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17-05-2025
- Business
- Yahoo
Q1 2025 Biofrontera Inc Earnings Call
Operator Good day and welcome to the Biofrontera's First Quarter of 2025 Financial Results and business update conference call. All participants will be in listen-only mode. (Operator Instructions) I would now like to turn the conference over to Andrew Barwicki. Please go ahead. Good morning and welcome to Biofrontera Incorporates First Quarter Fiscal year 2025 Financial results and business update conference call. Please note that certain information discussed during today's call by management is covered under the Safe Harbor provisions of the Private Securities Litigation Reform Act. We caution listeners that Biofrontera's management will be making forward-looking statements and that actual results may differ materially from those stated or implied by these forward-looking statements due to risks and uncertainties associated with the company's business. All risks and uncertainty are detailed in and are qualified by the cautionary statements contained in Biofrontera's press releases and SEC filings. Also, this conference call contains time sensitive information that is accurate only as of the date of this live broadcast, May 16, 2025. BioFronter undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this conference call, except as required by law. During today's call, there will be references to certain non-GAAP financial measures. Biofrontera believes that these measures provide useful information for investors yet should not be considered as a substitute for GAAP, nor should they be viewed as a substitute for operating results determined in accordance with GAAP. A reconciliation of Non-GAAP to GAAP results is included in this, in the press release that was issued yesterday. More specifically, management will be referencing adjusted EBITDA, a Non-GAAP financial measure defined as net income or loss excluding interest, income and expense, income taxes, depreciation and amortization, and certain other non-recurring or non-cash items. With that being said, I would now like to turn the call over to Herman Louvert, CEO, Chairman and founder of Biofrontera. Herman. Yeah, thank you and my thanks to everyone joining us this morning. On today's call, I will provide an overview of our business during the first quarter. Clyde Lefler, our CFO, will follow with a discussion on financial results, and then both of us will be happy to answer questions after our prepared remarks. Starting with the business update, our first quarter was a busy and exciting period for us. We continued our revenue growth while keeping our costs under control. Total revenues for the first quarter of 2025 were $8.6 million and 9% increase from the same period of the prior year. Both our cost of revenue and our operating costs were lower than in the same period of the previous year, as Fred will explain in much more detail. We strongly believe our past investments, execution, and tremendous efforts to increase the effectiveness of our sales force will allow us to achieve record revenues in 2025 without increasing our costs. On top of the positive financial development. We achieved several more milestones. An important development for our long-term future is the recent granting of a patent on the new formulation of Ameluz. This new formulation, which lacks the potential allergen propylene glycol, have already been approved by the FDA and is in use since last year. Having no patent protection on this Ameluz formulation until December 2043 gives us another eighteen point five years of protection from generic competition. We announced the enrolment of the final patient in the Phase three clinical trial evaluating Ameluz for the treatment of mild to moderate actinic keratosis on the extremities, neck and trunk. Currently, label is restricted to treatments of AK on the face and scalp. The goal of this study is to extend the label to the entire body. This represents another important cornerstone in our overall strategy, complementing the use of free tubes and the availability of the larger lab both launched in 2024. As the last building block for this label extension, FDA has requested a Phase one pharmacokinetic study with 16 patients, which started in January and is currently recruiting. Furthermore, we reached a key milestone in the Phase three study for the use of Ameluz and Autoled PTC in the treatment of superficial basal cell carcinoma. The last patient completed the one-year follow-up visit, which is required for FDA approval in December 2024. We believe Ameluz has additional applications other than actinic keratosis and we are committed to explore these opportunities. So, our next goal is approval for superficial basal cell carcinoma. I can tell you that being able to treat actinic keratosis, which are precancerous lesions that may progress to squamous cell carcinoma is a wonderful feeling, but to expand beyond that to treating certain skin tumors is very encouraging and exciting for all of us here at Biofrontera. We expect to submit the new data to the FDA in the second half of this year. Following the approvals for AK on the entire body and for superficial basal cell carcinoma, we are aiming to at getting Ameluz approved for the treatment of moderate to severe acne. Acne is the most frequent indication seen by dermatologists and the treatment options available for the more severely affected patients suffer from very considerable side effects. This creates a significant medical need for these patients. Our ongoing Phase two study in this indication is close to completing patient or it has completed patient recruitment, and data will be available towards the end of the year. The further development plan will be discussed with the FDA once the data of this study become available. As I look back on the first quarter, in addition to the achievements and milestones, we were able to lower the cost of revenues, total operating expenses and SG and A. We continue to monitor and be very prudent in all aspects of our business and operations. Additionally, we increased EBITDA and gross profit, all of which support our goal of reaching breakeven as quickly as possible. We believe we have built the foundation with the sales team and back end support to continue to improve our results on a consistent basis. With that, I'll turn the call over to Clyde to walk through the financial details of the second quarter. Clyde? Thank you, Herman Pleasure talking with everyone again and I'll cover our first quarter, 2025 results. Total revenues for the first three months ended March 30, 2025, for $8.6 million, an increase of $0.7 million or 8.7% as compared to the three months ended March 30, 2024. This increase was driven by a $0.5 million dollar increase in Ameluz sales due to an increased unit price and the launch of our RotoLED XL lamp which resulted in sales of the XL lamp of $0.2 million. Total operating expenses were $13.1 million for the first quarter of 2025 compared with $13.4 million for the first quarter of 2024. Cost of revenues related party were $3.1 million. For the first quarter of 2025 compared with $4.0 million for the prior year quarter, this decrease of $0.9 million or 22.1% compared to last year was due to the reduced cost structure under the last amendment of the EU's license and supply agreement. Selling general and administrative expenses for the three months ended March 31, 2025, decreased by $0.6 million or 6.5% as compared to the three months ended March 31, 2024. Selling and marketing expenses decreased by $0.8 million with a $0.3 million decrease coming from direct sales team personnel expenses due to headcount fluctuation and a $0.5 million decrease driven by reduced general marketing activity and spend on conferences. These decreases were partially offset by an increase in legal expenses of $1.2 million due to patent claims, which was partially offset by savings of $0.8 million in personnel and financing expenses. Research and development R&D expenses for the first three months of 2025 increased by $1.2 million as compared to the first three months of 2024. The increase is attributed to our assumption of all clinical trial activities for Ameluz in the United States effective as of June 1, 2024, which allows for more effective cost management and direct oversight of trial efficiency. These increases in R&D expense were and will continue to be offset by a reduction in the transfer price of Ameluz from 50% to 25% for inventory purchases made through 2025. The net loss for the first quarter of 2025 was $4.2 million or $0.47 per share compared with a net loss of $10.4 million or $2.88 per share for the prior year quarter. The change in net loss reflects a decrease in the non-cash change in the fair value of warrant liabilities driven by a decrease in the outstanding. Population, a decrease in interest expense due to the payoff of high interest debt in 2024 and the aforementioned decreases in cost of revenues related party and selling general administrative expenses partially offset by increased R&D spending. Adjusted EBITDA increased from $4.6 million for the first three months ended March 31, 2024, to 4.4 or as compared to $4.4 million for the three months ended March 31, 2025. The improvement was driven by an increase in gross profit of $1.5 million offset by $1.2 million increases in R&D expenses. These changes were driven by the reduced cost structure under the latest amendment of the Emmalou license agreement and the assumption of all clinical activities for Ameluz in the United States. I'll refer you to the table in the news release we issued yesterday for a reconciliation of GAAP to Non-GAAP financial measures. According to our balance sheet as of March 31st, 2025, we had cash and cash equivalents of $1.8 million compared with $5.9 million as of December 31st, 2024. Finally, we have $6.5 million of inventory on hand as compared to $6.6 million of inventory as of December 31, 2024. With that overview of our business and recent financial