Edible Garden Reports $13.86 Million Revenue with Strategic Changes and Increased Losses

Edible Garden AG Incorporated reported a revenue of $13.86 million for the fiscal year ending December 31, 2024, reflecting a slight decrease of 1.4% from the previous year's revenue of $14.05 million. The decline was primarily attributed to the company's strategic decision to exit lower-margin product lines, specifically lettuce and floral offerings, which resulted in a revenue drop of approximately $1.65 million. However, the core herb business saw growth, contributing an increase of $1.75 million. The company's cost of goods sold decreased significantly by 12.7% to $11.55 million, leading to a gross profit of $2.31 million, a substantial increase of 181.3% compared to the prior year.

Despite the improvement in gross profit, Edible Garden's selling, general, and administrative expenses rose by 15.8% to $11.59 million, driven by increased legal and accounting fees and severance costs following the departure of the Chief Financial Officer. The net loss for the year was reported at $11.05 million, compared to a loss of $10.19 million in 2023. The company continues to face challenges in achieving profitability, with a history of operating losses since its inception.

In terms of strategic developments, Edible Garden has focused on expanding its greenhouse capacity and product offerings. The acquisition of a five-acre greenhouse facility in Grand Rapids, Michigan, has allowed the company to reduce reliance on third-party growers and improve gross margins. The facility is expected to contribute positively to the company's financial performance over time. Additionally, Edible Garden has launched new product lines, including nutraceuticals and gourmet sauces, to diversify its offerings and enhance market presence.

Operationally, Edible Garden serves over 5,000 supermarket stores across the Northeast, Midwest, and Mid-Atlantic regions, with significant sales attributed to a few major customers. In February 2024, the company entered into supply agreements with Meijer, which will last until December 2026, further solidifying its distribution network. The company reported a total employee headcount of 99 as of December 31, 2024, with 98 of those being full-time employees.

Looking ahead, Edible Garden acknowledges the substantial doubt regarding its ability to continue as a going concern, as it has incurred significant losses and requires additional financing to sustain operations. The company is actively exploring various funding options, including public and private financing, to support its growth strategy and operational needs. The management's outlook remains cautious, emphasizing the need for improved financial performance and capital resources to navigate the challenges ahead.