US (NJ): Edible Garden announces results for first quarter of 2025

Edible Garden has provided a business update and reported financial results for the three months ended March 31, 2025.

"Our performance in the first quarter reflects the strength of our strategic direction and the disciplined execution of our product realignment," said Jim Kras, Chief Executive Officer of Edible Garden. "We are delivering on our plan to shift toward higher-margin, shelf-stable products that meet consumer demand and support long-term profitability. In line with this vision, we continue to invest in both our people and our infrastructure, including the expansion of our consumer-packaged goods (CPG) portfolio through product lines such as Kick. Sport Nutrition, Pickle Party, Squeezables, Pulp®, and Vitamin Way®/Vitamin Whey®. These brands are building strong momentum as we develop our omnichannel go-to-market strategy and deepen engagement with modern, health-conscious consumers. Already, these investments are beginning to yield results, particularly in our shelf-stable categories, where early retail traction and consumer response have exceeded expectations. We are also beginning to see tangible financial benefits from our strategy—most notably, a nearly fourfold increase in gross profit compared to the same period last year. This improvement reflects not only better cost management but also the early success of our deliberate transition toward higher-margin, shelf-stable product lines.

"Non-perishable revenue - revenue from products other than cut herbs or potted herbs - grew 15% year-over-year in the quarter, a clear indication that our innovation across brands like Kick. Sport Nutrition, Pickle Party, Squeezables, Pulp, and Vitamin Way/Vitamin Whey is resonating with consumers. This growth underscores the Company's strategic transition into a more CPG-oriented organization—one that prioritizes innovation, brand-building, and sustained market presence over commoditized, low-margin products and product categories."

"Our strategy is guided by a commitment to streamlined execution, disciplined cost management, and consistent investment in brand development. We believe these focus areas will enable us to build a more agile and efficient organization while supporting the long-term growth of our CPG portfolio. As we shift our mix toward higher-margin, shelf-stable categories like Kick. Sport Nutrition, Pickle Party, Squeezables, Pulp, and Vitamin Way/Vitamin Whey, we are actively reshaping the business around innovation, consumer relevance, and sustainable practices. This approach has not only improved our operational performance but is also expected to strengthen our competitive positioning as a trusted, better-for-you brand in both retail and e-commerce channels. Through targeted innovation and a clear focus on brand-led growth, we believe we are creating a scalable platform designed to drive value for consumers, retail partners, and shareholders alike."

"Cut herbs experienced a noteworthy 13% seasonal growth in Q1 2025, reflecting increased consumer preference for convenience and value, while our overall core herb products portfolio remained relatively flat as we continued to fine-tune our product mix and phase out less profitable SKUs. This reflects strategic decisions made in 2024 to exit lower-margin floral and lettuce categories to focus on higher margin, less commoditized offerings."

Recently, Edible Garden completed an acquisition of certain assets of a sustainable aquaculture company based in Fort Dodge, Iowa, from NaturalShrimp Farms Inc. ("Natural Shrimp"). This $15.5 million transaction, funded through a mix of preferred equity and institutional investment, enhances Edible Garden's balance sheet and adds to its R&D and warehousing capabilities. Through the acquisition, the Company also secured two patents for water treatment technologies that are expected to be integrated into its greenhouse operations to advance sustainability—supporting the Company's Zero-Waste Inspired mission.

In addition to strengthening its product portfolio, Edible Garden made progress expanding its national distribution footprint during the quarter. The Company launched, or grew, retail partnerships with several key accounts, including Stop & Shop, Walmart, ShopRite, and Berkot's Super Foods. These new and expanded placements not only support growth in both the fresh and non-perishable categories but also leverage Edible Garden's patented merchandising solutions, such as its self-watering in-store displays. Recent launches of products like Kick. Sport Nutrition, Pickle Party, Squeezables and Pulp® have accelerated Edible Garden's retail expansion, driving new placements across major grocery retailers and regional chains while reinforcing the Company's omnichannel presence.

Throughout the quarter, Edible Garden continued to leverage its vertically integrated infrastructure and patented GreenThumb technology to drive efficiencies in its supply chain. The Company also maintained its commitment to U.S.-based operations, with over 90% of its business remaining domestic—minimizing exposure to global tariffs and disruptions.

"We are confident that our U.S.-focused production model, combined with our transition toward higher-margin, branded product lines and the expansion of our omnichannel presence, positions Edible Garden to thrive in an evolving market landscape. With the recent acquisition of Natural Shrimp and its proprietary water treatment technology, we are enhancing both our operational infrastructure and sustainability leadership. At the same time, our continued investment in innovative CPG brands like Kick. Sport Nutrition, Pickle Party, Squeezables, Pulp, and Vitamin Way/Vitamin Whey is driving early momentum, validating our strategic direction. As we execute on our vision, we believe we are building a more resilient, scalable, and differentiated business—one capable of delivering long-term growth and shareholder value," concluded Mr. Kras.

For the quarter ended March 31, 2025, revenue totaled $2.7 million, a decrease of 13.2% compared to $3.1 million for the three months ended March 31, 2024. The decline was primarily driven by the Company's strategic exit from lower-margin floral and lettuce product lines. Non-perishable revenue grew 15% year-over-year in the quarter.

Cost of goods sold was $2.6 million for the first quarter of 2025, compared to $3.1 million for the same period in 2024. The decrease reflects the decreased revenue in the quarter. Gross profit increased to $88,000, compared to $23,000 in the prior-year period, representing an increase of approximately 283% year-over-year. Gross margin improved to 3.2%, up from 0.7% in the first quarter of 2024, reflecting early returns from the Company's shift to higher-margin, shelf-stable product lines.

Selling, general and administrative expenses were $3.0 million for the quarter, down from $3.9 million in the prior year period. The reduction was primarily attributable to lower personnel costs and the roll-off of severance expenses incurred in the first quarter of 2024 related to executive transitions.

Net loss was $3.3 million for the three months ended March 31, 2025, compared to a net loss of $4.0 million for the three months ended March 31, 2024. The year-over-year improvement in net loss was driven by cost reductions and increased contribution from higher-margin non-perishable product sales.

Edible Garden will host a conference on May 15 at 8:00 A.M. Eastern Time to discuss the Company's financial results for the quarter ended March 31, 2025, as well as the Company's corporate progress and other developments.