LSF - Laird Superfood Reports Fourth Quarter and Fiscal Year 2024 Financial Results
Record Net Sales of $43.3 million for Fiscal Year 2024, growth of 27% year-over-year. Gross Margin at 40.9%. Cash increased $0.8 million.
Laird Superfood, Inc. (NYSE American: LSF) (“Laird Superfood,” the “Company,” “we,” and “our”), today reported financial results for the fourth quarter and fiscal year ended December 31, 2024.
Jason Vieth, Chief Executive Officer, commented, “I am thrilled to share that 2024 was, by far, the best performance for Laird Superfood as a public company. In the last twelve months, we achieved significant growth across our product lines and all sales channels, our highest gross margins ever, and positive cash flow for the first time in company history. These results are especially impressive when considering the turnaround that we executed over the past two years and are the direct result of the passion and dedication of our team of founders and employees. We are clearly on-trend with the broad consumer desire to eat better, more wholesome, and functional foods, and we are poised for continued expansion across products, channels, and geographies.”
Fourth Quarter 2024 Highlights
- Net Sales of $11.6 million compared to $9.2 million in the corresponding prior year period, representing 26% growth.
- E-commerce sales increased by 12% year-over-year and contributed 58% of total Net Sales, with significant improvements in media efficiency in this channel. The growth was driven by strong sales on Amazon.com , building on the momentum over the previous three quarters.
- Wholesale sales increased by 52% year-over-year and contributed 42% of total Net Sales, driven by growth in grocery due to distribution expansion and velocity improvement at shelf, led by club sales outlets.
- Gross Margin was 38.6% compared to 40.4% in the corresponding prior year period. This margin contraction was driven primarily by increased gross to net sales promotional spend related to prior periods, including higher slotting expenses due to distribution expansion.
- Net Loss was $0.4 million, or $0.04 per diluted share, compared to Net Income of $0.1 million, or $0.02 per diluted share, in the corresponding prior year period. The Net Loss in the fourth quarter of 2024, compared to the Net Income in the prior year period, was driven mostly by higher operating expenses, namely stock-based compensation reflective of our stock performance and other personnel costs, partially offset by increased net sales.
- Adjusted EBITDA, which is a non-GAAP financial measure, was $0.2 million, or $0.01 per diluted share, compared to $0.3 million, or $0.03 per diluted share, in the corresponding prior year period. The decrease was driven primarily by increased personnel costs. For more details on non-GAAP financial measures, refer to the information in the non-GAAP financial measures section of this press release.
Fiscal Year 2024 Highlights
- Net Sales of $43.3 million compared to $34.2 million in the corresponding prior year period, representing 27% growth.
- E-commerce sales increased by 32% year-over-year and contributed 59% of total Net Sales, with significant improvements in media efficiency in this channel. Sales on Amazon.com and the DTC platform contributed to e-commerce channel growth, driven by growth in subscription revenue and repeat customer purchases, as well as higher order values.
- Wholesale sales increased by 19% year-over-year and contributed 41% of total Net Sales, driven by velocity improvement in retail and club outlets and distribution expansion in grocery, as well as more efficient promotional spend.
- Gross Margin was 40.9% compared to 30.1% in the corresponding prior year period. This margin expansion of 1,071 basis points was driven by the full benefit realization of the transition to a variable cost third-party co-manufacturing business model, favorable product costs, settlement recoveries, as well as planned reductions in promotional trade spend.
- Net Loss was $1.8 million, or $0.18 per diluted share, compared to Net Loss of $10.2 million, or $1.09 per diluted share, in the corresponding prior year period. The improvement was driven by Net Sales growth, Gross Margin expansion, and lower marketing and general and administrative ("G&A") costs.
- Adjusted EBITDA was ($0.7) million, or ($0.07) per diluted share, compared to ($9.0) million, or ($0.96) per diluted share, in the corresponding prior year period. This improvement was driven by Net Sales growth, Gross Margin expansion, and lower marketing and G&A costs. For more details on non-GAAP financial measures, refer to the information in the non-GAAP financial measures section of this press release.
