Sow Good Q1 EPS $0.06 Up From $(0.29) YoY; Revenue $11.41M Up From $198,930 YoY
$SOWG
Packaged Foods
Consumer Staples
First Quarter 2024 Highlights vs. Same Year-Ago Quarter
- Revenue in the first quarter of 2024 increased significantly to $11.4 million compared to approximately $198.9K for the same period in 2023. The increase was driven to the Company's pivot to selling freeze dried candy in the prior year period, as well as the growing market for freeze dried candy. The increase also reflects the benefits of the Company's expanded production capacity.
- Gross profit in the first quarter of 2024 increased significantly to $4.6 million compared to approximately $114.9K for the same period in 2023. Gross margin was 40.6% compared to 57.8% in the prior-year period. Relative to the prior-year period, gross margin in the first quarter of 2024 reflects higher labor and production costs associated with the Company's increased scale. In order to meet growing demand, the Company expects to continue investing in its operations to increase production capacity, which is expected to constrain quarterly gross margins in the near term.
- Operating expenses in the first quarter of 2024 were $3.7 million compared to $1.0 million for the same period in 2023. The increase was primarily driven by higher compensation and professional services expenses as we scaled up the business and invested in system and process improvements in anticipation of being listed on Nasdaq.
- Net income in the first quarter of 2024 was approximately $510.6K compared to a net loss of $(1.4) million for the same period in 2023. The improvement reflects the higher level of gross profit generated during the quarter.
- Adjusted EBITDA (a non-GAAP financial measure defined and reconciled herein) in the first quarter of 2024 improved to $2.45 million compared to approximately $171.3k for the same period in 2023.
- Cash and cash equivalents were $6.8 million at March 31, 2024, compared to $2.4 million at December 31, 2023. The Company received $3.7 million in proceeds from the equity private placement completed in March of 2024.
For a reconciliation of Adjusted EBITDA to the nearest comparable GAAP metric, Net income, please see the tables below.