Else Nutrition publishes solid financial results in 2Q2022 with
Highlighted by 84% growth in Amazon sales
The conference call will take place on August 15 at 11 a.m. ET
VANCOUVER, British Columbia, Aug. 15, 2022 (GLOBE NEWSWIRE) — OTHER NUTRITION HOLDINGS INC (BABY) (BABYF) (0YL.F) (“Other” or the “Company”) the plant-based nutrition company for babies, toddlers and children, today announced its second quarter 2022 financial results for the period ending June 30, 2022. Financial statements and MD&A are available at SEDAR under the company profile.
Second Quarter 2022 Financial Highlights
- Revenue was $2.3 million, a 44% increase from $1.6 million in 1Q22, driven by the expansion of toddler products across all channels and the introduction of the new Toddler Omega product.
- Sales on Amazon.com increased 84% sequentially from 1Q22, an impressive acceleration from prior periods.
- Other products are now listed in more than 3,000 health food stores, grocery stores and pharmacies (compared to 1,200 in the first quarter), reflecting a 250% increase in the number of stores. Most of these stores are expected to sell actively in 3Q22.
- On June 29, 2022, the company executed a $7.3 million financing round, further strengthening its balance sheet.
- The cash balance as of June 30, 2022 was $22 million (including restricted cash and short-term bank deposit).
- The Company had no borrowing liabilities as of June 30, 2022.
Recent Business Highlights
- Expanded US retail presence to over 3,000 stores and continued to increase retail sales velocity. Several retailers have already added the new Kids products to their range.
- In the 4th quarter of 2022, Else expects an entry into the UK market of Amazon UK, the first European country, following the invitation of Amazon EU to launch on Amazon’s European account. The other products will also be sold in UK pharmacy and grocery chains. Otherwise, the first entry into Europe will be followed by additional entries into the EU market in 2023.
- Signed a long-term distribution agreement with Baozun, one of China’s leading e-commerce distributors, setting the stage for entering the Chinese market in the third quarter.
- Prepare to enter the Canadian market in August 2022, launch toddler, kids and cereal products online on Else’s Canadian online store, amazon.ca and sell through distributor across all sales channels at detail.
- Expanded retail and online distribution of Kids product line to include KeHE, UNFI, Walmart.com, Kroger.com, Thrive Market and other channels.
- Successful launch of a second toddler product, Else™ Toddler Omega Complete and Balanced Nutritional Drink on amazon.com and the company’s online store, to be followed by retail distribution at select outlets . The Toddler Omega is seeing strong sales as it comes at a more affordable price and appeals to a wider consumer audience.
- Successful launch of its third product line, Else™ Super Cereal, the first American cereal brand certified free of heavy metals. It launched on amazon.com and the company’s online store, followed by retail distribution in select outlets.
- Successfully completed the second and final preclinical study on our infant formula, paving the way for FDA approval.
Hamutal Yitzhak, CEO of Else Nutrition, said, “We are extremely pleased to see our strong growth momentum continue in 2Q22. We’re seeing robust sales growth across all channels, including Amazon, which was up 84% quarter-over-quarter. Importantly, we have doubled the number of Else subscribers on Amazon.com over the past three months to approximately 2,000, demonstrating consumer loyalty to our brand and products.
“We are also seeing an increase in the speed of sales and restocking quantities with many of our retailers. We are currently listed in over 3,000 retail doors, on track to meet our stated goal of listing 4,000 doors by the end of 2022. It is important to note that we are now selling on some of the platforms and well-known online distributors such as Walmart.com, Kroger.com, UNFI and KeHE.
“Our international expansion plans are progressing very well. In June 2022, we announced our entry into the Chinese market through a signed agreement with Baozun, one of the leading e-commerce distributors in China. In August 2022, we will enter the Canadian market on Amazon.ca, our own online store and in grocery stores and pharmacies. Additionally, we plan to enter the UK and Western Europe via Amazon by the end of 2022.”
