LSF Laird Superfood Inc

Record Net Sales of $43.3 million for Fiscal Year 2024, growth of 27% year-over-year. Gross Margin at 40.9%. Cash increased $0.8 million.

Laird Superfood, Inc. (NYSE American: LSF) (“Laird Superfood,” the “Company,” “we,” and “our”), today reported financial results for the fourth quarter and fiscal year ended December 31, 2024.

Jason Vieth, Chief Executive Officer, commented, “I am thrilled to share that 2024 was, by far, the best performance for Laird Superfood as a public company. In the last twelve months, we achieved significant growth across our product lines and all sales channels, our highest gross margins ever, and positive cash flow for the first time in company history. These results are especially impressive when considering the turnaround that we executed over the past two years and are the direct result of the passion and dedication of our team of founders and employees. We are clearly on-trend with the broad consumer desire to eat better, more wholesome, and functional foods, and we are poised for continued expansion across products, channels, and geographies.”

Fourth Quarter 2024 Highlights

• Net Sales of $11.6 million compared to $9.2 million in the corresponding prior year period, representing 26% growth.
• E-commerce sales increased by 12% year-over-year and contributed 58% of total Net Sales, with significant improvements in media efficiency in this channel. The growth was driven by strong sales on Amazon.com, building on the momentum over the previous three quarters.
• Wholesale sales increased by 52% year-over-year and contributed 42% of total Net Sales, driven by growth in grocery due to distribution expansion and velocity improvement at shelf, led by club sales outlets.
• Gross Margin was 38.6% compared to 40.4% in the corresponding prior year period. This margin contraction was driven primarily by increased gross to net sales promotional spend related to prior periods, including higher slotting expenses due to distribution expansion.
• Net Loss was $0.4 million, or $0.04 per diluted share, compared to Net Income of $0.1 million, or $0.02 per diluted share, in the corresponding prior year period. The Net Loss in the fourth quarter of 2024, compared to the Net Income in the prior year period, was driven mostly by higher operating expenses, namely stock-based compensation reflective of our stock performance and other personnel costs, partially offset by increased net sales.
• Adjusted EBITDA, which is a non-GAAP financial measure, was $0.2 million, or $0.01 per diluted share, compared to $0.3 million, or $0.03 per diluted share, in the corresponding prior year period. The decrease was driven primarily by increased personnel costs. For more details on non-GAAP financial measures, refer to the information in the non-GAAP financial measures section of this press release.

Fiscal Year 2024 Highlights

• Net Sales of $43.3 million compared to $34.2 million in the corresponding prior year period, representing 27% growth.
• E-commerce sales increased by 32% year-over-year and contributed 59% of total Net Sales, with significant improvements in media efficiency in this channel. Sales on Amazon.com and the DTC platform contributed to e-commerce channel growth, driven by growth in subscription revenue and repeat customer purchases, as well as higher order values.
• Wholesale sales increased by 19% year-over-year and contributed 41% of total Net Sales, driven by velocity improvement in retail and club outlets and distribution expansion in grocery, as well as more efficient promotional spend.
• Gross Margin was 40.9% compared to 30.1% in the corresponding prior year period. This margin expansion of 1,071 basis points was driven by the full benefit realization of the transition to a variable cost third-party co-manufacturing business model, favorable product costs, settlement recoveries, as well as planned reductions in promotional trade spend.
• Net Loss was $1.8 million, or $0.18 per diluted share, compared to Net Loss of $10.2 million, or $1.09 per diluted share, in the corresponding prior year period. The improvement was driven by Net Sales growth, Gross Margin expansion, and lower marketing and general and administrative ("G&A") costs.
• Adjusted EBITDA was ($0.7) million, or ($0.07) per diluted share, compared to ($9.0) million, or ($0.96) per diluted share, in the corresponding prior year period. This improvement was driven by Net Sales growth, Gross Margin expansion, and lower marketing and G&A costs. For more details on non-GAAP financial measures, refer to the information in the non-GAAP financial measures section of this press release.

