One, two, three, four, five…

Food on the Move: FFF’s weekly roundup of listed FoodTech’s movers & shakers

Six! That’s the number of weekly share price risers in FFF’s listed FoodTech space for the week ended Friday 18 August 2023.  The lowest tally registered since FFF started keeping tabs a little over a year ago.  In the interests of good housekeeping, 36 fallers and six non-movers complete the set.  With the Nasdaq off 2.6% over the course of the week, was always going to be a tough ask for the FoodTechies to buck the market.  Makes the six risers’ achievement that much more impressive. Deserving of a Food on the Move dedicated solely to the Six…

Top of the tree, Blue Apron (APRN) and by some distance. Shares up a tasty-looking 41%, closing at $8.78.  The meal kit co. still basking in the afterglow of the previous week’s Q2 numbers.  Look no further than that long Q2 release title: “Successfully Closes Strategic Transaction with FreshRealm and Eliminates Debt Defines Path to Adjusted EBITDA Profitability With Over 70% Year-over-Year Operating Cash Burn Reduction”.

Comment from CEO Linda Findley adds a little meat to the bones: “…we continued to execute our plans for achieving long-term, profitable growth, and I am encouraged by our accomplishments to date. Through strong cost management and disciplined operational efficiency, we reduced our year-over-year operating cash burn by over 70%, while significantly reducing our adjusted EBITDA loss to $2.6 million. Our progress also contributed to solid margin expansion with variable margin of 37.9% in the quarter, our strongest margin performance since 2020. We anticipate continued improvement in year-over-year cash burn reduction with normal seasonality, and we expect to achieve adjusted EBITDA profitability in the second quarter of 2024.”

Similar story with second-placed Hydrofarm (HYFM).  Like APRN, the controlled environment ag. specialist released its Q2 numbers the previous week.  Like APRN, management is homing in on the sunny uplands of profitability – Chairman and CEO Bill Toler said, “In the second quarter, we delivered positive Adjusted EBITDA for the first time since Q1 of 2022, driven by strong gross margin expansion and significant cost reduction measures.” Like APRN, shares finished the week up, albeit by a smaller 11.76%.

Hmm…a whiff of something in the air? Q2 results + positive noises about profitability = share price gains the following week. If only there was a chance to test the theory… Enter HelloFresh (HFG), occupier of the final spot on the podium thanks to a 7.75% weekly rise. Just like APRN and HYFM, the meal kit co. released its Q2 numbers the previous week.  And just like the bosses at APRN and HYFM, HFD’s CEO Dominik focuses on profits in his comment: “Profitable growth remains our top priority going into 2024 and we expect to take advantage of opportunities as they arise…”  Three out of three.

Too much to ask for fourth-placed to follow the top-three pattern?  Appears not!  Trendlines’s 2% gain over the course of the week enough to secure fourth spot – yes, the week was that tough for listed FoodTech.  3 August, the date the AgTech investor released its H1 numbers: “Trendlines Reports H1 2023 Unaudited Results: Returns to black with a strong net profit of US$4.3 million as a result of maturing investment portfolio”.  No need for a comment from the boss there.

No way the fifth and sixth top-movers are going to play ball, is there? AgData co. Deveron up 1.5% in fifth.  Microalgae expert Fermentalg up 1% in sixth.  Sadly, no earnings release from either in the past few weeks let alone days.  Game over.  Will just have to settle for one, two, three, four...