- Else Nutrition (TSX:BABY) is sharing value-accretive results for Q4 and fiscal 2023
- The company generated 11 per cent more revenue year-over-year, while decreasing operating expenses by 23 per cent
- Else Nutrition is developing plant-based food and nutrition products for infants, toddlers, children and adults
- Else Nutrition stock (TSX:BABY) has given back 65.06 per cent year-over-year and 58.57 per cent since 2019
Else Nutrition (TSX:BABY) is sharing value-accretive results for Q4 and fiscal 2023.
The plant-based food company, which is known for its dairy and soy-free alternatives, posted revenue of C$9.4 million in 2023, which is up by 11 per cent from C$8.5 million in 2022. Q4 revenue, for its part, was up by 38 per cent sequentially to C$2.4 million from C$1.7 million in Q3 2023, backed by quarterly 85 per cent and 106 per cent increases within Else’s U.S. and Canadian retail channels, respectively.
Operating expenses decreased by 23 per cent to C$16.8 million, compared with C$21.8 million in 2022, and will continue to decrease in 2024 thanks to a two-year agreement with a top U.S. powder manufacturer that will reduce manufacturing costs by an estimated 50 per cent.
Else’s cash balance was C$5.9 million as of Dec. 31, 2023, including restricted cash and short-term bank deposits, setting up the microcap stock to pursue further growth opportunities to add on to 2023’s momentum.
During fiscal 2023, the company tripled its production capacity, while expanding its retail presence by more than 11,000 stores in North America, including 7,000 CVS stores, 1,200 Walmart stores, 900 Shoppers Drug Mart stores, and 440 Loblaws stores, among many others.
The company also had its products approved for U.S. federal insurance billing under Medicare and Medicaid, and signed a multi-stage collaboration agreement with Danone, a global leader in fresh dairy products, plant-based products, water and specialized nutrition, that generated net revenue of €27.6 billion (C$40.23 billion) in 2023.
Else followed up these milestones by entering the Western European market in Q4 2023, progressing with discussions with the U.S. Food and Drug Administration to begin trials for its infant formula, and launching its kids ready-to-drink product line in the U.S. and Canada in brick and mortar and online retailers.
Shareholders can expect Else’s new line of adult ready-to-drink products to hit shelves in the second half of 2024.
Click here to read the company’s 2023 annual report.
Management insights
“We made tremendous progress in 2023, resulting in increased revenue, an expanded retail footprint and new product launches,” Hamutal Yitzhak, Else Nutrition’s chief executive officer, said in a statement. “Had it not been for some temporary delays by certain large retail chains, our results would have been even stronger. Nevertheless, the planned rollouts are moving forward and feedback from our retail network has been overwhelmingly positive.”
“For the full year, our revenue increased 10 per cent to C$9.4 million, despite manufacturing challenges earlier in the year. However, we took swift action to remedy these challenges and now have three main manufacturing partners – two in North America and one in Europe. As a result, we have more than adequate capacity to support our aggressive growth plans going forward. We also secured new, more cost-effective powder packaging partners both in the U.S. and in Europe, and a strong partner for ready-to-drink production in Canada.”
“Ultimately, we are setting a new standard in infant, toddler and kids nutrition and I am extremely encouraged by the traction we are gaining in the market. We believe our rapid progress reinforces the significant unmet demand for a tasty and nutritious dairy and soy-free alternative. Major retailers are accepting our products for their shelves and online stores, enabling us to supply products to millions of families around the world. Overall, we believe we have positioned ourselves for success and look forward to continuing to execute for our shareholders,” Yitzhak concluded.
About Else Nutrition
Else is developing plant-based food and nutrition products for infants, toddlers, children and adults.
Else Nutrition stock (TSX:BABY) is down by 1.69 per cent trading at C$0.29 per share as of 10:47 am ET. The stock has given back 65.06 per cent year-over-year and 58.57 per cent since 2019.
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