Revenue Disaggregation
Three Months Ended December 31, |
2024 |
2023 |
$ |
% of Total |
$ |
% of Total |
Coffee creamers |
$ |
6,521,777 |
56 |
% |
$ |
4,831,008 |
52 |
% |
Coffee, tea, and hot chocolate products |
3,196,314 |
28 |
% |
1,924,368 |
21 |
% |
Hydration and beverage enhancing supplements |
2,318,791 |
20 |
% |
1,533,728 |
17 |
% |
Harvest snacks and other food items |
1,550,974 |
13 |
% |
2,084,375 |
23 |
% |
Other |
73,179 |
1 |
% |
148,422 |
2 |
% |
Gross sales |
13,661,035 |
118 |
% |
10,521,901 |
115 |
% |
Shipping income |
132,900 |
1 |
% |
121,870 |
1 |
% |
Discounts and promotional activity |
(2,187,736 |
) |
(18 |
)% |
(1,436,383 |
) |
(16 |
)% |
Sales, net |
$ |
11,606,199 |
101 |
% |
$ |
9,207,388 |
100 |
% |
Year Ended December 31, |
2024 |
2023 |
$ |
% of Total |
$ |
% of Total |
Coffee creamers |
$ |
23,088,363 |
53 |
% |
$ |
20,425,029 |
60 |
% |
Coffee, tea, and hot chocolate products |
11,184,525 |
26 |
% |
7,968,956 |
23 |
% |
Hydration and beverage enhancing products |
9,207,964 |
21 |
% |
5,320,039 |
16 |
% |
Harvest snacks and other food items |
6,215,989 |
14 |
% |
6,883,980 |
20 |
% |
Other |
172,788 |
0 |
% |
435,388 |
1 |
% |
Gross sales |
49,869,629 |
114 |
% |
41,033,392 |
120 |
% |
Shipping income |
506,732 |
1 |
% |
899,921 |
3 |
% |
Discounts and promotional activity |
(7,081,224 |
) |
(15 |
)% |
(7,709,115 |
) |
(23 |
)% |
Sales, net |
$ |
43,295,137 |
100 |
% |
$ |
34,224,198 |
100 |
% |
Balance Sheet and Cash Flow Highlights
We had $8.5 million of cash, cash equivalents, and restricted cash as of December 31, 2024, and no outstanding debt.
Cash provided by operating activities was $0.9 million for the fiscal year 2024, compared to cash used in operating activities of $10.8 million in the same period in 2023. The improvement in net operating cash flows relative to the corresponding prior year period was driven by significant improvements in operating performance driven by sales growth, gross margin expansion, and reductions in marketing costs.
2025 Outlook
In 2025, management's strategy is to drive growth well in excess of the consumer goods and food industry averages:
- Management re-affirms Net Sales growth in the 20% to 25% range on a full-year basis, driven by continued expansion across Wholesale accounts and further penetration of consumers on e-commerce platforms. Gross Margin is expected to hold in the upper 30s, despite commodities cost pressures.
- Adjusted EBITDA is targeted to be break even on a full-year basis.
- We expect $1 to $2 million of negative operating cash flow in order to invest into inventory to support top line growth and to minimize out-of-stocks.
Laird Superfood has not provided a reconciliation between its forecasted Adjusted EBITDA and net income, its most directly comparable GAAP measure, because applicable information for future periods, on which this reconciliation would be based, is not available without unreasonable effort due to the unavailability of reliable estimates for stock-based compensation, due to volatility in our stock price, and state and local income taxes, among other items. These items may vary greatly between periods and could significantly impact future financial results.
Conference Call and Webcast Details
We will host a conference call and webcast at 5:00 p.m. ET today to discuss our financial results. Participants may access the live webcast on the Laird Superfood Investor Relations website at https://investors.lairdsuperfood.com under “Events”. The webcast will be archived on the Company's website and will be available for replay for at least two weeks.
About Laird Superfood
Laird Superfood, Inc. creates award-winning, plant-based superfood products that are clean, delicious, and functional. Our products are designed to enhance a consumer's daily ritual and keep them fueled naturally throughout the day. Laird Superfood was co-founded in 2015 by the world's most prolific big-wave surfer, Laird Hamilton. Laird Superfood's offerings are environmentally conscientious, responsibly tested and made with real ingredients. Shop all products online at www.lairdsuperfood.com and join the Laird Superfood community on social media for the latest news and daily doses of inspiration.
