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Columbia Care Reports Third Quarter 2022 Results

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Quarterly Revenue of $133 Million, an Increase of 2.4% QoQ

Gross Profit of $52 Million, an Increase of 2.5% QoQ

Adjusted Gross Margin1 of 43%, an increase of 33bps QoQ

Adjusted EBITDA1 of $21 Million, an Increase of 74.5% QoQ, and Adjusted EBITDA Margin1 of 16%, an Increase of 653bps QoQ

NEW YORK–(BUSINESS WIRE)–Columbia Care Inc. (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) (FSE: 3LP) (“Columbia Care” or the “Company”) today reported financial and operating results for the third quarter ended September 30, 2022. All financial information presented in this release is in U.S. GAAP, unaudited and in thousands of U.S. dollars, unless otherwise noted, and comparisons to prior quarter and prior year are made on an as-converted basis under U.S. GAAP, unless otherwise noted.

Our third quarter results are a testament to the embedded growth in our strategic footprint and the operational excellence we have developed over time. We achieved solid sequential topline growth and standout profitability improvements in another challenging quarter, with revenue increasing 2.4% sequentially to $133 million in the quarter. Adjusted EBITDA improved 74% over Q2 to $21 million, with sixteen of our seventeen markets generating positive EBITDA in the quarter. We continue to drive revenue and EBITDA growth in our emerging markets such as New Jersey, Virginia, and West Virginia, two of which are now among our top five markets by revenue and EBITDA. Based on the operational changes we’ve made, we’ve seen stabilization in our most mature markets – California and Colorado – materialize,” said Nicholas Vita, CEO of Columbia Care.

Vita continued, “We have made strategic operational decisions to prioritize quality production and efficiency, and redoubled efforts to manage costs as we face persistent macroeconomic headwinds that directly and materially impact the consumer wallet. Although we continue to anticipate a more challenging operating environment over the next 12-18 months, we are encouraged by the ongoing resilience we’ve seen throughout our markets and by the enthusiasm of the cannabis community. Furthermore, the difficult decisions we made 12-18 months ago are beginning to pay dividends as the efficiencies in cultivation and manufacturing positively impact our wholesale ramp while continued rationalization of SG&A amplifies the EBITDA improvements. The diversity of our footprint, including meaningful operations in the markets that are transitioning to adult use, is key to our growth. As we near the end of 2022, we are excited about the journey ahead where, together with Cresco Labs, we will create the leading company in cannabis.”

Third Quarter 2022 U.S. GAAP Financial Highlights (in $ thousands, excl. margin items):

Q3 2022 Q2 2022 Q3 2021[3] % QoQ % YoY
Revenue

$

132,733

$

129,571

$

132,322

2.4%

0.3%

Gross Profit

$

52,135

$

50,848

$

61,367

2.5%

-15.0%

Adj. Gross Profit[1,2]

$

56,895

$

55,118

$

62,797

3.2%

-9.4%

Adj. Gross Margin[1,2]

 

42.86%

 

42.54%

 

47.46%

33 bps

-459 bps

EBITDA[1]

$

4,419

$

(3,996)

$

(33,236)

N/A

N/A

Adj. EBITDA[1]

$

20,993

$

12,029

$

24,777

74.5%

-15.3%

[1] See “Non-GAAP Financial Measures” in this press release for more information regarding the Company’s use of non-GAAP financial measures.

[2] Excludes $4.8 million in Q3 2022 relating to a one-time write-off in Colorado to reduce outdoor capacity, $4.3 million in Q2 2022 related to inventory revaluation adjustments and $1.4 million in Q3 2021 related to the mark-up of inventory acquired in acquisitions.

[3] Figures for Q3 2021 are Combined, including dispensary and manufacturing operations in Ohio, Non-GAAP. Gross Profit is as reported in Q3 2021.

