- Tattooed Chef press release ( NASDAQ: TTCF ): Q3 GAAP EPS of -$0.46 misses by $0.23 .
- Revenue of $54.1M (-8.0% Y/Y) misses by $18.73M .
- Net loss was widened to $38.5M in Q3 2022 from a net loss of $8.2M in Q3 2021.
- Third quarter saw $10.3M Y/Y decrease in Tattooed Chef branded products.
- The decline in branded product sales in Q3 was driven by a $15M fall in a tier-1 club and retail account and a $6.2M increase in trade or contra revenue related expenses.
- Q3 cost of goods sold increased by 9.4% in Q3 to $58M from $53M a year ago.
- The increase COGS in Q3 was driven primarily by continued inflationary pressures pushing labor and freight to 34.1% of net revenue from 24.9% of net revenue in Q3 2021.
- Q3 adjusted EBITDA loss of $25.5M vs adjusted EBITDA loss of $5.1M last year.
- Through cost saving measures, expects annual cost savings of ~$30M by year end 2023 and achieve positive EBITDA and cash flow by or around mid-year 2024.
- The company remains on track to expand retail partnerships for its Tattooed Chef branded products in 2022 and 2023.
- TTCF expects revenue of $235 - $245M, down from prior guidance of $280-$285M and Gross margin of 0 - 3%, down from prior guidance of 8-10%.
- Shares -11.6% in after hours.
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Tattooed Chef GAAP EPS of -$0.46 misses by $0.23, revenue of $54.1M misses by $18.73M