Q4 2023 achieved sequential revenue growth of 38% compared to Q3 2023
10% increase in revenue in 2023 compared to 2022
The conference call will be held today at 10:30 a.m. ET
VANCOUVER, British Columbia, April 1, 2024 (GLOBE NEWSWIRE) — Else Nutrition Holdings Co., Ltd. (baby) (baby beef) (0YL.F) (“other than that” or “company”), Today, we reported our financial results for the fourth quarter and year ended December 31, 2023. Financial statements and MD&A are available on SEDAR under Company Profile.
Hamtal Yitzhak, CEO of Else Nutrition, commented: “We made significant progress in 2023, resulting in increased revenue, expansion of our retail store footprint, and new product launches.” Did. “Notably, our revenue increased 38% sequentially in the fourth quarter of 2023 compared to the third quarter of 2023. Additionally, our revenue increased by 38% sequentially in the fourth quarter of 2023 compared to the third quarter of 2023. Revenue growth increased sequentially by 85% and 106% compared to the third quarter of 2023, respectively. Our performance would have been even stronger had it not been for temporary delays caused by certain large retail chains. Nevertheless, the planned rollout is progressing and feedback from our retail network has been overwhelmingly positive. In fact, we now actively sell our products in over 14,000 stores across North America. We also launched ready-to-drink products (RTDs) for children. This allows us to cost-effectively leverage existing retail distribution channels and increase brand awareness by introducing this highly anticipated new product. ”
“Despite manufacturing challenges at the beginning of the year, our revenue for the year increased 10% to $9.4 million. However, we took quick action to resolve these challenges and now We now have three major manufacturing partners, two in North America and one in Europe.As a result, we have sufficient capacity to support our aggressive growth plans going forward. In addition, we recently announced an innovative agreement with a leading US-based powder manufacturer that will reduce the cost of our products and improve our profit margins, while also supporting increased demand for our products through the end of 2025. Essential powder production capacity is ensured to meet In addition to better retention, it also improves powder solubility and texture. We have also secured new, more cost-effective powder packaging partners in both the U.S. and Europe, and expanded our RTD production strength in Canada. We have also secured a great partner.”
“Our established toddler products continue to receive praise from customers across the US and Canada. To further build on this momentum, we are pleased to announce the successful launch of our toddler products in the UK. We are delighted that this is a significant achievement in our international growth efforts. Having secured multiple partnerships with leading UK distributors in the health food sector, we are now able to innovate. Our plant-based, dairy-free, whole-food infant products provide us with a strong foothold to enter this multi-billion dollar market. At the same time, we aim to begin infant formula clinical trials as soon as possible. We continue to advance discussions with the FDA.”
“Ultimately, we are setting a new standard in infant, toddler and child nutrition, and we are very encouraged by the traction we are gaining in the market. We believe this will strengthen the huge unmet demand for nutritious dairy and soy-free products,” Yitzhak concluded.
FY2023 Financial Summary
All figures were created in CAD unless otherwise specified.
- Revenues in 2023 increased 11% to $9.4 million compared to $8.5 million in the prior year period.
- Fourth quarter revenue increased 38% sequentially to $2.4 million compared to $1.7 million in Q3 2023. This reflects increases of 85% and 106% within the US and Canadian retail channels, respectively.
- Operating expenses decreased 23% to $16.8 million compared to $21.8 million in 2022.
- As of December 31, 2023, our cash balance was $5.9 million (including restricted cash and short-term bank deposits).
Business highlights for 2023
- In North America, we have expanded our retail operations to more than 11,000 stores, including 7,000 CVS stores, 1,200 Walmart stores, 900 Shoppers Drug Mart stores, and 440 Loblaws stores.
- Triple production capacity and reduce manufacturing costs by more than 50% (results to be reflected in fiscal 2024).