Top 5 Markets by Revenue in Q3[4]: California, Colorado, New Jersey, Ohio, Virginia

Top 5 Markets by Adjusted EBITDA in Q3[4]: Colorado, New Jersey, Ohio, Pennsylvania, Virginia

[4] Markets are listed alphabetically

Operational Highlights for Third Quarter 2022

Enhancing and implementing scale with continued retail and wholesale growth:

  • Retail revenue increased modestly, 0.4% over Q2 2022, while wholesale revenue increased 14% sequentially – meaningful contributor to EBITDA
  • New Jersey retail locations expanded to full adult use hours in June 2022, market revenue increased more than 75% sequentially, with growth in wholesale of nearly five times the prior quarter, driven by the ramping scale in the new Vineland facility
  • No additional retail locations opened in Q3. Subsequent to quarter end, opened Carytown, Virginia Cannabist location, the Company’s fifth retail location in Virginia, bringing total dispensaries to 85
  • Additional dispensaries in development include 7 in Virginia, 1 in West Virginia, and 1 in New Jersey
  • Sixteen of seventeen markets produced positive EBITDA in the third quarter

Proven cultivation expertise and execution:

  • In Q3, completed first harvest out of the second cultivation facility in Vineland, New Jersey, which added approximately 270,000 square feet of cultivation and production capacity to the New Jersey footprint, as well as post-harvest automation equipment to support retail and wholesale growth
  • Cultivation efficiency and standardization across markets continued to improve, with focus on optimizing production planning, genetics selection, environmental controls, and plant management leading to improved potency and productivity; flower production costs declined approximately 5% sequentially across the national portfolio
  • In Ohio, the Mt. Orab cultivation facility expansion contributed to sequential improvement in Gross Margin
  • In Virginia, the expansion of Portsmouth facility led to a 4X increase in harvested plants; there is additional capacity to expand the current garden as demand increases in market

Sustained momentum on branding initiatives at retail and product levels:

  • Owned brands made up over 60% of all flower sales at Columbia Care locations in Q3
  • In Q3, launched a new loyalty program and mobile application, Stash Cash, in 14 markets
  • In August, launched the first pre-rolls in the New York market, marking Seed & Strain’s 14th market
  • Triple Seven, an award-winning premium brand, launched in Pennsylvania in August, bringing the footprint to ten markets
  • In October, launched Hedy, a new cannabis-infused edibles brand in six markets and a variety of form factors and flavors; Hedy is now available in Arizona, Colorado, Delaware, Massachusetts, Missouri and Virginia
  • With the opening of Carytown, Virginia Cannabist in October, there are now 32 Cannabist locations in the U.S.

Update on Cresco Transaction & Milestones Achieved

  • Cleared federal Hart Scott Rodino antitrust review in May
  • Received overwhelming approval from our shareholders, with over 98% of the votes cast in July in favor of the transaction
  • Final order granted by the Supreme Court of British Columbia in July
  • Announced execution of agreement relating to first asset divestiture on November 4, with Illinois, Massachusetts, and New York assets being sold to Sean “Diddy” Combs, via Combs Enterprises
  • The remainder of the asset divestiture process is continuing to move forward with additional announcement expected soon
  • Closing of Cresco transaction anticipated to be around the end of the first quarter of 2023

2022 Outlook

Columbia Care expects sequential topline performance to be flat to low-single digit growth in the fourth quarter. In addition, the Company expects an Adjusted EBITDA margin in the mid-to-high teens in the fourth quarter.

At this time, Columbia Care’s 2022 outlook does not assume any additional changes in the regulatory environment in markets where Columbia Care currently operates. This also excludes potential future market changes where a conversion from medical only to adult use is under consideration by a governor and/or legislature. The outlook does not assume any asset sales prior to Q1 2023. See “Caution Concerning Forward-Looking Statements” below for further discussion. This new revised outlook replaces all prior outlook and guidance provided by the Company.

Conference Call and Webcast Details

The Company will host a conference call on Monday, November 14, 2022 at 4:30 p.m. ET to discuss financial and operating results for the third quarter.

To access the live conference call via telephone, participants must pre-register at https://register.vevent.com/register/BIc703b752599546a7a28197c8bf33e7ad. After registering, instructions will be shared on how to join the call for those who wish to dial in. A live audio webcast of the call will also be available in the Investor Relations section of the Company’s website at https://investors.columbia.care/ or at https://edge.media-server.com/mmc/p/j9ac4cjf.

