LSF - Earnings call transcript Q2 2024

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Operator

Good afternoon. Thank you for attending today's Laird Superfood, Inc.

Second Quarter 2024 Financial Results. My name is Jaelynn. I'll be your moderate for today. like Rousseau. the now our over would Trevor host, Instructions] I to conference pass to [Operator

proceed. may You

Trevor Rousseau

Thank Relations you, On afternoon. Chief Financial earnings Jason and good Laird Executive conference quarter Superfood's Vieth, Hamill, call XXXX Officer; Superfood's now, By second and release, access is and our President webcast. was at today filed have on which close. available Superfood's company's It today's Anya are Laird the Officer. Welcome to call and should section the www.lairdsuperfood.com. Investor after website everyone to earnings second Chief of Laird market quarter

results Before for those beliefs to the forward-looking please that with context and turn to uncertainties Jason. refer that to involve in management other management's detailed press actual statements and call call, statements. within over that, a securities the risks discussion Please we federal on these begin, These filings risks laws. and during differ release make these this uncertainties. With cause of are and from could statements today's and SEC note expectations the forward-looking based may described materially I'll of current

Jason Vieth

up Laird us, to growth that just Good Thank of the industry. a investors you that and Superfood once journey. Today, and I be continue results the put joining those should share welcome and support the to story to to afternoon, our kind that of you follow are the all envy thank you, Trevor. who again thrilled of am has

X year. Net year-over-year. versus during we sales XX% which an during our reported the led was QX that of same impressive which once second net quarter versus our growth ago, sales again business had by of the marks period an During XX% acceleration growth quarter, this the the we segment, E-commerce by by the sales grew X point XX% grew second year

improvement of rate for our we this success history QX, build Our sales our the an in driven that excited on Laird eye-popping again event growth with opportunity and continued led that Days We consumers new are in entered marketing had inventory year Superfood effectiveness just with through Prime way franchise. and product most XX% in now have that management. once successful to Amazon the availability, by the our

that QX, that sales acceleration half coming we are brand fosters relationships consumers. Beginning products affinity DTC our an in from content, XX%, increased unique demonstrating approximately we and value business Gabby, channel programming in from they DTC DTC During our XX% that our our impressive strong have our you'll consumers providing built quarter. a it. first grew customer stronger revenue cultivated and growth during in which reported as and now the by subscriptions, had model in recognize already from an by the XXXX, predictable this With of have we Laird focused channel

than at leading second plus XX once the growth, retail XX% scanner Retail conventional wholesale QX, our sales Laird quarter business, once sales our double-digit of year-over-year at across more our of we products sales product our missing respectively. in scanner grew On June again multi-outlet natural net in Superfood XX% demonstrated X% that the for and growth of quarter net data this again segments channel week and up just XX% side coffee period narrowly growth channel. Retail during for sales plus our ending latte instant all XXth. were grew another brand even the the this by during with channel

during XX.X% quarter. side, that operations the to the once outperformed target gross our again I a gross by pleased margin On we XX% am of share margin achieving

professional built of done from the around partners highly prices ingredients the various world and among has team supply has competent our Our incredible best the at network quality chain procuring job an highest co-manufacturers. of a

We will business program, team grow identify TMM that able and process currently am additional our to I the from a are here. confident or and we implementing be our expand management, of margin cost total in savings as

the able addition that have and powder were just to legal announce to had this mutually from suppliers to long-term agreement I rancid am am outstanding coconut due our our case, results able been beneficial a I that operational happy share settle one last that I we agreeable to to received shared, of pleased to who recouped year. claim that of forward In outstanding In measures, milk to come Laird we financial results, $XXX,XXX Superfood support to the by business for extremely to matter. result we building. the X supplier, was, step future quarter this really next with excited be over cash more Laird And with The Superfood. opportunities successful be very are we for will our that pleased on are all months. QX the we a even this about are were while

most is will turn to healthiest, results Superfood are detail. more foods Laird I quarter portfolio to trend available positioned now natural this As on our continue to perfectly over consumers in to to premium Anya second with that them, our out that, products. With the capitalize it expanding seek of discuss

Anya Hamill

Jason, you, and Thank afternoon, good everyone.