Forward-Looking Statements
This press release and the conference call referencing this press release contain “forward-looking” statements, as that term is defined under the federal securities laws, including but not limited to statements regarding Laird Superfood’s anticipated expansion across its platforms, channels, products, and geographies, cash runway, future financial performance, and growth. Such forward-looking statements may be identified by words such as "anticipates," "believes," "continues," "could," "estimates," "expects," "intends," "may," "outlook," "plans," "potential," predicts," "projects," "seeks," "should," "will," "would", or the antonyms of these terms or other comparable terminology. These forward-looking statements are based on Laird Superfood’s current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause Laird Superfood’s actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement. We expressly disclaim any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
The risks and uncertainties referred to above include, but are not limited to: (1) volatility regarding our revenue, expenses, including shipping expenses, and other operating results; (2) our ability to acquire new direct and wholesale customers and successfully retain existing customers; (3) our ability to attract and retain our suppliers, distributors and co-manufacturers, and effectively manage their costs and performance; (4) effects of real or perceived quality or health issues with our products or other issues that adversely affect our brand and reputation; (5) our ability to innovate on a timely and cost-effective basis, predict changes in consumer preferences and develop successful new products, or updates to existing products, and develop innovative marketing strategies; (6) adverse developments regarding prices and availability of raw materials and other inputs, a substantial amount of which come from a limited number of suppliers outside the United States, including in areas which may be adversely affected by climate change; (7) effects of changes in the tastes and preferences of our consumers and consumer preferences for natural and organic food products; (8) the financial condition of, and our relationships with, our suppliers, co-manufacturers, distributors, retailers and food service customers, as well as the health of the food service industry generally; (9) the ability of ourselves, our suppliers and co-manufacturers to comply with food safety, environmental or other laws or regulations and the potential impact of policy changes regarding imports, exports, and tariffs; (10) our plans for future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements, including our ability to continue as a going concern; (11) the costs and success of our marketing efforts, and our ability to promote our brand; (12) our reliance on our executive team and other key personnel and our ability to identify, recruit and retain skilled and general working personnel; (13) our ability to effectively manage our growth; (14) our ability to compete effectively with existing competitors and new market entrants; (15) the impact of adverse economic conditions, consumer confidence and spending levels; (16) the growth rates of the markets in which we compete, and (17) the other risks described in our Annual Report on Form 10-K for the year ended December 31, 2024 and other filings we make with the Securities and Exchange Commission.
LAIRD SUPERFOOD, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
Year Ended |
December 31, |
2024 |
2023 |
Sales, net |
$ |
43,295,137 |
$ |
34,224,198 |
Cost of goods sold |
(25,607,556 |
) |
(23,910,921 |
) |
Gross profit |
17,687,581 |
10,313,277 |
General and administrative |
Salaries, wages, and benefits |
4,367,976 |
4,203,613 |
Other general and administrative |
4,931,033 |
5,589,747 |
Total general and administrative expenses |
9,299,009 |
9,793,360 |
Sales and marketing |
Marketing and advertising |
6,484,611 |
7,600,859 |
Selling |
3,825,992 |
3,332,872 |
Related party marketing agreements |
251,061 |
285,172 |
Total sales and marketing expenses |
10,561,664 |
11,218,903 |
Total operating expenses |
19,860,673 |
21,012,263 |
Operating loss |
(2,173,092 |
) |
(10,698,986 |
) |
Other income |
413,255 |
551,064 |
Loss before income taxes |
(1,759,837 |
) |
(10,147,922 |
) |
Income tax expense |
(60,324 |
) |
(15,195 |
) |
Net loss |
$ |
(1,820,161 |
) |
$ |
(10,163,117 |
) |
Net loss per share: |
Basic and diluted |
$ |
(0.18 |
) |
$ |
(1.09 |
) |
Weighted-average shares of common stock outstanding used in computing net loss per share of common stock, basic and diluted |
9,946,733 |
