Else Nutrition Reports Second Quarter 2023 Financial Results

Conference call will be held on Monday, August 14 at 10 AM ET

VANCOUVER, British Columbia, Aug. 14, 2023 (GLOBE NEWSWIRE) -- ELSE NUTRITION HOLDINGS INC (BABY) (BABYF) (0YL.F) ("Else" or the "Company") the Plant-Based baby, toddler, and children nutrition company, today reported second quarter 2023 financial results for the period ending June 30, 2023. The financial statements and MD&A are available on SEDAR under the Company’s profile.

Financial Highlights

• 2Q23 total revenues were $2.4M, a 3% increase versus $2.3M in 2Q22. 1H23 revenues increased 35% YoY, versus 1H22.
• Sales to brick-and-mortar retailers in the US and Canada during 2Q23 increased by 157% YoY, versus 2Q22. As of 2Q23, Else products were listed in nearly 13,000 stores in North America, compared with 3,000 stores in 2Q22. Management expects to reach over 15,000 listed stores and over 40,000 points of distribution by the end of 2023.
• Total ecommerce sales during 2Q23 decreased by 42% YoY, versus 2Q22. The decline in sales was the consequence of the Company’s decision to divert product from e-commerce channels in favor of brick-and-mortar retailers in the last three quarters. The Company is amid rebuilding its sales velocity on Amazon and its own e-commerce store and expects these channels to return to growth in 2H23. E-commerce sales increased 26% in 2Q23 vs. 1Q23.
• Cash balance as of June 30, 2023, was $4.6M CAD, including restricted cash and short-term bank deposit. On July 10, Else received an additional $3M CAD ($2.5M US) of investment from Lind Partners. The total amount for potential investment from Lind Partners was up to $19M CAD ($13M US) of which the Company has drawn down $8.1M US. 

Recent Business Highlights

• Expanded distribution to more than 7,000 CVS stores, more than 1,100 Walmart stores, 900 Shoppers Drug Mart locations across 11 provinces and territories, over 440 Loblaws stores, over 600 Sobey’s stores, 161 Giant Food Stores, and 110 Schnucks Supermarkets.
• Else Kids Vanilla, Else Kids Cocoa, and Else Toddler Organic & Else Toddler Omega, were approved for US federal insurance billing under the Center for Medicare & Medicaid Services, opening new avenues for distribution and increasing the accessibility of Else's plant-based nutrition products.
• Else nutritional products for toddlers and kids have been approved by the Oklahoma Women, Infants, and Children (WIC) program. This authorization comes on the heels of the Company's recent achievements of product approvals in Arizona and under US federal insurance billing, reflecting the continued execution of its strategic vision to broaden the accessibility of plant-based nutrition products across the United States.
• 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 decrease its manufacturing costs, beginning in 2H23.
• Expected to launch kids ready to drink products in 2H23 in USA and Canada, and adult ready-to-drink products in 2024.
• The Company plans to enter Western Europe in 2H23. 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 2H23. 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