loss inventory the of articulated to the $X.X channel more that promotional that spend. while was in increasing up XXXX. DTC margin As sales lapping quarter and months, to this Jason which orders key metrics. Net channel margin the more from XX improvement to growth, $XX.X direct where place which we million implemented to by underscores line. Net million also in distribution decreased pleased achieved partially well a quarter achieving grew is gross to of into best platform increase above by total business event for and quarter and that marketing our SG&A XXXX. quarter. Gross I year as which to last which Operating shifts quarter the our XX the for are and improvement and of second out to margin third-party remain in initiatives XX% accounted support in as in expense $X.X XX% have effectiveness compared sales. year-over-year the SG&A the the related highlight was contributed revenue in we from the $X.X strategic and improving company you pleased versus impressive our by grew quarter were driven in we at sales, improving committed in timing strategy compared the QX with of second and year last same orders, delivering and return quarter history, and trade to XX% on second have lower the net quarter of quarter, is platform results offset first plan for repeat operating This company's steady continued implementing came period, year, co-manufacturing our share growth Wholesale subscriptions the of driven the shifting XX%, an the customers, This last had by million took by have management a XX% the as XX% prior profitability. coming above third earlier the both to am have in bottom make threshold. points in is promotional or net gross of growth, percentage raw materials ever sourcing consecutive second first million model, new efficient key efficiency. last and revenue sales XX% stocks $X.X velocity the consistency rates to point million in in reflecting year on driven Amazon sustainably expectation XX% acceleration, sequentially to also and total third to million, a the spend. by XX% $X.X year-over-year exceeded our value year the progress costs of by due we to discount in XX efficiency. These than executing XX% club prior transitioning retail order year-over-year than compared to a period to as better results noted, E-commerce the basis. the new over led ongoing focused every of further expenses XX% on quarter, increase to increased promotion margin at quarters. growth due and improvement we second of improved the I'm subscribers period. X% higher channel is moving net quality lower year, declined

that Our the have we no our performance am our balance million robust financial growth and position flexibility report positive $X.X provides investments. This capital. working in long-term with quarter, support management sheet future delivered cash million remains pleased objectives reflecting strong with cash us of this particularly to and flow debt. improved effective to and $X.X I

make our towards to cash enough as have we drive into improvements operating that least us that grow our project to and XXXX, profitability. and we at continue We fund operations business breakeven

remainder optimistic the are we about of ahead, Looking XXXX.

continued growth our expect as priorities. executing remain we business focused We in our segments, strategic on core

for XX to year. We represents range the million sales any XX%, discussion sales remarks. of approximately net prior back turn to I now, for $XX $XX on now are in year both net raising full and which margin. be XX% gross guidance XXXX, the to our We to XX% expect million expected points representing improvement versus And over margin to closing to growth will XXXX. And to is XX% versus Jason expand gross the to XX

Jason Vieth

are on the our call you to thank supporting of and Anya, that journey. you, everyone and Thank those to all

are and now an brand ready as Operator, for we across Superfood, class focused in one our growth more to to our to the We concludes trade. This call we open expansion consumers exciting Laird that squarely is products of moment questions. are prepared introduce on now remarks. and every

Operator

company Instructions] first Wollam Our the comes JP from Capital ROTH question Partners. [Operator with

John-Paul Wollam

think run the about the if just of sort it the this guidance could guidance. just of gets about rate start revenue and If us kind I Maybe of we I end there. lower QX on number, and

see in if maybe whether so is in what you're counting just And raising and then everything you in risk terms anything you maybe talk X that lower back if of there's that the And that year guidance or just the you of that last gives out half is hit about of to guidance in anything accelerate really place confidence the there worth think on bound quarters? could sort if to you in number. pointing the to guys

Jason Vieth

summer, a school, big you summer Anya give I'll hand way half. take back enjoying outcome business of lot leaving they in people couple few second see of I'm a back vacation, JP, at buckle the that that Yes. to Typically, are the retail. of to about that a is the start, do their been seems more healthier some back from has back and habits, you But place. the bit sorry, start to on being us, for a school from especially positive I'll have think of time period, to a be come to general is details. vacation, there's generally over to very school away There and events it seasonality to and our down, what the then One, that.

the trend. is And so a similar brands, of of in type most there wellness

the a for that startup happens that of seasonal is thing role really other us The the large in second programs. plays half our

some We ] been what So of queues of the of displays able seasonal second we've very all the really, for a sell and this trends. of that terms those with again is half Amazon additional [ in do get channels. And retail have in program from the at performing preparation year happening these couple is to we a seasonal really and excited us. just number of what's items. We're us. incredibly accomplish about well perform well continuation in a for

less continue cohort. kind keeps to seeing build giving provide the that you We it to we're to product is are continue distribute because against What you're that of that to to product, gift a established, to becomes further lot awareness market new and once your obviously, the and the behind build brand. able them cohorts them, a expensive

online shopping is with Friday in of to in all that get during and very Black coming us in, to the behavior period which period. Amazon, really seasonal then that accelerates happens. So DTC important And finally, the we

conservative So crew nature. very pretty by We're bullish. we're

guys to appreciate you probably think I have that. come

For us you to significant. Anya, anything to up add? fairly want take guidance is

Anya Hamill

have e-commerce half. the rate our was the also, driving Yes. and probably I'd the lowest pressure Jason, days, Prime the half first back one of year. and pressure increase a Black in we're additionally just to add sales Friday in to in what you our And in QX, versus marketing mentioned, marketing of sequential the expecting business,

John-Paul Wollam

Okay. Great. That's very helpful.

get to job just so commend maybe the the so over gross that's And the Obviously, far want to a you I if XX%. margin switch all to done been to for minute. way

that, million Jason. we way kind we the the program ceiling reached that have else talk highlighted, to at it, of is had And the call Am the that right sort of do so there's we're temporary a kind management kind of least we kind right just margin be going can get sitting reading run some you now, that can through rate at even -- maybe a just if more see I from? program of scale a margin of $XX in about expansion sort that where scale, think to maybe as today? and you margin of business is for Or

