Led by its functional coffee creamers, Laird Superfood has made progress toward its goal of achieving “sustainable profitability” as the “wild card” of tariffs impacts trade spend and commodity costs.
- Net sales in Q2 were $12 million, up from $10 million in the prior year period
- Gross margin was 39.9%, lower than the 41.8% in Q2 2024.
- Adjusted EBITDA was $0.1 million, or $0.01 per diluted share, compared to a loss of $0.1 million in the year-ago period.
The company’s sales split between wholesale (47%) and ecommerce (53%) “marked an acceleration in our stated strategy to intentionally grow wholesale to become the largest percentage of our total business,” CEO Jason Vieth said in prepared remarks.
Wholesale sales grew 47% year-over-year, emphasized by an uptick in club channel rotations where Laird is expanding its footprint. Ecommerce ticked up 4% compared to Q2 2024. Laird’s coffee creamer segment remains its biggest mover, representing 56% of sales, with coffee, tea and hot chocolate making up 30%.
“We are proud to not have taken any tariff-related price increases while still delivering our gross margin targets,” Vieth said. “We believe that this gives us a strategic advantage versus many of our competitors, while also leaving open the opportunity to increase our prices at a later day if the conditions necessitate it.”
Expenses did rise in the quarter as marketing and advertising costs increased on the back of volume growth. Vieth pointed to the out-of-stock issue the brand experienced in its powdered creamers in Q1 and the UNFI cyber attack in Q2 as issues that have carried over to Laird’s revenue generation throughout the rest of the fiscal year.
Sales disruptions were estimated for the inventory issue at “over a million dollars” and “a few hundred thousand dollars” for the UNFI disruption, Vieth said in response to the impact of those events.
Innovation planned for the back half of the year and into 2026 includes a new liquid creamer formula, which will remove a gum ingredient and swap out coconut oil for coconut cream and sugar. The brand is also transitioning from paper packaging to a post-consumer recycled plastic bottle.
The company also has plans to move deeper into protein coffees and is preparing for its “first foray into dairy products.”
Laird leadership reaffirmed its FY2025 expectations. Guidance for net sales growth remains between 20% to 25%, gross margin in the upper 30% and a “breakeven” for its adjusted EBITDA.