ELSE NUTRITION HOLDINGS INC
(BABY)
(BABYF)
(0YL.F)
("Else" or the
"Company") the
Plant-Based baby, toddler, and children nutrition company, today
reported first quarter 2023 financial results for the period ending
March 31, 2023. The financial statements and MD&A are available
on SEDAR under the Company’s profile.
First Quarter 2023 Financial Highlights
- 1Q23 total
revenues were $2.9M, an 82% increase versus $1.6M in 1Q22, and a
23% increase versus $2.3M in 4Q22. Revenue growth continued to be
hampered by product shortages. While the company increased its
production pace, the demand for its products also continued to
grow, a combination that challenged available supply, especially in
the first half of the quarter. Management estimates the revenue
loss from inventory constraints was roughly $1M in 1Q23.
- Sales to
brick-and-mortar retailers in the US and Canada during 1Q23
increased by 105% versus 4Q22. As of 1Q23, Else products were
listed in nearly 12,000 stores in North America, compared with
1,200 stores in 1Q22. Management expects to reach 20,000 listed
stores and 50,000 points of distribution by the end of 2023.
- Sales in Canada,
via Amazon and brick-and-mortar retailers increased over 240% in
1Q23 versus 4Q22 and represented over 28% of the Company’s formula
sales.
- Retail sales
velocity is growing, and as additional products are added to
existing accounts, annual revenue per store is improving as
well.
- Cash balance as
of March 30, 2023, was $10.1M CAD, including restricted cash and
short-term bank deposit.
Recent Business Highlights
-
Expanded distribution to more than 7,000 CVS stores, more than 750
Walmart stores, over 440 Loblaws stores, over 600 Sobey’s stores
and to 161 Giant Food Stores.
-
Else products were listed in nearly 12,000 stores in North America,
compared with 1,200 stores in 1Q22 reflecting 10 times growth.
-
Significantly increased in-store sales velocity. For example,
according to Spins data, the sales velocity of our Toddler Organic
product in natural food stores grew by more than 50% in the last
year (measured in 12-week periods).
-
Expanded production capacity by adding a second manufacturing
facility in the US and launching its first production facility in
Europe. The additional facilities will increase the Company’s
production capacity by about three times, greatly reducing the risk
of future out of stock situations. The Company anticipates the new
scaled manufacturing capacity to significantly decrease its
manufacturing costs, beginning in 2H23.
-
Entered the Canadian market with the launch on Amazon.ca and in
brick-and-mortar stores. The success of the launch exceeded
expectations given a fast entry into major retailers across the
country and the strong demand for Else’s products. The Company
expects to be listed in more than 3,000 Canadian stores by the end
of 2023.
-
The Company plans to enter Western Europe in 2H2023. The initial
launch will be in the UK via Amazon and natural food distributors,
with other European countries to follow.
-
The Company plans to enter Australia in 2H2023. The initial launch
will be via Amazon to be followed by drug and grocery chains.
-
Received critical approval by the Institutional Review Board (IRB)
of the infant growth study protocol for the testing of the Else
Infant Formula.
Management Commentary
Hamutal Yitzhak, CEO of Else Nutrition,
commented, “In 1Q23, Else returned to strong sequential growth,
after two quarters in which we experienced severe product
shortages. Over the past months we secured two additional
manufacturing facilities in the US and Europe. The two new
facilities have more than tripled our current production capacity,
mitigating the risk of future out-of-stock situations.
Although our manufacturing facilities are fully
operational, out of stock and product shortages were still a
limiting factor for sales growth in the first quarter. Limited
inventory continued to force us to prioritize retails orders over
Amazon and our E-store orders. We estimate the revenue impact due
to the product shortage to be approximately $1M in 1Q23, mostly in
January and February. In March and April, we have begun to see a
rebound in our ecommerce sales as we have been building inventory
to meet the growing demand.
Our sales to retail stores accelerated in 1Q23
as retailers are seeing strong sales of our products and we
continue to grow our store count. Else is becoming a recognized
national brand in the US, carried by major grocery and drug
retailers. Our customers now include prominent retailers such as
CVS and Walmart, as well as leading e-commerce sites such as Amazon
and Walmart.com. We expect to reach 20,000 retail locations by end
of 2023.
Our international expansion remains strong,
growing over 200% in 1Q23 versus 4Q22. Our launch into the Canadian
market in 3Q22 was above our expectations, and the consumer
enthusiasm has continued. In recent months we entered the Chinese
market, and while our presence is currently nascent, we are
continuing to make inroads.
As we look out over next few months, we remain
focused on our growth objectives to become a global leader in the
plant-based nutrition arena. We plan to increase the number of
retailers we sell in and expand our shelf space in those stores. We
remain enthusiastic about our international expansion. Our entry
into Canada in August had a much greater than-anticipated start,
and we expect to reach 3,000 stores in Canada in 2023. Furthermore,
we are excited to enter the UK and Australia in the second half of
2023, and to continue our journey into the large Chinese
market.