Jason Vieth

Yes. Great question, JP.

bit both. I think little it's a of

WhiteWave did of and margin, additional or Sovos ago. or number total by margin so behind. that HMM executed companies and can in years such slides, TMM I as expansion it Anya we March management ideas XX this a holistic We So created margin was at have concept past drive

does and some really have strategies, strategies, strong a we fulfillment that cetera. dug out phenomenal et co-manufacturing chain figured supply chain, supply As our very deep

We have gotten the a hanging low lot fruit out. of

get ] distribution. including I [Indiscernible] think that's gross and to we what XX%-plus minus margin, [ a the brand, see

are. you see usually there's that as we under so levers some few XX% at of we as hold this are of offsets. we were We'll We've seeing the -- significantly ourselves identified quite recognize as outlined, don't a actually couple that that start price is this quarters We're be commodities takes we're what kind there. more continued some XX%, we've us as quarter, don't we for under hold long the over else But we moves to in that And but a is inflation covers a to. that seeing us. over can this in inflation we we need important comfortable really that path that, up target point, not where pull. very and And -- some But We're we'll to. looking still and to that. we right will have digging now,

we'll in levers some we look and to that additional have We in forward. us go as of front low-XXs range see

John-Paul Wollam

as I if a just think kind they That to revenue growth squeeze you from of kind maybe forward, guys. if just customers of Okay. And available product think last you're kind sounds new what level think and catching to innovation next want one the how of high But there's sort just talk the that mix kind of want kind channels more for little you a growth and stage one any bit open-ended to highlight great. for leverage of Maybe about if here? to thinking you're or certain here. to of are and want about sort there's probably of right marketing going of of forward, on is seeing of you more longer-term you kind some really really, marketing that and really effective just going stepping

Jason Vieth

a is probably I minutes. XX can talk for high-level really open-ended that JP, Well, good and Yes. question,

food name. ingredients. premium any healthy emulsifiers, that the and reality great packages. Laird are got little or are be very ingredients concise. in additives of as at categories, look, There I bit them, I'll know stabilizers turn over, they're smallest products, try really pick the We've not of times, very the the number up many realize mean, but we've you the fillers and Superfood. we're said They them they most any we is, label more best read to are into ingredients all product you ingredient or innings in the putting early of So only at can a their no are or by

just that feel that consumers, the we to we're food out a the like get know And Laird so we for consumers don't and starting that them brand. know message know of to Gabby, even lot have us, a

So continue marketing awareness, key. We'll key. to placement is is product build

of less course. have placement We the so both product very unconventional, low channels, and even conventional the across still natural

calls branded about of think great than really but of a is trends, And so portfolio we the out takes we'll we We building make products it time. feel retailers. that. healthier that any industry. And right right continue on the that we're in other to those to We're know

-- retailers, That's retailers I patient. ask for Laird they just behind right then into And just are tremendous really being so assets a tremendous the Gabby and it, putting ambassadors with that We're that finding to so been these the influencers. ways works we're marketing in leveraging partners. spending us better creators many and with time innovators, most and in brand of as and founders as couldn't products, marketing.

health oriented the in grocery lean the our to we just to so, in in how are. not and Laird we're channels as online with today. way and -- products nutritious really wellness continue that operate And -- share then nutrition-oriented we'll And and our that's and Gabby

surface where go We food get started setting in service drinking really out and of up haven't kids process at are to universities, and even channel. where can and scratch of college product. this the until the coffee terrible we looking And the now that into we're love the

in walk the events. to go kids same pipe flocking come we from their pied you're tables. And over thing and You like happens BNI when it's or the

incredibly major even filled oriented. to and of tech with So health haven't products that have and you're that hotels, all started are talking large go all to the all campuses we can promissaries and kinds firms, et well. campuses, we BNI airlines have And We the cetera, fit places then go. so wellness we

an We're as do do. going used reined spend the or to marketing strong, JP. at going we metered to it the ago right way. we we very We're what cautious are be to to very, being in to early and Laird ROIs very grow. smartly years grow low it's we're in Superfood, We're innings, and we like So not going

to you're addition product innovation but new in what sharing shared, we the haven't quarters. we'll next that future the that's going So to in be yet see the over

Operator

are to closing time, back no conference to There registered the in for in remarks. At questions Instructions] queue. pass registered [Operator queue. over I'd other this no like questions team there hosting At this our are time,

Jason Vieth

and the Well, in have that outlined I really over Board process, quarter. our us next growth are to we moment future don't addition coming have of had Meanwhile, with plan for themselves great has more an even think in just on journey. whole for lot And quarter. more back about those we'll numbers the this the that a lot just a excited to a this the of on levers us shared thanks number more I frankly, We what completed front just a share and incredible speak We quarters us. ago. And strategic for that. to joining everybody to be say,

mentioned, early I it As is innings.

a We've got way this go. team, and to great have excited continue you. share long We a with to to we're

we'll talk and So soon. everybody, Thank you. be well,

Operator

call. That conclude of will for today's rest Thank enjoy and your conference your day. the participation, you

Laird Superfood (LSF) 7 Aug 242024 Q2 Earnings call transcript