Edible Garden AG Inc (EDBL) 2024 Q2 法說會逐字稿

Good morning, everyone and welcome to the Edible Gardens Second Quarter 2024 Business Update Conference Call. (Operator Instructions) Please note, this conference is being recorded.

大家早安，歡迎參加 Edible Gardens 2024 年第二季業務更新電話會議。（操作員說明）請注意，本次會議正在錄製中。

I will now turn the conference over to your host, Mr. Ted Ayvas, Investor Relations Crescendo Communications. Ted, the floor is yours.

我現在將會議轉交給東道主、投資者關係 Crescendo Communications 的 Ted Ayvas 先生。泰德，地板是你的。

Thanks, Jenny. Good morning, and thank you for joining Edible Garden's quarter ended June 30, 2024, conference call and business update. On the call with us today are Jim Kras, Chief Executive Officer of Edible Garden; and Kostas Dafoulas, Interim Chief Financial Officer of Edible Garden.

謝謝，珍妮。早安，感謝您參加 Edible Garden 截至 2024 年 6 月 30 日的季度電話會議和業務更新。今天與我們通話的是 Edible Garden 執行長 Jim Kras；以及 Edible Garden 臨時財務長 Kostas Dafoulas。

Earlier this morning, the company announced its operating results for the three months ended June 30, 2024. The press release is posted on the company's website at www. ediblegardenag.com.

今天早上早些時候，該公司公佈了截至 2024 年 6 月 30 日止三個月的營運業績。新聞稿發佈在該公司網站 www.食用花園.com。

In addition, the company has filed its quarterly report on Form 10-Q with the US Securities and Exchange Commission, which can also be accessed on the company's website as well as the SEC's website at www.sec.gov. If you have any questions after the call would like any additional information about the company, please contact Crescendo Communications at 2126711020.

此外，該公司已向美國證券交易委員會提交了 10-Q 表季度報告，該報告也可在該公司網站以及 SEC 網站 www.sec.gov 上取得。如果您在通話後有任何疑問，想了解有關該公司的更多信息，請聯繫 Crescendo Communications，電話：2126711020。

Before Mr. Kras reviews the company's operating results for the quarter ended June 30, 2024, and provide a business update, we would like to remind everyone that this conference call may contain forward-looking statements.

在 Kras 先生回顧公司截至 2024 年 6 月 30 日的季度營運業績並提供業務更新之前，我們想提醒大家，本次電話會議可能包含前瞻性陳述。

All statements other than statements of historical facts contained in the conference call, including statements regarding our future results of operations and financial position, strategy and plans and our expectations for future operations are forward-looking statements.

電話會議中除歷史事實陳述外的所有陳述，包括有關我們未來經營業績和財務狀況、策略和計劃以及我們對未來經營的預期的陳述，均為前瞻性陳述。

The words aim, anticipate, believe, could, expect, may, plan, project, strategy will and the negative of such terms in other words in terms of similar expressions are intended to identify forward-looking statements.

「目標」、「預期」、「相信」、「能夠」、「預期」、「可能」、「計劃」、「項目」、「策略意志」等詞語以及這些術語的否定詞（換句話說，類似表達）旨在識別前瞻性陳述。

These forward-looking statements are based largely on the company's current expectations and projections about future events and trends that it believes may affect its financial condition, results of operations, strategy, short-term and long-term business operations and objectives and financial needs.

這些前瞻性陳述主要基於公司目前對其認為可能影響其財務狀況、營運績效、策略、短期和長期業務營運以及目標和財務需求的未來事件和趨勢的預期和預測。

These forward-looking statements are subject to several risks, uncertainties and assumptions as described in the company's filings with the SEC, including the company's annual report on Form 10-K for the year ended December 31, 2023.

這些前瞻性陳述受到本公司向 SEC 提交的文件（包括本公司截至 2023 年 12 月 31 日的 10-K 表格年度報告）中所述的多項風險、不確定性和假設的影響。

Because of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in the conference call may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events.

由於這些風險、不確定性和假設，電話會議中討論的前瞻性事件和情況可能不會發生，實際結果可能與前瞻性陳述中預期或暗示的結果有重大不利差異。您不應依賴前瞻性陳述作為未來事件的預測。

Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance or achievements.

儘管公司認為前瞻性陳述中反映的預期是合理的，但它不能保證未來的結果、活動水準、績效或成就。

In addition, neither the company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The company disclaims any duty to update any of these forward-looking statements, except as required by law.

此外，本公司或任何其他人均不對任何這些前瞻性陳述的準確性和完整性承擔責任。除非法律要求，否則該公司不承擔更新任何這些前瞻性聲明的義務。

All forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements as well as others made in this conference call. You should evaluate all forward-looking statements made by the company in the context of these risks and uncertainties.

所有歸屬於該公司的前瞻性陳述均完全受到這些警告性陳述以及本次電話會議中所做的其他陳述的明確限制。您應該在這些風險和不確定性的背景下評估公司所做的所有前瞻性陳述。

Having said that, I'd now like to turn the call over to Jim Kras, Chief Executive Officer of Edible Garden. Jim?

話雖如此，我現在想將電話轉給 Edible Garden 執行長 Jim Kras。吉姆？

Thanks, Ted. Good morning and thank you to everyone for joining us today. We're excited to report another outstanding quarter, highlighted by a 157% increase in gross profit, fueled by year-over-year growth of 61% in cut herbs and a 30% growth in vitamins and supplements. The shift away from third-party growers and a focus on higher-margin businesses are driving our gross profit margin improvement.

謝謝，泰德。早安，感謝大家今天加入我們。我們很高興地報告又一個出色的季度，毛利增長了 157%，這得益於切碎草藥同比增長 61% 以及維生素和補充劑增長 30%。遠離第三方種植者和對高利潤業務的關注正在推動我們毛利率的提高。

Now with approximately 95% of our fresh product line produced in-house, our gross margin increased to 36.7% in the second quarter of 2024, up from 13.1% in the same period last year. We've also conducted a thorough review of our business operations and made the strategic decision to move away from less profitable segments of our business.

