US: Edible Garden reports strong increase in profit for 2024

Edible Garden AG has provided a business update and reported financial results for the three-month and full-year periods ended December 31, 2024.

"We are pleased to report a 181.3% increase in gross profit for 2024 along with a significant expansion in gross margin—from 5.9% in 2023 to 16.7%—driven by strong performance in our core herb business and the successful execution of our strategic initiatives," said Jim Kras, Chief Executive Officer of Edible Garden.

"In May 2024, we made the decision to refocus our operations around our core herb business, exiting lower-margin and less profitable categories including lettuce and floral. This shift enabled us to concentrate on higher-margin, more profitable opportunities. We began to see the positive effects of this decision in the second half of 2024, as reflected in our improved gross profit, expanded margins, and strong growth in our herb portfolio—momentum we expect to continue building in 2025 as our vertically integrated operations and focused strategy drive further growth and continued improvement toward profitability."

"Although total revenue remained relatively flat, this reflects the Company's intentional exit from lower-margin product lines as part of its strategic realignment. Setting aside the lower-margin product lines, our core herb product revenue alone grew $1.7 million, or 16.3% year-over-year. This strategic realignment has not only improved profitability but also increased operational efficiency and lowered our cost of goods by leveraging our own facilities and expanding buying power. With this transition largely complete, we believe Edible Garden is now well positioned to accelerate top-line growth in the year ahead and focus on long-term profitability."

"These strong results also underscore the broader impact of our operational improvements, including automation, data-driven decision-making, and targeted investments in patented agricultural technology. As we expand our retail partnerships and refine our processes, we expect continued improvements in margins and long-term profitability. We remain committed to creating lasting value for our customers and shareholders."