9,297,226 |
LAIRD SUPERFOOD, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
Year Ended December 31, |
2024 |
2023 |
Cash flows from operating activities |
Net loss |
$ |
(1,820,161 |
) |
$ |
(10,163,117 |
) |
Adjustments to reconcile net loss to net cash from operating activities: |
Depreciation and amortization |
270,271 |
306,176 |
Stock-based compensation |
1,637,788 |
1,092,146 |
Provision for inventory obsolescence |
599,902 |
1,273,171 |
Allowance for credit losses |
(21,094 |
) |
165,980 |
Noncash lease costs |
142,321 |
152,339 |
Other operating activities, net |
11,370 |
38,098 |
Changes in operating assets and liabilities: |
Accounts receivable |
(719,445 |
) |
306,117 |
Inventory |
(253,019 |
) |
(1,899,165 |
) |
Prepaid expenses and other current assets |
(267,463 |
) |
1,244,511 |
Operating lease liability |
(128,426 |
) |
(126,434 |
) |
Accounts payable |
513,066 |
570,094 |
Accrued expenses |
900,392 |
(3,725,797 |
) |
Net cash from operating activities |
865,502 |
(10,765,881 |
) |
Cash flows from investing activities |
Purchase of property and equipment |
(24,776 |
) |
(144,023 |
) |
Proceeds on sale of property and equipment |
— |
34,330 |
Proceeds from sale of assets held-for-sale |
— |
800,000 |
Net cash from investing activities |
(24,776 |
) |
690,307 |
Cash flows from financing activities |
Common stock issuances, net of taxes |
(70,926 |
) |
(27,422 |
) |
Common stock issuance costs |
(57,475 |
) |
— |
Stock options exercised, net of option costs |
95,021 |
— |
Net cash from financing activities |
(33,380 |
) |
(27,422 |
) |
Net change in cash and cash equivalents |
807,346 |
(10,102,996 |
) |
Cash, cash equivalents, and restricted cash, beginning of period |
7,706,806 |
17,809,802 |
Cash, cash equivalents, and restricted cash, end of period |
$ |
8,514,152 |
$ |
7,706,806 |
Supplemental disclosures of cash flow information |
Cash paid for interest |
$ |
16,027 |
$ |
13,994 |
Cash paid for income taxes |
$ |
63,852 |
$ |
17,625 |
Right-of-use assets obtained in exchange for operating lease liabilities |
$ |
— |
$ |
344,382 |
Prepaid expenses paid for with a short-term financing arrangement included in accrued expenses |
$ |
165,543 |
$ |
— |
LAIRD SUPERFOOD, INC. CONSOLIDATED BALANCE SHEETS (unaudited) |
As of |
December 31, 2024 |
December 31, 2023 |
Assets |
Current assets |
Cash, cash equivalents, and restricted cash |
$ |
8,514,152 |
$ |
7,706,806 |
Accounts receivable, net |
1,762,911 |
1,022,372 |
Inventory |
5,975,676 |
6,322,559 |
Prepaid expenses and other current assets |
1,713,889 |
1,285,564 |
Total current assets |
17,966,628 |
16,337,301 |
Noncurrent assets |
Property and equipment, net |
58,447 |
122,595 |
Intangible assets, net |
896,123 |
1,085,231 |
Related party license agreements |
132,100 |
132,100 |
Right-of-use assets |
205,703 |
354,732 |
Total noncurrent assets |
1,292,373 |
1,694,658 |
Total assets |
$ |
19,259,001 |
$ |
18,031,959 |
Liabilities and Stockholders’ Equity |
Current liabilities |
Accounts payable |
$ |
2,137,760 |
$ |
1,647,673 |
Accrued expenses |
3,642,998 |
2,586,343 |
Related party liabilities |
34,947 |
2,688 |
Lease liabilities, current portion |
105,966 |
138,800 |
Total current liabilities |
5,921,671 |
4,375,504 |
Lease liabilities |
140,464 |
243,836 |
Total liabilities |
6,062,135 |
4,619,340 |
Stockholders’ equity |
Common stock, $0.001 par value, 100,000,000 shares authorized at December 31, 2024 and December 31, 2023; 10,668,705 and 10,292,374 issued and outstanding at December 31, 2024, respectively; and 9,749,326 and 9,383,622 issued and outstanding at December 31, 2023, respectively. |
10,292 |
9,384 |
Additional paid-in capital |
121,304,884 |
119,701,384 |
Accumulated deficit |
(108,118,310 |
) |
(106,298,149 |
) |
Total stockholders’ equity |
13,196,866 |
13,412,619 |
Total liabilities and stockholders’ equity |
$ |
19,259,001 |
$ |
18,031,959 |
LAIRD SUPERFOOD, INC. NON-GAAP FINANCIAL MEASURES (unaudited) In this press release, we report Adjusted EBITDA and Adjusted EBITDA per diluted share, which are financial measures not required by, or presented in accordance with, accounting principles generally accepted in the United States of America (“GAAP”). The Company’s management uses non-GAAP financial measures, both internally and externally, to assess and communicate the financial performance of the Company. The Company defines Adjusted EBITDA as net income (loss), adjusted to exclude: (1) interest expense and other (income) expense, net, (2) income tax (benefit) expense, (3) depreciation and amortization expenses, (4) stock-based compensation, (5) expenses related to a product quality issue, (6) costs incurred as part of the strategic downsizing of the Company’s operations, (7) rebranding costs, and (8) estimated class action lawsuit settlement costs. The Company believes Adjusted EBITDA is useful to investors because it facilitates comparisons of its core business operations, excluding non-cash costs and non-recurring events, across periods on a consistent basis. Management uses Adjusted EBITDA internally in analyzing the Company’s financial results to assess operational performance and to determine the Company’s future capital requirements. