RKDA - Earnings call transcript Q4 2023 | Arcadia Biosciences, Inc.

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Operator

Good afternoon, and welcome to the Arcadia Biosciences Fourth Quarter and Full Year 2023 Financial Results and Business Highlights Conference Call. [Operator Instructions]. Please be advised that today's conference call is being recorded. I would now like to hand the conference over to T.J. Schafer, Chief Financial Officer at Arcadia. ahead. go Please

Thomas Schaefer

good and Thank afternoon. you,

to Joining me Arcadia's webcast, is release refer Jacob, call and the and arcadiabio.com. Chief can being today President is Executive Stan call press on Officer. company's the you at This

to available Before you Biosciences information. statements this that forward-looking current on remind call we making would based be expectations Arcadia we on start, like will and currently

materially are and and these statements based those differ uncertainties, results company's since that risks on implied However, involve or performance the actual may today. from described factors

You our can call With now language review the company's the safe that, most harbor in over turn XX-K. recently Stan. to filed I'll

Stan Jacot

pleased Good a steady strategic our afternoon, and potential for plan Project full in for joining and am Arcadia and company's provide you results executing profitability. X-year fourth report to continues to us to today progress Greenfield, that make quarter to thank to our year the review I path unlock everyone XXXX.

strategic years at and time results lowest has history. profit of We have level its are significantly delivered Arcadia plan X expenses quality for years for the the straight growth focus XXXX. declined gross halfway SG&A straight of X are revenues are now improved and in has unmistakable. of this and first through since this the

a $XX.X factors had in XXXX, and XX%. million of from in XXXX impact in a has on significant operations cash $XX.X These gone have decline used as our cash to million

ago, can the and Let's be expand over shelves Since X,XXX & X,XXX pasta, our over XX our QX. now to added in the cheese QX, mac shelves now to and compared in turn brand attention categories. pancake in continues months GoodWheat The found grocery GoodWheat. to brand launch

to excited GoodWheat that nationwide are Amazon. on product categories we X are now available addition, all In announce

the make sales in just significant expanded focus stories and beyond. million be our publications. highlight XXXX the XXXX, category across fat by stealthy GoodWheat of the Xx store by XX high And recognize that breakfast for snacks, best serving. of provides mix high-protein a million chocolate Quick grams dessert XX X cases. has chocolate which With unique I category GoodWheat into velocity catalyst non cooking the in awarded here dollar will per they as and Buttermilk GoodWheat want categories with received regular something in recognition XX XX for X the protein, fiber points distribution of many to recognized social them nurturing forward these be And flavor Better XX best site, some in will door store. look pasta month from same we to desserts, pancake These has easy cakes recently platforms bought to the per of carries distribution different In highlighted healthy wanting XX on per are as grow As they success and and X in good fiber that the cakes them best And the with also Homes more. GoodWheat seconds. as And followers X grams new microwave the in pasta when January. to today. a week quick bought quick fiber. but a basics Gardens they views fluffy as EPS accolades chip

valuable are products. tasting more in is these we from are good great our already products, benefits. trusted, sneaking while on wheat offer plan across the fibroid products know don't what proving of just can wheat testing There create commercially viable grocery stopping outlets with And we protein. to store thousands accolades These that independent same that proprietary

preserved to There to with steps order one, cost-effective, produce a technology, wheat chain recurring royalty partner path So identity are we supply key revenue. see in supply. this X to weed a generate long-term scalable, a monetizing

our wheat to delivered customer farm integrated all technology mill to from move then to need flour. seed wheat types and We preferred efficiently into

several we to wheat. This manufacturers products Contact step. to with some in pull-through ensure begun it will their for enough we second groups. and currently parallel, time categories. to long-term with are step with creates We several realize across In a potential food discussion work to supply volume our will chain partnership take through partners the have create large and build is again, system. it and R&D time has take And demand develop perfect this some