A replay of the audio webcast will be available in the Investor Relations section of the Company’s website approximately 2 hours after completion of the call and will be archived for 30 days.

About Columbia Care

Columbia Care is one of the largest and most experienced cultivators, manufacturers and providers of cannabis products and related services, with licenses in 18 U.S. jurisdictions. Columbia Care operates 132 facilities including 99 dispensaries and 33 cultivation and manufacturing facilities, including those under development. Columbia Care is one of the original multi-state providers of medical cannabis in the U.S. and now delivers industry-leading products and services to both the medical and adult-use markets. In 2021, the company launched Cannabist, its retail brand, creating a national dispensary network that leverages proprietary technology platforms. The company offers products spanning flower, edibles, oils and tablets, and manufactures popular brands including Seed & Strain, Triple Seven, gLeaf, Classix, Press, Amber, Hedy and Platinum Label CBD. For more information on Columbia Care, please visit www.columbia.care.

Non-GAAP Financial Measures

In this press release, Columbia Care refers to certain non-GAAP financial measures, including EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit and Adjusted Gross Margin. These measures do not have any standardized meaning in accordance with U.S. GAAP and may not be comparable to similar measures presented by other companies. Columbia Care considers certain non-GAAP measures to be meaningful indicators of the performance of its business. These measures are not recognized measures under GAAP, do not have a standardized meaning prescribed by GAAP and may not be comparable to (and may be calculated differently by) other companies that present similar measures. Accordingly, these measures should not be considered in isolation from nor as a substitute for our financial information reported under GAAP. These non-GAAP measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our business that may not otherwise be apparent when relying solely on GAAP measures. These supplemental non-GAAP financial measures should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, the GAAP financial measures presented. We also recognize that securities analysts, investors and other interested parties frequently use non-GAAP measures in the evaluation of companies within our industry.

With respect to non-GAAP financial measures, the Company defines EBITDA as net income (loss) before (i) depreciation and amortization; (ii) income taxes; and (iii) interest expense and debt amortization. Adjusted EBITDA is defined as EBITDA before (i) share-based compensation expense; (ii) adjustments for acquisition and other non-core costs; (iii) fair value changes on derivative liabilities; (iv) fair value mark-up for acquired inventory; and (v) other one-time of non-recurring items. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Revenue. Adjusted Gross Profit is defined as gross profit before the fair mark-up for acquired inventory. Adjusted Gross Margin is defined as gross margin before the fair mark-up for acquired inventory.

The Company views these non-GAAP financial measures as a means to facilitate management’s financial and operational decision-making, including evaluation of the Company’s historical operating results and comparison to competitors’ operating results. These non-GAAP financial measures reflect an additional way of viewing aspects of the Company’s operations that, when viewed with GAAP results and the reconciliations to the corresponding GAAP financial measure may provide a more complete understanding of factors and trends affecting the Company’s business. The determination of the amounts that are excluded from these non-GAAP financial measures are a matter of management judgment and depend upon, among other factors, the nature of the underlying expense or income amounts. Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Company’s reported results of operations, management strongly encourages investors to review the Company’s consolidated financial statements and publicly filed reports in their entirety.

Reconciliations of non-GAAP financial measures to their nearest comparable GAAP measures are included in this press release and a further discussion of some of these items will be contained in our quarterly report on Form 10-Q.

Caution Concerning Forward-Looking Statements

This press release contains certain statements that constitute forward-looking information or forward looking statements within the meaning of applicable securities laws and reflect the Company’s current expectations regarding future events. Statements concerning Columbia Care’s objectives, goals, strategies, priorities, intentions, plans, beliefs, expectations and estimates, and the business, operations, financial performance and condition of the Company are forward-looking statements. The words “believe”, “expect”, “anticipate”, “estimate”, “intend”, “may”, “will”, “would”, “could”, “should”, “continue”, “plan”, “goal”, “objective”, and similar expressions and the negative of such expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward looking statements in this press release include, among others, statements related to: the timing for closing of the Cresco transaction and the related divestiture transactions, expectations related to growth and financial numbers including EBITDA, benefits of the Cresco transaction, ongoing business expectations, and timing for signing divestiture agreements.