Revenue Disaggregation

 

 

Three Months Ended December 31,

 

 

2024

 

2023

 

 

$

 

% of Total

 

$

 

% of Total

Coffee creamers

 

$

6,521,777

 

 

56

%

 

$

4,831,008

 

 

52

%

Coffee, tea, and hot chocolate products

 

 

3,196,314

 

 

28

%

 

 

1,924,368

 

 

21

%

Hydration and beverage enhancing supplements

 

 

2,318,791

 

 

20

%

 

 

1,533,728

 

 

17

%

Harvest snacks and other food items

 

 

1,550,974

 

 

13

%

 

 

2,084,375

 

 

23

%

Other

 

 

73,179

 

 

1

%

 

 

148,422

 

 

2

%

Gross sales

 

 

13,661,035

 

 

118

%

 

 

10,521,901

 

 

115

%

Shipping income

 

 

132,900

 

 

1

%

 

 

121,870

 

 

1

%

Discounts and promotional activity

 

 

(2,187,736

)

 

(18

)%

 

 

(1,436,383

)

 

(16

)%

Sales, net

 

$

11,606,199

 

 

101

%

 

$

9,207,388

 

 

100

%

 

 

Year Ended December 31,

 

 

2024

 

2023

 

 

$

 

% of Total

 

$

 

% of Total

Coffee creamers

 

$

23,088,363

 

 

53

%

 

$

20,425,029

 

 

60

%

Coffee, tea, and hot chocolate products

 

 

11,184,525

 

 

26

%

 

 

7,968,956

 

 

23

%

Hydration and beverage enhancing products

 

 

9,207,964

 

 

21

%

 

 

5,320,039

 

 

16

%

Harvest snacks and other food items

 

 

6,215,989

 

 

14

%

 

 

6,883,980

 

 

20

%

Other

 

 

172,788

 

 

0

%

 

 

435,388

 

 

1

%

Gross sales

 

 

49,869,629

 

 

114

%

 

 

41,033,392

 

 

120

%

Shipping income

 

 

506,732

 

 

1

%

 

 

899,921

 

 

3

%

Discounts and promotional activity

 

 

(7,081,224

)

 

(15

)%

 

 

(7,709,115

)

 

(23

)%

Sales, net

 

$

43,295,137

 

 

100

%

 

$

34,224,198

 

 

100

%

Balance Sheet and Cash Flow Highlights

We had $8.5 million of cash, cash equivalents, and restricted cash as of December 31, 2024, and no outstanding debt.

Cash provided by operating activities was $0.9 million for the fiscal year 2024, compared to cash used in operating activities of $10.8 million in the same period in 2023. The improvement in net operating cash flows relative to the corresponding prior year period was driven by significant improvements in operating performance driven by sales growth, gross margin expansion, and reductions in marketing costs.

2025 Outlook

In 2025, management's strategy is to drive growth well in excess of the consumer goods and food industry averages:

• Management re-affirms Net Sales growth in the 20% to 25% range on a full-year basis, driven by continued expansion across Wholesale accounts and further penetration of consumers on e-commerce platforms. Gross Margin is expected to hold in the upper 30s, despite commodities cost pressures.
• Adjusted EBITDA is targeted to be break even on a full-year basis.
• We expect $1 to $2 million of negative operating cash flow in order to invest into inventory to support top line growth and to minimize out-of-stocks.

Laird Superfood has not provided a reconciliation between its forecasted Adjusted EBITDA and net income, its most directly comparable GAAP measure, because applicable information for future periods, on which this reconciliation would be based, is not available without unreasonable effort due to the unavailability of reliable estimates for stock-based compensation, due to volatility in our stock price, and state and local income taxes, among other items. These items may vary greatly between periods and could significantly impact future financial results.

