-- Total revenues increased 47% compared to
prior year --
-- Total operating expenses declined 32%
year-over-year --
-- GoodWheat™ pasta in over
1200 stores within 7 months of launch --
Arcadia Biosciences, Inc.® (Nasdaq: RKDA), a producer and
marketer of innovative, plant-based health and wellness products,
today released its financial and business results for the fourth
quarter and full year of 2022.
“Arcadia has made tremendous progress over the last year,” said
Stan Jacot, president and CEO. “We’ve streamlined the business by
exiting less profitable brands, and we’re focused on the most
compelling opportunities that will build long-term value for our
shareholders.
“As a result, we’ve increased sales and gross margins while
lowering our operating expenses and cash burn,” said Jacot. “For
the full year 2022, our revenues increased 47% compared to 2021,
our reported gross margins were positive for the first time in the
company’s history, and our cash used in operations declined by
nearly 50%.”
“Most importantly, we’ve laid out a long-term strategy for the
future success of the company with Project Greenfield, our 3-year
plan to unlock the company’s potential and create a path to
profitability,” Jacot added. “Building on the successful launch of
GoodWheat, we’re focused on launching or acquiring new categories,
building distribution, and supporting our retail customers and
partners.”
2022 Key Operating and Business Highlights
- Arcadia Successfully Launches
GoodWheat™ Pasta. Arcadia launched its non-GMO GoodWheat
pasta both in retail and online in Q2 of 2022. Made with just one
simple ingredient – Arcadia’s superior wheat grain, carefully
cultivated over 16 years – GoodWheat pasta has four times the fiber
of regular pasta and nine grams of protein per serving. The initial
launch included five of the best-selling pasta varieties – penne,
spaghetti, fettuccine, elbow and rotini – and within 7 months of
launch, GoodWheat pasta was in more than 1,200 stores nationwide,
outperforming expectations.
- Strategic Plan for Long-Term Growth and
Profitability. In Q2, Arcadia introduced Project Greenfield,
a 3-year plan that aligns the company’s resources around solid,
achievable goals to drive shareholder value, including GoodWheat’s
retail expansion, driving growth of core brands and partnerships,
as well as maintaining an agile organization to cultivate next
generation wellness products that make every body feel good, inside
and out.
- Streamlined Operations and Improved
Margins. In Q3, Arcadia took measures to streamline the
business and focus on its higher-margin brands, which included
divesting its legacy manufacturing facility, as well as the Saavy
Naturals body care brand. As a result, the company increased
product margins, and improved operating costs, laying the
groundwork for higher quality revenues and long-term growth.
- HB4® Soybeans Approved in China. In Q2, Arcadia’s
former joint venture partner Bioceres (Nasdaq: BIOX) announced the
approval by China’s Ministry of Agriculture of soybeans produced
using Bioceres’ HB4 technology for import and use as food and feed.
The approval triggered four quarterly milestone payments to Arcadia
totaling $2 million. Arcadia will also receive 6% royalties on
future Bioceres HB4 net revenue, up to $10 million.
- Arcadia Names Stan Jacot as CEO.
In the first quarter of 2022, veteran consumer goods leader Stan
Jacot joined Arcadia as chief executive officer. Jacot has an
impressive track record of implementing transformational business
strategies and profitably driving growth, most recently at Jane’s
Dough Foods where he achieved a double-digit compound annual growth
rate during his six-year tenure. Previously, Jacot held senior
marketing and operations roles at Mission Foods, Borden Dairy
Company, ConAgra Foods and Kellogg Company across the U.S. and
Canada. Jacot was selected after a nationwide search to lead
Arcadia through its next phase and drive aggressive growth for the
company’s existing and emerging better-for-you consumer
brands.
Recent Highlights
- GoodWheat Pasta Certified as “Heart
Healthy” by American Heart Association (AHA). GoodWheat
pasta recently received the AHA’s Heart-Check certification for all
five varieties of its single ingredient noodles. With its high
fiber, lower sodium and zero saturated fat, GoodWheat meets the
AHA’s stringent standards for a heart-healthy pasta and provides
consumers with a better-for-you option that delivers superior
nutrition with the taste and texture of traditional pasta.
Consumers who are looking for heart-healthy wheat pasta can now
enjoy great taste along with 8g of fiber and 9g of protein per
serving.
Arcadia Biosciences,
Inc.
Financial Snapshot
(Unaudited)
($ in thousands)
Three months ended Dec
31
Twelve months ended Dec
31
2022
2021
Favorable/
(Unfavorable)
2022
2021
Favorable/
(Unfavorable)
$
%
$
%
Total Revenues
1,000
2,171
(1,171
)
(54)%
9,956
6,780
3,176
47%
Total Operating Expenses
6,830
15,975
9,145
57%
28,771
42,306
13,535
32%
(Loss) Income From Operations
(5,830
)
(13,804
)
7,974
58%
(18,815
)
(35,526
)
16,711
47%
Net (Loss) Income Attributable to
Common Stockholders
(4,244
)
(9,282
)
5,038
54%
(15,376
)
(14,660
)
(716
)
(5)%
More detailed financial statements are included in the Form 8-K
filed today, available in the Investors section of the company’s
website under SEC Filings.
