Lifecore Biomedical Q1 2022 Earnings Report
Key Takeaways
Landec Corporation reported a decrease in revenues by 5.1% to $128.8 million, but an increase in gross profit by 7.2% to $17.5 million for the first quarter of fiscal year 2022. The company's adjusted EBITDA increased by 42% to $4.4 million. The company reiterates its full year fiscal 2022 guidance.
Revenues decreased by 5.1% year-over-year to $128.8 million due to planned reduction in Curation Foods segment revenues.
Gross profit increased by 7.2% year-over-year to $17.5 million, with gross profit margin increasing to 13.6%.
Net loss decreased by $1.5 million to $9.5 million, including $2.7 million of restructuring and non-recurring charges.
Adjusted EBITDA increased by 42% year-over-year to $4.4 million.
Lifecore Biomedical
Lifecore Biomedical
Lifecore Biomedical Revenue by Segment
Forward Guidance
The Company is reiterating its full year fiscal 2022 guidance, excluding restructuring and other nonrecurring charges, tax implications and any unforeseen potential impact from the ongoing COVID-19 pandemic.
Positive Outlook
- Consolidated Revenues: range of $545 million to $554 million (flat to +1.8%)
- Lifecore segment: range of $105 million to $108 million (+7% to +10%)
- Curation Foods segment: range of $440 million to $446 million (-1.4% to 0.0%)
- Consolidated Adjusted EBITDA: range of $33.3 million to $35.5 million (+6% to +13%)
- Lifecore segment Adjusted EBITDA: range of $26 million to $27 million (+6% to +10%)
Challenges Ahead
- Curation Foods segment Adjusted EBITDA: range of $12 million to $13 million (+9% to +18%)
- Other (Corporate Expense): range of ($4.5) million to ($4.7) million
- Less than 30% of its annual consolidated adjusted EBITDA will be generated in its fiscal first half due to customer inventory re-balancing at Lifecore.
- Lifecore to realize a lower gross margin rate in the first half of fiscal 2022 compared to the first half of fiscal 2021 due to product mix.
- The Company now expects to face inflationary pressures beginning in the second quarter that it believes will be offset by price increases and cost saving initiatives in the second half of fiscal 2022.