Indoor farming company Edible Garden announced a 21.6% increase in its annual revenue in 2023 and a 32.8% year-over-year revenue growth for the fourth quarter of 2023, the company announced on Monday in an earnings call.
Revenue totaled $4.1 million for the fourth quarter ending Dec. 31, 2023, up from $3.1 million the prior year.
Edible Garden CEO Jim Kras said the boosted revenue was a result of the company’s strong relationships with retailers, expansion of its product line, and its strong customer base.
“Additionally, by investing in our infrastructure and refining our patented data analytics capabilities, we continue to identify additional opportunities to boost profit margins,” Kras said in a prepared statement. “The prudent management of our business is reflected in the increase in our gross profit by 270 basis points in 2023 and in the 767-basis-point improvement in our operating margin.”
The Belvidere, N.J.-based company said in a press release that the cost of goods sold in the fourth quarter came in at $3.8 million, up from $3 million for the same period in 2022.
“The increase was the result of costs related to the buildout and staffing of our Heartland facility, increases in rates charged by our suppliers, higher packaging costs due to inflation, and higher labor costs due to the tight labor market,” the company said.
Expenses totaled $2.6 million for the quarter, down from $3.1 million year over year. The decline in expenses was the result of Edible Garden’s reduction in costs associated with professional services expenses connected to the company’s IPO, “along with costs associated with the buildout of our Heartland facility,” the company said.
The company’s net loss for the quarter was $3.1 million, up slightly from the $3 million reported in the fourth quarter of the previous year.
Revenue was up $2.5 million to $14 million, a 21.6% increase year over year.
“The increase was attributed to an increase of $2.2 million in sales of our herb, produce, and floral products, driven by a mix of organic growth and new customers,” the company said. “Additionally, sales of our vitamins and supplements increased $324,000 during the year ended Dec. 31, 2023, driven by consumer demand.”
Gross profit was up by $458,000, a whopping increase of 125.8% for the year.
“Improvement in margins was primarily attributed to less reliance on contract growers in 2023 versus 2022,” the company said.
Kras attributed much of the growth to new partnerships with retailers.
“We recently partnered with Tops Friendly Markets, bringing our sustainable herbs to 149 stores across New York, Pennsylvania, and Vermont. Furthermore, we have also added Uncle Giuseppe’s Marketplace, part of RBest Produce, which is now offering Edible Garden herbs in their 12 locations throughout New York and New Jersey,” Kras said.
Edible Garden also began selling two new flavors of its Vitamin Whey line of products to Meijer grocery stores throughout the Midwest in 2023, “as part of the kickoff of our nationwide expansion plan,” Kras added.
Edible Garden also touted the release of its Pulp gourmet sauces and chili-based products, which is carried by Whole Foods Market, Morton Williams, Dierbergs Markets, Target, Woodman’s, and KeHE Distributors.