Else Nutrition Holdings Inc (CVE:BABY) (OTCMTKS:BABYF) (FRA:0YL) posted first-quarter results that saw its revenue rocket 282% year-over-year on the back of plant-based, non-dairy, non-soy nutritional products.
For the period ended March 31, 2021, the Israel-based food and nutrition company reported revenue of C$1,135,000, up from C$297,000 in the same quarter a year earlier. There was a 90% sequential growth in revenue from C$598,000 in the 4Q of 2020.
During the 1Q, Else Nutrition clocked up formula revenue of C$862,000, up 149% from C$346,000 in the 4Q of 2020.
READ: Else Nutrition to launch plant-based toddler nutrition at Associated Food Stores
Else noted that it achieved “significant progress" executing its go-to-market plan in the US to become a dominant provider of baby food products as a "healthy alternative to dairy-based formulas.”
The firm's Plant-Based Complete Nutrition for Toddlers product is now available at Sprouts Farmers Market, Big-Y, and online on iHerb, Thrive Market, Amazon.com, and Elsenutrition.com.
Else is shipping products to the two largest natural food distributors in North America – UNFI and KeHE Distributors. Else has also shipped products to Imperial, a local distributor in the North East that serves Big-Y and other retailers in the area.
In a statement accompanying the numbers, Else CEO Hamutal Yitzhak said: "I am very proud of our achievements this quarter. We continued delivering rapid growth in our business while we successfully launched our first retail stores and started working with the largest US natural food distributors".
She noted that the company felt the impact of the coronavirus (COVID-19) pandemic in all areas of its business from delays in raw material deliveries, to clinical and product development projects, and absence of key persons in the company from time-to-time.
“Due to lockdowns and other COVID-19 related measures all our business meeting, marketing events, conferences and expos were either canceled or turned virtual, slowing down the pace of our business development efforts,” added Yitzhak.
Still, Else said it completed the first commercial production of its second product – Plant-Based Complete Nutrition for Kids, 3 years and older – in vanilla and chocolate, in 16-ounce (oz) powder cans. The new product line will offer a “plant-based, low sugar, delicious alternative to milk and soy-based products,” said the company. The product is expected to launch online in vanilla and chocolate flavors in the second quarter.
The company’s cash flow channeled for operating activities was C$4,338,000 during the quarter, compared to C$1,220,000 in the 1Q of 2020.
Else has a strong cash position C$22,085,000 as of March 31, 2021, including restricted cash and short-term bank deposits. It had no loan liabilities at the end March this year.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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