– Significant improvement in gross profit
dollars compared to last year –
– GoodWheat™ pasta named “Best
New Product” by Retail Dietitians Business Alliance –
Arcadia Biosciences, Inc.® (Nasdaq: RKDA), a producer and
marketer of innovative, plant-based health and wellness products,
today released its financial and business results for the first
quarter of 2023.
“We continue to focus on growing high quality revenue streams,
as we closely manage resources,” said Stan Jacot, president and
CEO. “And the impact of this focus is clearly seen in our Q1
results, with notable improvements in gross profit dollars and
operating expenses compared to last year.”
The company is also supporting expansion of GoodWheat™ pasta
brand. “Less than one year after launch, we believe we have only
begun to see the potential of our GoodWheat pasta with expanding
store count, improving velocity and award-winning product
performance.”
In addition to receiving the American Heart Association’s Heart
Check Certification earlier this year, GoodWheat pasta was recently
named the “Best New Product” by the Retail Dietitians Business
Alliance, a network of registered dietitians serving over 1,000
retailer-employed dietitians throughout the US and Canada.
Jacot provided an update on Project Greenfield, Arcadia’s 3-year
plan to drive shareholder value, including GoodWheat’s retail
expansion, driving growth of core brands and partnerships, as well
as maintaining an agile organization to cultivate next generation
wellness products. “As we enter the second year of Project
Greenfield, our plans include category expansion for our
proprietary GoodWheat technology, through both innovation and
acquisition. Along with channel expansion and innovations in Zola®
coconut water, these plans present opportunities for substantial
growth in revenue and gross profit dollars.”
Arcadia Biosciences,
Inc.
Financial Snapshot
(Unaudited)
($ in thousands)
Three Months Ended March
31,
2023
2022
Favorable / (Unfavorable)
$
%
Total Revenues
1,509
3,220
(1,711
)
(53
%)
Total Operating Expenses
5,557
7,843
2,286
29
%
Loss From Operations
(4,048
)
(4,623
)
575
12
%
More detailed financial statements are included in the Form 8-K
filed today, available in the Investors section of the company’s
website under SEC Filings.
Revenues
In the first quarter of 2023, revenues were $1.5 million
compared to revenues of $3.2 million during the same period in
2022. Revenues in the first quarter of 2022 included $1.8 million
in sales of grain and body care products that are no longer part of
the Arcadia product portfolio.
Operating Expenses
In the first quarter of 2023, operating expenses were $5.6
million compared to $7.8 million in the first quarter of 2022.
Cost of revenues was $825,000 in the first quarter of 2023
compared to $3.5 million during the same period in 2022, resulting
in an improvement of $922,000 in gross profit. Cost of revenues in
the first quarter of 2022 included grain sold at cost, low-margin
body care product sales and higher inventory write-downs.
Research and development (R&D) spending decreased by $36,000
in the first quarter of 2023 compared to the first quarter of 2022.
The decrease was driven by the company’s continued focus on
commercialization, which has led to lower R&D employee-related
expenses and activity costs.
Selling, general and administrative costs for the first quarter
of 2023 were $43,000 higher than in the first quarter of 2022
despite a 43% increase in marketing expenses in 2023.
Complete financial statements for the first quarter of 2023 will
be available next week when the company files its Quarterly Report
on Form 10-Q. Due to the complexity of the company’s March 2023
private placement financing, the impact of that financing on the
net loss is still under review.
Conference Call and Webcast
The company has scheduled a conference call for 4:30 p.m.
Eastern time (1:30 p.m. Pacific time) today, May 11, to discuss
first-quarter results and key strategic achievements. Interested
participants can join the conference call using the following
options:
- An audio-only webcast of the conference call will be available
in the Investors section of Arcadia’s website.
- To join the live call, please register here, and a dial-in
number and unique PIN will be provided.
Following completion of the call, a recorded replay will be
available on the company’s investor website.
About Arcadia Biosciences, Inc.
Since 2002, Arcadia Biosciences (Nasdaq: RKDA) has been
innovating crops to provide high-value, healthy ingredients to meet
consumer demands for healthier choices. With its roots in
agricultural innovation, Arcadia cultivates next-generation
wellness products that make every body feel good, inside and out.
The company’s food, beverage and body care products include
GoodWheat™, Zola® coconut water, ProVault™ topical pain relief and
SoulSpring™ bath and body care. For more information, visit
www.arcadiabio.com.
Safe Harbor Statement
“Safe Harbor” statement under the Private Securities Litigation
Reform Act of 1995: This press release and the accompanying
conference call contain forward-looking statements about the
company and its products, including statements relating to the
company’s growth, retail expansion, financial performance and
commercialization of products. Forward-looking statements are
subject to risks and uncertainties that could cause actual results
to differ materially, and reported results should not be considered
as an indication of future performance. These risks and
uncertainties include, but are not limited to: the company’s and
its partners’ and affiliates’ ability to successfully develop and
sell commercial products incorporating its traits and to complete
the regulatory review process for such products; the company’s
compliance with laws and regulations that impact the company’s
business; the growth of the global wheat market; our ability to
continue to make acquisitions and execute on divestitures in
accordance with our business strategy or effectively manage the
growth from acquisitions; and the company’s future capital
requirements and ability to satisfy its capital needs. Further
information regarding these and other factors that could affect the
company’s financial results is included in filings the company
makes with the Securities and Exchange Commission from time to
time, including the section entitled “Risk Factors” and additional
information set forth in its Form 10-K for the year ended December
31, 2022, and other filings. These forward-looking statements speak
only as of the date hereof, and Arcadia Biosciences, Inc.
undertakes no duty to update this information.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230511005862/en/
Arcadia Biosciences Contact: T.J. Schaefer
ir@arcadiabio.com
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