目前，我們約 95% 的生鮮產品線是內部生產的，我們的毛利率從去年同期的 13.1% 增至 2024 年第二季的 36.7%。我們也對我們的業務營運進行了徹底的審查，並做出了策略決策，放棄利潤較低的業務部門。

Instead, we are directing our focus and efforts on towards more profitable, higher-margin segments. We believe this strategic shift combined with the vertical integration of our operations positions us well to achieve our goal of becoming cash flow positive in the near future.

相反，我們將重點和努力轉向利潤更高、利潤率更高的細分市場。我們相信，這一策略轉變與我們業務的垂直整合相結合，使我們能夠很好地實現在不久的將來實現現金流為正的目標。

The second quarter, we expanded the distribution of our pulp line of sustainable USDA organic fermented gourmet sauces and chili-based products with the addition of UNFI distributors. As a leading North American wholesaler of health and specialty foods, UNFI serves over 30,000 locations, including natural product superstores, independent retailers, supermarket chains and e-commerce platforms and food service providers across the continent.

第二季度，我們增加了 UNFI 經銷商，擴大了美國農業部可持續有機發酵美食醬料和辣椒產品的紙漿系列的分銷。作為北美領先的健康和特色食品批發商，UNFI 為超過 30,000 個地點提供服務，包括整個非洲大陸的天然產品超市、獨立零售商、連鎖超市和電子商務平台以及食品服務提供商。

We believe the addition of UNFI, which is dedicated to promoting a better food system and leading the way and meeting consumer demand for healthier options aligns perfectly with Edible Garden's zero waste inspired mission. Through KeHE distributors, UNFI distributors and our own e-commerce platform, retailers across the continent now have access to our Bland to Bold product pulp product line.

我們相信，UNFI 的加入致力於促進更好的食品系統，引領並滿足消費者對更健康選擇的需求，這與 Edible Garden 的零浪費使命完美契合。透過 KeHE 經銷商、UNFI 經銷商和我們自己的電子商務平台，整個非洲大陸的零售商現在可以使用我們的 Bland to Bold 產品紙漿產品線。

Our growing roster of major retailers with pulp includes Target, Whole Foods, Meijer, Morton Williams, Dierberg Markets and Woodman's. According to research and markets, the global sauces and condiments product category is expected to grow to $240 billion in 2028 and from $172 billion in 2021.

我們的紙漿主要零售商名單不斷壯大，包括 Target、Whole Foods、Meijer、Morton Williams、Dierberg Markets 和 Woodman's。根據研究和市場研究，全球醬料和調味品產品類別預計將從 2021 年的 1,720 億美元成長到 2028 年的 2,400 億美元。

The response to the pulp product line has been overwhelmingly positive from consumers seeking to enhance their meals with its Bland to Bold fruit flavor profile, reinforcing Edible Garden's reputation as the flavor maker.

消費者對果肉產品線的反應非常積極，他們希望透過其「溫和」到「大膽」的水果風味來增強膳食質量，從而鞏固了 Edible Garden 作為風味製造商的聲譽。

We are confident that expanding the availability of our pulp lines for UNFI and the KeHE distributors, we are accelerating pulps momentum and ensuring our unique flavors reach consumers across the United States and Canada.

我們有信心擴大我們的紙漿生產線對 UNFI 和 KeHE 經銷商的供應，我們正在加速紙漿發展勢頭，並確保我們獨特的口味能夠到達美國和加拿大的消費者手中。

We've also strengthened our distribution through our partnership with Hemingway’s, which serves more than 350 retailers across the Northeast region. This includes developing a new integrated rack program designed to provide Hemingway’s retail partners and improve the more efficient method for displaying Edible Garden serves.

我們也透過與 Hemingway’s 的合作夥伴關係加強了我們的分銷，Hemingway’s 為東北地區的 350 多家零售商提供服務。這包括開發一個新的整合貨架計劃，旨在為海明威的零售合作夥伴提供服務，並改進更有效的展示 Edible Garden 服務的方法。

These integrated racks align with our strategy to enhance brand visibility and improve consumer access to our products. We believe this initiative will offer a more engaging and efficient shopping experience for all retail customers, which can help increase sales and overall customer satisfaction.

這些整合貨架符合我們提高品牌知名度和改善消費者獲取我們產品的策略。我們相信這項措施將為所有零售客戶提供更具吸引力和更有效率的購物體驗，有助於提高銷售額和整體客戶滿意度。

In July, we expanded our retail distribution network with the addition of Seasons Kosher, a local supermarket chain celebrated for its extensive range of Kosher products distinguished by a commitment to quality and ethical sourcing.

7 月，我們擴大了零售分銷網絡，增加了 Seasons Kosher，這是一家當地連鎖超市，以其廣泛的 Kosher 產品而聞名，並以對品質和道德採購的承諾為特色。

In addition, Lincoln Market, known for its fair pricing and diverse selection of high-quality organic and conventional products will also be gain carrying Edible Garden products. Our dedication to sustainability and community involvement aligns seamlessly with the principles of both these retailers, making them a natural fit for our growth strategy.

此外，以公平定價和多樣化的優質有機和傳統產品而聞名的林肯市場也將因Edible Garden產品而受益。我們對永續發展和社區參與的奉獻與這兩家零售商的原則完美契合，使它們自然適合我們的成長策略。

Furthermore, we are excited that our entire product line, including pulp is now available at every Brooklyn fair location in New York City. Brooklyn fair is renowned for its offering products that satisfy their customers' sophisticated flavor preferences.

