Edible Garden AG Incorporated ( EDBL ) shares are jumping today after it reported first-quarter FY24 results.

Revenue increased 27.6% Y/Y to $3.1 million, missing the consensus of $3.2 million. Revenue growth was led by increased customer demand for the cut and potted herbs products and the product lineup expansion.

Gross profit increased by 195.8% Y/Y, with a margin expansion of 171 basis points as the company started to realize the benefits of the strategic shift done earlier.

Selling, general and administrative expenses rose to $3.9 million from $2.7 million a year ago due to a one-time severance charge and higher audit, accounting, and legal fees related to the departure of the previous Chief Financial Officer.

The company’s transitioned away from third-party growers, with Edible Garden ( EDBL ) now producing around 95% of its fresh product line in company-owned facilities. EPS loss of $(13.65) missed the street view of $(7.60).

In the quarter, Edible Garden ( EDBL ) collaborated with Uncle Giuseppe’s Marketplace to distribute Edible Garden ( EDBL ) herbs across their locations in New York and New Jersey. Also, the company secured a three-year contract with a U.S. food retailer. The company projects the contract to generate around $18 million to $20 million in revenue over its initial term.

Jim Kras, Chief Executive Officer of Edible Garden ( EDBL ), “In early March 2024, we expanded our distribution through KeHE Distributors, a leading distributor of natural, organic, specialty, and fresh products, and in April, we added UNFI Distributors, one of North America’s top grocery wholesalers of health and specialty food.” 

“Earlier this month, we entered into a product development agreement with Hermann Pickle Company, a leader in refrigerated kosher dill pickles, sauerkraut, and other fermented foods, which have been fixtures at delis and dinner tables nationwide for generations.”

In April, Edible Garden ( EDBL ) reported a preliminary first-quarter year-over-year increase in produce revenues of 40% and an increase in cut herb revenue of more than 200% compared to the same period last year.

Price Action: EDBL shares are up 23.4% at $5.27 at the last check Wednesday.

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