The Company has made assumptions with regard to its ability to execute on initiatives, which although considered reasonable by the Company, may prove to be incorrect and are subject to known and unknown risks and uncertainties that may cause actual results, performance or achievements of the Company to be materially different from those expressed or implied by any forward-looking information. Forward-looking information involves numerous assumptions, including assumptions on the satisfaction of the conditions precedent to the closing of the Cresco transaction; the receipt of any necessary regulatory approvals in connection with the Cresco transaction; the impact of the Cresco transaction on the Company’s current and future operations, financial condition and prospects; the value of the Cresco shares; the costs of the Cresco transaction and potential payment of a termination fee in connection with the Cresco transaction; the ability to successfully integrate with the operations of Cresco and realize the expected benefits of the Cresco transaction; the ability to sign and close divestiture transactions related to the Cresco transaction; access to public and private capital for buyers of assets being divested in relation to the Cresco transaction; the fact that marijuana remains illegal under federal law; the application of anti-money laundering laws and regulations to the Company; legal, regulatory or political change to the cannabis industry; access to the services of banks; access to public and private capital for the Company or for Cresco; unfavorable publicity or consumer perception of the cannabis industry; expansion into the adult-use markets; the impact of laws, regulations and guidelines; the impact of Section 280E of the Internal Revenue Code; the impact of state laws pertaining to the cannabis industry; the Company’s reliance on key inputs, suppliers and skilled labor; the difficulty of forecasting the Company’s sales; constraints on marketing products; potential cyber-attacks and security breaches; net operating loss and other tax attribute limitations; the impact of changes in tax laws; the volatility of the market price of the Common Shares; reliance on management; litigation; future results and financial projections; the impact of global financial conditions and disease outbreaks; projected revenue and expected gross margins, capital allocation, EBITDA break even targets and other financial results; growth of the Company’s operations via expansion; expectations for the potential benefits of any transactions including the acquisition of Green Leaf Medical and Medicine Man; statements relating to the business and future activities of, and developments related to, the Company after the date of this press release, including such things as future business strategy, competitive strengths, goals, expansion and growth of the Company’s business, operations and plans; expectations that planned transactions (including the Cresco transaction) will be completed as previously announced; expectations regarding cultivation and manufacturing capacity; expectations regarding receipt of regulatory approvals; expectations that licenses applied for will be obtained; potential future legalization of adult-use and/or medical cannabis under U.S. federal law; expectations of market size and growth in the U.S. and the states in which the Company operates; expectations for other economic, business, regulatory and/or competitive factors related to the Company or the cannabis industry generally; and other events or conditions that may occur in the future.

Forward-looking statements may relate to future financial conditions, results of operations, plans, objectives, performance or business developments. These statements speak only as at the date they are made and are based on information currently available and on the then current expectations. Holders of securities of the Company are cautioned that forward-looking statements are not based on historical facts but instead are based on reasonable assumptions and estimates of management of the Company at the time they were provided or made and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, as applicable, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Securityholders should review the risk factors discussed under “Risk Factors” in Columbia Care’s Form 10 dated May 9, 2022, filed with the applicable securities regulatory authorities and described from time to time in documents filed by the Company with Canadian and U.S. securities regulatory authorities.

The purpose of forward-looking statements is to provide the reader with a description of management’s expectations, and such forward-looking statements may not be appropriate for any other purpose. In particular, but without limiting the foregoing, disclosure in this press release as well as statements regarding the Company’s objectives, plans and goals, including future operating results and economic performance may make reference to or involve forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. A number of factors could cause actual events, performance or results to differ materially from what is projected in the forward-looking statements. No undue reliance should be placed on forward-looking statements contained in this press release. Such forward-looking statements are made as of the date of this press release. Columbia Care undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. The Company’s forward-looking statements are expressly qualified in their entirety by this cautionary statement.

