The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Neil Linsdell - iA Capital Markets - Analyst
: Hey, good morning, guys.
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MAY 27, 2022 / 2:00PM, ENW.V - Q2 2022 Enwave Corp Earnings Call
Question: Neil Linsdell - iA Capital Markets - Analyst
: First, can we just start off on the -- basically the revised guidance on the REV units? So last time when we were talking about the guidance on the
number of units you have, I think you said 60% of the units you expected to be from existing partners. So I understand you've got some global
supply chain problems and you've got customers which are deferring. Is it hitting everybody or are existing customers taking their full allotment
and new customers are being a little bit more cautious or delaying projects?
Question: Neil Linsdell - iA Capital Markets - Analyst
: Okay. So that makes sense. And on the margin pressure, I guess, on the Moon Cheese Snacks, couple of questions there. So on the cheese pricing,
your suppliers -- are you expecting to see stabilization of the cheese prices? A drop in the cheese prices? Further inflation? And how does that
coordinate with your potential to pass through price increases, perhaps, on some of your existing partners?
Question: Neil Linsdell - iA Capital Markets - Analyst
: Okay. So it's more of a market dynamic against your competitors versus contractual obligations to maintain certain prices?
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MAY 27, 2022 / 2:00PM, ENW.V - Q2 2022 Enwave Corp Earnings Call
Question: Neil Linsdell - iA Capital Markets - Analyst
: Okay. Fair enough. And just on your breakeven, when you talked about the pounds per month of cheese passing through the facility, with the
cheese -- this may be competitively sensitive, but when you're producing the Moon Cheese versus the sticks, I get the impression there's more air
puffed into sticks product such that for specific volume, you'd actually have a lower kind of unit cheese cost. Is there a difference in profitability
between the two products, say, or the amount that the cheese price is going to impact your margin?
Question: Neil Linsdell - iA Capital Markets - Analyst
: Okay. And you are obviously making significant advancement, it looks like, on the NutraDried sales among a number of partners. How much
lumpiness should we expect as we're trying to model that in between Costco and Kroger and Walmart and other partners that you're looking at?
Was this a particularly lumpy quarter or are we talking about more stable run rates? Should we expect something in, say, Q3, Q4, Q1 that's kind of
out of line.
Question: Neil Linsdell - iA Capital Markets - Analyst
: Okay, great. Sounds like good progress. Thanks. That's it for me.
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