Stryve Foods Clocks 20% Topline Decline In Q4 Reflecting Customer Portfolio Rationalization

Stryve Foods Inc SNAX reported a fourth-quarter FY22 sales decline of 20.9% year-on-year to $5.41 million, missing the consensus of $5.54 million.
Net sales declined primarily due to the company's SKU rationalization project, including the discontinuation of slow-moving, lower gross margin items and non-profitable accounts.
Gross profit rose 58.9% Y/Y to $1.2 million, with a profit margin expanding 1,130 basis points to 22.3%.
Operating expenses decreased 55.2% Y/Y to $5.5 million.
The operating loss narrowed to $(4.3) million, and the net loss was $(4.5) million.
Adjusted EPS of $(0.13) beat the analyst consensus of $(0.15).
Adjusted EBITDA loss totaled $(3.5) million compared to $(10.6) million a year earlier.
The company held $0.6 million in cash and equivalents as of Dec. 31, 2022.
Outlook: The company expects full-year 2023 net sales of $28 million - $34 million, below the consensus of $34.55 million.
"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," said CFO Alex Hawkins.
Price Action: SNAX shares are trading higher by 7.24% at $0.5201 on the last check Monday.

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