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. The Company believes that both management and investors benefit from referring to Adjusted EBITDA in assessing its performance and when planning, forecasting and analyzing future periods. The Company believes Adjusted EBITDA is useful to investors and others to understand and evaluate the Company’s operating results and it allows for a more meaningful comparison between the Company’s performance and that of competitors. Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider this performance measure in isolation from or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are that Adjusted EBITDA does not reflect, among other things: cash capital expenditures for assets underlying depreciation and amortization expense that may need to be replaced or for new capital expenditures; interest expense; income tax expense from continuing operations; our working capital requirements; the potentially dilutive impact of stock-based compensation; and the provision for income taxes. Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure. Because of these limitations, you should consider Adjusted EBITDA along with other financial performance measures, including Net Sales, net loss, cash and cash equivalents, restricted cash, net cash used in operating activities and our financial results presented in accordance with GAAP. The following table presents a reconciliation of net income (loss), the most directly comparable financial measure stated in accordance with GAAP, to adjusted EBITDA, for each of the periods presented: |
Three Months Ended December 31, |
Years Ended December 31, |
2024 |
2023 |
2024 |
2023 |
Net (loss) income |
$ |
(398,443 |
) |
$ |
142,923 |
$ |
(1,820,161 |
) |
$ |
(10,163,117 |
) |
Adjusted for: |
Depreciation and amortization |
65,852 |
71,151 |
270,271 |
306,176 |
Stock-based compensation |
564,090 |
273,499 |
1,637,788 |
1,092,146 |
Income tax expense |
12,422 |
2,023 |
60,324 |
15,195 |
Interest expense and other (income) expense, net |
(91,298 |
) |
(98,776 |
) |
(413,255 |
) |
(551,064 |
) |
Product quality issue (a) |
— |
(69,842 |
) |
(434,329 |
) |
282,000 |
Strategic organizational shifts (b) |
— |
42,030 |
— |
(13,318 |
) |
Company-wide rebranding costs (c) |
— |
— |
— |
163,806 |
Estimated class action lawsuit settlement costs (d) |
— |
(95,000 |
) |
— |
(95,000 |
) |
Adjusted EBITDA |
$ |
152,623 |
$ |
268,008 |
$ |
(699,362 |
) |
$ |
(8,963,176 |
) |
Net (loss) income per share, diluted: |
$ |
(0.04 |
) |
$ |
0.02 |
$ |
(0.18 |
) |
$ |
(1.09 |
) |
Adjusted EBITDA per share, diluted: |
$ |
0.01 |
$ |
0.03 |
$ |
(0.07 |
) |
$ |
(0.96 |
) |
Weighted-average shares of common stock outstanding used in computing net loss per share of common stock, basic |
10,288,653 |
9,337,789 |
9,946,733 |
9,297,226 |
Dilutive securities |
1,705,180 |
200,679 |
— |
— |
Weighted-average shares of common stock outstanding used in computing adjusted EBITDA per share of common stock, diluted |
11,993,833 |
9,538,468 |
9,946,733 |
9,297,226 |
(a) In January 2023, we identified a product quality issue with raw material from one vendor and we voluntarily withdrew any affected finished goods. We previously incurred costs associated with product testing, discounts for replacement orders, and inventory obsolescence costs. We reached settlement with a supplier in the third quarter of 2023 and recorded recoveries in 2024. |
(b) Costs incurred and recovered during 2023 as part of the strategic downsizing of our operations, including severances, forfeitures of stock-based compensation, and other personnel costs, IT integration costs, and freight costs to move inventory to third-party facilities. |
(c) Costs incurred as part of the company-wide rebranding efforts that launched in Q1 2023. |
(d) Estimated legal settlement costs related to a class action lawsuit which was included in general and administrative expenses in Q4 2022 and was reversed in Q4 2023 upon dismissal of the suit. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250226333389/en/
Investor Relations Contact
Trevor Rousseau
investors@lairdsuperfood.com