“We are excited to share our compelling story with the investment network and demonstrate our ability to drive our specialty ingredients business, generate improved margins and leverage the use of our asset base to build our revenue stream for years to come. We achieved a strong CAGR of 34% between FY2021 and FY2024 by addressing a unique need in today’s market with our targeted platform, and with continued expansion and increased usage, we plan to strengthen our cash flow generation in the next years. . Our diverse asset base, ranging from proprietary seed genetic land to differentiated sourcing, processing, sales and distribution facilities, provides us with great insight into emerging trends. Overall, we are well positioned to capture a high-margin, high-barrier segment of the $200 billion global market.
Kambeitz concluded: “We look forward to providing our update for the first part of fiscal 2025 in conjunction with the publication of our first part of the fiscal 2025 monetary effects in the coming months, which will highlight the significant price and prospects of Above Food. . Array With a strong pipeline of strategic acquisition opportunities that can expand the geographies and markets we reach, along with multiple biological expansion avenues and margin expansion opportunities, we believe Above Food represents an attractive investment opportunity.
Strategic Highlights
Above Food has positioned itself as part of a transformative innovation in the food industry. By integrating regenerative agriculture, value-added ingredient production, and consumer products into a unified “seed-to-table” platform, the company addresses critical global food security challenges.
At the heart of Above Food’s competitive merit is its ownership and key points of access to the source chain. This strategic positioning enables impressive economics, supported by meritorious margins and long-term sustainable expansion drivers in large-scale operations. The company’s style responds to a huge market opportunity, with a global targetable market in excess of $200 billion in plant-based replacement categories and adjacent high-expansion sectors, such as puppy food. This expansion outlook is further reinforced through supportive macroeconomic factors, adding developing considerations about food misconfidence and developing hazards in global supply chains.
Above Food is able to scale with existing assets and a leading and successful operator in the sector. The company serves a diverse visitor base of more than 260 customers and has a retail distribution presence spanning more than 62,000 locations. This broad success is supported by effective, self-produced processing facilities, which in the disruptive agriculture segment alone are capable of generating $650 million in profits, more than double the profits generated in the fiscal years ending in January 2023. and January 2024. By controlling its production and distribution channels, Above Food can achieve superior margins and greater operational efficiency when operating at scale.
A key differentiator for Above Food is its proprietary seed and genetics. The company is actively involved in continuous improvement of traits through complex agronomy, production protocols and herb genetic selection. This focus on seed generation puts Above Food in the lead. the forefront of agricultural innovation and sustainable food production.
At the helm of this cutting-edge company is a well-established industrial controls team with extensive experience across the food production ecosystem. The control team’s strong commitment to environmental, social and governance (ESG) practices and criteria ensures that Above Food not only delivers value to shareholders, but also definitively contributes to society and the environment.
Select currency bills for FY 2024
The Company filed its Form 20-F with the Securities and Exchange Commission (“SEC”) on July 8, 2024 (link to the filing is here). Unless otherwise noted, figures below are presented in US dollars (USD). ). The Company’s monetary functionality in fiscal year 2024 was negatively affected by the lack of running capital to continue developing its business. This dynamic has also presented the Company with similar obstacles in its efforts to optimize its profit mix in higher margin spaces of the business for faster cash conversion cycles.
Revenue for the year ended January 31, 2024 $273 million, compared to $293 million in fiscal 2023, $149 million in fiscal 2022, and $113 million in fiscal 2021, representing a CAGR of 34%.
Gross profit for fiscal 2024 negative $4. 4 million, compared to negative $0. 9 million in fiscal 2023. From an operational standpoint, taking into account the effects of one-time inventory disposals and amortizations, as well as foreign exchange gains and losses, adjusted gross margin, a non-GAAP measure, negative $1. 2 million in fiscal 2024, compared to $4. 9 million in fiscal 2023, and adjusted gross profit margin, a non-GAAP measure, down 0. 5% compared to 1. 6% during last year’s era.
See the adjusted gross margin reconciliations to the maximum comparable measure calculated in accordance with GAAP in this press below.
balance sheet update
As of January 31, 2024, the Company reported overall gross debt of $50. 0 million and cash and cash equivalents of $0. 7 million. As of June 30, 2024, total gross debt was $42. 9 million and money and cash equivalents were $0. 9 million, respectively. The Company expects to obtain approximately $16. 7 million in additional money after June 30, 2024 in connection with certain strategic transactions. The Company currently holds 28. 5 million outstanding shares as of July 24, 2024.
