Business
Edible Garden Reports Financial Results and Provides Business Update for the First Quarter of 2023
Gross Profit Improves as Company Shifts Strategy to Focus on Higher-Margin Partnerships and Products Increased Capacity from Edible Garden Heartland Allows
About this update from Edible Garden Ag Incorporated
[{"type":"text","content":"Gross Profit Improves as Company Shifts Strategy to Focus on Higher-Margin Partnerships and Products Increased Capacity from Edible Garden Heartland Allows Company to Become Less Dependent on Third-Party Contract Growers; Expected to Positively Impact Margins Achieves Record Revenue in April; Projects Revenue Growth in Excess of 20% in 2023 Conference Call to Be Held Today at 8:00 AM ET. BELVIDERE, N.J., May 15, 2023 (GLOBE NEWSWIRE) -- Edible Garden AG Incorporated (“Edible Garden” or the “Company”) (Nasdaq: EDBL, EDBLW), a leader in controlled environment agriculture (CEA), locally grown, organic and sustainable produce and products, today provided a business update and reported financial results for the three months ended March 31, 2023. Mr. Jim Kras, Chief Executive Officer of Edible Garden, stated, “The Company's revenue for the quarter experienced a slight decline compared to the first quarter of 2022 due to several large orders that shifted into the second quarter, as well as a deliberate strategy to concentrate our efforts and reallocate resources towards more profitable customer and partner relationships. This strategy is working, as we reported improved gross profit for the first quarter of 2023 over the same period last year. Moreover, with the launch of Edible Garden Heartland in April 2023, we will be less dependent on third-party contract growers and will have much greater internal capacity to support demand, which should result in a significant improvement in profitability through the vertical integration of our Midwest business.” “In addition, Edible Garden is diversifying our product lineup to feature what we foresee as higher-margin, growth products in new product categories, such as our recently acquired Pulp® line of all-natural, Non-GMO, preservative-free, sustainable gourmet sauces and chili-based products. These products will be available in Whole Foods Market's Mid-Atlantic and Southeastern retail sites beginning in the summer of 2023 and are expected to be higher-margin products. These products, with an extended shelf life, are typically located in the supermarket's refrigerated section, adjacent to the produce department, which allows us to benefit from Edible Garden's growing brand awareness in this new product category.” “At the same time, we have enhanced our distribution network since the beginning ...