performance, Herman and I are now ready to take questions from our covering analysts. Operator We will now begin the question-and-answer session. (Operator Instructions) Our first question will come from Jonathan Aschoff with Roth capital. Please go ahead. Thank you. Good morning. I was curious over 1Q '25, how many lamp units did you sell both the original and the XL? Yes, hey, Jonathan right here sorry as on mute, so, placements as of a Q1 were, let me just. 18, we placed 18 of the XL lamps. And that's just in the first quarter. That's in the first, yes, exactly. Okay, and how about the original one? The original ones. I will have to double check on that one. I don't have the original right at my fingertips. That's fine. My second and last question is, any sales force attrition just the comment in the press release, savings of $800,000 in personnel and financing expenses. And I'm curious, what is the current sales force headcount, say, versus the end of the year? Is there any attrition there that explains that drop in expense? Yes, Herman, do you want me to take that one? No. Well, we are looking at how we're structuring our commercial team and what types of roles are a good fit for the larger territories and some things like that. So, we're working on bringing in some more what we call like a more junior rep that's like ready to be on the road. Some of that comes with bit lower salary and then some of it has been some turnover but we're committed to replacing that and reorganizing the territories and the team to be as efficient as possible to finish up the year strong. All right, thank you very much. Operator The next question will come from Bruce Jackson with the Benchmark Company. Please go ahead. Hi, good morning and thank you for taking my questions. Wanted to take a moment to look at the gross margins. So, you've got the change in the transfer pricing, which gave you a little bit of a boost in the first quarter. How is that going to play out over the rest of the year? Yes. So, in the first quarter, we did burn off a bit of Ameluz inventory that was still under the prior LSA cost structure. So that should that's all gone. So, we have all of the inventory we have now is at the 25% transfer price and that's what we will see for the rest of the year. It might be offset. So, if that was the only thing we sold then cost of goods would be 25%. However, there's going to be some fluctuation in that, based on how many lamps we sell because the margin there is lower. Okay. Okay. And then a question on the three tube indication. Sometimes it takes time for the payers to get the reimbursement information into their databases. Can you just kind of give us an update on the status of the reimbursement for the three-tube indication and is that all systems go now for you? Yes, we paid a lot of attention to that when after we got approval and focused initially on Medicare, making sure that Medicare actually covers this and then send all the information to all the private payers. So from what we hear so far, I mean, we have to rely on feedback from the market. We are not aware of a single case where a doctor has been refused payment because of using more than one tube. So, this seems to be completely solved. Okay, great. That's it for me. Thank you. Operator Thank you. This will conclude our question-and-answer session. I would like to turn the conference back over to Herman Louvert r for any closing remarks. Yes. Well, thank you, operator. As you heard, the first quarter has been a very exciting time for us and we look forward to the rest of the year. Each day our sales team gets new clients, which is a victory for the customer facing strategy that we have implemented. I would like to thank everyone for participating in this call and we look forward to speaking with you again when we report our second quarter results. Thank you and have a nice day. Operator The conference is now concluded. Thank you for attending today's presentation. You may now disconnect. Sign in to access your portfolio
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16-05-2025
- Business
- Yahoo
Q1 2025 Edible Garden AG Inc Earnings Call
Kostas Dafoulas; Interim Chief Financial Officer; Edible Garden AG Inc Operator Good morning everyone and welcome to the Edible Garden AG Incorporated 2025 first quarter Business Update conference. At this time, all participants are in a listen-only mode and the floor will be open for questions following the presentation. If anyone should require operator assistance during the conference, [Operator Instructions]. Please note this conference is being recorded. I will now turn the conference over to your host, Ted Evas, Investor Relations at Crescendo Communications. Ted, the floor is yours. Thanks, Jenny. Good morning and thank you for joining Edible Garden's first quarter 2025 earnings conference call and business update. On the call with us today are Jim Kras, Chief Executive Officer of Edible Garden and Kostas Dafoulas, interim Chief Financial Officer of Edible Garden. Earlier this morning, the company announced its operated results for the three months ended March 31, 2025. The press releases posted on the company's website In addition, the company will file its quarterly report on Form 10Q with the US Securities and Exchange Commission, which will also be accessible on the company's website as well as the SEC's website at If you have any questions after the call or would like any additional information about the company, please contact Crescendo Communication at 212-671-1020. Before Mr. Kres reviews the company's operating results for the quarter end of March 30, 2025 and provides a business update, we would like to remind everyone that this conference call may contain forward-looking statements. All statements other than statements of historical facts contained in this conference call, including statements regarding our future results of operations and financial positions, strategy and plans and our expectations for future operations are forward-looking statements. The words aim, anticipate, believe, could, expect, may, plan, project, strategy, will and the negative of such terms and other words in terms of similar expressions are are intended to identify forward-looking statements. These forward-looking statements are based largely on the company's current expectations and projections about future events and trends that it believes may affect its financial condition, results of operations, strategy, short term and long term business operations and objectives and financial needs. These forward-looking statements are subject to several risks, uncertainties and assumptions as described in the company's filings with the SEC, including the company's annual report on form 100 for the year ended December 31, 2024. Because of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this conference call may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statement. You should not rely upon forward-looking statements as predictions of future events. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievement. In addition, neither the company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The company disclaims any duty to update any of these forward-looking statements except as required by law. All forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements as well as others made on this conference call. You should evaluate all forward-looking statements made by the company in the context of these risks and uncertainties. Having said that, I would not like to turn the call over to Mr. Jim Kras, Chief Executive Officer of Edible Garden. Jim. Thanks. Good morning and thank you to everyone for joining us today. We're pleased to report that Q1 2025 marked a strong start to the year, reflecting the continued momentum behind our strategic transformation. Our realignment towards higher margin shelf stable products such as kick sports nutrition, tickle party, squeezables, pulp, and vitam weight is gaining traction, and the results are becoming increasingly visible across our business. We also made meaningful progress expanding our national retail presence. During the quarter, we launched or strengthened our relationships with several major retailers including Walmart, Stop and Shop, Wakefront Shoprite and Burcott Superfoods. These relationships are driving growth across both our fresh and non-perishable categories while also leveraging our patented in-store merchandizing solutions such as our self-watering displays and reinforcing our omni-channel strategy. Total revenue declined 414,000 to 2.7 million in the first quarter. This decline was primarily attributed to our strategic decision to exit lower margin, floral and lettuce categories. Cutter sales rose 13% on a seasonal basis, high highlighting sustained consumer demand for freshness and convenience. This deliberate shift in our product mix is already contributing to margin expansion and setting the stage for scalable, profitable growth, highlighting the traction in our non-perishable portfolio where revenue rose 15% year over year. Each of our non-perishable shelf stable brands have contributed to this performance. Kick sports nutrition achieved a milestone with new brick and mortar replacement at a major Midwest big box retailer. The brand includes clean labeled whey and plant-based protein powders with planned expansion into pre and post workout formulas and hydration products. These offerings support performance, recovery and overall wellness for today's health conscious consumers. Pickle party. Created in partnership with Herman Pickle Company, it's the world's first functional pickle, fermented, refrigerated, and gut health focused, featuring kosher and non-GMO non-GMO ingredients. It's launching across all Burkhart food superfood stores. And has secured pre-orders at Food Town, Lincoln Market ahead of summer season. Squeezables. A shelf stable stern pace line has successfully completed its pilot and is moving into full scale production. Pulp, a line of organic