Real Good Foods (NASDAQ:RGF) shares slumped on Tuesday, extending a double-digit percentage decline following its Q4 earnings results on Monday.
The company reported a $1.77 loss for the full year, missing expectations by $0.68. The loss for the full year was also widened from a $1.64 loss reported in 2021. A report of $141.59M in revenue for the year also fell short of the Street consensus by $13.61M. As of December 31, 2022, the Company had cash and cash equivalents of $7.6M and $37.6M in available liquidity against a total debt of $73.2M.
“Although we walked away from some promotions in the fourth quarter that negatively impacted sales, it was all done with a keen eye on our margin targets,” CEO Jerry Law said on Monday. “We are pleased by our margin performance in the fourth quarter, which showed significant sequential improvement to the second highest margin in our company’s history. We continue to expect 2023 adjusted EBITDA to be in the positive mid-to-high single-digit millions of dollar range.”
Net sales are expected to reach $200M, just short of the analyst consensus while adjusted gross margin of at least 24% is expected for the full year.
Shares of Real Good Foods (RGF) fell 6.26% in afternoon trading on Tuesday, adding to a similar decline marked on Monday. Shares of the New Jersey-based frozen foods company have fallen nearly 40% year to date.
Read the earnings call transcript.