Stryve Foods Inc (NASDAQ:SNAX), an emerging healthy snack and eating platform disrupting traditional consumer packaged goods (CPG) categories, and a leader in the air-dried meat snack industry in the United States, stock surges 28.05% (As on May 13, 11:39:42 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 22. Wholesale sales of $4.9 million, grew 85% compared to the prior year period of $2.7 million, Private label sales of $1.0 million decreased 15%, compared to the prior year period of $1.2 million, and e-Commerce sales of $1.4 million decreased 51% compared to the prior year period of $2.9 million. Gross margin of $1.1 million, or 15.1% of net sales, compared to gross margin of $2.7 million or 39.2% of net sales in the 2021 first quarter. Significant margin declines were primarily due to increased direct labor and commodity input costs in beef and packaging, and somewhat based on mix shift changes. Operating loss of $7.2 million, compared to operating loss of $6.6 million in the 2021 first quarter. Net loss was of $7.3 million, compared to a net loss of $5.8 million, in the 2021 first quarter. Adjusted EBITDA loss was of $6.3 million, compared to a $5.9 million Adjusted EBITDA loss in the prior year quarter. The company has ended the quarter showing balance sheet strength, with $28 million of positive net working capital, including approximately $13 million of cash, and virtually no debt.
SNAX in the first quarter of FY 22 has reported the adjusted loss per share of 25 cents, beating the analysts’ estimates for the adjusted loss per share of 32 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 8.6 percent to $7.42 million in the first quarter of FY 22, beating the analysts’ estimates for revenue by 6.01%.
Meanwhile, the company has announced leadership succession plans with the appointment of Christopher Boever as the Company’s Chief Executive Officer starting on May 23, 2022. In connection with the appointment of Mr. Boever, Joe Oblas will transition to the new position of Chief Growth Officer. In addition, on May 11, 2022, the Board of Directors of the Company appointed Mr. Boever to the Board as a Class III Director effective May 23, 2022.