Stryve Makes Strides In Margin Improvement, Closes $2.9M Equity Raise

Stryve Foods achieved continued revenue growth and improved gross margins, along with reduced operating expenses, in the third quarter.

The meat snack maker posted net sales of $5.7 million, up 36.4% from the prior-year period. Net loss for the third quarter was $3.1 million, an improvement over a net loss of $4.8 million the year before.

Gross margin was 21.7% versus 13.3% last year, benefiting from the company’s focus on productivity and operational efficiency.

“There is no doubt we have a clear path to profitability, and we are better and more uniquely positioned than ever before, with our self-manufacturing footprint [and] our highly differentiated brand portfolio,” said Chris Boever, CEO of Stryve Foods, during an earnings call yesterday.

The company’s portfolio of high-protein, low-sugar products aligns with several notable consumer trends, Boever emphasized, pointing to demand for convenient snacks and the emergence of GLP-1 drugs as examples.

“These important consumer dynamics provide us with tailwinds to outperform the categories in which we compete,” he added.

This week, the company raised $2.9 million in gross proceeds from the sale of equity through a public offering to support increased order volume and run rate demand from existing distribution.

“The demand for our products this quarter outpaced our ability to supply,” said Stryve CFO Alex Hawkins. “This is not a function of capacity or supply chain constraints, but rather working capital to support the inventory build necessary to deliver on the demand for our products.”

In the third quarter, Stryve secured new placements across several grocery and convenience retailers including BJ’s Wholesale, Wawa, Circle K and others. The company also entered into a strategic partnership with Dot Foods to further expand its distribution reach and streamline its supply chain.

The Plano, Texas-based company declined to provide full-year guidance, but is anticipating a strong fourth quarter.

“It’s going to be significant and meaningful growth year-over-year. We certainly can get close, if not exceed, 100% growth for the quarter year-over-year,” Boever said.