BranchOut Food Announces 2023 Financial Results Ending Year at a $6.4M Run Rate with Current Commitments of $9.0M in Annualized Sales for 2024

2023 net revenue of $2.83M, up 276% versus prior year due to major retailer engagements

BEND, Ore., April 02, 2024 (GLOBE NEWSWIRE) -- BranchOut Food Inc. (NASDAQ: BOF), a pioneering food technology company and producer of dehydrated fruit and vegetable-based products, today announced its recent accomplishments and financial results for the fourth quarter and year ended December 31, 2023.

Eric Healy, CEO of BranchOut Foods, said, “We are very pleased with BranchOut Food’s significant growth and accomplishments since our IPO in June 2023. In the ensuing nine months, we have built strong, long-term relationships with some of the nation’s leading retailers, and our products have now established popularity among shoppers in stores throughout the country.

“The fourth quarter was marked by revenue nearly doubling that of the previous total year, while gross margin improved as the year progressed. We also expect revenue to continue to grow in 2024. Our rising gross profit percentage is attributed to reduced retailer chargebacks compared to previous quarters. A depreciation expense of $223,856 is also included in cost of sales, which lowered gross profit. We look forward to continued improvements in gross margins.

“Our corporate strategy has propelled strong revenue growth in 2023, and we expect to continue this trajectory in 2024. Our current commitments are now at $9.0M in annualized sales for 2024. However, we anticipate additional sales wins throughout the remainder of the year that should push this even higher.”

Operational Highlights

• In Q4, BranchOut Food’s top branded snack expanded into the Bay Area Region of the Nation's largest warehouse club following significant commercial success in the retailer’s Southern California region. The sales velocity was nearly double the retailer’s expectation. As a result, BranchOut Food has secured roughly $1.1 million in commitments for 2024, expanding into eight states.
• In Q3, the company’s branded line launched in Jacksons Food Stores, with approximately 300 locations, marking BranchOut's first foray into the Convenience Store Channel. Additional new Grocery Channel launches include Family Foods, Market of Choice, Harmons, and Giant Martin.
• Subsequent to quarter end, BranchOut Food announced the successful completion of part of its strategic collaboration with the U.S. Army Combat Capabilities Development Command (DEVCOM) to enhance MREs (Meals Ready-to-Eat) through the implementation of BranchOut Food's proprietary GentleDry technology. The company anticipates the completion of shelf-life testing in the first half of 2024.
• In February 2024, the company expanded its relationship with the nation’s largest retailer. The new agreement is valued at an estimated $7.6 million annually.
• In March 2024, BranchOut Food launched two new product lines, salad toppers and kids’ snack packs, at the Natural Products Expo West. The products extend the company’s reach outside of the snacking category and into two additional use cases.