Conference Call and Webcast Details

We will host a conference call and webcast at 5:00 p.m. ET today to discuss our financial results. Participants may access the live webcast on the Laird Superfood Investor Relations website at https://investors.lairdsuperfood.com under “Events”. The webcast will be archived on the Company's website and will be available for replay for at least two weeks.

About Laird Superfood

Laird Superfood, Inc. creates award-winning, plant-based superfood products that are clean, delicious, and functional. Our products are designed to enhance a consumer's daily ritual and keep them fueled naturally throughout the day. Laird Superfood was co-founded in 2015 by the world's most prolific big-wave surfer, Laird Hamilton. Laird Superfood's offerings are environmentally conscientious, responsibly tested and made with real ingredients. Shop all products online at www.lairdsuperfood.com and join the Laird Superfood community on social media for the latest news and daily doses of inspiration.

Forward-Looking Statements

This press release and the conference call referencing this press release contain “forward-looking” statements, as that term is defined under the federal securities laws, including but not limited to statements regarding Laird Superfood’s anticipated expansion across its platforms, channels, products, and geographies, cash runway, future financial performance, and growth. Such forward-looking statements may be identified by words such as "anticipates," "believes," "continues," "could," "estimates," "expects," "intends," "may," "outlook," "plans," "potential," predicts," "projects," "seeks," "should," "will," "would", or the antonyms of these terms or other comparable terminology. These forward-looking statements are based on Laird Superfood’s current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause Laird Superfood’s actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement. We expressly disclaim any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

The risks and uncertainties referred to above include, but are not limited to: (1) volatility regarding our revenue, expenses, including shipping expenses, and other operating results; (2) our ability to acquire new direct and wholesale customers and successfully retain existing customers; (3) our ability to attract and retain our suppliers, distributors and co-manufacturers, and effectively manage their costs and performance; (4) effects of real or perceived quality or health issues with our products or other issues that adversely affect our brand and reputation; (5) our ability to innovate on a timely and cost-effective basis, predict changes in consumer preferences and develop successful new products, or updates to existing products, and develop innovative marketing strategies; (6) adverse developments regarding prices and availability of raw materials and other inputs, a substantial amount of which come from a limited number of suppliers outside the United States, including in areas which may be adversely affected by climate change; (7) effects of changes in the tastes and preferences of our consumers and consumer preferences for natural and organic food products; (8) the financial condition of, and our relationships with, our suppliers, co-manufacturers, distributors, retailers and food service customers, as well as the health of the food service industry generally; (9) the ability of ourselves, our suppliers and co-manufacturers to comply with food safety, environmental or other laws or regulations and the potential impact of policy changes regarding imports, exports, and tariffs; (10) our plans for future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements, including our ability to continue as a going concern; (11) the costs and success of our marketing efforts, and our ability to promote our brand; (12) our reliance on our executive team and other key personnel and our ability to identify, recruit and retain skilled and general working personnel; (13) our ability to effectively manage our growth; (14) our ability to compete effectively with existing competitors and new market entrants; (15) the impact of adverse economic conditions, consumer confidence and spending levels; (16) the growth rates of the markets in which we compete, and (17) the other risks described in our Annual Report on Form 10-K for the year ended December 31, 2024 and other filings we make with the Securities and Exchange Commission.

 

LAIRD SUPERFOOD, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

 

 

Year Ended

 

 

December 31,

 

 

 

2024

 

 

 

2023

 

Sales, net

 

$

43,295,137

 

 

$

34,224,198

 

Cost of goods sold

 

 

(25,607,556

)

 

 

(23,910,921

)

Gross profit

 

 

17,687,581

 

 

 

10,313,277

 

General and administrative

 

 

 

 

Salaries, wages, and benefits

 

 

4,367,976

 

 

 

4,203,613

 

Other general and administrative

 

 

4,931,033

 

 

 

5,589,747

 

Total general and administrative expenses

 