Certain information in this press release, including the section entitled “2022 Outlook” may be considered as “financial outlook” within the meaning of applicable securities legislation including the revenue and Adjusted EBITDA margin guidance. The purpose of this financial outlook is to provide readers with disclosure regarding Columbia Care’s reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes.

TABLE 1 – CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in US $ thousands, except share and per share figures, unaudited)
 
Three Months Ended
September 30, 2022 June 30, 2022 March 31, 2022 September 30, 2021
Revenue

$

132,733

 

$

129,571

 

$

123,087

 

$

132,322

 

Cost of sales

 

(80,462

)

 

(78,723

)

 

(66,460

)

 

(69,525

)

Cost of sales related to business combination fair value adjustments to inventory

 

(136

)

 

 

 

 

 

(1,430

)

Gross profit

 

52,135

 

 

50,848

 

 

56,627

 

 

61,367

 

Selling, general and administrative expenses

 

(70,845

)

 

(72,956

)

 

(71,292

)

 

(61,745

)

Loss from operations

 

(18,710

)

 

(22,108

)

 

(14,665

)

 

(378

)

Other income (expense), net

 

(13,018

)

 

(13,445

)

 

(12,609

)

 

(56,991

)

Income tax benefit (expense)

 

(6,575

)

 

(18,702

)

 

(632

)

 

12,999

 

Net loss

 

(38,303

)

 

(54,255

)

 

(27,906

)

 

(44,370

)

Net loss attributable to non-controlling interests

 

(2,872

)

 

(427

)

 

(1,270

)

 

(1,474

)

Net loss attributable to Columbia Care shareholders

 

(35,431

)

 

(53,828

)

 

(26,636

)

 

(42,896

)

Weighted average common shares outstanding – basic and diluted

 

399,227,935

 

 

394,023,144

 

 

376,397,260

 

 

325,416,684

 

Earnings per common share attributable to Columbia Care shareholders – basic and diluted

$

(0.09

)

$

(0.14

)

$

(0.07

)

$

(0.13

)

 
 
TABLE 2 – RECONCILIATION OF US GAAP TO NON-GAAP MEASURES
(in US $ thousands, unaudited)
 
Three Months Ended
September 30, 2022 June 30, 2022 March 31, 2022 September 30, 2021
Net loss

$

(38,303

)

$

(54,255

)

$

(27,906

)

$

(44,370

)

Income tax expense

 

6,575

 

 

18,702

 

 

632

 

 

(12,999

)

Depreciation and amortization

 

21,808

 

 

20,058

 

 

21,210

 

 

16,076

 

Net interest and debt amortization

 

14,339

 

 

11,499

 

 

12,670

 

 

8,057

 

EBITDA (Non-GAAP)

$

4,419

 

$

(3,996

)

$

6,606

 

$

(33,236

)

 
Share-based compensation

$

6,597

 

$

7,678

 

$

6,374

 

$

4,695

 

Adjustments for acquisition and other non-core costs

 

10,084

 

 

14,727

 

 

3,169

 

 

56,735

 

Fair value changes on derivative liabilities

 

(243

)

 

(6,380

)

 

683

 

 

(4,847

)

Fair value mark-up for acquired inventory

 

136

 

 

 

 

1,430

 

Adjusted EBITDA (Non-GAAP)

$

20,993

 

$

12,029

 

$

16,832

 

$

24,777

 

 
 
TABLE 3 – CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(in US $ thousands, unaudited)
 
Three Months Ended
September 30, 2022 June 30, 2022 March 31, 2022 September 30, 2021
Net cash provided by (used in) operating activities

$

(16,770

)

$

(71,961

)

$

(27,822

)

$

16,148

 

Net cash (used in) investment activities

$

(14,276

)

 

(28,127

)

 

(29,555

)

$

(51,028

)

Net cash provided by (used in) financing activities

$

(371

)

 

13,454

 

 

144,253

 

$

(6,965

)

 
 
TABLE 4 – CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (SELECT ITEMS)
(in US $ thousands, unaudited)
Three Months Ended
September 30, 2022 June 30, 2022 March 31, 2022 September 30, 2021
Cash

$

50,023

 

$

81,440

 

