Else Nutrition Reports 2023 Financial Results and Provides Business Update - Seite 2

“Our established toddler products have continued to receive praise from customers across the U.S. and Canada. To build upon on this momentum, I am pleased to report, we successfully launched our toddler product in the United Kingdom (UK) which marks a key achievement among our international growth initiatives. Having secured multiple partnerships with leading UK distributors in the health food sector, we now have a solid foothold to enter this multi-billion dollar market with our innovative plant-based, dairy-free, whole food toddler products. At the same time, we are continuing to progress discussions with the FDA in order to commence our infant formula trial as soon as possible.”

"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,” concluded Ms. Yitzhak.

2023 Fiscal Year Financial Results
All figures are in CAD unless otherwise indicated.

• Revenue for 2023 increased 11% to $9.4 million compared to $8.5 million for the same period last year.
• Revenue for the fourth quarter increased 38% sequentially to $2.4 million compared to $1.7 million for the third quarter of 2023, reflecting an 85% and 106% increase within both the US and Canadian retail channels, respectively.
• Operating expenses decreased 23% to $16.8 million compared to $21.8 million in 2022.
• Cash balance as of December 31, 2023, was $5.9 million (including restricted cash and short-term bank deposits).

2023 Fiscal Year Business Highlights

• Expanded retail presence into more than 11,000 additional stores in North America including 7,000 CVS stores, 1,200 Walmart stores, 900 Shoppers Drug Mart stores, 440 Loblaws stores, and more.
• Tripled production capacity and reduced manufacturing costs by over 50% (results will take effect during FY 2024).
• Else products were approved for US federal insurance billing under Centers for Medicare & Medicaid Services (CMS), opening new avenues for distribution and increasing 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 achievement of product approvals in Arizona and under US federal insurance billing, reflecting the continued execution of the Company’s strategic vision to broaden accessibility of its plant-based nutrition products across the United States.
• Entered into a multi-stage collaboration agreement with Danone S.A.
• Entered the Western European market during the fourth quarter of 2023, initially launching with UK natural food distributors, with other European countries to follow.
• Launched the kids RTD product line in two countries, U.S. and Canada, in brick and mortar and online retailers.
• Developed the prototype adult RTD products and planning to launch in H2 2024.

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