 

9,299,009

 

 

 

9,793,360

 

Sales and marketing

 

 

 

 

Marketing and advertising

 

 

6,484,611

 

 

 

7,600,859

 

Selling

 

 

3,825,992

 

 

 

3,332,872

 

Related party marketing agreements

 

 

251,061

 

 

 

285,172

 

Total sales and marketing expenses

 

 

10,561,664

 

 

 

11,218,903

 

Total operating expenses

 

 

19,860,673

 

 

 

21,012,263

 

Operating loss

 

 

(2,173,092

)

 

 

(10,698,986

)

Other income

 

 

413,255

 

 

 

551,064

 

Loss before income taxes

 

 

(1,759,837

)

 

 

(10,147,922

)

Income tax expense

 

 

(60,324

)

 

 

(15,195

)

Net loss

 

$

(1,820,161

)

 

$

(10,163,117

)

Net loss per share:

 

 

 

 

Basic and diluted

 

$

(0.18

)

 

$

(1.09

)

Weighted-average shares of common stock outstanding used in computing net loss per share of common stock, basic and diluted

 

 

9,946,733

 

 

 

9,297,226

 

 

LAIRD SUPERFOOD, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

 

 

Year Ended December 31,

 

 

 

2024

 

 

 

2023

 

Cash flows from operating activities

 

 

 

 

Net loss

 

$

(1,820,161

)

 

$

(10,163,117

)

Adjustments to reconcile net loss to net cash from operating activities:

 

 

 

 

Depreciation and amortization

 

 

270,271

 

 

 

306,176

 

Stock-based compensation

 

 

1,637,788

 

 

 

1,092,146

 

Provision for inventory obsolescence

 

 

599,902

 

 

 

1,273,171

 

Allowance for credit losses

 

 

(21,094

)

 

 

165,980

 

Noncash lease costs

 

 

142,321

 

 

 

152,339

 

Other operating activities, net

 

 

11,370

 

 

 

38,098

 

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

 

(719,445

)

 

 

306,117

 

Inventory

 

 

(253,019

)

 

 

(1,899,165

)

Prepaid expenses and other current assets

 

 

(267,463

)

 

 

1,244,511

 

Operating lease liability

 

 

(128,426

)

 

 

(126,434

)

Accounts payable

 

 

513,066

 

 

 

570,094

 

Accrued expenses

 

 

900,392

 

 

 

(3,725,797

)

Net cash from operating activities

 

 

865,502

 

 

 

(10,765,881

)

Cash flows from investing activities

 

 

 

 

Purchase of property and equipment

 

 

(24,776

)

 

 

(144,023

)

Proceeds on sale of property and equipment

 

 

—

 

 

 

34,330

 

Proceeds from sale of assets held-for-sale

 

 

—

 

 

 

800,000

 

Net cash from investing activities

 

 

(24,776

)

 

 

690,307

 

Cash flows from financing activities

 

 

 

 

Common stock issuances, net of taxes

 

 

(70,926

)

 

 

(27,422

)

Common stock issuance costs

 

 

(57,475

)

 

 

—

 

Stock options exercised, net of option costs

 

 

95,021

 

 

 

—

 

Net cash from financing activities

 

 

(33,380

)

 

 

(27,422

)

Net change in cash and cash equivalents

 

 

807,346

 

 

 

(10,102,996

)

Cash, cash equivalents, and restricted cash, beginning of period

 

 

7,706,806

 

 

 

17,809,802

 

Cash, cash equivalents, and restricted cash, end of period

 

$

8,514,152

 

 

$

7,706,806

 

Supplemental disclosures of cash flow information

 

 

 

 

Cash paid for interest

 

$

16,027

 

 

$

13,994

 

Cash paid for income taxes

 

$

63,852

 

 

$

17,625

 

Right-of-use assets obtained in exchange for operating lease liabilities

 

$

—

 

 

$

344,382

 

