Sow Good reports Q3 EPS (33c) vs. 4c last year

Reports Q3 revenue $3.6M vs. $5M last year. “We are pleased to announce that our sixth freeze dryer is operational and that we were able to resume shipments in October following a third quarter pause due to quality concerns amid extreme summer heat,” said Claudia Goldfarb, CEO of Sow Good (SOWG). “Unfortunately, some melted products reached shelves, impacting short-term sales velocity. We are working closely with our retail partners to remove these items and restore the growth we saw earlier in the year. Moving forward, we are implementing temperature-controlled distribution to prevent similar issues next summer. As we look ahead, we’ve expanded our sales team to pursue the opportunities we have in the over 100,000 U.S. stores that could carry our treats but currently do not. According to IRI data, we are only in about 10% of locations that traditionally carry candy, giving us significant room for growth. While large CPG companies are entering the freeze-dried candy space, leveraging their significant market power and budgets to minimize competition, we see this as a validation of the category that we helped establish and a testament to our product’s strength. Although we anticipate some short-term impact on certain customer relationships and sales, we remain confident in our brand’s position.”