$

168,424

 

$

116,931

 

Total current assets

 

208,515

 

 

256,110

 

 

323,883

 

 

255,940

 

Property and equipment, net

 

370,820

 

 

373,877

 

 

355,968

 

 

258,730

 

Right of use assets

 

259,655

 

 

254,849

 

 

250,413

 

 

237,624

 

Total assets

 

1,371,578

 

 

1,420,465

 

 

1,482,443

 

 

1,381,120

 

Total current liabilities

 

178,015

 

 

138,499

 

 

222,835

 

 

279,476

 

Total liabilities

 

870,701

 

 

892,496

 

 

952,743

 

 

819,475

 

Total equity

 

500,877

 

 

527,969

 

 

529,700

 

 

561,645

 

Contacts

Investor
Lee Ann Evans

SVP, Capital Markets

ir@col-care.com

Media
Lindsay Wilson

VP, Communications

+1.978.662.2038

media@col-care.com

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Business Wire

Global Pet Food Ingredients Market Analysis Report 2022-2027: Shift in Focus Toward Natural and Grain-Free Products & Increasing Trend of Pet Humanization to Drive Demand for Premium Pet Products – ResearchAndMarkets.com

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DUBLIN–(BUSINESS WIRE)–The “Global Pet Food Ingredients Market by Ingredient (Meat & Meat Products, Cereals, Vegetables & Fruits, Fats, Additives), Source (Animal-based, Plant Derivatives, Synthetic), Pet (Dogs, Cats, Fish), Form, and Region – Forecast to 2027” report has been added to ResearchAndMarkets.com’s offering.

The global pet food ingredients market is estimated to be valued at USD 32.2 billion in 2022. It is projected to reach USD 44.5 billion by 2027, with a CAGR of 6.7%

The market is gaining momentum as pet food ingredients continue to find increased applications across various pet species such as dogs, cats, fish and other pets such as rabbits, birds and horses. The demand for pet food ingredients is gaining significant traction in the industry, especially due to the rising focus of owners on the health and nutrition of pet animals in recent years.

Additionally, the rising innovation in the pet food ingredients market and technological advancements which are enhancing the efficiency of pet food ingredients have contributed to the growth of the market in recent years.

By ingredient, meat & meat products segment occupies the highest market share during the forecast period

Based on ingredient, meat & meat products accounted for the highest market share among all other segments owing to their rich taste and nutrition profile owing to which they have high acceptability rate among pet animals.

Meat & meat products are also effective in supporting the gut health of pets due to their higher amino acid content which is effective in controlling infections and inhibition of growth of pathogens and bacteria. Due to their high acceptability rate among pets, rich nutrition profile and desirable health benefits, they are highly preferred by pet owners, contributing to their increased demand.

By pet, dog segment is forecasted to account for the dominant segment during the forecasted period

Based on pet, the dog segment accounts for the highest market share. Dogs offer an attractive market for manufacturers of pet food ingredients owing to their varied nutritional requirements, compared to other pet animals.

A significant number of additives such as vitamins, minerals and enzymes are added to dog food products to satisfy their nutritional requirements. Dogs also account among the most preferred pets among owners, having a healthy adoption rate around the world which presents significant business opportunities for manufacturers of pet food ingredients.

By source, animal-based pet food ingredients are expected to retain their position as the dominant segment over the forecast period

Based on source, the animal-based segment is expected to account for the largest and fastest-growing segment over the forecast period because of the increasing demand among pet owners owing to their large health benefits and increased acceptability among pet animals.

They are associated with a range of health benefits such as enhancement of health of skin and coat of pet animals and are also considered effective in the inhibition and growth of pathogen and controlling infections such as bladder stones and urinary tract infections, which contributes to their increased demand in the industry.

By form, the dry segment is expected to retain its position as the dominant segment over the forecast period

Based on form, the dry segment is likely to account for the dominant and the fastest growing segment over the forecasted period.

The dry form of pet food ingredients are associated with a range of desirable characteristics such as having a richer nutritional profile, along with being highly cost-effective as compared to liquid form of pet food ingredients. They also offer higher convenience of handling during processing and storage owing to their lower moisture content which is also likely to drive their demand over the forecasted period.