此外，我們很高興我們的整個產品線（包括紙漿）現在在紐約市的每個布魯克林展會地點都有售。布魯克林博覽會以其提供滿足顧客複雜口味偏好的產品而聞名。

At the Hudson Yards location, they also operate Chef’s Table at Brooklyn Fare, a restaurant where cutting edge, culinary expertise and creativity comes to life. We launched Garden Starters, potted herbs and basil bowls designed for home gardening to retailers.

在哈德遜城市廣場，他們還在 Brooklyn Fare 經營 Chef’s Table，這是一家將前沿的烹飪專業知識和創造力發揮到極致的餐廳。我們向零售商推出了專為家庭園藝設計的花園入門用品、盆栽香草和羅勒碗。

First introduced in 2023 to cater to the growing popularity of home gardening, these eco-friendly herbs meet the needs of 35% of American households that grow at least some of their own food, providing them with diverse flavor options.

這些環保草藥於 2023 年首次推出，以滿足日益流行的家庭園藝需求，滿足 35% 至少自己種植部分食物的美國家庭的需求，為他們提供多樣化的風味選擇。

Our vertically integrated Edible Garden facilities manage their production, packaging and distribution. By placing Garden Starters, next cut herbs and sustainably sourced produce and supermarkets, we aim to offer maximum convenience to our customers.

我們垂直整合的食用花園設施管理其生產、包裝和分銷。透過在超市中放置花園開胃菜、下一個採摘的香草和可持續採購的農產品，我們的目標是為客戶提供最大的便利。

In May, we entered a product development partnership with Hermann Pickle Company, a leading brand in refrigerated kosher dill pickles, sauerkraut and other fermented foods. Now nationwide for their presence in delis and on family dinner tables.

5 月，我們與 Hermann Pickle Company 建立了產品開發合作夥伴關係，該公司是冷凍猶太蒔蘿泡菜、酸菜和其他發酵食品的領先品牌。現在全國範圍內，它們出現在熟食店和家庭餐桌上。

This collaboration will continue. We'll combine the strength of both companies to explore and develop scalable commercial opportunities, focusing on producing marketing and distributing fermented plant based products and non-GMO consumer packaged goods.

這種合作將會持續下去。我們將結合兩家公司的優勢，探索和開發可擴展的商業機會，專注於生產、行銷和分銷發酵植物產品和非基因改造消費品。

We are excited to work with the Hermann Pickles team, leveraging their esteemed legacy to create a contemporary line of fermented products. In addition, we have implemented several new proprietary innovations focus on packaging and shipping, which is expected to significantly extend the shelf life of our products, reducing spoilage and driving cost savings for our retail partners. These innovations serve as an important competitive differentiator for Edible Garden and build on our other unique solutions.

我們很高興與 Hermann Pickles 團隊合作，利用他們受人尊敬的傳統來創造現代發酵產品系列。此外，我們還實施了多項專注於包裝和運輸的專有創新，預計將顯著延長我們產品的保質期，減少損壞並為我們的零售合作夥伴節省成本。這些創新是 Edible Garden 的重要競爭優勢，並建立在我們其他獨特解決方案的基礎上。

For example, our patented self-watering in-store display has already transformed how plans are displayed, ensuring they remain fresh for longer and greatly minimize waste at retail outlets.

例如，我們專利的自動澆水店內展示已經改變了計劃的展示方式，確保計劃更長時間保持新鮮，並大大減少零售店的浪費。

Aligned with our zero waste inspired admission, these innovations allow retailers to showcase plants at their peak, minimizing waste and providing superior products to our customers. In July, we launched a comprehensive training program with the buildings in Northwest, New Jersey. The non-profit providing employment and data services for individuals with disabilities. Our decade long partnership with Abilities in Northwest New Jersey has been incredibly rewarding.

這些創新與我們的零浪費理念一致，使零售商能夠展示處於巔峰狀態的植物，最大限度地減少浪費，並為我們的客戶提供優質的產品。7 月，我們在新澤西州西北部的建築物啟動了綜合培訓計畫。該非營利組織為殘疾人提供就業和數據服務。我們與新澤西州西北部的 Abilities 長達十年的合作關係取得了令人難以置信的回報。

By integrating workers with disabilities to consistently demonstrate exceptional dedication and hard work, we have created an environment that benefits Edible Garden and it empowers these individuals. Our training programs offer valuable skills and professional development opportunities, enhancing these workers and employability and career prospects while enriching our workforce with diverse talent.

透過讓身心障礙工人始終如一地表現出卓越的奉獻精神和辛勤工作，我們創造了一個有利於 Edible Garden 的環境，並賦予這些人權力。我們的培訓計劃提供寶貴的技能和專業發展機會，提高這些工人的就業能力和職業前景，同時豐富我們的員工隊伍的多元化人才。

As we expand this partnership, Edible Garden remains committed to community involvement, local investment and leadership in ESG and sustainability initiatives that we are known for.

隨著我們擴大這種合作夥伴關係，Edible Garden 仍然致力於社區參與、當地投資以及在 ESG 和永續發展舉措方面的領導力，而這些都是我們聞名的。

I would like to turn the call over Kostas Dafoulas, our interim Chief Financial Officer, who will review the financial results for the three months ended June 30, 2024. Kostas?

我想將電話轉交給我們的臨時財務長 Kostas Dafoulas，他將審查截至 2024 年 6 月 30 日的三個月的財務表現。科斯塔斯？

Thanks, Jim, and good morning, everyone. Turning to our second quarter results. Total revenue for the second quarter was $4.2 million, relatively flat compared to Q2 2023. The slight increase in revenue was driven by our core product portfolio, primarily cut herbs and our vitamin supplement business.

謝謝吉姆，大家早安。轉向我們第二季的業績。第二季總營收為 420 萬美元，與 2023 年第二季相比相對持平。收入的小幅增長是由我們的核心產品組合（主要是切草藥和維生素補充劑業務）推動的。

Our strategic shift away from lower-margin products offset the revenue increase in our core products, specifically from the floral segment. Cost of goods sold decreased by 37% to $2.7 million for the three months ended June 30, 2024, compared to $3.7 million for the 2023 comparable quarter.

