Laird Superfood, Inc.

Attention, everyone. Please remain holding. The call will begin momentarily. Again, please remain holding. The call will begin momentarily. Good afternoon. Thank you for attending today's Laird Superfood, Inc. Second Quarter 2024 Financial Results. My name is Jaylynn. I'll be your moderator for today. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. I'd now like to pass the conference over to our host, Trevor Russo. You may proceed.

Thank you, and good afternoon. Welcome to Laird Superfood's Second Quarter 2024 Earnings Conference Call and Webcast. On today's call are Jason V., Related Superfoods President and Chief Executive Officer, and Arnie Hamel, our Chief Financial Officer. By now, everyone should have access to the company's second quarter earnings release, which was filed today after market close. It is available on the Investor Relations section of Related Superfoods' website at www.relatedsuperfoods.com. Before we begin, please note that during this call, management may make forward-looking statements within the context of federal securities laws. These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ materially from those described in these soliciting statements. Please refer to today's press release and other filings with the SEC for a detailed discussion of these risks and uncertainties. With that, I'll turn the call over to Jason.

Thank you, Trevor. Good afternoon, and thank you to all of our investors that continue to follow and support us. and a kind welcome to those of you who are just joining the journey. Today, I am thrilled to share that the Laird Superfood growth story has once again put up results that should be the envy of the industry. During the second quarter, we grew the net sales of our business by an impressive 30% versus the same period one year ago, which marks an eight-point acceleration versus the 22% sales growth that we had reported during Q1 of this year. Net sales growth during the second quarter was once again led by our e-commerce segment, which grew by 47% year over year. Our sales through Amazon once again led the way with an eye-popping 80% growth rate in Q2, driven by our continued improvement in product availability, marketing effectiveness, and inventory management. We had our most successful Prime Days event in the history of Laird Superfood this year, and are excited for the opportunity that we now have to build on that success with new consumers that just entered our franchise. During Q2, our DTC business grew by an impressive 32%, which you'll recognize as an acceleration from the already strong 25% growth that we had reported in this channel during the first quarter. With approximately half of our DTC sales now coming from subscriptions, We have built a predictable revenue model that fosters stronger customer relationships and increased brand affinity by our consumers. Beginning in 2024, we have focused our DTC channel on providing cultivated content, unique products and programming from Laird and Gabby, and our consumers are demonstrating that they value it. On the wholesale side of our business, we grew net sales by 9% year over year during Q1. just narrowly missing another quarter of double digit growth in this channel. Retail scanner sales for our layered superfood brand were once again up even more than our net sales at plus 30% across the conventional multi-outlet plus natural channel for the 12 week period ending June 16th. Retail scanner data demonstrated that all of our product segments grew once again during the second quarter, with our coffee and instant latte products leading growth in this channel at 53 and 48% retail sales growth respectively. On the operations side, I'm pleased to share that we once again outperformed our target of 40% gross margin by achieving a 41.8% gross margin during the quarter. Our supply chain team has done an incredible job of procuring the highest quality ingredients from around the world at the best prices and has built a network of highly competent professional partners among our various co-manufacturers. We are currently in the process of implementing a total margin management, or TMM, program, and I am confident that our team will be able to identify additional cost savings as we expand and grow our business from here. In addition to the outstanding operational results that I have just shared, I am pleased to announce that we were able to settle our outstanding legal claim due to rancid coconut milk powder that had been received from one of our suppliers last year. In this case, I am happy to share that we were able to come to a mutually agreeable and long-term beneficial agreement with this supplier. We really stepped forward to support our business on this matter. The result for Laird Superfood will be $475,000 of cash to be recouped over the next six months. Q2 was by all measures a very successful quarter for Laird Superfood. And while we are extremely pleased with the financial results, we are even more excited about the future opportunities that we are building. As consumers continue to seek out the healthiest, most natural foods that are available to them, Laird Superfood is perfectly positioned to capitalize on this trend with our expanding portfolio of premium products. With that, I will now turn it over to Anya to discuss our second quarter results in more detail.