- Else products have been approved for U.S. federal insurance claims under the Centers for Medicare and Medicaid Services (CMS), opening new avenues for distribution and increasing the accessibility of Else’s plant-based nutrition products.
- Other infant and child nutrition products are approved by the Oklahoma Women, Infants, and Children (WIC) Program. This approval comes on the heels of the company’s recent product approvals in Arizona and under federal claims, and the company’s commitment to expand the availability of plant-based nutritional products across the United States. Reflects the continued execution of our strategic vision.
- Signed multi-stage partnership agreement with Danone SA
- It entered the Western European market in the fourth quarter of 2023, initially partnering with a UK natural food distributor, with other European countries following suit.
- We launched our Kids RTD product line in brick-and-mortar and online retail stores in two countries: the U.S. and Canada.
- We have developed a prototype adult RTD product and plan to launch it in the second half of 2024.
Conference call
Else Nutrition’s management will hold a business update conference call today at 10:30 a.m. ET to discuss financial results, the company’s progress, and other developments for the fiscal year 2023, which ended December 31, 2023. It’s a schedule.
The conference call will be available by telephone by dialing toll-free 1-877-704-4453 from the United States or +1-201-389-0920 internationally. A webcast of this call is available at https://viavid.webcasts.com/starthere.jsp?ei=1661271&tp_key=87e7860827 or from the Investor Relations section of our website at https://investors.elsenutrition.com/ You can access it.
A replay of the webcast will be available on the Investor Relations section of the Company’s website at https://investors.elsenutrition.com/ until April 1, 2025. Telephone replay will be available approximately 3 hours after the call. Participation is open until April 8, 2024 by dialing 1-844-512-2921 for U.S. callers or +1-412-317-6671 for international callers and quoting Conference ID: 13745059. You can access it by typing.
To learn more about Else Nutrition’s products and innovative approach to children’s nutrition, please visit www.elsenutrition.com.
About Els Nutrition Holdings Co., Ltd.
Else Nutrition Holdings Inc. (TSX: BABY, OTCQX: BABYF, FSE: 0YL) is a global expansion company focused on developing innovative, clean, plant-based food and nutrition products for infants, toddlers and children. is a stage food and nutrition company. , and adults. Its innovative plant-based, non-soy formula is a clean alternative to dairy-based formulas. Since launching complete plant-based nutrition for toddlers made with whole foods, almonds, buckwheat and tapioca, the brand has received thousands of strong testimonials and reviews from parents and gained support from retailers nationwide. and achieved rapid sales growth.
Awards and recognition:
- Awarded “2017 Best Health & Diet Solution” at the Global Food Innovation Summit in Milan
- #1 bestseller in the infant and toddler milk category on Amazon in fall 2020
- Awarded “Best Dairy Alternative” at World Plant-Based Expo 2021
- Expo West 2022 Plant-based Lifestyle Nexty Award Finalist
- In September 2022, Else Super Cereal reached #1 bestselling baby cereal across all brands on Amazon.
Investor information contact:
alexandra schult
Crescendo Communications, LLC
Office: (212) 671-1020
Email: baby@crescendo-ir.com
TSX
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Cautionary Note Regarding Forward-Looking Statements
This press release contains statements that may constitute “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements are typically identified by words such as “will” or similar expressions. Forward-looking statements in this press release include statements regarding the expected filing dates of the Company’s financial disclosure statements. Such forward-looking statements represent current estimates, beliefs and statements based on management’s perception of current conditions and expected future developments and other factors that management believes are appropriate in the circumstances. Reflects assumptions. There can be no guarantee that the foregoing will prove to be correct. The forward-looking statements made in this press release reflect, among other things, our expectations that there will be no interruptions or supply chain disruptions due to the impact of COVID-19 and that our manufacturing, brokerage and supply logistics agreements with the Company will not be terminated. is assumed. . Actual results may differ from the estimates, beliefs and assumptions expressed or implied by the forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management’s expectations only as of the date of this press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