我們從低利潤產品的策略轉變抵消了我們核心產品（特別是花卉領域）的收入成長。截至 2024 年 6 月 30 日的三個月，銷售商品成本下降 37%，至 270 萬美元，而 2023 年同期為 370 萬美元。

The decrease was largely driven by the company's strategic shift away from our largest third-party growers. As Jim stated earlier, in the second quarter of 2024, the company's gross profit increased by 157% as compared to the 2023 comparable period. In addition, gross margin increased to a record 34.4% in the second quarter of 2024 compared to 13.1% for the same period last year. Both these impressive results were driven by the shift away from our dependence on third-party growers.

這一下降主要是由於該公司策略轉移，遠離我們最大的第三方種植商。正如吉姆先前所說，2024年第二季度，該公司的毛利較2023年同期成長了157%。此外，2024年第二季毛利率增至創紀錄的34.4%，去年同期為13.1%。這兩項令人印象深刻的業績都是由於我們擺脫對第三方種植者的依賴而推動的。

Selling, general and administrative expenses totaled $2.7 million for the three months ended June 30, 2024, compared to $2.4 million for the three months ended June 30, 2023. The increase was primarily driven by higher audit, accounting and legal fees related to our capital raising activities in the quarter and a one-time expense of $100,000.

截至2024年6月30日止三個月的銷售、一般及管理費用總計270萬美元，而截至2023年6月30日止三個月為240萬美元。這一增長主要是由於與本季度融資活動相關的審計、會計和法律費用增加以及 100,000 美元的一次性費用。

Net loss was $1.21 per share for the three months ended June 30, 2024, compared to a net loss of $4.83 per share for the three months ended June 30, 2023, while a loss from operations improved year-over-year by $645,000 from the loss of $1.83 million in Q2 of 2023 to $1.18 million in Q2 of 2024, higher interest expense and a one-time loss on the extinguishment of debt in Q2 of 2024, along with a one-time $1.2 million credit in Q2 of 2023 related to the employee retention credit led to an increase of our net loss this year.

截至2024 年6 月30 日止三個月的每股淨虧損為1.21 美元，而截至2023 年6 月30 日止三個月的每股淨虧損為4.83 美元，而營運虧損較上年同期減少645,000美元。員工保留信貸導致我們今年的淨虧損增加。

In closing, we've been working hard to improve our margins and we are pleased with the way our team executed this quarter. Our results in Q2 show that the strategic shift we made in our product mix and reliance on third-party growers is starting to deliver results, we remain committed to a disciplined financial approach.

最後，我們一直在努力提高利潤率，我們對團隊本季的執行方式感到滿意。我們第二季的結果表明，我們在產品組合和對第三方種植者的依賴方面所做的策略轉變正在開始取得成果，我們仍然致力於採取嚴格的財務方法。

And with that, operator, please open the line for questions.

那麼，接線員，請開通提問線路。

(Operator Instructions)

（操作員說明）

Anthony Vendetti of the Maxim Group.

Maxim 集團的 Anthony Vendetti。

So Jim, it's great to see that we're moving more towards the high profitable items and vitamins and supplements grew this quarter. Can you talk about the outlook for that product line for the rest of this year? And then also just talk to us about the contract growers. I know you've been trying to reduce that to improve gross margin. How did that do this quarter and then expectations for that for the rest of the year as well?

吉姆，很高興看到我們更多地轉向高利潤產品以及本季成長的維生素和補充劑。您能談談該產品線今年剩餘時間的前景嗎？然後也只是和我們談談合約種植者。我知道你們一直在努力降低這一點以提高毛利率。本季的表現如何，以及今年剩餘時間的預期如何？

We're extremely pleased with the quarter with the reflection in the numbers. I mean, we are continuing to expand the assortment of our products so we have the diversity that we need and the flexibility. Obviously, we are a CEA company that using the greenhouse is going to form everything we do and we're moving more to finished goods, i.e., the farms formula approach to the vitamins and supplements.

我們對本季的數字反映非常滿意。我的意思是，我們正在繼續擴大我們的產品種類，以便我們擁有所需的多樣性和靈活性。顯然，我們是一家 CEA 公司，我們所做的一切都將使用溫室，我們將更多地轉向成品，即採用農場配方方法生產維生素和補充劑。

To answer your question, vitamin supplements, we have a big trade show coming up in September. We'll be introducing a new line, in addition to the existing vitamin way line that we have.

為了回答您關於維生素補充劑的問題，我們將在九月舉辦一場大型貿易展。除了我們現有的維生素系列產品線之外，我們還將推出一條新產品線。

There'll be some near-term announcements as far as us expanding our sales efforts in the e-commerce realm, and then shortly, so that will allow us to expand our reach. That's going to really be driven by a combination of not only new products, but I think our positioning and relationship the 5,000 stores that we have, which allow us to have some opportunity to drive that business in and expand it.

我們將在不久的將來發布一些關於擴大電子商務領域銷售力度的公告，以便我們能夠擴大我們的業務範圍。這實際上不僅是由新產品的組合推動的，而且我認為我們的定位和我們擁有的 5,000 家商店的關係，這使我們有機會推動並擴大業務。

Obviously, the ring for vitamins and supplements is much higher than a plant, let's say. So for us, we see that not only allowing us to drive the business at a good healthy margin but also drive that top line significantly as we have been able to really dig in and get the CEA part of the business, the greenhouses with Michigan fully online now and is growing 95% of our fresh goods really allows us to kind of check the box shortly here once that business is cash flow positive, that segment and really start to drive the bottom of the supplements, we've got a line of functional pickles, which will be kind of one of the totally new item out into the marketplace.

