TTCF - Tattooed Chef shares tumbles about 15% on earnings disappointment cash concerns

Tattooed Chef ( NASDAQ: TTCF ) shares plummeted in pre-market action on Wednesday as the company’s reliance on raising cash as sales dynamics deteriorate.

The California-headquartered plant-based food company posted a $0.46 per share loss, doubling the loss anticipated by analysts. Meanwhile, revenue declined 8% from the prior year to $54.1M, missing consensus expectations by $18.73M. The quarterly net loss of $38.5M was nearly 5 times larger than the loss marked in the prior year quarter and a -7.2% gross margin fell far below the positive 8.6% recorded in Q3 2021.

“We are disappointed in our third quarter results, but remain committed to making Tattooed Chef a household name brand that generates value to our shareholders for years to come,” CEO Sam Galletti said. “As previously announced, we have developed and are now executing a plan that we believe will put us on a path towards sustainable growth and profitability.”

Galletti noted cost savings programs as the key to promoting a healthier bottom line in coming quarters. Further, the company expects to expand manufacturing capacity and take more retail shelf space at major retailers like Walmart.

However, the company cut revenue forecasts to a range of $235M to $245M for the full-year, down from prior guidance of $280M to $285M and slashed gross margin expectations to a 0% to 3% range, down from prior guidance of 8% to 10%.

The company also announced that it “intends to raise additional debt or equity capital in the near future.”

Shares fell 15.22% in premarket trading on Wednesday, extending about an 80% decline in the past year

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