fermented, gourmet hot sauces and chili-based condiments continues to gain momentum in the premium condiments category and resonates with consumers seeking healthy, elevated alternatives to traditional sauces. Vitamin Way and Vitamin Way offer a growing portfolio of whey and plant-based protein powders with designed to support recovery, overall wellness, and daily nutritional needs. The brand continues to combine advanced supplementation with consumer friendly taste and value. Following a successfully established retail presence, we launched a dedicated e-commerce platform at to broaden access and accelerate brand growth. Gross profit increased 283% year over year, nearly quadrupling from Q1 2024, while gross margin improved to 3.2% from 0.7%. This improvement reflects strong stronger cost control and improved Skemix. One of the most transforming milestones of the year announced just yesterday was a $15.5 million dollar acquisition from natural shrimp farms funded through a mix of preferred equity and institutional investment. This deal strengthens our balance sheet without increasing debt and further extends our vertically integrated model. The acquisition includes a fully operational aquaculture facility in Fort Dodge, Iowa and two patented water treatment technologies. These patented innovations will be integrated into our greenhouse operations to enhance water efficiency and reduce environmental impact, complementing our ongoing nano bubble irrigation trials with Presea New Jersey Institute of Technology. Institute New Jersey Institute of Technology, the EPA and the USDA, which have already shown up to a 55% increase in yield and 30% reduction in harvest cycle time. In addition, the Iowa facility offers valuable infrastructure for expanded R&D warehousing and potential nutraceutical development, supporting our goals around vertical integration, sustainability and long-term innovation. Our commitment to sustainability remains central to our identity. Though initiatives like Walmart's Project Gigaton, we helped avoid nearly 11,800 metric tons of virgin plastic in 2024, conserved over 28,000 gallons of diesel, and diverted 103 tons of food through donation programs. We're proud to be recognized in the Food Tech 500 as the TOP50. Company and continued to lead the way in our controlled environment, agriculture with real measurable impact. With a focused strategy, brand momentum, and an even stronger operational foundation, we believe edible garden is well positioned to deliver long term value for our customers, partners and shareholders. I would like, I would now like to turn the call over to Kostas Dafoulas, our interim CFO, who reviewed the financial results for the quarter ended March 31, 2025. Costas. Kostas Dafoulas Thanks, Jim, and good morning everyone. For the quarter ended March 31st, 2025. Revenue totaled $2.7 million a decrease of 13.2% compared to $3.1 million for the three months ended March 31, 2024. This decline was primarily driven by the company's strategic exit from the lower margin floral and lettuce products. Non-perishable revenue, however, grew 15% year over year in the quarter, a clear indication that our innovative shelf stable brands like kicks, Forcecentrtion, Pickle Party, Squeezables, Pulp and Vitamin Way are resonating with customers. 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 and as we've seen previously in Q1. 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 2024, reflecting early returns from the company's shift to higher margin shelf to stable product lines. Selling general administrative expenses for 3.3 million for the quarter, down from $3.9 million in the prior year period. The reduction was primarily attributable to lower personnel costs as we continue to optimize our cost structure in 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 first three months ended March 31, 2025 compared to a net loss of $4 million for the first three months ended March 31, 2024. The year over year improvement in net loss was primarily driven by cost reductions along with increased contribution from higher margin, non-perishable product sales. With that operator, please open the line for questions. Operator Thank you very much. We will now be opening the floor for questions. If you would like to ask a question, [Operator Instructions]. Please wait a moment whilst we poll for questions. Thank you very much. Your first question is coming from Anthony Vendetti of the Maxim Group. Anthony, your line is life. Thank you. Good morning. I was just wondering, this acquisition of national, it's, it was completed. Hey, can you talk about what your initial plans are, for natural shrimp and talk about what synergies are available to you immediately and then down the road what the cross-selling synergies could be. Anthony, good morning. How are you? Thank you for dialing in. Yeah, a couple of quick things here to answer your question. The two, it's like basically three driving sort of initiatives that'll that'll happen immediately at the facility. First of all, facilities in a key place for us as we're expanding our relationships with, big, the big retailers out that are based out there whether it's target or Walmart or Meyer and the facility has considerable warehousing ex room for us, which we need frankly we're in Grand Rapids and Grand Rapids is getting full and as we start to shift into more shelf stable products. Some of which will require refrigeration, those capabilities are already existing at this facility. So that I'm excited about. There's, to the where it's located, going to give it allow us to continue to stretch out further west allow us to penetrate where we're already strong as a company in the Midwest and getting stronger and start to run some really great programs, especially leading into the second half of the year. These products that require refrigeration will be able to be housed there, transported. I mean it's in the central part of the country, so that's great. The RD aspect of it, I'm extremely excited about, shrimp has many therapeutic qualities in addition to tasting great. So it's kind of twofold. It's not only are we going to continue the innovation that the existing team has in order to leverage, better, healthier, cleaner shrimp in a in an era where people are concerned about tariffs and whatnot and yet being able to do things stateside like that long term, in a sustainable fashion plays right into what we're known for with being. Always always inspired, so that's, I could just, I don't have another word for it other than just very cool. And then there's and then there's, just the opportunity to take what we learned from raising shrimp. There's a bunch of patterns that they already have right, that'll help us not only in the greenhouse aspect but also in water treatment but also just with the nutraceutical business that just continues to accelerate for us, as I've mentioned to you in the past. I come out of that business, that's where I started, between twin lab years ago and then and then Nature's bounty for for years before we sold out to Carlisle. I'm excited about just developing, new innovative ingredients, utilizing shrimp and we know that. Shellfish in general is used for joint care and other, growing areas of that business. So, for us it's a super exciting time. I've been out there quite a few times, through due diligence, and it's quite a facility and these guys, they got a real head start on quite a peop, and people in the industry focusing on this part of the business. So I think we're going to be able to do, quite a few things with it. Okay, and then are you able to provide what what the revenues were for national shrimps in 2024 and then would this be gross margin accretive? As of right now, it's fairly nominal, the sales part of the business, it's not going to be I wouldn't say it's going to be margin of creative but I think, from their existing business but as we sort of morph and expand their business utilizing like I said, some of the existing space that they have using, I think this is like I said, this is a large facility that really gives us penetration to markets. There's a lot of excitement around, the shrimp shells, to develop, new products and nutraceuticals. So for us, the existing business is the existing business. It's not, it wasn't, it was really kind of a demonstration mode and R&D facility, we're going to accelerate the R&D pieces start to leverage the facility, in order to immediately impact our margin as it relates to warehousing and logistics. So that to answer your question, we'll be able to leverage our distribution to accelerate what they're currently doing and their sales, as well as, leverage their, the space of the facility to be able to lead to, margin accretion. So I think that'll happen pretty quickly. It's just a function of totality of what's sitting out there. Okay, and then lastly switching back to edible gardens, can you talk about the sports nutrition line, how that specifically did this quarter, and, are you happy with that ramp? And do you expect that to continue in . Am, I am, I'm ecstatic. Look, I love the business, so it's always like people love to work on things that they really take pleasure and so, coming out of brands like Body Fortress and Metrics and pure protein and then to be able to do this, better is with this type of wine which is the right product at the right time, which is so much of what we're focused on as a company we just gained distribution in the Midwest big box retailer. Those orders got shipped in Q2, so in April, so they're not reflective in Q1. So, and then, we've got, some big launches coming up, in the very near term, so, I couldn't be happier. We developed the product with Neutricom. They've been a great partner, we just continue to deepen that relationship. And, I think we're just in such a great spot and you know we're continuing to invest in not only in people, infrastructure, but also marketing support. We're we're adding some salespeople to really continue to push out into the marketplace. We