顯然，維生素和補充劑的環比植物高得多。因此，對我們來說，我們看到這不僅使我們能夠以良好的健康利潤推動業務，而且還顯著推動營收，因為我們已經能夠真正深入挖掘並獲得CEA 部分業務，即與密西根州完全合作的溫室現在在網上，我們95%的新鮮商品都在增長，一旦該業務現金流為正，我們就可以很快在這裡勾選框，該部分並真正開始推動補充劑的底部，我們有一系列功能性泡菜，這將是進入市場的全新產品之一。

That's something that we're currently working on. And I would I think that launch will happen at the big produce show this fall. And we have some other products that have already gotten acceptance into our retailers that will be launching in 2025, not only in the vitamin supplement part of the business, but also in the more shelf-stable fresh segment.

這是我們目前正在努力的事情。我認為該產品的發布將在今年秋天的大型農產品展上進行。我們還有一些其他產品已獲得零售商的認可，並將於 2025 年推出，不僅涉及維生素補充劑業務，還涉及保質期更穩定的新鮮領域。

So I couldn't be more bullish on the business right now. It's all starting to come together and we're really starting to kind of hit our marks.

所以我現在對這項業務非常樂觀。一切都開始融合在一起，我們真的開始達到目標了。

So we'll continue on the vertical integration piece to answer your second question, as it relates to continuing to make an investment in efficiency, shifting away from bringing product from the outside, specifically, a lot of the fresh goods it helps in so many different ways.

因此，我們將繼續在垂直整合方面回答您的第二個問題，因為它涉及到繼續對效率進行投資，不再從外部引進產品，特別是它在許多領域提供的許多新鮮商品。

Yes, there's the margin expansion that it drives, but it's also just quality, consistency, cuts down on shrink. We control what now is a very tight supply chain, especially to the likes of Meijer and Wakefern, Shoprite and Walmart, where we're so close to their distribution centers, with our own facility that it's very smooth and we have a lot of control over it and we have been able to continue to cut down our transportation cost by using backhauls with both the retailers that pick up goods at our facilities, which really helps us not only with the environment and taking trucks off the road, but also by ride sharing, but also just by proficiency since everything kind of runs a clockwork.

是的，它推動了利潤率的擴張，但它也只是品質、一致性和減少損耗。我們控制著現在非常緊張的供應鏈，特別是像 Meijer 和 Wakefern、Shoprite 和沃爾瑪這樣的供應鏈，我們距離他們的配送中心非常近，擁有自己的設施，非常順暢，我們有很多控制權通過與在我們工廠提貨的零售商進行回程，我們能夠繼續降低運輸成本，這不僅對環境有幫助，讓卡車不再上路，而且對乘車也有幫助分享，但也只是靠熟練程度，因為一切都有條不紊地運行。

So really, really excited. It's taken us a little bit of time to get over the last three months, we've really we've improved the operations by a huge jump just with the ability of having everything in-house and controlling more of it.

真的非常非常興奮。我們花了一點時間才度過了過去的三個月，我們確實已經在營運上取得了巨大的進步，僅僅因為我們能夠將所有內容都放在內部並控制更多內容。

And obviously, you have many of the top, if not all of the top well-known retailers as customers, which speak to the quality of your products. Can you talk about the expansion of SKUs within those retailers this quarter and expectation for the rest of the year?

顯然，您擁有許多頂級（如果不是全部）頂級知名零售商作為客戶，這說明了您產品的品質。您能否談談本季度這些零售商的 SKU 擴張情況以及對今年剩餘時間的預期？

And I think that's important to focus on because this quarter has really been getting the house in even better order once again, like I said, all you have to do is look at the GP increase to see that the impact of the investment we've made in people and in machinery and just getting better oil.

我認為這一點值得關注，因為這個季度確實再次讓房子變得更好，就像我說的，你所要做的就是看看 GP 的增長，看看我們的投資的影響由人和機器製造，並獲得更好的石油。

For us, it's really moving forward. This quarter is going to be a good strong quarter as usual with our existing relationships. We have a contract with Meijer on the herbs that allows us a ring side seat to do what we need to do to get new items in.

對我們來說，這確實是在向前邁進。與往常一樣，就我們現有的關係而言，本季將是一個強勁的季度。我們與 Meijer 簽訂了一份有關草藥的合同，這使我們能夠在戒指旁邊做我們需要做的事情來獲得新物品。

That's always an ongoing conversation that we have because we're a mile from their it's a couple of miles from their headquarters, they want rapid. So we spent a lot of time with the buyers, really focusing on innovation. There's a considerable amount of private label opportunities for all these retailers, there's been a big shift there in the marketplace, especially with inflation, private label continues to pick up steam and they're coming to us to help round out their assortment.

這始終是我們持續進行的對話，因為我們距離他們一英里，距離他們總部也只有幾英里，他們想要快速。因此，我們花了很多時間與買家交流，真正專注於創新。對於所有這些零售商來說，都有大量的自有品牌機會，市場發生了巨大的轉變，特別是在通貨膨脹的情況下，自有品牌繼續成長，他們來找我們幫忙完善他們的品種。

So for us, look, we've got 5,000 doors plus and growing Walmart, Wakefern , Shoprite, Meijer, Hannaford, which is [Della Hayes], the list goes on and on. And so for us, it's really not only driving the existing business by adding on SKUs of maybe herbs that they may not carry or let us products that they want.

所以對我們來說，看，我們已經有超過 5,000 家門，而且還在不斷增長，沃爾瑪、Wakefern、Shoprite、Meijer、Hannaford，還有 [Della Hayes]，這樣的例子不勝枚舉。因此，對我們來說，這實際上不僅是透過添加他們可能不攜帶或不讓我們提供他們想要的產品的草藥 SKU 來推動現有業務。

But there's also this opportunity since we are a leader in that produce set especially the sustainability and cut herbs to leverage that to help that inform other more shelf stable products that give us kind of less pressure to get it out the doors quickly and allow us to get a better margin as a function of just being shelf stable and we can put the time and the need to kind of formulate the stuff to make it acceptable on all fronts.