The North America region accounts for the dominant market share for the pet food ingredients market during the forecast period

North America region is expected to retain its position as the dominant region for pet food ingredients market during the forecasted period.

The region’s large market share is attributed to a variety of reasons such as increase in adoption of pet animals owing to the rising pet humanization trend in the region. The pet owners in the region demonstrate a high level of awareness regarding health and nutrition of their pets, which contributes to the higher demand of pet food ingredients in the region.

The region’s growth has also been bolstered due to the presence of a significant number of major pet food ingredients manufacturing companies. The US, one of the North American countries, also accounts among the leading pet food ingredient producers, and has a large pet population which has also significantly contributed towards the growth of pet food ingredients industry in the region.

Competitive landscape

Key players in this market include BASF SE (Germany), Darling Ingredients Inc. (US), Cargill (US), Ingredion (US), DSM (Netherlands), Omega Protein Corporation (US), ADM (US), Kemin Industries, Inc. (US), Chr. Hansen Holding A/S (Denmark), and Roquette Freres (France).

Premium Insights

  • Increasing Adoption of Pets and Rising Pet Humanization Trend to Propel Growth
  • US and Animal-based Accounted for the Largest Shares in North American Market in 2021
  • Dogs Segment to Dominate During Forecast Period
  • Dry Segment to Dominate During Forecast Period
  • North America to Dominate During Forecast Period
  • Meat & Meat Products to Dominate During Forecast Period

Market Overview

Macroeconomic Factors

  • Rising Pet Adoption Among Urban Population
  • Increasing Trend of Pet Humanization to Drive Demand for Premium Pet Products

Drivers

  • Increase in Pet Expenditure with Substantial Rise in Pet Food Expenditure
  • Switch from Mass Products to Organic Pet Food Ingredients
  • Acceptance of Insect-based Protein and Oils by Pet Owners

Restraints

  • Non-Uniformity of Regulations Hindering International Trade
  • Limited Availability of Ingredients and Price Sensitivity

Opportunities

  • Use of Cannabis in Pet Food
  • Technological Advancements to Enhance Product Development
  • Shift in Focus Toward Natural and Grain-Free Products

Challenges

  • Capital Investment for Equipment
  • Threat from Counterfeit Products

Value Chain

  • Research and Product Development
  • Raw Material Sourcing
  • Production and Processing
  • Distribution
  • Marketing & Sales

Company Profiles

Key Players

  • BASF SE
  • Darling Ingredients Inc.
  • Cargill
  • Ingredion
  • DSM
  • Omega Protein Corporation
  • ADM
  • Kemin Industries, Inc.
  • Chr. Hansen Holding A/S
  • Roquette Freres

Other Players

  • Saria A/S GmbH & Co. KG
  • The Scoular Company
  • Lallemand Inc.
  • Phileo by Lesaffre
  • Labudde Group Inc.
  • Linkone Ingredient Solutions
  • 3D Corporate Solutions
  • Hydrite Chemical
  • Green Source Organics
  • Biorigin
  • Vitiva D.O.O.
  • AFB International
  • Symrise
  • Mowi ASA
  • Zinpro Corp.

For more information about this report visit https://www.researchandmarkets.com/r/8y915n

Contacts

ResearchAndMarkets.com

Laura Wood, Senior Press Manager

press@researchandmarkets.com
For E.S.T Office Hours Call 1-917-300-0470

For U.S./ CAN Toll Free Call 1-800-526-8630

For GMT Office Hours Call +353-1-416-8900

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Wedbush Securities’ Senior Vice President, Equity Research, Gerald, Pascarelli, CFA® Initiates Coverage on U.S. Cannabis Names CRLBF, CURLF, GTBIF & TCNNF

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LOS ANGELES–(BUSINESS WIRE)–Wedbush Securities, one of the nation’s leading independent diversified financial services providers, is pleased to announce that Equity Research Analyst, Gerald Pascarelli, CFA® is launching coverage in the U.S. Cannabis sector. On the heels of his initiation on 11 stocks in the Non-Alcoholic and Alcoholic Beverages sectors in October 2022, Gerald will expand to cover four stocks within the cannabis space: Cresco Labs Inc. (CRLBF), Curaleaf Holdings, Inc. (CURLF), Green Thumb Industries, Inc. (GTBIF) and Trulieve Cannabis Corp. (TCNNF). This initiation represents an extension into an area that was not covered by Wedbush, further expanding the scope of coverage of the firm’s Equity Research team.