continue to go to key trade shows, so I'm excited. I think you're going to see more from us our some of our existing nutraceutical businesses really started to pick up. I think it's an interesting time, protein, different forms are hot and and continue to be hot. All you have to do is, go and look into the news and see where people are at with that. So it's a great time to be doing what we're doing. It really is. I just want to get there faster. But also be able to do it where we can do it, in the right manner so that we can continue to have the infrastructure and the integrity we need to deliver on what we, what are great relationships that we have out there because we've always worked hard for our retailers shipping at a super high rate. We've excelled in fresh goods, which is super challenging. Now if we can marry the two and then leverage the platform of the stores that we're in and pick up new stores. And and being almost every corner of the grocery store as well as our significant online presence that will, that's going to be growing and accelerating with our relationship with Proana, which is an agent an agency that was basically approved by Amazon for us to work with. So I, once again, I'm pretty, I'm very psyched about about the business and and particularly Kick because I think it's just, timing is everything sometimes, and I think we got it. Okay, great. Thanks, Jim. I appreciate all the color. I'll hop back in the queue. All right, thanks, Anthony. Operator Thank you very much. Just as a reminder, if there are any questions, you can press one on your phone keypad now to join the key. Our next question is coming from Nick Pincus of Forest Capital. Nick, your line is life. Hey guys, congrats on the solid results and the positive shift in the product mix. You touched on this a bit, but I was just hoping if you could elaborate some more on the drivers behind the sustained improvement and gross margin, particularly as you transition towards. Higher margin shelf stable products, but also specifically what strategic initiatives are you pursuing to accelerate the growth of these product lines and how do you see this part of the business developing going forward? Thank you. Great question. Welcome, Nick. Look, it's gets boiled down, to kind of a few things and for us, it's continue invest the continued investment in the company, starting with getting the right people. That we continue to do and we continue to elevate the people that come into the business as we become more and more successful. It allows us to drive innovation, build strong relationships, the right products, as I just mentioned about kick and having the right products at the right time and then the right support, that right support, ties back to not only the products and the people, but also investment in marketing and branding. So for us, this shift to just diversification of the portfolio on the heels of skew rationalization, I think has really positioned us to drive that gross margin top line, which I think is going to be exciting coming into the second half as we start to gain traction with these products and get them into stores and get them online and get people, trying them and we had a great trade show at Expo West with Pickle Party and we just came out of the show with a lot of excitement around that whole line which is just like I said, functional and exciting. So, right now, it's a great time to at Edible Garden because it's exciting and the company's really evolving and it's fun to watch the people who've been here with with us and with management with myself for the last decade, watch the company evolve and transform to, from a one greenhouse and a handful of accounts to spreading out through the country and internationally and bringing in diverse products that people like and are relatable and and the people who work are are responding so it's fantastic. Well, that's great and just look forward to following your progress. Good luck. All right, thanks, Nick. Operator Thank you very much. Well, we appear to have reached the end of our question and answer session. I will now turn the call back over to the management team for any closing comments. Sure. Thank you for joining us today. Q1 2025 marked a strong start to the year with clear progress on our strategy to focus on a higher margin, non-perishable products, brands like Kick, Pickle Party, Squeezables, bulk, and Vitamin Way are gaining traction. And we're seeing early financial returns to improved margins and reduced losses. The recent acquisition of natural shrimp facility adds valuable R&D and operational capabilities while supporting our commitment to sustainability and vertical integration. Combined with expanded retail relationships and growing e-commerce commerce reach, we believe we've built a strong foundation for continued growth. We're confident in our path forward and excited about what's ahead. Thank you for your continued support. Operator Thank you very much. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. We thank you for thank. You. Thank you everybody. Kostas Dafoulas Thanks. 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Yahoo
13-05-2025
- Business
- Yahoo
Q1 2025 Imunon Inc Earnings Call
Stacy Lindborg; President, Chief Executive Officer and Board Director; Imunon Inc Operator Good morning. My name is Dave, and I will be your operator today. At this time, I would like to welcome you to the Imunon's first quarter 2025 financial results conference call. (Operator Instructions) I would now like to turn your call over to Peter Vozzo of ICR Healthcare Investor Relations, representative for Imunon. Please go ahead. Thank you, Dave. Good morning, everyone, and welcome to Imunon's first quarter 2025 financial results and business update conference call. During today's call, management will be making forward-looking statements regarding Imunon's expectations and projections about future events. In general, forward-looking statements can be identified by words such as expects, anticipates, beliefs or other similar expressions. These statements are based on current expectations that are subject to a number of risks and uncertainties, including those set forth in the company's periodic filings with the Securities and Exchange Commission. No forward-looking statements can be guaranteed, and actual results may differ materially from such statements. I also caution that the content of this conference call is accurate only as the date of this live broadcast, May 12, 2025. Imunon undertakes no obligation to revise or update comments made during this call, except as required by law. With that said, I would like to turn the call over to Dr. Stacy Lindborg, President and Chief Executive Officer. Stacy? Stacy Lindborg Thank you, Peter, and good morning, everyone. Joining me on this call is Dr. Douglas V. Faller, Imunon's, Chief Medical Officer: and Dave Gaiero, our Interim Chief Financial Officer, who will review our financial results for the first quarter of 2025. Michael Tardugno, the Executive Chairman of our Board and Khursheed Anwer, our Chief Scientific Officer are also both on the line and will be available for Q&A. I want to start by saying that we may be close for the first time to unlocking the power of interleukin-12 to effectively treat cancer in one of the worst forms, ovarian cancer. Our work in developing treatments for ovarian cancer, a disease that continues to challenge scientists and clinicians and researchers, underscores our commitment to addressing unmet medical needs and driving long-term value. I'm amazed at the number of discussions I've had since joining Imunon in both personal and professional settings where people have shared impact from ovarian cancer at a close and personal level. Its devastation has no limits in taking the lives of women, young and old, in their prime. We continue to make significant strides towards our goal of transforming the treatment landscape for women diagnosed with advanced ovarian cancer. To that end, I'm pleased to report that we have initiated the first clinical site in our Phase 3 pivotal study of Imunon-001. If the results from our highly successful Phase 2 study are replicated in Phase 3, patients and doctors may potentially have a meaningful life extending therapy that recruits and empowers body's immune system to effectively target this disease. Our Phase 3 study, known as OVATION 3, is being recognized by the medical community as a critical step towards the goal of delivering a new frontline treatment for women with limited options and unmet urgent medical needs. This recognition is exemplified by the acceptance of our new OVATION 2 results for an oral presentation at the upcoming ASCO Annual Meeting and for publication in the peer-reviewed journal Gynecologic Oncology. It also underscores the scientific community's strong and historic evidence of Imunon-001's anti-cancer potential. We believe we have much to offer the future of oncology treatment, and I hope you are as excited as we are. Now, I'd like to report on our recent progress and review our clinical and regulatory status of Imunon-001. We continue to work with our trial investigators to begin enrolling participants, all of whom have shown unwavering interest in the Phase 3 trial and are committed to advancing the study. The confirmatory Phase 3 trial OVATION 3 will assess the efficacy of Imunon-001, plus the standard-of-care versus the standard-of-care, which is neoadjuvant and adjuvant chemotherapy alone. The standard-of-care for women who are newly diagnosed and treatment naive is paclitaxel and carboplatin chemotherapy, both neoadjuvant and adjuvant to interval debulking surgery. The study will enroll women at least 18 years of age newly diagnosed with advanced ovarian cancer. Study participants will be randomized 1:1, and there will be a subgroup of women positive for homologous recombination deficiency, HRD, which, as many of you will know, includes the familiar mutations BRCA1 or BRCA2. Participants within this sub-group will receive PARP inhibitors as part