但也存在這樣的機會，因為我們是該產品系列的領導者，特別是可持續性和切草本，以利用它來幫助告知其他貨架穩定的產品，這給我們帶來了一些較小的壓力，使我們能夠快速將其推出市場，並允許我們只要保持貨架穩定，就能獲得更好的利潤，我們可以投入時間和需求來製定產品，使其在各個方面都可以接受。

So like I said, we got a big trade show in fall, vitamin supplement new line coming out, which is going to be fantastic. Everything we do is more sustainable, more better for you. I don't know if that's I could say it that way, but better for you said a more better for you. And that positioning, I think is continues to give us, like I said, a ring side seat to be able to go in there and always get into the fight and we're coming out with a lot of wins, which is great.

就像我說的，我們在秋季舉辦了一場大型貿易展，維生素補充劑新系列即將推出，這將是非常棒的。我們所做的一切都更加永續，對您來說更好。我不知道我是否可以這樣說，但對你更好是說對你更好。我認為，就像我說的那樣，這種定位繼續為我們提供了一個擂台旁的座位，讓我們能夠進入那裡並始終參與戰鬥，並且我們取得了很多勝利，這很棒。

So I couldn't be more excited about where the business is. It's been a dramatic shift. I'd like to thank [Costas] who came on board in January and has really helped us really operate at the high level that's expected from a finance perspective from our retailers when you're dealing with such large retailers, I mean the expectation is nothing short of excellence. Otherwise, we'll just find somebody else.

因此，我對業務所在地感到非常興奮。這是一個戲劇性的轉變。我要感謝[科斯塔斯]，他在一月份加入，他確實幫助我們真正實現了高水平運營，這是我們零售商在與如此大的零售商打交道時從財務角度所期望的，我的意思是期望是無可比擬的卓越。不然的話，我們就只能再找別人了。

And I think that's where not only have we done it, I think, in the products that we grow and the new innovations that we're coming out with and some of the technology that we have that supports who we are as a brand and what we stand for, but now we have team members that we brought in like Costas that are elevating how we conduct business, how we manage the relationships, how we manage our cash and like I said, it's been exciting.

我認為這不僅是我們做到的地方，我認為，我們開發的產品和我們推出的新創新以及我們擁有的一些技術來支持我們作為一個品牌和什麼我們所代表的，但現在我們引入了像科斯塔斯這樣的團隊成員，他們正在提升我們開展業務的方式、我們管理關係的方式、我們管理現金的方式，就像我說的，這令人興奮。

(Operator Instructions)

（操作員說明）

Nick Pinkus of Forest Capital.

森林之都的尼克·平庫斯。

Congrats on a very strong quarter, especially the improvement in margins. And as the last caller mentioned, it seems to me you've got this amazing distribution network with all these loyal retailers and now it's really just about pushing more margin product through that funnel.

恭喜本季表現強勁，尤其是利潤率的提高。正如最後一位來電者所提到的，在我看來，您已經擁有了這個令人驚嘆的分銷網絡，擁有所有這些忠誠的零售商，現在實際上只是透過該管道推動更多的利潤產品。

So my first question, you touched a bit on this in your last the last question, but if you can expand a little bit on the shift in the product specifically to shelf stable items and the benefits there as well as how you kind of see that playing out in the second half of this year?

所以我的第一個問題，您在最後一個問題中談到了這一點，但是您是否可以稍微擴展一下產品的轉變，特別是貨架上穩定的商品以及那裡的好處以及您如何看待這一點今年下半年會播出嗎？

Look, just to kind of reinforce what I had to say to Anthony, it's really a function of putting the right products in the right pricing at the right margin into the funnel, as you would say or the distribution platform. And one of the crown jewels of Edible Garden has always been our relationships as a company, many people say, Well, Jim, you've been dealing with these guys through the last couple of decades.

聽著，只是為了強化我要對安東尼說的話，這實際上是將正確的產品以正確的價格、正確的利潤放入渠道的功能，就像你所說的分銷平台一樣。Edible Garden 皇冠上的寶石之一一直是我們作為一家公司的關係，很多人說，好吧，吉姆，在過去的幾十年裡你一直在與這些人打交道。

And it's not it really comes down to the and I'm not just saying the team and our ability to execute. When you look at our fill rates, when we're running mid- to high 90s, which is exceptional when you consider we're handling the live goods that makes us a trusted partner.

這並不是真正取決於，我不僅僅是說團隊和我們的執行能力。當您查看我們的填充率時，我們的填充率處於 90 年代中高水平，當您認為我們處理的實時商品使我們成為值得信賴的合作夥伴時，這是非常出色的。

And if our trucks are running in and they're running into the stores, I'll name them again, Walmart and Meijer, Hannaford and Shoprite. These are we're coming off on 60% to 70% of the total population in the US as we're going into these stores 3 times to 4 times a week with our trucks or their trucks.

如果我們的卡車駛入商店，我會再次命名它們：沃爾瑪和梅耶爾、漢納福德和紹普萊特。這些是我們要面對的美國總人口的 60% 到 70%，因為我們每週開著我們的卡車或他們的卡車進入這些商店 3 到 4 次。

It's just a matter of having the right offering. It's once again that we know that we can sell work with the retailers to promote. We've got some exceptional team members that come from these retailers,

這只是提供合適產品的問題。我們再次知道我們可以與零售商一起銷售作品進行推廣。我們有一些來自這些零售商的傑出團隊成員，

Dave Ross, who heads up our sales department. I mean, smart eye who work at Wakefern and Church & Dwight, and he understands what these retailers want at a buying level and what it takes to execute, especially in the store to not only have to communicate that you're an innovative product, but to also know what you have to do in order to not only get the product in, but to sell it through. And that's not only from a marketing advertising push perspective, but from a promotional and trade marketing standpoint.