Prior to joining Wedbush, Gerald served as VP of Equity Research at Cowen, Inc., where he covered both the alcoholic and non-alcoholic beverage sectors for eight years and was also an integral part of the firm’s coverage launch into the cannabis sector in 2016. In his previous role, Gerald contributed to several research white papers and cross-category consumer reports, focused on market sizing, consumer demographics and cannabis’ impact on alcoholic beverages. Prior to Cowen, Gerald spent eight years at Kingdon Capital Management, a New York-based hedge fund. He states, “As we near the end of 2022, we believe that brighter days lie ahead for the U.S. cannabis industry. I look forward to developing this new vertical of research here at Wedbush and am compelled by the current risk/reward setup for this sector of the market.”

Kevin Merritt, Wedbush Securities’ Director of Research says, “We are thrilled to have Gerald initiating in the Cannabis space as it heralds a new area of growth for our Equity Research team. As we tap into this never-before-covered space for the firm, Gerald and his team are the perfect fit to champion this new effort.”

Gerald received his Bachelor’s degree in Business Administration with a concentration in Finance from the State University of New York, at Albany. He is also a CFA® charterholder.

About Wedbush Securities

Wedbush Securities is the largest subsidiary of Wedbush Financial Services. Since its founding in 1955, Wedbush has been a leader in the financial services industry, providing our clients, both private and institutional, with a wide range of securities brokerage, wealth management, and investment banking services. Headquartered in Los Angeles, California with 100 registered offices and nearly 900 colleagues, the firm focuses on client service and financial safety, innovation, and the utilization of advanced technology.

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Contacts

Natalie A. Svider

213-688-8057

publicrelations@wedbush.com

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WeighPack Introduces High Precision Check Weigher for Tightest Tolerances

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LAS VEGAS–(BUSINESS WIRE)–#automation–WeighPack Systems’ WeightCheQ 0-250 features high precision electromagnetic force restoration (EMFR) weigh cell technology to achieve the highest tolerances possible while reading in three decimal points.


The WeightCheQ 0-250 is engineered with a weight range of 0 – 250 grams and will weigh product accurately and consistently to +/- 0.01 gram. This tight tolerance level makes it the perfect choice for check weighing pharmaceuticals, cosmetics, precious metals, cannabis pre-rolls and more.

This high-performance weigher will automatically reject product that is outside of the user’s set tolerance level and deposit it into a convenient accumulation drawer for reuse. An easy-to-read visual operation interface notifies the user when product is within the targeted weight by illuminating a green light and then changing to a red light when the target weight is out of tolerance.

The 0-250 includes a large color touchscreen, does not require compressed air and easily integrates into existing packaging lines for an immediate improvement in any quality assurance process.

This compact, modular check weigher also features heavy-duty stainless steel frame construction, food-grade belts, upstream and downstream data links, 20-recipe storage and does not require changeover parts to move between product lines.

See video of this system in action at www.weighpack.com/primary-packaging-video-library/.

For product inquiries, visit www.weighpack.com/weighpack-sales-inquiries/.

Paxiom is the national sales, system integration and service provider for the state-of-the-art packaging machine technology manufactured by WeighPack, ValTara and EndFlex. From weighing, filling, bagging and wrapping to cartoning, tray forming, case packing and palletizing, Paxiom has delivered over 7,000 packaging solutions to over 30 countries. Customers can see these solutions in person by visiting an Xperience Center in Las Vegas, Miami, Milwaukee, Montreal, Toronto or Schio, Italy.

Contacts

David Morgan, Director of Marketing, dmorgan@weighpack.com, 702-450-0808 x625

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