of standard maintenance therapy. The primary endpoint of the study is overall survival or OS. Secondary endpoints include surgical response score, chemotherapy response score, clinical response and time to second-line treatment. The study will also assess several exploratory endpoints including quality of life measures, which will aid as we engage in payer and pricing discussions in the future, as we entertain approvals and access around the world. The advantage of overall survival as the primary endpoint is that it is a definitive endpoint. There will be no need for a second confirmational study to support approval. And if results are positive, the Phase 3 trial is also expected to support EU registration as a direct result of the selection of the overall survival of the primary endpoint. And you'll recall that we have orphan status established in Europe along with US Orphan Drug Designation. The initial core set of clinical trial sites currently activating are highly encouraged by Imunon-001's data and are enthusiastic about OVATION 3. These include sites that were part of both the Phase 1 OVATION 1 study and the Phase 1/2 OVATION 2 study. And we're excited to bring new sites on board to accelerate enrollment of the trial. The strength of our data is the key point of discussion, and we believe it will drive surgeons' interest and patient recruitment. There is optimism that Imunon-001 could potentially be a new product on the horizon and reset the standard-of-care for the frontline treatment of women newly diagnosed with advanced ovarian cancer if the safety and efficacy from OVATION 2 are confirmed in Phase 3. We have a strategy and statistical plan which allows for a 500-patient trial in an all-comer population of newly diagnosed patients, as well as a plan to focus on a 250-patient sub-group defined by a biomarker identifying patients who are HRD positive. Both are strong options and have 95% power or higher, and both are capable of supporting an FDA approval for Imunon-001. As we shared in our last call, we will focus initially on the HRD positive sub-group defined by a biomarker through a central lab. This highly cost-effective strategy allows us to enroll half the number of patients with an opportunity to achieve a readout sooner. We expect the study budget will be approximately 40% lower than the full study budget and could read out two years earlier. This population represents one half of the neoadjuvant ovarian cancer market and would be an important advancement for patients. We would likely trigger a broadening of the inclusion criteria at a later date budget permitting to reach the 500 patient all-commerce trial. Our strategy includes an interim analysis at high probability for success milestones. As we advance Imunon-001 in the Phase 3 OVATION 3 trial, we do not want its achievements in OVATION 2 to go unnoticed. As previously announced, data from the OVATION 2 study will be reviewed in an oral presentation during ASCO's Annual Meeting next month. Dr. Premal Thaker, who is Interim Chief of Gynecologic Oncology. David & Lynn Mutch, Distinguished Professor of Obstetrics & Gynecology, also Director of Gynecologic Oncology Clinical Research all at Washington University School of Medicine. She will lead the discussion in the oral presentation. As I mentioned earlier, review of the full data from OVATION 2 will be published in the highly esteemed journal Gynecologic Oncology on June 3, being released simultaneous to the ASCO presentation. Having our data presented in two of the premier global platforms in gynecologic oncology underscores both the critical need to develop new therapies to treat ovarian cancer as well as the strength and potential of Imunon's TheraPlas platform technology. With that, I'd like to turn the call over to Dr. Douglas Faller, who will discuss the Phase 3 OVATION 3 study, including key points from his recent and ongoing discussions with study investigators as we initiate sites. Douglas? Thank you, Stacy. This is clearly a very exciting time for Imunon. In addition to the presentation of the results from our OVATION 2 trial at an oral session of ASCO in a few weeks and the simultaneous journal publication which Stacy mentioned, we've also been invited to present new translational data from the OVATION 2 trial at the International ESMO Gynecological Conference in June. The new data that we will present demonstrate that Imunon-001 technology performs exactly as it was designed, delivering highly potent IL-12 gene therapy directly to the site of the tumor while keeping systemic exposure to IL-12 extremely low. This is the proprietary biochemical basis for both Imunon's anti-cancer activity and just as important, its safety. We initiated the first clinical site in our registrational OVATION 3 trial last week with the second site to be initiated in two days. More site initiations are planned in the coming weeks. It is gratifying to me as a clinician and informative to note that these leading hospitals and internationally known principal investigators were also major participants in OVATION 2. Their enthusiasm actually their insistence for joining OVATION 3 speaks to their belief in the safety and potential benefit of Imunon-001 in the women they care for. They want to join with us in this crucial step towards bringing Imunon-001 forward as a novel and innovative therapeutic in ovarian cancer. Our highly experienced clinical development team is excited to have initiated the OVATION 3 trial and is eagerly planning the expansion of the trial over the next six months. I'll now turn the call back to Stacy. Stacy Lindborg Thanks, Douglas. As we look towards financing our Phase 3 clinical trial, our goal is twofold: one is to ensure that we have done the best possible job for all stakeholders including our shareholders; and two, to raise capital in an amount that allows us to achieve our product development goals. And dilution is top-of-mind as we consider these options. Moreover and importantly, we have taken steps to conserve cash and align our critical needs with available capital on hand, while adding to the balance sheet through optimal opportunities. We're actively working on value-added financing and partnerships which will help secure a cash runway that supports our clinical timelines and long-term strategic objectives. Focusing on both technologies, TheraPlas and PlaCCine, we are having discussions with potential partners that have significant investment in oncology as well as vaccine development, some of these under CDA. We are also exploring geographic partnerships and ways to accelerate development of Imunon-001 in other parts of the world. And finally, we intend to leverage the data from the proof-of-concept trial, using our novel PlaCCine vaccine technology to sell or license that technology. Our PlaCCine technology offers several advantages and strong advantages over other vaccine platforms such as exceptional stability being viable for one year at 4-degree centigrade refrigerated temperatures and one month at 37 degree Celsius. The platform also has the ability for rapid adaptation to new pathogens or variants, longer lasting protection or durability, meaning it could be less frequent booster shots and cost-effective manufacturing. We shared insights from the PlaCCine proof-of-concept trial and the preclinical trials in this month, this last month April 2025 at both the AACR Annual Meeting and at the World Vaccine Congress and are following up with companies in the vaccine space. We are actively working on value-added financing and partnerships, which will help secure a cash runway. We will provide updates when we're able, and our goal is to cover OVATION 3 trial cost through corporate partnerships and equity. I'd now like to turn the call over to Dave Gaiero to review our financial results for the first quarter. Dave? Thank you, Stacy. Details of Imunon's first quarter 2025 financial results are included in the press release we issued this morning and in our Form 10-Q, which we filed before the market opened this morning. As of March 31, 2025, Imunon had $2.9 million in cash and cash equivalents. We remain focused on securing near-term financing to strengthen the company's financial condition and advance OVATION 3. Research & development costs were $2.2 million for the first quarter of 2025, compared with $3.3 million for the same period in 2024. The decrease was due primarily to lower costs associated with the Phase 1 proof-of-concept PlaCCine DNA vaccine trial and the development of PlaCCine DNA vaccine technology platform. General & administrative expenses were $2 million for the first quarter of 2025 compared to $1.7 million for the same period in 2024. The increase was primarily due to higher employee-related expenses. Net loss for the first quarter of 2025 was $4.1 million or $0.28 per share compared to a net loss of $4.9 million or $0.52 per share for the same period in 2024. With that financial review, I turned the call back to Stacy. Stacy Lindborg Thank you, Dave. With that, I'd like to open the call to your questions. Operator? Operator (Operator Instructions) Emily Bodnar, HC Wainwright. Stacy Lindborg Hello, Emily. Hi. Thanks for taking the questions. Hello, and congrats on the progress. I guess first one I'll ask about the ASCO presentation, so congrats, obviously on getting an oral presentation. Is there anything new in terms of like sub-group analysis or any new data analysis that we should be expecting at the ASCO presentation? And will you potentially have the median OS for the HRD positive patients by then? Stacy Lindborg So we are by nature of ASCO's embargo, Emily, I know you'll understand that not able to talk about the content of the presentation. They're very careful with what is shared in advance. We will be sharing new information and that I think is really quite central to being accepted as an oral presentation. Although I think the full body of evidence that we've been discussing merits a view at this level and at a platform like ASCO. So we're incredibly excited