戴夫羅斯 (Dave Ross)，我們銷售部門的負責人。我的意思是，在 Wakefern 和 Church & Dwight 工作的聰明人，他了解這些零售商在購買層面上想要什麼以及需要執行什麼，特別是在商店中，不僅要傳達你是一個創新產品，但也要知道你必須做什麼才能不僅獲得產品，而且將其銷售出去。這不僅是從行銷廣告推動的角度來看，也是從促銷和貿易行銷的角度來看。

So we've got good shows coming up with new product lines and we're coming out with all guns of blaze and I couldn't be, like I said, more excited. We have a great relationship with Nutracom who's our vitamin supplement co-man, they just become more and more of a trusted partner to help us push out the next generation of products.

因此，我們已經推出了新產品線，我們將全力以赴，正如我所說，我感到非常興奮。我們與 Nutracom 有著良好的關係，Nutracom 是我們的維生素補充劑合作夥伴，他們正成為越來越值得信賴的合作夥伴，幫助我們推出下一代產品。

And I think people have been very excited about what they're going to see in the first week of September at eCRM. We've got major meetings set up there. We've already got some commitments on the new line for 2025, which is pretty much unheard of. So once again, speaks to our relationships. The teams wherewithal that the retailers would commit to so early on to some of this stuff really kind of sight unseen.

我認為人們對 9 月第一周在 eCRM 上看到的內容感到非常興奮。我們在那裡舉行了重要會議。我們已經對 2025 年的新線路做出了一些承諾，這幾乎是聞所未聞的。再次談到我們的關係。零售商這麼早就承諾為這些東西投入的團隊資金確實是前所未見的。

And then all of this really comes down to higher ring products that help us leverage those 5,000 doors at a higher margin, that should not only help the topline of the business and continue to grow hopefully at an even more accelerated rate as a function of what we charge for these items, but also the bottom line since the margin is going to be a lot more intact since these are self-stable products versus some of the pressures we get from fresh goods. I hope that helps, Nick.

然後，所有這一切實際上都歸結為更高的環產品，幫助我們以更高的利潤利用這 5,000 扇門，這不僅有助於提高業務收入，而且有望繼續以更快的速度增長，因為我們對這些商品收費，但也對底線收費，因為利潤將更加完整，因為這些是自我穩定的產品，而不是我們從生鮮商品中獲得的一些壓力。我希望這有幫助，尼克。

It definitely does. And kind of to put it another way, it seems like it's the relationships and the trust that you've built with the big retailers that the Street really hasn't woken up to yet. But hopefully, they will as you start pushing more products through these retailers and through this channel. So, good luck with that.

確實如此。換句話說，似乎是你與大型零售商建立的關係和信任，而華爾街還沒有真正意識到這一點。但希望當你開始透過這些零售商和這個管道推銷更多產品時，他們會這麼做。所以，祝你好運。

The second part of my question, you also touched on this a little bit, but if you could expand on it a little bit more. As you head into the peak season around Thanksgiving in the holidays, is there room for more vertical integration and gross margin improvement going forward in 2025? What are your thoughts on that?

我的問題的第二部分，你也談到了這一點，但如果你能進一步擴展一下。隨著感恩節假期旺季的到來，2025 年是否有更多垂直整合和毛利率改善的空間？您對此有何看法？

Look, it's game time for us as a company come in Q4. I mean that's to us, we've always said that the super bowl of herbs and leases, especially herbs, just a function of people cooking around the holidays. Look, we've the trending data all points to people because of inflation, because of creativity, because of nutritional value, people wanting fresher goods people are cooking more and more at home and that's only continued for there's always seems to be a reason whether like I said it's inflation or people just want more nutritious product, some people just come down to spending money out at the restaurant.

看，對於我們第四季的公司來說，現在是遊戲時間。我的意思是對我們來說，我們總是說超級碗香草和租賃，尤其是香草，只是人們在假期期間做飯的功能。看，我們的趨勢數據都指向人們，因為通貨膨脹，因為創造力，因為營養價值，人們想要更新鮮的食物，人們越來越多地在家做飯，而且這種情況只會持續下去，因為似乎總是有一個理由就像我說的，這是通貨膨脹或人們只是想要更有營養的產品，有些人只是在餐廳裡花錢。

And that all that all equates to people, like I said, cooking more at home and herbs have continued to gain such a great prominence since they really are a flavor maker, and they allow you to add flavor and some nutrition to your products. And so that's always been the case in the holiday.

所有這一切都等同於人們，就像我說的，更多地在家做飯，香草繼續獲得如此巨大的關注，因為它們確實是一種風味製造商，它們可以讓你為你的產品添加風味和一些營養。假期裡總是這樣。

We crushed it last Thanksgiving. I would expect nothing less this Thanksgiving. That business for us continues to grow. We continue to be an expert in the holiday season with the items and the displays and the things that we do that are consumer facing that helped drive turns and volumes.

去年感恩節我們粉碎了它。我對這個感恩節充滿期待。我們的業務持續成長。我們仍然是假期季節的專家，我們面向消費者的商品和展示以及我們所做的事情有助於推動銷售和銷售。

I mean there's no shortage of demand of people buying herbs from the beginning of November through the second the first week in January.

我的意思是，從十一月初到一月第一週的第二週，人們購買草藥的需求並不缺乏。

So for us, the margin will continue to improve. We're bringing in actually brought in an outside consultant who is dedicated. She got a Cargill to help us improve our efficiency on our lines. We're putting in another production line in Heartland, in Michigan so that we can increase even more volume.

所以對我們來說，利潤率將持續提高。我們實際上引進了一位敬業的外部顧問。她請嘉吉來幫助我們提高生產線的效率。我們正在密西根州的哈特蘭建立另一條生產線，以便我們可以增加更多的產量。

So for us, it's game on. I expect the margins to continue to improve on that core business. Expect the herbs to continue to grow not only for cut, but also living and everything a lot of the displays through the holidays. We've got meetings coming up with major retailers in the next couple of weeks to talk even more about incremental opportunities during the holidays.

