraceuticals. So for US you know the existing businesses existing business. It's not you know it wasn't it was really kind of a demonstration mode in an in an art.
Speaker Change: R&D facility, we're going to accelerate the R&D piece start to leverage the facility.
Speaker Change: Independent order to immediately impact our margin as it relates to warehousing and logistics. So so did that answer your question well, we'll be able to you know.
Speaker Change: Leverage on distribution to accelerate what they're currently doing and their sales.
Speaker Change: As well as no leverage there you know the space Oh for the facility to be able to lead to margin accretion. So I think that'll happen pretty quickly. It's just a function of the totality of what's sitting out there.
James Kras: So, I think that'll happen pretty quickly. It's just a function of totality of what's sitting out there.
Anthony Vendetti: Okay, and then lastly, switching back to Edible Gardens, can you talk about the... Okay, great. Thanks, Jim. I appreciate all the color. I'll hop back. All right, thanks, Anthony.
Speaker Change: Okay, and then and then lastly, switching back edible gardens.
Speaker Change: Can you talk about the E.
Speaker Change: E Sports nutrition line.
Speaker Change: Specifically did this quarter.
Speaker Change: Or are you happy with that ramp and do you expect that to continue and I am I am I'm a static.
Speaker Change: Oh look I love the business. So it's always like it when people love to work on things that they really take pleasure and so you know coming out of brands like body for just some metrics and pure protein and then to be able to do this better is is.
Speaker Change: With this type of wine, which is the right product at the right time, which is so much of what we're focused on as a company.
Speaker Change: We just gained distribution in the Midwest Big box retailer that was order has got shipped in Q2. So in April so they're not reflected in Q1.
Speaker Change: So and then you know we've got some big big launches coming up in the very near term so.
Speaker Change: I couldn't I couldn't be happier with the way we develop the product with neukom they've been a great partner, we just continue to deepen that relationship.
Speaker Change: And you know I think we're just in such a great spot and we're continuing to invest in and not only in people infrastructure, but also marketing support where we're adding salespeople to really continue to push out into the marketplace. We continue to go to a key trade shows so I.
Speaker Change: I'm excited I think you're going to see more from us or.
Speaker Change: Some of them are existing nutraceutical business has really started to pick up.
Speaker Change: I think it's it's a it's an interesting timing of protein different forms or hot and it continues to be hot they only have to do is go and look into the news and see where we were people were out with that so.
Speaker Change: It's a great time to be doing what we're doing it really is Oh, you know I just wanted to get there faster.
Speaker Change: But also be able to do it where we can do it in the right manner. So that we can continue to have the infrastructure and the integrity, we need to deliver on what we what our great relationships that we have out there because we've always worked hard for our retailers shipping at a super high rate. We've you know we've excelled in fresh goods, which is a super challenging now.
Speaker Change: If we can marry the two and then and then leverage the platform of the stores that were in and pick up new stores and in being almost almost every corner of the grocery store as wells are a significant online presence that will that's going to be growing and accelerating with our relationship with our pronto, which as you know an agent.
Speaker Change: Agency that was basically approved by Amazon for us to work with so I once again I'm pretty I'm very excited about about the business and particularly kept because I think it's just it's just the timing is everything sometimes and I think we got it.
Anthony Vendetti: Okay, great. Thanks, Jim I appreciate all the color I'll hop back in the queue.
Jim: Thanks Anthony.
Speaker Change: Thank you very much just as a reminder, if at all any question you can press star one on your thank you back now to join Nikki.
Unknown Executive: Thank you very much. Just as a reminder, if...
Nick: Our next question is coming from Nick. Nick, you're live. Hey guys, congrats on the solid results and the positive shift in the product mix.
Speaker Change: Our next question is coming from Nick Pincus of Forest capital Nick Your line of sight.
Nick Pincus: Hey, guys. Congrats on the solid results and a positive shift in the product mix you touched on this a bit but I was just hoping if you could elaborate some more on the drivers behind the sustained improvement in gross margin, particularly as you transition towards these higher margin shelf stable products, but also.
James Kras: You touched on this a bit, but I was just hoping if you could elaborate some more on the drivers behind this sustained improvement in gross margin, particularly as you transition towards these higher margin, shelf stable products, but also specifically, what strategic initiatives are you pursuing to accelerate the growth of these product lines? And how do you see this part of the business developing going forward? Uh, thank you. Um, great question. Welcome, Nick. It gets boiled down to kind of a few things. And for us, you know, it's the continued investment in the company, starting with getting the right people, you know, that we continue to do.
Nick Pincus: Specifically, what strategic initiatives are you pursuing to accelerate the growth of these product lines and how do you see this part of the business developing going forward.
Nick Pincus: Thank you great question welcome that.
Nick Pincus: Look.
Nick Pincus: It gets boiled down to.
