Arcadia Biosciences Inc (NASDAQ:RKDA) reported first-quarter results after the bell Wednesday that showed the food ingredient company swung to a profit on the back of increased sales and the recognition of GoodWheat royalties.
The company posted revenue of $309,000 in the three months ended March 31, nearly double the $158,000 it brought in during the same period a year earlier. Net income jumped from a $12.6 million loss to a $2.5 million profit, worth $0.29 per share.
"This is an extraordinary moment in time for all of us," CEO Matt Plavan said in a statement. "Our priorities throughout this challenging time remain the same: to maintain the health and safety of our people and to maintain business continuity and advance our business objectives without significant interruption. I'm happy to say that we've been successful in accomplishing these goals.”
READ: Arcadia Biosciences wins a pair of whole wheat shelf life patents, secures notices of allowance extending two more
During the quarter, Arcadia secured more than $3 million in seed purchase commitments for its new GoodHemp line, revenues from which will be recognized once the seeds are delivered later this year.
The company also established the GoodHemp Innovation Partners Platform, a select group of growers who will work with the company’s regional agronomists, and it partnered with Grow West to introduce its seeds to California growers.
"Despite some headwinds generated by COVID-19, we are pleased with the robust quarter of strategic partnerships and acquisitions in the hemp space, including grower-facing partners like Grow West and Buttonwillow Warehouse Company, as well as CPG-facing customers like Vivion Specialties Inc (VSI),” Plavan said.
Arcadia, based in Davis, Claifornia, is well-positioned to help grow the burgeoning hemp supply chain in the US, Plavan said.
"Today's hemp supply chain is still evolving and clearly will need advances to reach its full commercial potential," Plavan said. "We believe we can be an attractive partner to companies throughout that supply chain. In addition to our organic growth strategies, we are now poised to accelerate shareholder value creation through acquisitive and strategic growth opportunities in the processing, manufacturing and brand segments of the hemp value chain to create a leading, vertically-integrated platform focused on the highest technology, quality and transparency in hemp and hemp products.
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