- Real Good Food Company Inc (NASDAQ: RGF) reported first-quarter FY22 sales growth of 124% year-on-year to $37.58 million, beating the consensus of $32.47 million.
- The revenue increase was driven by strong growth in sales volumes of core products.
- The gross profit increased 5.8% Y/Y to $4.2 million, and the gross margin contracted 1,260 basis points to 11.3%.
- The operating expenses jumped 101.6% Y/Y to $12.9 million.
- The operating loss for the quarter was $(8.7) million versus a loss of $(2.4) million last year.
- The company held $14.4 million in cash and equivalents as of March 31, 2022.
- Adjusted EBITDA loss was $(3.3) million compared to an Adjusted EBITDA of $0.13 million.
- Outlook: Real Good Food raised FY22 sales guidance to $150 million - $160 million from $140 million - $150 million, versus the consensus of $143.7 million.
- The company sees Adjusted EBITDA loss of $(9) million - $(4) million versus prior view of $(11) million - $(4) million.
- For the long-term, the company continues to expect net sales of $500 million, Adjusted gross margin of 35%, and Adjusted EBITDA margin of 15%.
- Price Action: RGF shares are trading higher by 12.2% at $7.07 on the last check Friday.
Read at Benzinga