Whole Earth Brands Full Year 2023 Earnings: Revenues Beat Expectations, EPS Lags

Whole Earth Brands (NASDAQ:FREE) Full Year 2023 Results

Key Financial Results

• Revenue: US$550.9m (up 2.3% from FY 2022).
• Net loss: US$38.1m (loss narrowed by 35% from FY 2022).
• US$0.90 loss per share (improved from US$1.42 loss in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Whole Earth Brands Revenues Beat Expectations, EPS Falls Short

Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) missed analyst estimates by 26%.

The primary driver behind last 12 months revenue was the Branded CPG segment contributing a total revenue of US$426.3m (77% of total revenue). Notably, cost of sales worth US$407.2m amounted to 74% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to US$98.7m (54% of total expenses). Explore how FREE's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 5.4% p.a. on average during the next 3 years, compared to a 2.7% growth forecast for the Food industry in the US.

Performance of the American Food industry.

The company's share price is broadly unchanged from a week ago.

Risk Analysis

We should say that we've discovered 3 warning signs for Whole Earth Brands (1 is a bit unpleasant!) that you should be aware of before investing here.

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