XX% data December and XX, to grew over perform continued Zillow XX category XXXX. Water. well dollar to increasing Coconut to XXXX coconut while the The Nielsen for Now sales water X% in according sales unit ending with weeks

chain As in units lost XXXX impact of issues, double-digit disclosed, and as and the sales. declines due both at Zillow we supply to felt we XXXX end in we distribution previously experienced the dollar

a water the we X% look and water. has innovation Nielsen However, following pack up retailers last unit the in sales that shows #X Lime are is Pineapple up Zilla coming to XX.X-ounce weeks that be corner have will optimistic flavor dollar QX new up flat. latest in for flavor excited original shows resealable and includes and beverage turned the when is sales we coconut are tetrapack sales X% flavors, #X we all that and market pineapple dollar X-week sales about. for were unit and that lime And reasons: new flavor One, our at XXXX container the XX in season with beyond, for Two, were sparkling the Zola data the data X%

XXX% added espresso flavors. the spring to addition natural, So we great and into this retailer new extra non-GMO in flavors season wins will distribution by beverage could much believe a are original year. as pulp energize that new and sugar our these And offerings are three, we Both as XX% summer increase and Zola sales. no are

Zola look at lot a about the for excited quarters. be next we So to when several

an strategic merger, sale that stated a would asset July of which to The discuss strategic XX transaction. explore include strategic acquisition, the other announced Arcadia last range review initiative sale, could or which today is on options,

best aren't accelerate to Over we with the our Arcadia and find ready we continue a bankers, update we, try to And engaged X ability work last partners have flow potential and scale significant discussions months, diligence our and our the outcome shareholders. number to a for while with necessary Arcadia transaction have to along the perform provide to to today, detailed results. due deliver positive cash of

there the set of We conclusion will any review. timetable no that or occur as transaction, no strategic you will must completing result and company assurance events strategic updated that keep this entering be exploration out point the and alternatives of we the can in for has been material

categories new XXXX, last the history. continue operating expense we other provides of As garnering which Zola laid leveraging double-digit to in optimism foundation have even first is evaluate net a and the GoodWheat time growth to food now profile past an assist $XX anticipating the ending cash. our stronger the we we in conserve also Due will effort over our in call, in attention, IP is look a with in to manufacturers. X XXXX. million X factors, is distribution for expand efforts through loss flavor monetizing for wheat these national and years company's under mentioned XXXX, innovations we our all results. as anticipate to in our And to

our will that, the T.J.? T.J. to call results. year-end QX discuss over to and turn I With

Thomas Schaefer

afternoon In joining as to walk into I and on and my XXXX insights XXXX. year Stan, remarks, Thank you, through well financial everyone QX prepared the results good provide will us call our today. full as

we will discontinued focus comments impact my reminder, from operations, on today QX a in continuing XXXX. the excluding As Care, our Body which results of

me QX let by financial that, With our discussing start XXXX results.

increased quarter. as basis, relatively XXXX XXXX in revenues than a sales at GoodWheat, XXX% approximately XXXX. in remained On stores of compared million and was end X,XXX distribution the $X.X XX% timing the GLA the flat end increase more sales nearly QX revenue from from X,XXX approximately of primarily were Zola driven of XXXX. Our stores $XXX,XXX The to the of continuing year-over-year at operations during oil QX to by GoodWheat

pancake GoodWheat mix also with our launching categories Cheese the and August Waffle X XX Mac in Over months, XXXX. past XXXX & in November we additional introduced

cost period revenue. part longer of of to related XXXX of we and compared impact higher write-downs our goods were results no sold XXXX lower same the QX our Archipelago year, our included seeds results hemp our in as all Despite to as the profitable last are revenues, generating joint continuing actually on which venture, focus

of Our research or by products. to and and 'XX were in in XX% new $XXX,XXX work QX development innovation and GoodWheat expenses favorable order launch XXXX, timing to the Zola of driven $XXX,XXX

general QX took and same period by headcount declined selling, XXXX. the compared or $X.X to that $XXX,XXX million of driven year, in place primarily last X% reductions expenses Our administrative

and $XXX,XXX the increased from period compared In same summary, profit year. last operations QX our increased revenues gross $XXX,XXX to continuing our

a we improved, million improvement reduced progress While made we margins SG&A XXXX. are sales leading expenses our the so QX our and by we to with also $X.X R&D operations, loss continuing pleased and in from very in $XXX,XXX,