Prepaid expenses paid for with a short-term financing arrangement included in accrued expenses

 

$

165,543

 

 

$

—

 

 

LAIRD SUPERFOOD, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

 

 

 

As of

 

 

December 31, 2024

 

December 31, 2023

Assets

 

 

 

 

Current assets

 

 

 

 

Cash, cash equivalents, and restricted cash

 

$

8,514,152

 

 

$

7,706,806

 

Accounts receivable, net

 

 

1,762,911

 

 

 

1,022,372

 

Inventory

 

 

5,975,676

 

 

 

6,322,559

 

Prepaid expenses and other current assets

 

 

1,713,889

 

 

 

1,285,564

 

Total current assets

 

 

17,966,628

 

 

 

16,337,301

 

Noncurrent assets

 

 

 

 

Property and equipment, net

 

 

58,447

 

 

 

122,595

 

Intangible assets, net

 

 

896,123

 

 

 

1,085,231

 

Related party license agreements

 

 

132,100

 

 

 

132,100

 

Right-of-use assets

 

 

205,703

 

 

 

354,732

 

Total noncurrent assets

 

 

1,292,373

 

 

 

1,694,658

 

Total assets

 

$

19,259,001

 

 

$

18,031,959

 

Liabilities and Stockholders’ Equity

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable

 

$

2,137,760

 

 

$

1,647,673

 

Accrued expenses

 

 

3,642,998

 

 

 

2,586,343

 

Related party liabilities

 

 

34,947

 

 

 

2,688

 

Lease liabilities, current portion

 

 

105,966

 

 

 

138,800

 

Total current liabilities

 

 

5,921,671

 

 

 

4,375,504

 

Lease liabilities

 

 

140,464

 

 

 

243,836

 

Total liabilities

 

 

6,062,135

 

 

 

4,619,340

 

Stockholders’ equity

 

 

 

 

Common stock, $0.001 par value, 100,000,000 shares authorized at December 31, 2024 and December 31, 2023; 10,668,705 and 10,292,374 issued and outstanding at December 31, 2024, respectively; and 9,749,326 and 9,383,622 issued and outstanding at December 31, 2023, respectively.

 

 

10,292

 

 

 

9,384

 

Additional paid-in capital

 

 

121,304,884

 

 

 

119,701,384

 

Accumulated deficit

 

 

(108,118,310

)

 

 

(106,298,149

)

Total stockholders’ equity

 

 

13,196,866

 

 

 

13,412,619

 

Total liabilities and stockholders’ equity

 

$

19,259,001

 

 

$

18,031,959

 

 

LAIRD SUPERFOOD, INC.

NON-GAAP FINANCIAL MEASURES

(unaudited)

 

In this press release, we report Adjusted EBITDA and Adjusted EBITDA per diluted share, which are financial measures not required by, or presented in accordance with, accounting principles generally accepted in the United States of America (“GAAP”). The Company’s management uses non-GAAP financial measures, both internally and externally, to assess and communicate the financial performance of the Company. The Company defines Adjusted EBITDA as net income (loss), adjusted to exclude: (1) interest expense and other (income) expense, net, (2) income tax (benefit) expense, (3) depreciation and amortization expenses, (4) stock-based compensation, (5) expenses related to a product quality issue, (6) costs incurred as part of the strategic downsizing of the Company’s operations, (7) rebranding costs, and (8) estimated class action lawsuit settlement costs. The Company believes Adjusted EBITDA is useful to investors because it facilitates comparisons of its core business operations, excluding non-cash costs and non-recurring events, across periods on a consistent basis.

