AppHarvest Cuts Annual Guidance Citing Supply Chain Woes

AppHarvest Inc APPH reported second-quarter FY22 sales growth of 39% year-on-year to $4.36 million, versus $3.14 million last year.
The company attributed the sales growth to a stronger overall market for tomato pricing, a more favorable mix of premium tomatoes, expanded product variety commanding higher prices, enhanced training and productivity improvements, and a lower distribution fee percentage.
Operating expenses declined 26.4% Y/Y to $20.2 million. The loss from operations narrowed Y/Y to $(29.9) million. Adjusted EBITDA loss was $(17.9) million.
Loss per share of $(0.28) beat the analyst consensus of $(0.29).
AppHarvest held $99.3 million in cash and equivalents as of June 30, 2022.
AppHarvest secured new sources of non-dilutive capital through two USDA loan guarantees announced on August 1, totaling $50 million.
"Our food system remains broken, and continued food security issues, inflation and commodity price increases have only heightened interest in CEA as a more sustainable solution to decrease U.S. reliance on imported fruits and vegetable," said Founder & CEO Jonathan Webb.
Outlook: Appharvest expects to be closer to the lower end of its guidance range and tightened its FY22 net sales outlook to $20 million - $25 million (prior view $24 million - $32 million) versus the consensus of $26.06 million.
It sees an FY22 adjusted EBITDA loss of $(80) million - $(85) million (prior view $(70) million - $(80) million), reflecting net sales outlook adjustment and higher cost of goods driven by supply chain delays and other inflationary effects.
Price Action: APPH shares are trading lower by 5.96% at $3.79 in premarket on the last check Thursday.

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AppHarvest Cuts Annual Guidance Citing Supply Chain Woes