Moving XXXX now to year full results.

milestone results revenues a declined million Bio prior million in the as from than compared more of $X.X nonrecurring series. revenues total our $X.X as as to million payment included Our year sales XXXX well from $X.X grain

and focused these quality we and We revenues lower, costs driving profitable to our is our XX% sales, which increased continue believe reported as over operating emphasize items, profit the $X managing to higher on our lower streams. apparent Excluding expenses gross have million would results. increased remain Despite just I XX%. growth in revenue

since and and and lowest lowest development went level in to of R&D of at at spend $XX.X expenses And XXXX. Arcadia and declined now $X.X ,XXXX administrative X% you our before expenses million since year-over-year million our XXXX. decreased the of X% and compared together, public expenses Our if the look represents last are level year general SG&A research selling,

relatively prior from $XX.X loss million is of reported. operations unchanged Our year versus continuing as

However, our benefit a to XXXX include sale related the $X venture. million joint our results of

XX%. from impact the operations improved would gain, million $X.X continuing loss our or by have this of Excluding

also million In beyond balance used cash fund we will $XX We XXXX, a this in $XX $X some cash raised cash resulting operations, in we year-end to provide our our operations context. so XXXX, million. believe nearly let XXXX, March and million fund approximately me of of

flavors. mentioned, we water coconut are to Stan scale with with new lime As tremendous XXXX and pineapple and opportunity entering Zola a X meaningfully our GoodWheat business excited the about categories

in rate. rate lead sales should As double-digit dollars XXXX. lower gross increase higher a The a at result, expect to sales in a albeit increase at gross we profit to margin

managing year reductions focus full We will our continue implemented. expect operating realize to and cost on expenses benefit the have of the to we

impact in cash use cash an be also in in of the since use would of public. lowest these the estimated single which will of digits The XXXX, went actions result Arcadia

call now operator questions. to the over With will turn the for that, I

Operator

Markets. Capital [Operator the line Street question from Ben Instructions] comes with And Klieve our first of Lake

Benjamin Klieve

right. All

fourth profit gross just on what gross and I'm the side, statement on hard the profit gross out putting and time on without please? First, year full lay quarter margin a full press gross the Can income a year the in this margin QX basis, was both and release, and you having together.

Stan Jacot

I'll Stan. and to to . Yes, in, you Ben, turn calling this that Thank over is for T.J. answer.

Thomas Schaefer

Yes.

So and $X.XX full gross gross in were QX for profit $XXX,XXX million. the dollars the year were dollars profit

Benjamin Klieve

Okay. out. Great. then, And okay, I back that can

Okay.

we a your XXXX 'XX, the come talk XXXX. But bit. margins when talk portfolio improvement you profit about down shift, double-digit of revenue -- T.J., to from So some for given growth. you I from commented for outlook expect gross the Can that expectations about to

Thomas Schaefer

Sure.

-- our our XX% margin. double-digit think increase at sales a year, wouldn't look had you So be in again, gross if I full just we forecasting,

product So think elements to mix there's some that's that. -- I

we're is down we're looking that the the in so kind of XX% at. range, XX% more numbers of And kind looking to

Benjamin Klieve

Got it.

That's Okay. helpful.

Okay.

having on food and trying been recognize been industry-wide a turning and couple chain was these to made and supply wheat of are ago, today the hasn't way for partnering talk the these weak manufacturers. large conversations chain that Can companies a varieties So Especially with a big the revenue novel years of with like the you had really chain with at with royalty something supply their comments larger find technology serious and to not just working some the but the really you Arcadia, that these supply tried with you've give that working real engaging into sense us developed. kind about players. to challenge about you're enhanced nutrition

Stan Jacot

Yes.

that -- crop. it's some are Ben, are preserved identity And manufacturers so been chains challenge I those business part they margins right, is the for actually a in think some because that any But of seeing and types we that are better of realizing investing products. supply on you're

heavily more seeing route. to invest So we're kind of industry in start the that

Benjamin Klieve

Okay.