 

Management uses Adjusted EBITDA internally in analyzing the Company’s financial results to assess operational performance and to determine the Company’s future capital requirements. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. The Company believes that both management and investors benefit from referring to Adjusted EBITDA in assessing its performance and when planning, forecasting and analyzing future periods. The Company believes Adjusted EBITDA is useful to investors and others to understand and evaluate the Company’s operating results and it allows for a more meaningful comparison between the Company’s performance and that of competitors. Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider this performance measure in isolation from or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are that Adjusted EBITDA does not reflect, among other things: cash capital expenditures for assets underlying depreciation and amortization expense that may need to be replaced or for new capital expenditures; interest expense; income tax expense from continuing operations; our working capital requirements; the potentially dilutive impact of stock-based compensation; and the provision for income taxes. Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.

 

Because of these limitations, you should consider Adjusted EBITDA along with other financial performance measures, including Net Sales, net loss, cash and cash equivalents, restricted cash, net cash used in operating activities and our financial results presented in accordance with GAAP.

 

The following table presents a reconciliation of net income (loss), the most directly comparable financial measure stated in accordance with GAAP, to adjusted EBITDA, for each of the periods presented:

 

 

 

Three Months Ended December 31,

 

Years Ended December 31,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net (loss) income

 

$

(398,443

)

 

$

142,923

 

 

$

(1,820,161

)

 

$

(10,163,117

)

Adjusted for:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

65,852

 

 

 

71,151

 

 

 

270,271

 

 

 

306,176

 

Stock-based compensation

 

 

564,090

 

 

 

273,499

 

 

 

1,637,788

 

 

 

1,092,146

 

Income tax expense

 

 

12,422

 

 

 

2,023

 

 

 

60,324

 

 

 

15,195

 

Interest expense and other (income) expense, net

 

 

(91,298

)

 

 

(98,776

)

 

 

(413,255

)

 

 

(551,064

)

Product quality issue (a)

 

 

—

 

 

 

(69,842

)

 

 

(434,329

)

 

 

282,000

 

Strategic organizational shifts (b)

 

 

—

 

 

 

42,030

 

 

 

—

 

 

 

(13,318

)

Company-wide rebranding costs (c)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

163,806

 

Estimated class action lawsuit settlement costs (d)

 

 

—

 

 

 

(95,000

)

 

 

—

 

 

 

(95,000

)

Adjusted EBITDA

 

$

152,623

 

 

$

268,008

 

 

$

(699,362

)

 

$

(8,963,176

)

Net (loss) income per share, diluted:

 

$

(0.04

)

 

$

0.02

 

 

$

(0.18

)

 

$

(1.09

)

Adjusted EBITDA per share, diluted:

 

$

0.01

 

 

$

0.03

 

 

$

(0.07

)

 

$

(0.96

)

Weighted-average shares of common stock outstanding used in computing net loss per share of common stock, basic

 

 

10,288,653

 

 

 

9,337,789

 

 

 

9,946,733

 

 

 

9,297,226

 

Dilutive securities

 

 

1,705,180

 

 

 

200,679

 

 

 

—

 

 

 

—

 

Weighted-average shares of common stock outstanding used in computing adjusted EBITDA per share of common stock, diluted

 

 

11,993,833

 

 

 

9,538,468

 

 

 

9,946,733

 

 

 

9,297,226

 

(a) In January 2023, we identified a product quality issue with raw material from one vendor and we voluntarily withdrew any affected finished goods. We previously incurred costs associated with product testing, discounts for replacement orders, and inventory obsolescence costs. We reached settlement with a supplier in the third quarter of 2023 and recorded recoveries in 2024.

(b) Costs incurred and recovered during 2023 as part of the strategic downsizing of our operations, including severances, forfeitures of stock-based compensation, and other personnel costs, IT integration costs, and freight costs to move inventory to third-party facilities.

(c) Costs incurred as part of the company-wide rebranding efforts that launched in Q1 2023.

(d) Estimated legal settlement costs related to a class action lawsuit which was included in general and administrative expenses in Q4 2022 and was reversed in Q4 2023 upon dismissal of the suit.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250226333389/en/

Investor Relations Contact Trevor Rousseau investors@lairdsuperfood.com