Nick Pincus: Kind of.
Few things and for Us it's.
Nick Pincus: Continue investment the continued investment in the company starting with getting the right people.
Nick Pincus: You know that that we continue to do and we continue to elevate the people that come into the business as we become more and more successful allows us to drive innovation.
James Kras: And we continue to, you know, elevate the people that come into the business as we become more and more successful. It allows us to drive innovation, build strong relationships, the right products, as I just mentioned about Kik, having the right products at the right time, and then the right support. That right support, you know, ties back to not only the products and the people, but also investment in marketing and branding. So for us, you know, this shift to just diversification of the portfolio on the heels of skew rationalization, I think, has really positioned us to drive that gross margin top line, which I think is going to be exciting coming into the second half as we start to gain traction with these products and get them into stores and get them online and get people, you know, trying them.
Nick Pincus: <unk> strong relationships the right products.
Nick Pincus: Just mentioned about kick in and have the right products at the right time, and then the right support that Ray support you know ties back to not only the product and people, but also our investment in marketing and branding. So for US you know this the shifts to hum to to just revert and diversification of the portfolio on the heels of SKU rationalization, I think has really positioned us to.
Nick Pincus: To drive that debt that that gross margin top line, which I think is gonna be exciting coming into the second half as we start to gain traction with these products and get them into stores and get them online and get people trying I know, we had a great trade show at Expo West.
James Kras: And we had a great trade show at Expo West with Pickle Party. And we just came out of the show with a lot of excitement around that whole line, which is just, like I said, functional and exciting. So right now, you know, it's a great time to be at Edible Garden because it's exciting and the company's really evolving. And it's fun to watch the people who've been here with us and with management and with myself for the last decade watch the company evolve and transform from one greenhouse and, you know, a handful of accounts to spreading out through the country and internationally and bringing in diverse products that, you know, that people like and are relatable and the people who work are responding.
Nick Pincus: With Pickle Party and we just came out of the pain out of a show with a lot of excitement around that whole line, which is just a month like I said, you know functional and and.
Nick Pincus: An exciting so right now you know, it's a great time to be at edible gardening, because it's exciting and the company is really evolving and fun to watch the people who've been here with us and with management and with myself for the last decade.
Nick Pincus: The company evolve and transform to inform a promote one greenhouse and a handful of accounts to spreading out through the country and internationally and and and and bringing in diverse products that you know that people like interrelated and the people who work or was my arithmetic, but it's it's it's fantastic.
Nick: So it's fantastic. Well, that's great.
Nick Pincus: Okay.
Speaker Change: Oh, that's great and yes look forward to following your progress.
Nick: And just look forward to following your progress. Good luck.
Nick Pincus: Mark.
Unknown Executive: Alright thanks Nick. Thank you very much.
Nick Pincus: Alright, Thanks, Nick.
Unknown Executive: Well we appear to have reached the end of our question and answer session.
Nick Pincus: Thank you very much.
Nick Pincus: We have reached the end of our question and answer session I will now turn the call back over to the management team for any closing comments.
James Kras: I will now turn the call back over to the management team for any closing comments. Sure. Thank you for joining us today. Q1 2025 marked a strong start to the year with clear progress on our strategy to focus on a higher margin, non-perishable products, brands like Kik, Pickle Party, Squeezables, Pulp, and VitaminWay are gaining traction. And we're seeing really financial returns to improve margins and reduce losses. The recent acquisition of Natural Shrimp Facility adds valuable R&D and operational capabilities while supporting our commitment to sustainability and vertical integration. Combined with expanded retail relationships and growing e-commerce reach, we believe we've built a strong foundation for continued growth.
Nick Pincus: Sure.
Nick Pincus: Thank you for joining us today Q1, 'twenty twenty-five marked a strong start to the year with a clear progress on our strategy to focus on our higher margin non perishable products brands like kick pick a party squeezable bulk and vitamin way of gaining traction and we're seeing really financial it turns to improve margins and reduce losses. The recent acquisition of <unk>.
Nick Pincus: Chimps facility adds valuable R&D and operational capabilities, while supporting our commitment to sustainability and vertical integration.
Nick Pincus: Combined with expanded retail relationships and growing E. Commerce E. Commerce reached we believe we've built a strong foundation for continued growth.
James Kras: We're confident in our path forward and excited about what's ahead.
Nick Pincus: And in our path forward and excited about what's ahead. Thank you for your continued support.
James Kras: Thank you for your continued support.
Nick Pincus: Thank you very much. This does conclude today's conference call. You may disconnect. Your phone lines at this time and have a wonderful day. We thank you for you. Thank you. Thank you everybody and goodbye.
Unknown Executive: may disconnect your phone lines at this time. Thank you for your participation. Thank you.
Unknown Executive: Thank you everybody. Thanks, everyone.
Nick Pincus: Thanks, everyone.