Laird Superfood, Inc. Q4 FY2025 earnings call

Fiscal 2025 was a pivotal and transformative year. The company delivered record net sales, with the wholesale channel being a strong growth driver due to distribution expansion and strong velocities in grocery and club outlets. Coffee was the top-performing product group, shelf-stable creamers had significant dollar growth and a large portfolio share. The refrigerated creamers were relaunched successfully. E-commerce was resilient with Amazon as a growth engine. The team managed through commodity inflation, tariffs, and supply chain volatility. The acquisition of Navitas Organics was completed, bringing a premium brand, complementary products, stronger channel reach, new customers, and geographic diversity. Priorities include driving wholesale momentum, leveraging Navitas synergies for margins, and executing Navitas integration while pursuing further M&A.

Fiscal 2025 was a pivotal year for Laird Superfood, Inc. with record net sales of $49.9 million, up 15% versus the prior year. Q4 net sales were $13.3 million, also up 15%. The wholesale channel was the primary growth driver, surging 44% in Q4 to $7.0 million (52% of Q4 net sales) and 41% for the full year to $24.9 million (50% of total net sales). E-commerce contributed $6.4 million (48% of Q4 net sales) with a 6% year-over-year decline, and $25.0 million (50% of net sales) for the full year, down 3%. Coffee posted +45% dollar growth, shelf-stable creamers had +15% dollar growth and a 28% share of the portfolio. The refrigerated creamers were successfully relaunched with a clean formula and recycled bottle, showing strong momentum in the natural channel in the latest four weeks, up 7% versus the same period last year.

While not providing detailed formal 2026 guidance now, the company expects net sales for the combined business to grow by at least high single digits in 2026 and adjusted EBITDA to increase due to top-line growth and integration synergies. Specific full-year 2026 guidance will be provided with the first quarter 2026 earnings release.

Management noted that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described. Detailed discussion of risks and uncertainties can be found in the company's press release and other filings with the SEC.

Q: How much crossover in retail locations exists between Laird Superfood, Inc. products and the Navitas products? And has there been a substantial improvement in average items carried?

A: There is significant crossover, both being predominantly in the natural channel like Whole Foods. There is an expansion of items as both brands, with a combined sales organization to go to market more impactfully.

Q: What have commodity prices looked like in the last month? Are oil prices higher? Are some of your suppliers having to raise their prices due to increased shipping costs and the like?

A: Not seeing much impact from small cost increases on margin thus far, largely in contracts entered at the start of the year with strong pricing buys, and little product impacted by fuel/distribution costs yet.

Q: What sort of efficiencies can we see with the consolidation of Laird Superfood, Inc. and Navitas’ logistics? Is there going to be warehouse consolidation, more freight cost savings?

A: There are opportunities to combine logistics, with a structure using co-packers and third-party distributors, working through the supply chain to identify cost and capability opportunities, expecting some program opportunities.

Q: Break down directional guidance of high single-digit growth, expectations around each business, deprioritization of categories.

A: Need to evaluate the portfolio for profitability, with some deceleration as consolidating portfolios, and a high single-digit growth target as the target list is still being identified.

Q: Gross margin expectations with tariffs going away and deprioritization, consolidated basis.

A: Expect to head back to the upper thirties on consolidated gross margin, with help from synergies including supply chain, taking time to digest and complete acquisition internalization.

Q: Performance of Laird Superfood, Inc. innovation items, liquid creamer launch, coffee product, Navitas innovation items.

A: Liquid creamer relaunch with clean formula and recycled bottle expects distribution gains. Protein coffee product had a nice launch and is expanding. Navitas Trail Mix and Bites products are seeing expansion and opportunity.