Arcadia Biosciences reported a five-fold increase in revenue in its second quarter, mainly thanks to sales from the newly acquired portfolio of wellness brands, as well as its GoodHemp seed sales.
For the three months to June 30, the maker of plant-based health and wellness products reported revenue of $1.4 million, compared to $281,000 in 2Q, 2020.
Matt Plavan, CEO of Arcadia, noted that the period had been the "first time" Arcadia recorded sales from its consumer brands, representing a "key milestone in our transformation to a dynamic producer and marketer of innovative, plant-based health and wellness products".
READ: Arcadia Biosciences names Laura Pitlik its chief marketing officer, as the company expands its consumer goods platforms following several key acquisitions
"The quarter was also highlighted by significant advancements in our strategic resource and capacity building, and the successful integration of operations following the Lief Brands acquisition. We strongly believe that these initiatives, along with the profitable sale of our Bioceres shares will enable us to accelerate our current momentum and strongly position the company to achieve meaningful top-line growth," he added.
Research and development (R&D) spending decreased by $862,000 in the quarter, the firm noted, primarily due to lower employee expenses, while the net loss came in at $5.3 million, down from a loss of $9.7 million in the second quarter of 2020.
The second quarter of 2021 included $2.8 million of other income from gains on the sale of Bioceres shares and $498,000 of non-cash expense recognized as a result of the increase in the fair value of common stock warrant liabilities, Arcadia also noted.
Among other highlights of the quarter, the group said it had named veteran CPG Leader Laura Pitlik as its chief marketing officer to expand brand awareness of its consumer goods following several key acquisitions.
Pitlik has launched the first national line of all-natural breads, Nature's Pride, for Hostess Brands, and has deep expertise in the CPG industry, leading brands such as Dr Pepper, Wonder Bread and On The Border tortilla chips and salsas, the company highlighted.
As at June 30 this year, Arcadia held around $43.9 million in cash ($16.9 million as at June 30, 2020).
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