for the presentation and look forward to hearing Dr. Thaker's perspective on the data. Okay. Makes sense. And then, maybe just follow-up on the Phase 3 design. How many sites are you expecting to have in total for the trial for that, I guess, first half portion that you were discussing? And then are you having OS as a dual primary endpoint for HRD positive and the ITT population or how are you kind of splitting up the statistical plan? Thanks. Stacy Lindborg I'll have -- Doug, why don't you take a step in. Sure. The analysis for the Phase 3 has always been predicated on analyzing the HRD population first. This is the population in which we think from OVATION 2 data including data that will be presented at ASCO in which we have the highest effect in terms of activity. And so the population that would be read out first whether we proceed it with the entire HRD and HRP or whether we focus on HRD alone, as Stacy mentioned, the readout does not change. There are two interim analyses and a final analysis if needed all based on HRD events. You asked the question -- Stacy Lindborg A number of sites. A number of sites. We are projecting about 45 sites at this point. Stacy Lindborg Yeah. Emily, just to recap, so the overall survival of the primary is not dual and it is consistent for all populations as the primary. Got it. Okay. Thank you. Operator James Molloy, Alliance Global Partners. Hello. This is Laura Suriel on for Jim Malloy. Thank you for taking my questions and congrats on the progress. So for OVATION 3, what's the current status that you have on like the inventory and the manufacturing capabilities for this trial especially with the 250 to 500 patient enrollment plan that you have set up? Stacy Lindborg Yeah. Great question and I'll take the opportunity just to reiterate that for this trial, we have pulled the manufacturing of the core active pharmaceutical ingredients in-house. And we are prepared and are monitoring various enrollment plans and ensuring that we have and will have continue to have product available. So we have had product that has passed all of the release specifications and has been ready to sit for weeks now and are well prepared for the weeks and months ahead. Got it. Thank you. And then also the clinical trial that you have in collaboration with the Breakthrough Cancer Foundation, what's the current status of this trial here? And are you still on track to have preliminary results announced later on this year? Stacy Lindborg You just had a call with the PIs, can you just give some insight from that? We have a meeting with the principal investigators every two weeks. And the last one was a couple of days ago on Friday. We've initiated another site, University of Oklahoma and very excited about that. Johns Hopkins has managed to re-staff its clinical research group. And so they're excited about starting to screen patients. We are expecting to have data at the end of this year, yes. All right. Thank you for the answers. Thanks for taking the questions. Stacy Lindborg Thank you. Operator This concludes our question-and-answer session of the call. I now want to turn the call back over to Imunon's President and CEO for including remarks, Dr. Lindborg. Stacy Lindborg Thank you. I want to reiterate our near-term focus, which is on securing funds to strengthen the company's financial condition and advancing our Phase 3 trial and in the process, advancing Imunon-001. We expect to have an update on this front by the end of this quarter. And as referenced earlier, our goal is to cover the OVATION 3 trial cost, and we want to and will be seeking corporate partnering and equity financing. We expect this will be an iterative process driven by catalysts to further investor confidence and follow-on financings. And as our work in providing a new treatment option for women with ovarian cancer progresses and as the population's exposure to potential pandemics increases, we remain very excited about reporting data from ongoing clinical studies in the months ahead. We look forward to keeping you appraised of our progress and thanks again for joining us today and for your interest in Imunon. Operator The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-05-2025
- Business
- Yahoo
Q1 2025 Kraft Heinz Co Earnings Call
Anne-Marie Megela; Global Head-Investor Relations; Kraft Heinz Co. Carlos Abrams-Rivera; Chief Executive Officer, Director; Kraft Heinz Co. Andre Maciel; Global Chief Financial Officer, Executive Vice President; Kraft Heinz Co. Andrew Lazar; Analyst; Barclays Yasmine Deswandhy; Analyst; Bank of America Merrill Lynch Thomas Palmer; Analyst; Citi David Palmer; Analyst; EVERCORE ISI Chris Carey; Analyst; Wells Fargo Securities, LLC Operator Greetings and welcome to the Kraft Heinz Company first-quarter 2025 earnings conference call. (Operator Instructions) As a reminder, this conference being is now my pleasure to introduce Anne-Marie Megela, Head of Global Investor Relations. Anne-Marie Megela Thank you. And hello, everyone. Welcome to the Q&A session for our first-quarter 2025 business update. During today's call, we may make forward-looking statements regarding our expectations for the future, including items related to our business plans and expectations, strategy, efforts and investments, and related timing and expected impacts. These statements are based on how we see things today, and actual results may differ materially due to risks and uncertainties. Please see the cautionary statement and risk factors contained in today's earnings release, which accompanies this call, as well as our most recent 10-K, 10-Q and 8-K filings for more information regarding these risks and we may refer to non-GAAP financial measure which exclude certain items from our financial results reported in accordance with GAAP. Please refer to today's earnings release and the non-GAAP information available on our website at under News and Events, for a discussion of our non-GAAP financial measures and reconciliations to the comparable GAAP financial measures.I will now hand it over to our Chief Executive Officer, Carlos Abrams-Rivera, for opening comments. Carlos, over to you. Carlos Abrams-Rivera Thank you, Anne-Marie. Thank you, everyone, for joining us today. At Kraft Heinz, we are proud to be a trusted partner in kitchens everywhere, providing comfort and connections particularly in these moments of growing market pressure in the first quarter, we delivered top line results in line with our expectations, with strong cash flow performance and a healthy balance sheet. We are also encouraged by the progress we are making in improving brand security. While these advancements in the year reflect through the financial results, they do give me confidence that we're putting in place the right building blocks. Our commitment to making the necessary investments to deliver quality and value offerings to our consumers is unwavering. At the same time, we are closely monitoring market tension and have adjusted our guidance that, I have Andre joining me, so let's open the call for Q&A. Operator (Operator Instructions)Andrew Lazar, Barclays. Andrew Lazar Great. Thanks so much. Carlos, you mentioned in the prepared remarks that the revised outlook provides the necessary flexibility to dial in on investments as deemed appropriate. And that said, this is not the first time, right, Kraft Heinz has sort of used this language around proposed investments. And so far, it's not proved enough, although admittedly in a very dynamic consumer environment. Many industry players I think have taken the approach of kind of like increasing investments on what seems to be more of an incremental basis to see how the consumer reacts, almost like a sort of a test-and-learn approach. The magnitude of today's guidance is larger than previous ones. But I'm still getting all the questions from investors, I guess, as to whether this is more of the same sort of approach or if you see it as more comprehensive in some way. Thanks so much. Carlos Abrams-Rivera Good morning, Andrew. Thanks for your question. First, let me just say, we are continuing to invest in the business despite what we are seeing in terms of the macroeconomic uncertainty. Frankly, because the company decided that we have. And I think in moments like this, company can be sometimes overly cautious on defenses or play offense. We are choosing to play offense with discipline. So we're going to expect prioritizing investments in marketing, R&D, and the way we're doing that, Andrew, we focus on increasing returns of our marketing dollars by shifting more towards a consumer-facing marketing. We're also make sure we're optimizing the allocation across the brands and media types so that, in fact, we make sure we have the best ROI, with an improved quality of the messaging at the same time.I mentioned investing in R&D. We are going to continue to invest behind innovation pipeline. We are making sure we are closing the gap to our investment levels that it is 1% of net sales. And I mentioned technology. We are going to continue to invest in our technology as well because that actually has helped us in terms of driving the efficiencies in the business by investing in things like automation and enhanced digital tools.I think you also talked to why is this different, what's different now versus in the past. And I'll tell you, one of the important parts of what is different is the fact that we're also investing through the brand growth system. And if you recall, the brand growth system is our repeatable global model for understanding how we see opportunities within our brands and how do we make sure we drive superiority on those brands through both type products and packaging and making sure that every communication has the right brand resonance value equations and on the it's not just what we are spending or how we are spending. And we mentioned in the past that we have done this in about 10%, one of our brands in 2024 (inaudible) to pilot. That is, in fact, now being scaled up to 40% of our business by the end of this that