In 2023 we remain on track to begin our infant growth clinical
study for the FDA and European permits. Receiving FDA approval
is a very high priority for Else Nutrition, as we believe that
becoming the first non-dairy and non-soy FDA-approved infant
formula will be transformational for the valuation of the
Company.
FDA Update
As part of the pathway to bring its infant
formulation to market under FDA and other authorities’ approvals,
Else concluded two successful preclinical safety studies during
2021 and 2022 on its plant-based infant formula, to demonstrate
safety and nutrient bioavailability of the infant formula and its
ingredients. The results demonstrated proper growth, similar
to dairy-based infant formula, in a neonatal preclinical model, as
well as the infant formula protein efficiency and quality. Those
are the key two steps out of three, on the path to obtaining the
FDA and other regulatory permits to bring the product to
market.
In February 2023, the Company announced that the
Institutional Review Board (the ethical committee) approved the
infant growth study protocol for the testing of the Else Infant
Formula.
As a final step before initiating the study, the
Company has now submitted the infant growth study protocol to the
FDA for review and is awaiting the FDA confirmation, in parallel to
continuously seeking for a comparator formula which is currently
unavailable due to the continuous infant formula shortage followed
by several recent product recalls in the US.
Conference Call
Hamutal Yitzhak, CEO and Co-Founder, will hold a conference call
to discuss the quarter's financial results at 10:00 a.m.
(Eastern Time) on May 15, 2023.
Interested parties can listen via a live webcast, from the link
available in the Investors section of the Company's website or at
https://app.webinar.net/baVn86WGdw0
A replay will be available after the call, in the Investors
section of the Company's website at
https://app.webinar.net/baVn86WGdw0
About Else Nutrition Holdings
Inc.
Else Nutrition Holdings Inc. is a food and
nutrition company in the international expansion stage focused on
developing innovative, clean, and plant-based food and nutrition
products for infants, toddlers, children, and adults. Its
revolutionary, plant-based, non-soy formula is a clean-ingredient
alternative to dairy-based formula. Else Nutrition (formerly INDI)
won the "2017 Best Health and Diet Solutions" award at Milan's
Global Food Innovation Summit. The holding company, Else Nutrition
Holdings Inc., is a publicly-traded company, listed on TSX Venture
Exchange under the trading symbol BABY and is quoted on the US OTC
Markets Q.X. board under the trading symbol BABYF and the Frankfurt
Exchange under the symbol 0YL. Since launching its Plant-Based
Complete Nutrition for Toddlers, made of whole foods, almonds,
buckwheat, and tapioca, the brand has received thousands of
powerful testimonials and reviews from parents and gained national
retailer support from Sprouts Farmers Market, and achieved rapid
sales growth. Else became the #1 Best Seller on Amazon in the Fall
of 2020 in the New Baby & Toddler Formula Category. It recently
won the 'Best Dairy Alternative' Award 2021 at World Plant-Based
Expo and was a Nexty Award Finalist at Expo West 2022 in the
Plant-Based lifestyle category.
Investor Relations
Contact:Lytham Partners, LLCBen ShamsianNew York |
PhoenixE: shamsian@lythampartners.comP: 646-829-9701
RBMG – RB Milestone Group LLCTrevor Brucato, Managing DirectorE:
Baby@rbmilestone.comwww.rbmilestone.com
Toronto Stock Exchange
Neither the Toronto Stock Exchange nor its
regulation services provider (as that term is defined in the
policies of the Toronto Stock Exchange) a responsibility for the
adequacy or accuracy of this release.
Caution Regarding Forward-Looking
Statements
This press release contains statements that may
constitute “forward-looking statements” within the meaning of
applicable securities legislation. Forward-looking statements are
typically identified by words such as “will” or similar
expressions. Forward-looking statements in this press release
include statements with respect to the anticipated dates for filing
the Company’s financial disclosure documents. Such forward-looking
statements reflect current estimates, beliefs and assumptions,
which are based on management’s perception of current conditions
and expected future developments, as well as other factors
management believes are appropriate in the circumstances. No
assurance can be given that the foregoing will prove to be correct.
Forward-looking statements made in this press release assume, among
others, the expectation that there will be no interruptions or
supply chain failures as a result of COVID 19 and that the
manufacturing, broker and supply logistic agreement with the
Company do not terminate. Actual results may differ from the
estimates, beliefs and assumptions expressed or implied in the
forward-looking statements. Readers are cautioned not to place
undue reliance on any forward-looking statements, which reflect
management’s expectations only as of the date of this press
release. The Company disclaims any 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.
Else Nutrition (TSX:BABY)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Else Nutrition (TSX:BABY)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024