- Stryve Foods Inc SNAX reported a 20.9% decline in revenue in the fourth quarter of FY22 year-over-year to $5.41 million, missing the consensus of $5.54 million.
- Net sales declined primarily due to the company’s SKU rationalization project, including the discontinuation of slow-moving, lower-gross-margin items and unprofitable accounts.
- Gross profit increased 58.9% year over year to $1.2 million, with profit margin increasing 1,130 basis points to 22.3%.
- Operating expenses decreased 55.2% year over year to $5.5 million.
- Operating loss narrowed to US$(4.3) million and net loss to US$(4.5) million.
- Adjusted earnings per share of $(0.13) beat analyst consensus of $(0.15).
- Adjusted EBITDA loss totaled $(3.5) million compared to $(10.6) million in the prior year.
- The Company had $0.6 million in cash and cash equivalents as of December 31, 2022.
- outlook: The company expects full-year 2023 net sales of $28-$34 million, below the consensus of $34.55 million.
- “We anticipate a gradual change in revenue and margins beginning in our second quarter as we complete our retail expansions. This increase in quality earnings from Q1 to Q2 requires a significant investment in working capital which has put pressure on our cash position,” said Chief Financial Officer Alex Hawkins.
- Price promotion: SNAX shares are trading up 7.24% at $0.5201 on the latest check Monday.
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