-- Increased revenue from continuing
operations 20% quarter over quarter --
-- Lowest SG&A expenses since 2019
--
-- GoodWheat™ expanding into third
category with upcoming launch of Mac & Cheese --
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 third
quarter of 2023.
“Arcadia continues to make excellent progress in executing
Project Greenfield, our three-year strategic plan to unlock the
company’s potential and provide a path to profitability,” said Stan
Jacot, president and CEO. “GoodWheatTM pasta and pancake mixes and
Zola® coconut water added more than a thousand of stores of
distribution in Q3, resulting in revenue growth from continuing
operations of 20 percent compared to Q2 2023. And we are operating
with a leaner structure after winding down our body care business,
resulting in our lowest total SG&A expenses since 2019!”
In addition to GoodWheat pasta and pancake mixes, Arcadia has
now expanded to a third category with the upcoming launch of
GoodWheat Mac & Cheese, a family household staple representing
more than $1.1 billion in sales. Better-for-you brands make up
nearly 20% of the category and are growing faster than traditional
brands.
GoodWheat Mac & Cheese packs in the most fiber of any brand
in the category, with four times more fiber than the leading brand,
as well as 12 grams of protein. One serving of GoodWheat Mac &
Cheese has the same fiber as two servings of oatmeal or two and a
half servings of broccoli. Available in three varieties – Classic
Cheddar, White Cheddar and Three Cheese – GoodWheat Mac &
Cheese will start shipping to retailers this month with an
e-commerce launch planned in February 2024.
“We believe Arcadia is in the best position in its history as we
prepare to enter 2024,” said Jacot. “We’ve delivered positive gross
profit from continuing operations for seven consecutive quarters
and streamlined our cost structure by exiting unprofitable
businesses. Our proprietary wheat technology has been
commercialized in three categories, with the potential to add
additional categories through acquisition. And we continue to
explore a range of strategic options to further scale the business,
in line with our Project Greenfield strategy.”
Arcadia Biosciences, Inc.
Financial Snapshot (Unaudited) ($ in thousands)
Three Months Ended September
30,
Nine Months Ended
September 30,
2023
2022
Favorable /
(Unfavorable)
2023
2022
Favorable /
(Unfavorable)
$
%
$
%
Total revenues
1,597
1,570
27
2
%
4,160
6,674
(2,514
)
(38
%)
Total operating expenses
4,839
5,561
722
13
%
14,734
16,023
1,289
8
%
Loss from continuing operations
(3,242
)
(3,991
)
749
19
%
(10,574
)
(9,349
)
(1,225
)
(13
%)
Net loss attributable to common
stockholders
(2,567
)
(2,867
)
300
10
%
(11,128
)
(11,132
)
4
0
%
Certain previously reported financial information has been
reclassified to conform to the current year presentation.
Reclassifications are related to the presentation of the financial
results of our former body care brands as discontinued operations.
The financial information above and narrative that follows relate
to continuing operations unless stated otherwise.
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
Revenues in the third quarter of 2023 increased 2% to $1.6
million compared to the same period in 2022 driven by higher
GoodWheat revenues, offset by a decline in Zola revenues.
Revenues decreased $2.5 million during the first nine months of
2023 compared to the same period in 2022. Revenues during the first
nine months of 2022 included approximately $1.8 million in sales of
GoodWheat grain as well as $0.9 million in one-time license revenue
related to the sale of Verdeca.
Operating Expenses
Operating expenses decreased $722,000 during the third quarter
of 2023 compared to the same period in 2022 primarily driven by a
decrease in selling, general and administrative (“SG&A”)
expenses related to lower employee costs in 2023.
Operating expenses decreased $1.3 million during the first nine
months of 2023 compared to the same period in 2022 primarily driven
by a decrease in cost of revenues and SG&A. Cost of revenues in
the first nine months of 2022 included grain sold at cost and
higher inventory write-downs. The decrease in SG&A during the
first nine months of 2023 compared to the same period in 2022 was
related to lower employee costs in 2023.
Net Loss Attributable to Common Stockholders
Net loss attributable to common stockholders for the third
quarter of 2023 was $2.6 million, or $1.89 per share, a $300,000
improvement from the $2.9 million, or $4.67 per share, net loss for
the third quarter of 2022. The improvement in net loss attributable
to common stockholders for the third quarter of 2023 compared to
the same period in 2022 was primarily driven by the reduction in
operating expenses.
Net loss attributable to common stockholders for the first nine
months of 2023 and 2022 was each $11.1 million. The net loss
attributable to common stockholders per share was $9.31 and $19.37
for the first nine months of 2023 and 2022, respectively. The
impact of the March 2023 financing had a minimal effect on the
first nine months of 2023, as a $6.1 million valuation loss was
largely offset by a non-cash gain of $6.0 million related to the
change in the fair value of the common stock warrant and option
liabilities compared to a non-cash gain of $1.9 million during the
same period in 2022. Additionally, the first nine months of 2023
included a net loss from the discontinued body care brands of
$591,000 compared to $3.6 million during the same period in
2022.
Conference Call and Webcast
The company has scheduled a conference call for 4:30 p.m.
Eastern time (1:30 p.m. Pacific time) to discuss third-quarter
results and 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,
with a link posted 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 in the Investors Section of the company’s 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. The company’s
food and beverage products include GoodWheat™ pasta and pancake
mixes and Zola® coconut water. For more information, visit
www.arcadiabio.com.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
about the company and its products, including statements relating
to the company’s growth, product categories, operating costs,
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 risks set forth in filings that the company makes
with the Securities and Exchange Commission from time to time,
including in Arcadia’s Annual Report on 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. disclaims any obligation to update these
forward-looking statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231109784562/en/
T.J. Schaefer ir@arcadiabio.com
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