FDA and Clinical Research Update
In the fourth quarter of 2021, Else successfully concluded a preclinical safety study of its plant-based infant formula, as part of the marketing of its infant formula.
Study results demonstrated proper growth, similar to dairy-based infant formula, in a neonatal preclinical model, which is a key first step on the way with the Food and Drug Administration (FDA) of the United States, as well as with other regulatory authorities, to demonstrate the safety and bioavailability of the nutrients in infant formula and its ingredients. In the second quarter, the study results were accepted for presentation at two key international scientific conferences on pediatric nutrition and were published in a peer-reviewed scientific medical journal. Else is in close communication with the FDA, sharing plans and results to receive guidance throughout Else’s infant formula development process.
In the second quarter of 2022, Else conducted a second preclinical study demonstrating the protein quality of infant formula as part of the FDA requirements for marketing new infant formula in the United States. Else has started the first clinical study to demonstrate the tolerance of its products in a specific population of intolerant children. A second clinical study to be conducted in a population of healthy toddlers has been approved by the ethics committee and is set to start in the third quarter of 2022. Else is working on the final preparations for the clinical study on the infant growth for the FDA and European permits which should begin at the end of 2022.
In 2023, the Company plans to continue research activities demonstrating the safety and tolerability of infant formulas and to provide scientific support for Else products, including the preparation of additional clinical studies.
Hamutal Yitzhak, CEO and Co-Founder, will hold a conference call to discuss the quarterly financial results at 11:00 a.m. (Eastern Time) on August 15, 2022.
Interested parties may listen via live webcast, from the link available in the Investors section of the Company’s website or at https://app.webinar.net/JnOW24nGMwX.
A replay will be available after the call, on the Investors section of the Company’s website at https://app.webinar.net/JnOW24nGMwX.
About Else Nutrition Holdings Inc.
Else Nutrition GH Ltd. is an Israel-based food and nutrition company focused on developing innovative, clean, plant-based food and nutrition products for infants, toddlers, children and adults. Its revolutionary plant-based, soy-free formula is an alternative to dairy-based formula’s own ingredients. Else Nutrition (formerly INDI) won the “2017 Best Health and Diet Solutions” award at the Global Food Innovation Summit in Milan. The holding company, Else Nutrition Holdings Inc., is a publicly traded company, listed on the TSX Venture Exchange under the symbol BABY and is listed on the US OTC Markets QX board under the symbol BABYF and on the Frankfurt Stock Exchange under the symbol BABYF. symbol 0YL. . Since launching its complete plant-based nutrition for toddlers, featuring whole foods, almonds, buckwheat and tapioca, the brand has received thousands of testimonials and powerful reviews from parents and has garnered support from national Sprouts Farmers Market retailers, and achieved rapid sales growth. . Else became the #1 best seller on Amazon in the fall of 2020 in the baby and toddler formula category. It recently won the ‘Best Dairy Alternative’ Award 2021 at the World Plant-Based Expo and was a Nexty Award finalist at Expo West 2022 in the Plant-Based lifestyle category.
For more information visit: elsenutrition.com or @elsenutrition on Facebook and Instagram.
Contact with Investor Relations:
Lytham Partners, LLC
Mr Ben Shamsian
New York | Phoenix
Email: [email protected]
Such. : 646-829-9701
Toronto Stock Exchange
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Caution Regarding Forward-Looking Statements
This press release contains statements that may constitute “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements are generally identified by words such as “will” or similar expressions. Forward-looking statements in this press release include statements regarding the expected dates for the filing of the Company’s financial disclosure documents. These 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 deems appropriate in the circumstances. No assurance can be given that the foregoing will prove to be accurate. Forward-looking statements made in this press release assume, among other things, the expectation that there will be no supply chain disruptions or failures as a result of COVID 19 and that the manufacturing agreement , brokerage and supply logistics with the Company does not end. Actual results may differ from the estimates, beliefs and assumptions expressed or implied by the forward-looking statements. Readers are cautioned not to place undue reliance on 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.