Gross debt and money and money equivalents as of June 30, 2024 are initial unaudited monetary effects subject to change. These estimates have been prepared by control and the Company’s independent registered public accounting firm has audited or reviewed that initial monetary information.
The Company will hold a convention today, July 25, 2024, at 4:30 p. m. M. , Eastern Time. Investors interested in participating in the live call can dial (877) 407-9208 from the United States. International callers can dial (201) 493-6784. Once the call ends, a telephone replay will be heard. You had until August 8, 2024, by dialing (844) 512-2921 from United States, or (412) 317-6671 from abroad, and entering the confirmation code 13748040.
A simultaneous live webcast will also be hosted on the Investors segment of the Company’s online page at www. abovefood. com.
About AboveFood
Above Food Ingredients Inc. (Nasdaq: ABVE, ABVE. W) is a differentiated and regenerative ingredients company that celebrates delicious products made with real, nutritious and flavorful ingredients and delivered seamlessly. Above Food’s vision is to create a healthier world: one seed, one field, and one bite at a time. Through a physically powerful plant protein chain of custody, enabled through large-scale operations and infrastructure in agriculture and processing number one, and proprietary seed progression features that leverage the power of AI-based genomics, Above Food delivers nutritious food to businesses and customers with traceability and sustainability. Above Food customers’ products and brands are available at primary grocery stores in Canada and the United States.
This press release comprises data on the Company’s adjusted gross profit and adjusted gross profit margin, which are non-GAAP monetary measures as explained in SEC rules. As required by SEC rules, the Company has provided in this press release a reconciliation of those non-GAAP monetary measures to directly comparable maximum GAAP monetary measures. The Company believes that the presentation of such non-GAAP monetary measures enhances the transparency of data provided through the Company and provides a meaningful presentation of the Company’s purposes. These non-GAAP monetary measures have limitations as an analytical tool because they do not have a standardized meaning prescribed through US GAAP. Non-GAAP monetary measures used through Above Food may not be the same non-GAAP monetary measures and may not be calculated in the same manner as those of other corporations and, therefore, are unlikely to be comparable to similar measures presented. . through other corporations. business. Rather, such non-GAAP monetary measures are provided in addition to the corresponding US GAAP measures to provide further data relating to operating effects from management’s perspective. Accordingly, non-GAAP monetary measures should not be considered a substitute for, independent of, or independent of, monetary data prepared and presented in accordance with US GAAP. All non-GAAP monetary measures presented in this press release are reconciled to their closest US GAAP monetary measures.
Reconciliation of Non-GAAP Monetary Measures
Cautionary Note Regarding Forward-Looking Statements
Forward-looking statements are based on existing expectations of Above Food control and are not predictions of actual performance. These forward-looking announcements are provided for general information purposes only and are not intended to be, nor should they be relied upon by any investor, a guarantee, certainty, prediction or definitive of fact or probability. All threats and uncertainties described in the “Risk Factors” segment of the Company’s Form F-4, dated April 8, 2024, which is available on EDGAR at www. sec. gov/edgar, deserve careful consideration. . shtml and in other documents filed by the Company from time to time with the United States Securities and Exchange Commission. The above list of threat points is not exhaustive. There may be other threats that Above Food is unaware of or that Above Food considers immaterial that may also cause actual effects to differ from those contained in the forward-looking announcements. In addition, forward-looking statements provide Above Food’s expectations, plans or forecasts of long-term events and reviews as of the date of this communication. Above Food anticipates that upcoming events and developments will cause Above Food’s ratings to change. However, while Above Food may elect to update such long-term forward-looking announcements, Above Food specifically disclaims any legal responsibility to do so. These forward-looking statements should not be relied upon as representing Above Food’s testing as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed on forward-looking announcements. Nothing contained herein should be construed as a representation by any user that any forward-looking statements set forth herein will be achieved or that any of the effects contemplated by such forward-looking statements will be achieved. You deserve not to place undue reliance on any forward-looking information contained in this communication, which speaks only as of the date on which it is made and is qualified in its entirety by reference to the cautionary statements contained herein.
Contacts
Media: media@abovefood. com
Investors: investors@abovefood. com