idea of us having more confidence in investing because now we have proven that brand growth system help us find the right opportunities and allows us to make sure we take the right steps in order to fuel the investments I think is part of why we are going to be playing offense with discipline. So you'll see us actually the step up our investments in marketing and also to make sure that as we renovate our products, we are supporting it with the right focus on the consumer we invested behind the BGS. We make sure we have the great products, packaging quality. And then we make sure we have the right communications to support it and drive that forward. It's something that helped us work with our Philadelphia brand in 2024. It helped us in our Heinz UK business in the last year. And now, we are going to be seeing that across all of our brands towards 2025 here in the U.S. Andre Maciel Good morning, Andrew. Just to add to Carlos, remember that in our prior guidance, we already had contemplated a step-up in price investments and just roughly speaking to the extent of 100 bps on the top line. So it was a relevant investment and concentrated on those categories we have previously we also had in the prior guidance already contemplated a double-digit increase in media. So we were still retaining our marketing percentage on revenue of 4.5% in the prior guidance. And with that, by reallocating expenses within the marketing bucket, we could free up double-digit increase in in this new guidance, we have opened the room to further accelerate our marketing investments. Remember that in our long-term algorithm, we want to be -- approximately, that's 5%. We had at the midpoint of guidance around 4.8% of market, so a 30 bps step-up. Still, this December, we might flip it a little bit up or down depending how the dynamics happen throughout the year including final impact on tariffs. But we want to accelerate the step-up to reach the 5%.And we also had in the guidance some impact in COGS linkage to product renovation. As Carlos said, as we continue to deploy the brand growth system, we are seeing opportunities not only to improve quality of messaging and media pressure, but also to renovate the products and ensure stronger superiority. Andrew Lazar Great. Thank you, both. Operator Yasmine Deswandhy, Bank of America. Yasmine Deswandhy Good morning, everyone, and thank you for the question. So I kind of wanted to dig in a little bit on North America and the organic sales guidance update for this year. So just for 2Q specifically, there's a few items here to consider. You talked about the Easter timing shift and then there's a plant closure (inaudible). But there are also impacts last year on multiples from the consumer part. And then you had the Capri Sun reformulation impacting consumption. So can you help size the impact, if any, to the second quarter? And if there's anything else that we should consider that will drive a gap between North America shipments versus consumption? Carlos Abrams-Rivera Sure. Good morning. Thanks for the question. Look, we expect second quarter top line to be better than the first quarter top line. The effect of Easter, as I have said before, is approximately 90 bps, 100 bps. So that will be a tailwind in the second addition to that, we had emerging markets (inaudible) we have emerging markets further accelerating from where we were in Q1. And aside from Easter, we're going to see improvement in the (inaudible) platforms. So cream cheese and Ore-Ida, for example, they declined in Q1, and this was totally expected because we are lapping competitors with out-of-stock issues last year. But now, we restored growth. And you're going to see growth in those two categories in the your point, we will see some improvement in Lunchables, still not the levels that we believe we can achieve, as the newer innovations hits the market in the second quarter. But we'll see Lunchables improving, particularly, after mid-May and June because that's when we really start to have fully lapped the consumer reports from last the Muscatine, on the factory, we are lapping that as we head into the second quarter. But taking to mind that the industry (inaudible) has gone down quite a lot this year. So we are not going to see certainly a growth in away-from-home in the second quarter. But beyond that, you will see they accelerate platforms, sauces, cream cheese, meals, and snacking with a better performance in comparison to Q1. Yasmine Deswandhy Okay. Great. Thank you. That's really helpful. And a quick follow-up to that. Just looking into the second half of the year, obviously, understanding that 2Q you'll see some nice improvement on volumes given the one-time items that you just mentioned. Your organic sales cut was basically all volumes and the pricing contribution was left unchanged. Do you see a need for North America volume to inflect positively in the second half in order to hit your guide? Or do you expect growth in international, particularly in emerging markets, to be enough to hit your guidance for the year? Carlos Abrams-Rivera No, we don't. In fact, in the midpoint of our guidance, the total company does not get to positive in any quarters. Yasmine Deswandhy Okay. Great. Carlos Abrams-Rivera (inaudible) Okay? Yasmine Deswandhy Thank you, guys. Operator Tom Palmer, Citi. Thomas Palmer Morning and thanks for the question. I wanted to ask on the COGS inflation on the revised outlook. Just any breakdown of how much of that is related to tariffs versus maybe other drivers of that increase? And then just the timing of when we really start to see that step-up? Thank you. Carlos Abrams-Rivera So in our outlook, we had inflation at 3%. So before any tariffs, our guidance has step-up to 5% of COGS, particularly in some commodities like coffee and meats, we saw a big increase in comparison to the rest of the last time we met. So the base inflation was already up to 5%. And now with the tariff impact, I mean, obviously, a lot of uncertainty still on that. But we do estimate we thought we know so far an impact in 2025 of 150 to 200 bps on the COGS. Timing-wise, look, we don't know for sure. But we are assuming that it's a bit concentrated in the second half. Maybe there'll be some impact in the second quarter. We built some inventory where possible in certain items as we anticipate that to happen. So that gives a little relief of amounts needed to in some of the items. But the impact should be mostly concentrated in the second half. Thomas Palmer Perfect. Thank you for that. And I noticed that there wasn't a change in kind of that pricing outlook, as Yasmine just noted. But it sounds like there's price investment in some areas and then there is incremental pricing in other areas? Maybe just any detail you can provide there? Carlos Abrams-Rivera In the mid-point of the new guidance, we don't have further investments in price in addition to the approximately 100 bps we already had contemplated in the initial outlook. So the incremental investments, as I said, is mostly on marketing, particularly, media, on product renovation. And there is some sampling investments because remember that as we renovated products, including the ones that we have renovated last year like Capri Sun, we really need to step up the trial curve. So we are stepping up sampling investments ahead into the summer. Thomas Palmer Perfect. Thank you for the details. Operator David Palmer, Evercore ISI. David Palmer Thanks. A couple of questions. You updated your inflation guidance, and thanks for your commentary around the tariffs being incorporating in that. I'm wondering how you're thinking about pricing offsets to that. And when it gets to a certain level of input inflation and your willingness to price that away, are there levels where you have to be cognizant of rising price elasticity, perhaps, over a few percent, for example, where you're more aware of any sort of list pricing and you have to start moving towards other types of adjustments or offsets?And then separately, Andre, I know you've been very active in thinking about promotional activity and returns on that promotional activity. When we look at our data, it looks like Kraft Heinz has been a little bit different than some of the other larger food companies and that it's well below 2019 levels in terms of its volume on promotion where some many, many years now, most other companies look like they're at those levels already and continuing to rise. I'm wondering if you kind of recognize that juxtaposition. And how you think about the promotion strategy going forward, is that something that you're noticing as well? Thank you. Carlos Abrams-Rivera Let me start with the second part. It's Carlos. And then have Andre comment a little bit on the first part of your questions. First of all, what you are seeing is the fact that it follows our strategy. I mentioned earlier that we're going to continue to make investments and play offense with discipline. I think for us, it's the opportunity to make sure that what we are investing, we are doing with this in a way that is thoughtful about the return on investment and that we are building something that support our strategy and allows us to grow, not only in the short term, but really in the medium to long why we're investing in pricing for our promotional events is because we believe that actually creates the kind of base volume opportunities as we go post that particular event. So you'll see us continue to invest in times of the year the consumer needs as, whether that is now Memorial Day, whether it's July 4th, whether it's back-to-school. We're just going to do it in a disciplined way to make sure that, again, it's supporting the strategy that we have and not just chase a short-term volume that actually doesn't essentially all you do is kind of rent volume for a short period of other piece that is important to note is that when we're making those investments, we're also doing it in concert with our brand growth systems investments so that when we are going for a back-to-school