Else Nutrition Reports Strong Start to 2024 Despite Revenue Challenges
Source: The DairyNews
Else Nutrition Holdings Inc. (TSX: BABY) has released its financial results for the first quarter ended March 31, 2024.
“We are proud of our strong start to 2024 with multiple significant retail partners signing on to carry our products,” commented Hamutal Yitzhak, CEO of Else Nutrition. “We remain committed to providing dairy and soy-free alternatives to families around the world and are rapidly gaining market traction. Despite temporary order delays from certain large retailers impacting our quarterly revenue, the outlook for the full year is extremely positive. We have received very favorable feedback from both retailers and consumers, evidenced by the continued adoption of our products by major retailers in the United States and Canada. Consumer awareness and demand are also reflected in our Amazon platform performance, with first quarter 2024 sales increasing approximately 92% in the U.S. and 330% in Canada compared to the same period last year. Additionally, sequential growth from the fourth quarter of 2023 was 13% in the U.S. and 65% in Canada.”
Yitzhak highlighted the success of their kids' ready-to-drink shakes, now onboarded by new and existing retailers. “Launched late last year, we anticipate further growth throughout the year as brand awareness increases. We also plan to launch our adult ready-to-drink product this summer, which we believe will gain similar market traction, further driving our growth.”
Yitzhak also announced the first commercial launch of Else Nutrition’s plant-based infant formula in Australia. “Our plant-based formula meets an unmet market need, being free of antibiotics, hormones, pesticides, GMOs, and heavy metals, which are increasingly concerning to parents. With core ingredients like almonds, buckwheat, and tapioca, our formula has a ~65% lower carbon footprint and requires zero chemical processing, preserving protein integrity. Designed for infants aged 6-12 months transitioning to solid foods, it ensures they receive essential nutrients for optimal growth and development. Achieving this milestone is a major point of pride for us.”
“Overall, we continue to make significant progress with product launches, expanding our retail network, increasing international market penetration, and growing online sales while managing expenses carefully. We anticipate achieving additional milestones shortly and will keep our shareholders updated on these developments,” concluded Ms. Yitzhak.
Revenue for Q1 2024 decreased by approximately 27% to $2.1 million (CAD) compared to $2.9 million (CAD ) for the same period last year, primarily due to shipment delays to retailers.
Operating expenses for Q1 2024 decreased by 15% to $4.2 million (CAD) compared to $4.9 million (CAD ) in Q1 2023. Cash balance as of March 31, 2024, was $3.1 million (CAD) (including restricted cash and short-term bank deposits).
Yitzhak highlighted the success of their kids' ready-to-drink shakes, now onboarded by new and existing retailers. “Launched late last year, we anticipate further growth throughout the year as brand awareness increases. We also plan to launch our adult ready-to-drink product this summer, which we believe will gain similar market traction, further driving our growth.”
Yitzhak also announced the first commercial launch of Else Nutrition’s plant-based infant formula in Australia. “Our plant-based formula meets an unmet market need, being free of antibiotics, hormones, pesticides, GMOs, and heavy metals, which are increasingly concerning to parents. With core ingredients like almonds, buckwheat, and tapioca, our formula has a ~65% lower carbon footprint and requires zero chemical processing, preserving protein integrity. Designed for infants aged 6-12 months transitioning to solid foods, it ensures they receive essential nutrients for optimal growth and development. Achieving this milestone is a major point of pride for us.”
“Overall, we continue to make significant progress with product launches, expanding our retail network, increasing international market penetration, and growing online sales while managing expenses carefully. We anticipate achieving additional milestones shortly and will keep our shareholders updated on these developments,” concluded Ms. Yitzhak.
Revenue for Q1 2024 decreased by approximately 27% to $2.1 million (CAD) compared to $2.9 million (CAD ) for the same period last year, primarily due to shipment delays to retailers.
Operating expenses for Q1 2024 decreased by 15% to $4.2 million (CAD) compared to $4.9 million (CAD ) in Q1 2023. Cash balance as of March 31, 2024, was $3.1 million (CAD) (including restricted cash and short-term bank deposits).
