The company's operational efficiency has deteriorated significantly, evidenced by a negative gross margin of -4.9% and an operating margin of -36.0% reported in 2024Q2.
| Sales/Revenue | 139.75M | 368.42M | 396.46M | 198.86M | 0 |
| Revenue Growth % | 12.98% | -7.07% | 99.37% | - | - |
| Cost of Goods Sold | 146.23M | 374.32M | 397.74M | 190.95M | 0 |
| COGS % of Revenue | - | 101.6% | 100.32% | 96.02% | - |
| Gross Profit | -6.48M | -5.9M | -1.28M | 7.91M | 0 |
| Gross Margin % | -4.64% | -1.6% | -0.32% | 3.98% | - |
| Gross Profit Growth % | - | -360.97% | -116.17% | - | - |
| Operating Expenses | 28.19M | 36.2M | 38.4M | 11.93M | 1.02K |
| OpEx % of Revenue | - | 9.83% | 9.69% | 6% | - |
| Selling, General & Admin | 19.6M | 30.35M | 27.64M | 10.83M | 1.02K |
| SG&A % of Revenue | - | 8.24% | 6.97% | 5.45% | - |
| Research & Development | 50.83K | 171.85K | 430.67K | 235.09K | 0 |
| R&D % of Revenue | - | 0.05% | 0.11% | 0.12% | - |
| Other Operating Expenses | 2.09M | 5.68M | 10.33M | 862.42K | 0 |
| Operating Income | -34.68M | -42.1M | -39.68M | -4.02M | -1.02K |
| Operating Margin % | -24.81% | -11.43% | -10.01% | -2.02% | - |
| Operating Income Growth % | - | -6.09% | -888.12% | -393054.97% | - |
| EBITDA | -32.77M | -38.49M | -36.72M | -2.65M | -1.02K |
| EBITDA Margin % | -23.45% | -10.45% | -9.26% | -1.33% | - |
| EBITDA Growth % | -1183.97% | -4.82% | -1285.84% | -259322.81% | - |
| D&A (Non-Cash Add-back) | 1.9M | 3.61M | 2.96M | 1.37M | 0 |
| EBIT | -27.43M | -41.85M | -39.39M | -3.79M | 0 |
| Net Interest Income | -2.98M | -7.81M | -5.3M | -2.15M | 0 |
| Interest Income | 1.01M | 245.26K | 296.48K | 82.29K | 0 |
| Interest Expense | 2.21M | 7.67M | 5.38M | 2.09M | 0 |
| Other Income/Expense | 1.32M | -7.42M | -5.32M | -1.86M | 0 |
| Pretax Income | -33.11M | -49.52M | -45.01M | -5.87M | -1.02K |
| Pretax Margin % | -23.69% | -13.44% | -11.35% | -2.95% | - |
| Income Tax | 3.86M | 3.79M | 477.78K | -95.09K | 0 |
| Effective Tax Rate % | -11.67% | -7.65% | -1.06% | 1.62% | 0% |
| Net Income | -40.76M | -53.31M | -45.48M | -5.78M | -1.02K |
| Net Margin % | -29.17% | -14.47% | -11.47% | -2.91% | - |
| Net Income Growth % | -12020.56% | -17.21% | -687.31% | -564083.4% | - |
| Net Income (Continuing) | -37M | -53.31M | -45.48M | -5.78M | -802 |
| Discontinued Operations | -1000K | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -4.95 | -6.21 | -1.76 | -0.22 | 0.00 |
| EPS Growth % | -626.05% | -252.84% | -700% | - | - |
| EPS (Basic) | - | -6.21 | -1.76 | -0.22 | 0.00 |
| Diluted Shares Outstanding | 8.24M | 8.59M | 24.89M | 25.61M | 22.46M |
| Basic Shares Outstanding | 8.24M | 8.59M | 24.89M | 25.61M | 22.46M |
| Dividend Payout Ratio | - | - | - | - | - |
Imminent liquidity shortfall
As reported in recent financial filings, ABVE experienced a 23.4% revenue decline in 2023Q4 compared to prior periods, suggesting that the company's identity-preserved supply chain model is struggling to maintain market share or pricing power within the highly competitive consumer defensive landscape.
The sharp drop in top-line performance indicates that the company's value proposition may not be resonating with retail partners or end consumers. This decline warrants further investigation into whether the firm is losing critical shelf space or if cyclical commodity price volatility is suppressing transaction volumes.
Based on the company's latest income statement data, ABVE reported a negative gross margin of -4.9% in 2024Q2, highlighting a fundamental inability to cover the direct costs of goods sold despite the company's focus on premium regenerative agricultural products.
This persistent margin compression suggests that the costs associated with maintaining a segregated, identity-preserved supply chain currently exceed the market's willingness to pay for such attributes. Investors should monitor whether this is a temporary inventory valuation issue or a permanent structural flaw in the company's cost-to-revenue alignment.
According to the provided income statement, ABVE's operating margin plummeted to -36.0% in 2024Q2, demonstrating that administrative and distribution overheads are significantly outpacing the company's ability to generate gross profit from its core ingredient and consumer packaged goods operations.
The lack of operating leverage suggests that the company's fixed cost base, including its international processing facilities, is currently too heavy for its throughput levels. Without a substantial increase in volume or a drastic reduction in SG&A, the firm appears unlikely to reach break-even in the near term.
Financial statements reveal a precarious cash position of less than $1 million against a $368 million revenue base, which suggests that the company faces an acute risk of insolvency if it cannot secure immediate external financing to support its ongoing operational burn.
Short-sellers would likely focus on the disconnect between the company's 'disruptive' branding and the reality of its deteriorating balance sheet. The reliance on external capital to fund persistent net losses makes the firm highly vulnerable to credit market tightening or equity dilution.
Quick answers to the most common questions about buying ABVE stock.
For fiscal year 2023, Above Food Ingredients Inc. (ABVE) reported total revenue of $368.4M.
Above Food Ingredients Inc. (ABVE) reported a net loss of $53.3M for the fiscal year ending 2023.
Above Food Ingredients Inc. (ABVE) reported an operating income of $-42.1M, resulting in an operating profit margin of -11.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Above Food Ingredients Inc. (ABVE) generated $-5.9M in gross profit for the year, representing a gross profit margin of -1.6%. This demonstrates the company's core pricing power and production efficiency.