performance question wondering on are back kind GoodWheat, you question these under of products Very in you today here. X in and mix. a I'm then kind launch On over good. you months queue now it of months the Great. new Okay. get pancake of you and X you more X performance started line? you've is GoodWheat of similar talk kind can ramp I'll ago now. pasta as them. versus question years realizing today GoodWheat, the GoodWheat about of kind when first got the synergies launch of on the couple In now Zola revenue after the was if of Are of months in that products Or

Stan Jacot

in It Yes. product segment would is compared our we're say are particular that I I the they on more on ramp. than pasta. pancakes, a But would seeing higher pancakes that recognizable for say similar better-for-you average category. a just velocities to were

we kind Cheese just that. that so of -- benefiting on really I Mac And November. & was don't from anything are we're want

Benjamin Klieve

Launch.

Okay. Very distribution, Zola, last online for good. talk X about then you here. SKUs new And X coming In me. expanding

in improved lay number also your that dynamics you kind You that 'XX in of comment what much and expanding exiting XXXX be these how XXXX. that was target a latest X% this will 'XX? in in then collectively, on ACV investor XX% number, Can out to a number from of how improve will all presentation

Stan Jacot

Yes.

going we for ACV. to get X% get have So distribution, XXXX, earlier. we that a as In if bit closer X% XXXX. XX% us again, from But increase to that in X% stated that's a we dipped little to

the kind retailers the still a in so in efforts our thing in filling distribution to And have is that we the And fill of coast other But to go we have a lot the to stronghold that getting to note XXXX reach is rest that country. we ways still the level. regions. underway are of some are basically of of

Operator

And line comes Dipesh question our the next from Patel with of H.C. Wainwright.

Dipesh Patel

Wainwright questions to just behalf is -- of I've got then of revenue This a strategic the couple some on process. other on Dipesh and with regards X review

what Quick one, Mac pasta? you you most first do GoodWheat fastest-growing & the line the say Cakes product Would the So or it's consider valuable from franchise. and Cheese,

Stan Jacot

& pasta for in. Right next growth Yes. say again, some we're we that Cheese, we Stan. Dipesh, more calling both Mac gained to nurture is distribution this pasta. Thanks now, and from have we distribution would because year. But is lapping for the probably pancakes expect over

growing think So this all X of will year. be I them

Dipesh Patel

this say Got which distribution then guess it. to a And be follow-up on question profitable I the GoodWheat channel, X at appears would most point? you

Stan Jacot

Well, right of . distribution profitability equal retailers. as in is those, our traditional grocery. And have now, think, most I

Dipesh Patel

Okay.

What quarters? boost Okay. can growth just to company a And then more. coming revenue innovative use strategies the in the couple

Stan Jacot

Yes.

principles. think which on I One we've growth, laid So our some distribution of key was out we've kind of highlighted Zola.

out-of-store and stores specific or continue to categories. have improve an to our retailers at SKUs that those distribution store tools, other whether is with looking and currently that's to other The entire add X on focusing for the mix of we in GoodWheat velocity

Dipesh Patel

then the for Great. review last does company question to complete And process?. strategic That's the When me. plan helpful.

Stan Jacot

complete is Well, timetable what specific no there we the review. said is to

So diligence, continuing we more material events we'll due . do are information and to our have occur. as

Operator

you. Jacot hand any President to Thank Stan remarks. back for closing the now I and call over will CEO,

Stan Jacot

continue its great So positive Arcadia in in summary, is to enter XXXX, a position we as trajectory.

line profit transitioned We across that high-quality multiple the gross have revenue top to sources. generates

extend the runway. We cost our in and have order organization rightsized structure streamlined to our

on positioned We as with Coconut Thanks look And monetizing joining forward rest GoodWheat for distribution. Water for adjacent in remain of more the finally, day. focused our well flavors X,XXX new we you double-digit updating your as a than acquisitions stores again Zola future. categories, and Our IP. in to X us, and growth in is is and have great

Operator

participating, This disconnect. and concludes may today's conference call. for Thank you now you

Arcadia Biosciences (RKDA) 28 Mar 242023 Q4 Earnings call transcript