Laird Superfood (LSF) Q2 2024 earnings summary

Executive summary

• Net sales grew 30% year-over-year to $10.0 million in Q2 2024, driven by strong e-commerce (up 47%) and Amazon sales (up 80%), with wholesale also contributing.

• Gross margin reached 41.8%–42%, a 17-point improvement year-over-year, marking the third consecutive quarter above 40%.

• Net loss narrowed to $0.2 million ($0.02 per share), a 93% or $3.3 million improvement from the prior year, approaching breakeven.

• Cash position increased by $0.5 million in Q2, with $7.8 million in cash and no debt at quarter-end.

• Cash flow from operations turned positive at $0.2 million for the first half of 2024, reversing a $7.5 million outflow in the prior year.

Financial highlights

• E-commerce accounted for 61% of Q2 net sales, up 47% year-over-year; Amazon sales up 80%, DTC up 32%.

• Wholesale represented 39% of Q2 net sales, up 9% year-over-year, with retail scanner sales up 30%.

• Gross profit more than doubled to $4.2 million, up 123% from Q2 2023.

• Operating expenses decreased by $1.0 million year-over-year, driven by lower SG&A and improved marketing efficiency.

• SG&A as a percentage of revenue declined by 14 points year-over-year.

Outlook and guidance

• 2024 net sales guidance raised to $40–44 million, representing 17–29% growth over 2023.

• Gross margin expected at 40–41% for 2024, a 10–11 point improvement over 2023.

• Sufficient cash projected to fund operations into at least 2026; management targets cash breakeven for 2024.

• Continued investment in marketing and product development, with focus on optimizing spend and expanding gross margins.

• Anticipates continued growth in core business segments, with stepped-up marketing and seasonal programs expected to drive second-half performance.