Page 1

Tattooed Chef Reports Third Quarter 2021 Financial Results November 16 , 2021 Record Quarterly Revenue of $ 58.8 Million , an Increase of 44 % Year - Over - Year Branded Revenue Increased 56 % to $ 35.3 Million Updates 2021 Outlook PARAMOUNT , Calif . , Nov. 16 , 2021 ( GLOBE NEWSWIRE ) Tattooed Chef , Inc. ( Nasdaq : TTCF ) ( " Tattooed Chef " or the " Company " ) , a leader in plant based foods , today announced financial results for the three and nine months ended September 30 , 2021 . " We are pleased with our third quarter results with record revenue driven by our Tattooed Chef branded products , " said Sam Galletti , President and CEO of Tattooed Chef . " Tattooed Chef is now a top 10 brand across the club , grocery and mass channels in the categories in which we compete . Our branded products are now in over 13,000 stores nationwide as we have executed on our plan to diversify both channel and customer mix . Looking ahead , we believe we are well positioned to execute on our growth strategy with tremendous momentum entering 2022 and beyond . " Sarah Galletti , Chief Creative Officer and " The Tattooed Chef " , added , " We are thrilled with Tattooed Chef's acceptance at retail stores and believe our products resonate with the next generation of consumers . We are constantly looking for new ways to go to market and , supported by our recently announced acquisitions , we plan to expand our product portfolio beyond the freezer aisle allowing consumers to enjoy Tattooed Chef products at home and on - the - go . I have never been more excited about our future opportunities for growth . " Financial Highlights for the Third Quarter of 2021 Compared to the Third Quarter of 2020 • Revenue was a record $ 58.8 million , a 43.5 % increase compared to $ 41.0 million in the prior year period ; Tattooed Chef branded product revenue was $ 35.3 million , an increase of 55.9 % compared to $ 22.6 million in the prior year period . • Gross profit was $ 5.9 million , or 10.1 % gross margin , compared to $ 4.2 million , or 10.3 % gross margin , in the prior year period . • Net loss was $ 8.2 million compared to net loss of $ 3.2 million in the prior year period . Adjusted EBITDA was negative $ 5.0 million compared to Adjusted EBITDA of positive $ 1.6 million in the prior year period . Financial Highlights for the First Nine Months of 2021 Compared to the First Nine Months of 2020 • Revenue was $ 162.0 million , a 48.7 % increase compared to $ 108.9 million in the prior year period ; Tattooed Chef branded product revenue was a record $ 104.2 million , an increase of 71.9 % compared to $ 60.6 million in the prior year period . • Gross profit was $ 21.7 million , or 13.4 % gross margin , compared to $ 17.3 million , or 15.9 % gross margin , in the prior year period . • Net loss was $ 70.1 million compared to net income of $ 3.5 million in the prior year period . • Adjusted EBITDA was negative $ 14.7 million compared to Adjusted EBITDA of positive $ 10.2 million in the prior year period . Adjusted EBITDA is a non - GAAP financial measure defined below under " Non - GAAP Measures . " Please see " Adjusted EBITDA Reconciliation " at the end of this press release . Third Quarter 2021 Results Revenue increased by $ 17.8 million , or 43.5 % , to $ 58.8 million in the three months ended September 30 , 2021 compared to $ 41.0 million in the three months ended September 30 , 2020. The revenue increase was primarily driven by a $ 12.7 million increase in " Tattooed Chef " branded products and a $ 5.0 million increase in private label products and legacy products for select private label retailers . The increase in Tattooed Chef branded products resulted from expansion in the number of U.S. distribution points , as well as increased volume at existing retail customers with our current portfolio of products and new product introductions . Gross profit was $ 5.9 million in the three months ended September 30 , 2021 compared to $ 4.2 million in the three months ended September 30 , 2020 . Gross margin in the three months ended September 30 , 2021 was 10.1 % compared to 10.3 % in the three months ended September 30 , 2020. The slight decrease in gross margin for the three months ended September 30 , 2021 was primarily due to the increases in raw materials , packaging , and freight and container costs due to inflation , as well as the two facilities in New Mexico , which the Company refers to collectively as Foods of New Mexico , that were acquired by the Company in May 2021 , partially offset by the achievement of economies scale from the increase of Tattooed Chef sales volume and improved production capacity . Foods of New Mexico's operational production facility currently only manufactures private label products , which have a lower margin when compared to our Tattooed Chef branded products . Foods of New Mexico's other facility is brand new and is expected to become active during the first quarter of 2022. The Company anticipates that both of these facilities will be fully operational and