time period and we have now a renovated new Lunchables, we have a renovated new Capri Sun, that's a moment for us to know we stimulate the demand, but also making sure that the consumers get to try the best product that we have ever made on those I think it's that combination that is kind of guiding our principles versus kind of how competitors are playing at this particular time. There are some different strategy. We want to make sure that we're doing things smartly because our focus is continuing to drive profitable growth for the future. Andre, do you want to comment on the first part? Andre Maciel Yes. Hi Dave. On the promo side, Carlos said, we'll continue to be disciplined and really seeking those promotions with good returns. You will see a step-up in promotional activity during the key windows, particularly now in summer. So you'll see that number stepping up as part of our initial guidance. Again, we have approximately 100 bps of incremental price investments in the regards to pricing, the tariffs, look, we are trying to do everything we possibly can to minimize the amount of price necessary. So even things like the delay, we have anticipated some purchases, we are looking at alternative sourcing. There is opportunity for, in some cases, reformulation, which takes a little bit longer. There are opportunities on the mix side. There are certain SKUs within (inaudible) less impacted than others when it comes with tariffs. So all of that is at play. We are stepping up productivity in the year. We started the year expecting 3.5% of COGS. Now, we are expecting a little more than that. So we are taking all the possible levers. But pricing might be necessary. But again, I think there is work in progress. Operator Chris Carey, Wells Fargo. Chris Carey Hi everyone. I wanted to ask a question about gross margin, then just a follow-up elsewhere. From a gross margin perspective, specifically the Q2 weakness that you're expecting and in the context of just how this typically works, is the primary driver of Q2 gross margin weakness coffee inflation? And I guess I asked that question in the context of, historically, this is really a pass-through category where pricing comes through to offset the inflation, understanding there's always going to be quarter-to-quarter volatility. But are you seeing perhaps less ability to pass through the coffee inflation just given your overall coffee inflation backdrop?And then just secondly, are there any areas within your portfolio or broader portfolio where you're seeing more bright spots from a marketshare perspective? Because I think similar to last quarter, where we continue to struggle is the categories of clearly softened, but market share performance has come under more pressure. And so what are those things that you've been doing over the past few months, maybe specifically, where you're saying, okay, that specific strategy is working to kind of right (inaudible) here? Because it's been a bit harder to see here in the data. So thanks for those two items. Carlos Abrams-Rivera Sure. Thanks for the question. I will start with the Q2 margins. So basically, we do expect the pressure on the gross margin in the second quarter. And there are a few different items affecting the margin. The first one is, as I just had in the prior question, we do expect a step-up in the promotional activity as we start the shipment for the summer season. So we will see a lower price in the P& second, we are facing impact of some hedge losses in the second quarter. They are quite large. And the good thing is that once they roll off heading into Q3, we'll start to see some of those commodities that's starting to come down, like dairy, start to flow through the P& third, to your point, there are some increases in certain commodities in Q2. And the way we see right now, some of them are going to reach the peak in Q2 and that (inaudible) start to go backwards or decelerate, at least, as we head into the third those three elements are the key contributors for the gross margin pressure that we are seeing. There is a little bit as well of the product renovations that we are starting to step-up. So as a result of that, plus we're starting to step-up investment in marketing, we do expect that operating income should decline double-digits in the second regards to the bright spots, I'll hand over to Andre. Andre Maciel I think if you look at our year-to-date -- latest five weeks versus the year-to-date, you'll see us making progress in all of our accelerate businesses, whether (inaudible) renovation, whether it is ready-to-eat meals, whether it's snacking. So all those things are progressing. I think in Q1, obviously, we had the impact of Easter. So I think as we are seeing other data with several weeks of the (inaudible), you are going to continue to see that I think, for example, in a business like our Philadelphia Cream Cheese, which as we now kind of passed the Q1 lapping of the private label not have been on the business in the category last year, you'll see that continue to drive growth, whether you see that in our desserts business that continue to drive growth after reformulations and focusing on better-for-you products in that you will see that many of the investments we're making will continue to play off as we go through the year. And I mentioned that in the opening statement which is a lot of the great things that we are seeing in terms of the building blocks are not yet all reflected in the data. But those are things that you'll see us as we continue to progress throughout the year.I'm also, frankly, very encouraged by the fact that some of the big innovations we have done have continued to now drive growth. So a business like our (inaudible) strategy that we didn't have two years ago, we grew double digits last year, and we are growing double-digits again this year. So that also give me confidence in the fact that as we are building innovation, we're doing it with the right insight with consumers to drive growth that is sustainable and profitable for the long term. Thanks for your question. Anne-Marie Megela Operator, we have time for one more question. Operator [Megan Clapp], Morgan Stanley. Good morning. This is [Alexia], on for Megan. In the prepared remarks, you guys mentioned the wider operating income guide partly reflects a change in policy landscape. Should we be thinking about that from a top line perspective or is that related to costs? Just any incremental color you could give there would be great. Thanks. Carlos Abrams-Rivera Thanks for the question. Look, there are, as you know, a lot of things being discussed and under consideration that might have implication on the business, positive or negative. So part of the reason why we have this wider range is to contemplate a whole different set of scenarios that can come into play. Andre Maciel So we're trying to just provide the flexibility, knowing that there is a number of things that are still volatile. But in that guidance, you'll see that we are acknowledging some of those things, we are preparing for those things, and also at the same time, making sure that we have the right flexibility to invest back into business in order to drive the strategy that we have and then fuel the opportunities that we are seeing with our brand growth system to (inaudible) back in our brands. So that's all reflected in the way we're kind of shaping the year ahead. Carlos Abrams-Rivera Thank you, Alexia. Anne-Marie Megela Thank you, everyone, for joining us. Operator, that concludes our Q&A session. Operator Thank you. This does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.
Yahoo
06-05-2025
- Business
- Yahoo
Tiny to Announce Financial Results and Host Investor Call for Q1 2025
Victoria, British Columbia--(Newsfile Corp. - May 6, 2025) - Tiny Ltd (TSXV: TINY) ("Tiny" or "the "Company"), a Canadian technology holding company, today announced that it will report its financial results for the period ended March 31, 2025, before market open on Thursday, May 15, 2025. The Company will subsequently hold a conference call to provide a business update on Thursday, May 15, 2025, at 8:00 a.m. ET. The call will be hosted by: Jordan Taub, CEO Mike McKenna, CFO A question & answer session will follow the business update. Conference Call Details Date: Thursday, May 15, 2025 Time: 8:00 am ET Dial-in Numbers: Canada (Local): +1 226 828 7575 Canada (Toll-Free): +1 833 950 0062 United States (Local): +1 404 975 4839 United States (Toll-Free): +1 833 470 1428 Access Code: 983306 This live call is also being webcast and can be accessed by going to: An archived telephone replay of the call will be available for one week following the call by dialing +1 866 813 9403 and entering access code 685984 followed by the # key. NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. About Tiny Tiny acquires businesses using a founder-friendly approach, while focusing on valuation, recurring revenues, and free cash flow potential. The Company expects to hold businesses for the long-term, with a parent-level focus on capital allocation, collaborative management and operations, and incentive structures within the operating companies to drive results for Tiny and its shareholders. Tiny currently has three principle reporting segments: Digital Services, which help some of the world's top companies design, build and ship amazing products and services; Software and Apps, which is home to leading applications and themes powering forward-thinking merchants worldwide, primarily in the Shopify ecosystem; and Creative Platform, which is composed primarily of Dribbble, the social network for designers and digital creatives, as well as Creative Market, a premier online marketplace for digital assets such as fonts, graphics and templates. For more about Tiny, please visit or refer to the public disclosure documents available under Tiny's SEDAR profile on SEDAR+ at Company Contact: Mike McKenna Chief Financial Officer Phone: 416-938-0574 Email: mike@ To view the source version of this press release, please visit