Revenues
Arcadia’s 2022 revenues were primarily related to sales of
coconut water and body care products, along with GoodWheat pasta
and grain. Arcadia’s revenues for 2021 were primarily related to
sales of coconut water and body care products, as well as GoodWheat
grain and GoodHemp™ seeds. As expected, revenues from legacy
sources continued to wind down during the year and revenues from
GoodWheat products are poised for growth in 2023.
In the fourth quarter of 2022, revenues were $1.0 million,
compared to $2.2 million during the same period 2021 driven
primarily by lower body care sales. Annual revenues for 2022
increased by $3.2 million compared to 2021 driven by higher coconut
water and body care products, along with GoodWheat pasta and grain
sales.
Operating Expenses
Operating expenses for the fourth quarter and year ended
December 31, 2022, were $6.8 million and $28.8 million,
respectively, compared to $16.0 million and $42.3 million during
the same periods in 2021. The quarter-over-quarter decrease in
operating expenses were primarily driven by lower cost of revenues,
lower write-downs of intangible assets, lower selling, general and
administrative expenses (“SG&A”), and the absence of goodwill
impairment in the fourth quarter of 2022. The year-over-year
decrease in operating expenses is primarily attributable to lower
research and development costs (“R&D”), lower write-downs of
intangible and fixed assets, lower SG&A, the absence of
goodwill impairment and a gain on sale of Verdeca in 2022.
Cost of revenues were $1.6 million in the fourth quarter of 2022
compared to $3.8 million during the same period in 2021. The
quarter-over-quarter decrease in cost of revenues is primarily due
to lower sales in the fourth quarter of 2022. Cost of revenues were
$9.8 million for the year ended December 31, 2022 compared to $8.7
million in 2021. The year-over-year increase in cost of revenues is
primarily due to higher sales in 2022.
R&D spending of $501,000 and $1.5 million in the fourth
quarter and year ended December 31, 2022, respectively, decreased
by $59,000 and $2.4 million compared to the same periods in 2021,
primarily due to the increased focus on commercialization versus
R&D activities.
SG&A expenses of $4.2 million and $18.0 million for the
fourth quarter and year ended December 31, 2022, respectively, were
$2.0 million and $4.9 million lower than the same periods in 2021,
primarily driven by lower employee expenses, lease expense and
consulting fees in 2022.
Net Loss Attributable to Common Stockholders
Net loss for the fourth quarter of 2022 was $4.2 million, or a
loss of $6.31 per share, compared to the net loss of $9.3 million
in the fourth quarter of 2021. Net loss for 2022 was $15.4 million,
or a loss of $25.65 per share, compared to the net loss of $14.7
million in 2021. Gains of $10.2 million were realized on the sale
of Bioceres stock in 2021, and there were no similar realized gains
during 2022. The change in the fair value of the common stock
warrant liabilities for 2022 was a non-cash gain of $3.2 million
compared to a non-cash gain of $8.9 million in 2021.
Conference Call and Webcast
The company has scheduled a conference call for 4:30 p.m.
Eastern time (1:30 p.m. Pacific time) today, March 30 to discuss
fourth-quarter and year-end results and the year’s key strategic
achievements. Interested participants can join the conference call
using the following options:
- An audio-only webcast of the conference call will be available
in the Investors section of Arcadia’s website.
- To join the live call, please register here, and a dial-in
number and unique PIN will be provided.
Following completion of the call, a recorded replay will be
available on the company’s investor website.
About Arcadia Biosciences, Inc.
Since 2002, Arcadia Biosciences (Nasdaq: RKDA) has been
innovating crops to provide high-value, healthy ingredients to meet
consumer demands for healthier choices. With its roots in
agricultural innovation, Arcadia cultivates next-generation
wellness products that make every body feel good, inside and out.
The company’s food, beverage and body care products include
GoodWheat™, Zola® coconut water, ProVault™ topical pain relief and
SoulSpring™ bath and body care. For more information, visit
www.arcadiabio.com.
Safe Harbor Statement
“Safe Harbor” statement under the Private Securities Litigation
Reform Act of 1995: This press release and the accompanying
conference call contain forward-looking statements about the
company and its products, including statements relating to the
company’s growth, financial performance and commercialization of
products. Forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially,
and reported results should not be considered as an indication of
future performance. These risks and uncertainties include, but are
not limited to: the company’s and its partners’ and affiliates’
ability to develop and sell commercial products incorporating its
traits and to complete the regulatory review process for such
products; the company’s compliance with laws and regulations that
impact the company’s business, including the sale of products
containing CBD, and changes to such laws and regulations; the
growth of the global wheat market; our ability to continue to make
acquisitions and execute on divestitures in accordance with our
business strategy or effectively manage the growth from
acquisitions; and the company’s future capital requirements and
ability to satisfy its capital needs. Further information regarding
these and other factors that could affect the company’s financial
results is included in filings the company makes with the
Securities and Exchange Commission from time to time, including the
section entitled “Risk Factors” and additional information that
will be set forth in its Form 10-K for the year ended December 31,
2022, and other filings. These forward-looking statements speak
only as of the date hereof, and Arcadia Biosciences, Inc.
undertakes no duty to update this information.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230330005715/en/
Arcadia Biosciences Contact: T.J. Schaefer
ir@arcadiabio.com
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