Stryve Foods sees 2023 revenue $28M-$34M

Alex Hawkins, Chief Financial Officer, said, "This progress demonstrates our ability to turnaround the business and drive meaningful improvements throughout the organization. With significantly improved price/mix, better procurement, and improving yields, we have made significant strides in fixing our unit economics and have stabilized our gross margins in the back half of 2022. We have also made significant progress reducing cash operating expenses, which further narrows losses and the monthly cash burn. We’ve established a leaner, more productive organization, streamlined our operations and offerings to accelerate to profitability in the future. As we outlined last quarter, we’ve removed a significant amount of low-quality volume from the business. As evidenced by our Q4 results, we believe the rationalized base business is approximately $20M of run rate net sales upon which we look to grow from in 2023. While the lower volumes have affected our gross margins in the short term due to lower plant utilization, it has allowed us to drive meaningful improvements throughout our supply chain. And, as our plant volumes increase to support our distribution wins in Q2, we expect to see a several-point improvement in our gross margins. And subject to any externalities, we expect that with consistent volumes gross margins to scale into the mid-30s by year-end. In 2023, we expect we will be mostly flat with the potential for some modest growth overall versus FY 2022. However, when compared to our rationalized base, we’re projecting in excess of 40% growth in our quality core revenues. Our full-year 2023 net sales projections are in a range of $28 to $34 million with the first quarter representing our turnarounds’ trough but looking directionally similar to the last two quarters on top and bottom-line results. We expect to see a step function change in revenue and margins beginning in our second quarter as we fulfill our retail expansions. This ramp in quality revenues from Q1 to Q2 requires a significant investment in working capital, which has put pressure on our liquidity position. We are addressing this dynamic carefully to ensure successful execution because we believe that by doing so we will be able to show dramatically improved operating results and growth trajectory starting in Q2. Our estimates assume we navigate those dynamics and these projections are based on our view of today’s macro climate and could be adjusted if we see material changes or volatility in macro conditions," concluded Hawkins.