Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| But because we have the confidence from this company is really a very older -- it's a 20-year-old company, and we have great relations and history with our club business and our private label business that gives us the confidence that then when we take these guidance numbers like we said $200 million to $205 million this year, we're not depending on such the growth that -- because we're still -- when it comes to the products that we're just -- we're still just launching products into the market |
| We now have greater confidence that we can meet our $40 million expense reduction target by year end 2023 |
| So yes, we believe that -- we feel good that we're going to be able to meet our guidance that we're showing and hopefully beat it |
| In addition, we have reduced the amount of time that our product stands on promotion in the store by 4.3%, which shows growth in both our base business and continuing brand loyalty |
| I am encouraged by our results for the first quarter and by the factors that we believe separate Tattooed Chef from our competitors |
| We expect to generate annual cost savings of approximately $40 million and had a good start towards this goal in the first quarter |
| I remain incredibly excited about the future of Tattooed Chef |
| And that's what gives us confidence in being able to further expand upon our pathway to profitability |
| Gross margin is expected to improve on a consecutive quarterly basis throughout 2023 |
| We also expect to generate savings via enterprise-wide efficiency gains |
| It is exactly one of the ways that we're going to be increasing our gross margins and being able |
| So, whereas, it does help us drive some revenue, and it does help us with products that historically, our profitable and good selling products for us |
| Tattooed Chef has a big future and the better-for-you food and the better for the planet space |
| So, with both of these things happening at the same time, we're very optimistic that we'll be able to hit profitability and we're just -- we're trying to be conservative, because it's been very interesting how our whole market that -- our competitors, our peers in the same market, they've just continuously hit -- misguided so badly for two years now |
| And Sam, it sounds like these new products will actually enhance your ability to get to profit and positive cash flow |
| Our manufacturing base assures that we work with sustainable growing practices, which results in high nutrient fruits and vegetables |
| As promised, we are reducing the costs necessary to operate our business without compromising our quality or commitment to our clients |
| We are building more efficient distribution networks and product lines through automation, along with the integration of an ERP system throughout all of our facilities |
| It's great to be speaking with you all -- with all of you with our filings up to date and with a little bit of tailwind in progressing towards our goal of switching from growth to profitability |
| Our progress is more pronounced when comparing Q1 2023 to the fourth quarter ended December 31, 2022, with the reduction in total operating expenses and a continued narrowing of our losses |
| So, it'll hit that pivot point that point to where we're reducing our expenses, and we're increasing, all of our new innovation, all has, all these ambient items come in such a higher margin |
| We have invested in our brand and our manufacturing capabilities provide us with control and opportunity |
| And so I just think that we needed to take a step back, and be a lot more realistic, and really just now start building from a base to where we're very confident and comfortable with what we're doing |
| Thanks for your continued support |
| So, we are able to be a little bit more aggressive and flexible with our innovation |
| We compete in the health and wellness category and per SPINS data for 12 weeks ending 4/23/2023 of the top 20 brands, Tattooed Chef is one of seven brands that continues to show unit sales growth |
| The health and wellness category is down 10.6% of units, while Tattooed Chef is delivering 12% more units than this time last year and experiencing 4% growth in total MULO |
| Have a great day |
| some outside of the frozen section, and going through and really taking a product-by-product stamp as to how to move Tattooed Chef in the right direction, while focused on having quality product that tastes good, but also generating revenue and where we can cut that, whether it be overhead in the plant itself or if it's actually looking at the product line and looking at how it's manufactured and what we can do to increase the margin on a per SKU basis |
| We are also taking actions to drive efficiencies in our operations and fine-tune our trade spend |
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| Our Q1 2023 net revenue declined by $8.6 million or 12.7% to $59.1 million from $67.7 million in last year's first quarter, due primarily to a $7.3 million decrease in Tattooed Chef branded products with Walmart |
| Private label and other revenues decreased 4.4% to $27.4 million quarter-over-quarter, due to a decision made to discontinue certain food service items that were inherited with the New Mexico food distributor acquisition in 2021 |
| And the idea of stopping this would actually hinder your ability to hit it |
| And basically, we have been unable to ship products now for a couple of weeks |
| Gross loss was $4.1 million as compared to gross profit of $4.1 million in Q1 2022, which was primarily due to inflationary pressures on raw materials and packaging and the increase in trade spend |
| As you know, frozen has just the lowest margins in the whole -- in our whole -- in the stores that we sell |
| But there is whole $5 million contra revenue that affects profitability, just because it reduces revenue |
| First question, I saw a note in your press release just about a vendor disruption and that's going to impact your 2Q results |
| We also reduced our cash burn quarter-over-quarter |
| And everyone across the country who does business with this vendor is being affected |
| So what we wanted to do is we wanted to be conservative but we wanted to be realistic because as we know, the market in general, in our categories are declining, I believe that our numbers this year are spot on |
| Net loss narrowed to $19 million or negative $0.23 per share from a net loss of $20.2 million or negative $0.25 per share in Q1 2022 |
| Cost of goods sold declined to $63.2 million from $63.6 million in Q1 2022, due primarily to inflationary pressure on raw materials and packaging costs, that impacted some of our best-selling products, specifically Asia [ph], third-party services and open capacity at the manufacturing sites |
| And so it's taken us a little bit longer than we originally planned |
| But I'm just curious to get your perspective on really what gives you confidence in that guidance figure and the -- it sounds like Q2 might be affected a little bit, but on that run rate, sales number going forward |
| The decline was due to several factors, including a reduction in inventory of $18.6 million |
| And obviously, when the market changed, from a liquidity standpoint, we had to change |
| Can you just expand here on possibly the magnitude and exactly what is the nature of the vendor disruption? A – Stephanie Dieckmann We use a cold storage facility that is nationwide, and we are in several locations, and they have experienced an outage in their system |
| So the first place is we've reduced our staff |
| Net cash used in operating activities for the first quarter of 2023 was $5.7 million, a substantial decline from net cash used in operating activities of $26.4 million at March 31, 2022 |
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