所以對我們來說，比賽已經開始了。我預計核心業務的利潤率將持續提高。預計藥草會繼續生長，不僅用於砍伐，而且還可以在假期中生存和展示。我們將在接下來的幾週內與主要零售商舉行會議，更多地討論假期期間的增量機會。

And like I said, we've got some of these other products the vitamin supplement business, we're just starting to really put the effort towards that now that we've got the core business in a place that we can really start to drive it and now we can really focus on innovation and scale the vitamin supplement business and that Q4 load-in for us for New Year's resolution sales season in January has always been and this year, we're going to be pushing that as well, and we'll have some new lines. I don't know how much of the new lines will get in Q4 but we'll get some in. We've got some commitment.

就像我說的，我們已經有了一些其他產品，即維生素補充劑業務，我們才剛開始真正努力實現這一目標，因為我們已經將核心業務放在了我們可以真正開始推動的地方現在我們可以真正專注於創新並擴大維生素補充劑業務，一月份新年決心銷售季的第四季度加載一直是，今年我們也將推動這一點，並且我們將會有一些新線路。我不知道第四季度會有多少新線路，但我們會增加一些。我們有一些承諾。

So for us, once again, I think there's a huge opportunity here to continue to do better than the year before. As a function of not only opportunities because of our relationships and people wanting and trusting us to do more.

因此，對於我們來說，我認為這裡有一個巨大的機會可以繼續比前一年做得更好。這不僅是因為我們的關係以及人們希望並信任我們做得更多而帶來的機會。

But they're expanding the product the product lines to pick up more of that consumer that's in there that's looking for either sustainable sauces that are organic, that are very unique and play in a white space and produce that right on our truck that's already going in there with the ERPs, i.e. pulp, or some of these other new products that we'll be announcing shortly as it relates to other sort of commitments.

但他們正在擴大產品和產品線，以吸引更多正在尋找可持續有機醬料的消費者，這些醬料是非常獨特的，可以在白色空間中使用，並在我們已經行駛的卡車上生產。包括ERP，即紙漿，或我們將很快宣布的一些其他新產品，因為它與其他類型的承諾有關。

And that's something I didn't mention, which was our development of the fresh condiment category which is incredibly unique for us as a company and unique for the industry. I mean, for years, people have been kind of buying the same old tired continents, ketchup and mustards and whatnot and now being able to come out with a better product that's fresher, taste better, better for you.

這是我沒有提到的，那就是我們對新鮮調味品類別的開發，這對我們作為一家公司來說是非常獨特的，對於整個行業來說也是獨一無二的。我的意思是，多年來，人們一直在購買同樣陳舊的大陸食品、番茄醬和芥末之類的東西，現在能夠推出更好的產品，更新鮮、味道更好、更適合你。

Doesn't have all the kind of negative preservatives to us is where we're pushing. And I think because of the relationship that we have, you're going to see some pretty great strides there pulp has been a bright spot all year long.

不含所有對我們不利的防腐劑是我們努力的方向。我認為，由於我們之間的關係，你會看到紙漿全年都取得了一些相當大的進展。

Teams pushing to continue to gain that and you just look at the list from target to Whole Foods to Meijer just in the last year. And I think the industry is going to look at us and say, not only do you have great distribution, but you've got great products. And you guys are more than just a company that grows leafy green.

團隊正在努力繼續實現這一目標，你只需看看去年從 Target 到 Whole Foods 再到 Meijer 的名單即可。我認為業界會看著我們說，你們不僅有很好的分銷，而且有很棒的產品。你們不僅僅是一家種植綠葉植物的公司。

And so to me, it's being that next-generation provider of better-for-you products that are rooted in, excuse me, on rooted in the fact that we actually grow a lot of these items, or they end up in the product, I think is going to be for us a huge differentiator and I'm pretty excited about it, frankly.

所以對我來說，它是下一代為你提供更好的產品的供應商，它植根於，對不起，植根於這樣一個事實：我們實際上種植了很多這些物品，或者它們最終出現在產品中，我認為這對我們來說是一個巨大的差異化因素，坦白說，我對此感到非常興奮。

That's awesome. And we really appreciate your hard work and the entire team. It seems like we're making tremendous progress and very excited to get updates on in future quarters. Good luck.

太棒了。我們非常感謝您和整個團隊的辛勤工作。我們似乎正在取得巨大進展，並且非常高興能在未來幾季獲得更新。祝你好運。

Thank you very much. Well, we appear to have reached the end of our question-and-answer session. I will now hand back over to the management team for closing remarks.

非常感謝。好吧，我們的問答環節似乎已經結束了。我現在將交回管理團隊進行閉幕致詞。

Thank you for joining us today. Our impressive performance in the second quarter and the first half of 2024 is a testament to the dedication and years of effort from the entire Edible Garden team. We have consistently delivered high fill rates and built a strong reputation in the industry as a trusted dependable supplier.

感謝您今天加入我們。我們在 2024 年第二季和上半年的出色表現證明了整個 Edible Garden 團隊的奉獻精神和多年的努力。我們始終如一地提供高填充率，並作為值得信賴的可靠供應商在業內建立了良好的聲譽。

Our results also highlight the significant benefit that vertical integration is added to our operations. We are optimistic about what lies ahead and believe the future is extremely promising.

我們的結果也凸顯了垂直整合為我們的營運帶來的顯著好處。我們對未來感到樂觀，並相信未來充滿希望。

Thank you again and thank you for being on the call.

再次感謝您並感謝您接聽電話。

Thank you very much. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.

非常感謝。今天的電話會議到此結束。此時您可以斷開電話線並度過美好的一天。感謝您的參與。