ORLANDO, Fla., Nov. 14, 2022 (GLOBE NEWSWIRE) — Kalera Public Limited Company, a vertical farming company, today reported its financial results for the third quarter ended September 30, 2022.
“Although our balance sheet is challenged, we are meeting or exceeding our goals on both the top and bottom lines,” said Jim Leighton, President and Chief Executive Officer of Kalera. “Revenue more than doubled compared to the third quarter of last year and increased sequentially over the second quarter of this year, driven by growing customer relationships, higher volumes, improved product mix and increased sales velocity. In addition, our operational metrics are seeing sustainable progress as we consistently hit yield targets and improve capacity utilization. These metrics are key drivers in achieving our #1 priority of cash flow break-even in our U.S. farms by the end of fiscal 2023.”
Third Quarter Financial Overview
-Total revenue of $1.7 million, an increase of $0.9 million from $0.8 million reported in the third quarter last year, and an increase of $0.4 million from the second quarter of this year.
-Foodservice revenue of $0.9 million, a year-over-year increase of $0.4 million, and an increase of $0.1 million from the second quarter of this year.
-Retail revenue of $0.8 million, a year-over-year increase of $0.4 million, and an increase of $0.3 million from the second quarter of this year.
-Net loss of $1.1 million, or a loss of $0.05 per basic and diluted share, included a $19.8 million change in fair value for the contingent value earnout and warrants, and a $2.3 million one-time non-cash expense for a Property, Plant and Equipment impairment.
-Adjusted EBITDA of negative $14.0 million.
-Adjusted EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures” below.
Third Quarter Operational Highlights
Capacity Utilization increased to 24% from 11% in the third quarter of 2021.
Third-quarter yields met or exceeded targets in all US Farms.
Third Quarter 2022 Consolidated Financial Review
Total revenue for the third quarter of 2022 was $1.7 million, an increase of $0.9 million, from $0.8 million reported in the third quarter last year and an increase of $0.4 million over the second quarter of this year. The revenue increase was reflective of the new farming facilities opened over the past 12 months.
Selling, general and administrative (SG&A) expenses were $10.8 million, compared with $7.4 million in the third quarter last year. The increase in SG&A expense was primarily related to the opening of new farms and expenses from Kalera GmbH, Kuwait and Singapore that were not included in the third quarter of 2021.
Gross operating loss for the third quarter was $20.7 million, compared to a loss of $11.1 million for the same period last year. The gross operating loss included a one-time non-cash expense of $2.3 million for a property, plant and equipment impairment, a $3.4 million increase in SG&A expense, and an increase of $2.7 million in Depreciation and Amortization for new operational farms.
Net loss for the third quarter was $1.1 million, or a loss of $0.05 per basic and diluted share, compared to a net loss of $11.6 million, or a loss of $0.76 per basic and diluted share for the same period last year and a net loss of $78.6 million or a loss of $3.92 per basic and diluted share in the second quarter of this year.
Adjusted EBITDA was negative $14.0 million, compared to Adjusted EBITDA of negative $8.0 million for the same period last year and negative $14.1 million in the second quarter of this year.
As a leader in controlled environmental agriculture, Kalera is driven by our belief that vertical farming can play an important role in securing access to fresh produce for a growing world population facing climate change and concerns about the future of traditional farming. Through our proprietary technology, we sustainably grow local, delicious, nutrient-rich, pesticide-free, non-GMO leafy greens year-round. Our automated, data-driven, hydroponic vertical farms produce higher yields and, use 95% less water, and 99% less land than traditional farming. Sold under the Kalera brand, our leafy greens are “better than organic” and priced competitively, always with the end consumer in mind. Kalera is headquartered in Orlando, Florida with operating farms in Orlando, Florida; Atlanta, Georgia; Houston, Texas; Denver, Colorado; and Kuwait, with additional farms under development. More information is available at www.kalera.com.