Where Food Comes From, Inc. (WFCF) reported a total revenue of $25.7 million for the fiscal year ending December 31, 2024, marking an increase of 2.4% from $25.1 million in 2023. The company's verification and certification service revenue rose by approximately $1.1 million, or 5.9%, to $20.6 million, driven by heightened customer awareness and demand for its offerings. However, product sales, which include cattle identification ear tags, decreased by 5.0% to $3.8 million, attributed to a decline in beef cow herd sizes and the impact of USDA programs providing free tags to customers.
In terms of profitability, WFCF reported a net income of $2.1 million, or $0.40 per share, compared to $2.2 million, or $0.39 per share, in the previous year. The slight decrease in net income was influenced by rising costs associated with verification services and inflationary pressures affecting margins. The gross profit margin for the verification and certification segment decreased to 41.9% from 43.4% in 2023, primarily due to increased costs in salaries, benefits, and product shipping.
Operationally, WFCF supported approximately 17,500 stakeholders across the food supply chain, including farmers, ranchers, and retailers. The company maintained a workforce of 103 employees, with 93 being full-time. The filing indicated that the company is in a contraction phase of the cattle cycle, which has historically lasted about ten years, and is currently experiencing a decline in herd sizes, impacting its revenue tied to cattle verification.
Strategically, WFCF has focused on expanding its service offerings and customer base through both organic growth and acquisitions. The company completed the acquisition of the Upcycled Certified® Program in December 2023, enhancing its portfolio in response to growing consumer demand for sustainable food practices. Additionally, WFCF has been actively involved in marketing and trade shows to increase its visibility and attract new clients.
Looking ahead, WFCF anticipates continued growth driven by increasing consumer demand for transparency in food production practices and sustainability. The company plans to leverage its existing capabilities and explore further acquisition opportunities to enhance its service offerings. However, it remains cautious about potential economic uncertainties and inflationary pressures that could impact its operations and profitability in the near term.
About Where Food Comes From, Inc.
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