- Plant-based food stock Else Nutrition (TSX:BABY) is reporting strong revenue growth and lower operating expenses in Q2 2024
- Revenue grew by 23 per cent to C$2.6 million over Q1 2024, while operating expenses decreased by 19 per cent to C$3.4 million year-over-year
- Else Nutrition develops whole plant-based and dairy-free food and nutrition products for infants, toddlers, children and adults
- Else Nutrition stock has given back 76.85 per cent year-over-year and 79.17 per cent since 2019
Plant-based food stock Else Nutrition (TSX:BABY) is reporting strong revenue growth and lower operating expenses in Q2 2024.
Else’s Q2 financial highlights
- Revenue grew to C$2.6 million, up by 23 per cent from C$2.12 million in Q1 2024 and by 10 per cent from C$2.37 million over Q2 2023. The company grew revenue by more than 17 times from C$0.55 million in 2019 to C$9.36 million in 2023.
- Retail sales increased by 88 per cent and 111 per cent over Q1 2024 in the United States and Canada, respectively. Else’s North American store count has grown by more than 10 times since 2022 to more than 13,000 locations.
- Operating expenses came to C$3.4 million, down by 19 per cent from C$4.2 million in Q2 2023.
- Gross profit increased to C$263,000, up from a gross loss of C$50,000 year-over-year.
- Cash as of June 30, 2024, was C$1.4 million, including restricted cash, but not counting the US$2 million Else raised subsequent to the quarter.
Leadership insights
“We are rapidly expanding our market presence,” Hamutal Yitzhak, Else Nutrition’s chief executive officer, said in a statement. “Most notably, our toddler and kids products continue to gain traction as we add major retailers across North America. Specifically, we added several key accounts in the last few months, including Wegmans, HEB, Meijer, and 600 new Walmart U.S. stores; started selling our new kids ready-to-drink (RTD) line at Loblaws, Giant and Metro; and added Walmart’s Canadian website, Walmart.ca. We believe these results are a strong validation of the market demand for nutritious and healthy alternatives.
“We are also gaining traction in the market with our kids RTD products, demonstrating its broad appeal. Since the launch, we have observed a rapid increase in sales, reflecting strong consumer demand and positive reception. The positive reviews and testimonials further attest to its quality and taste, enhancing our brand’s reputation. In fact, our RTD products earned the prestigious Mom’s Choice Award. The impressive market performance we are witnessing positions us for future growth and expansion.
“In addition, we recently announced that the Navy Exchange Service Command, or NEXCOM, has listed our full product line. The Navy Exchange offers a variety of goods and services to active military personnel, retirees and certain civilians on Navy installations in the United States, overseas Navy bases and aboard Navy ships. We are pleased to report that we have delivered the first shipment of our full range of products to NEXCOM’s retail stores. We believe this agreement will serve as a foothold into broader military channels, providing those who serve and their families access to high-quality nutritious options.
“Furthermore, during the first half of 2024, we moved our U.S. powder production to a new plant, cutting production costs by almost half, and moved to a new packaging partner that reduced our packaging costs and improved our product shelf-life. Over the next several months we plan to add another powder production and packaging facility in Europe that will offer additional cost savings and quality improvements.
“Overall, we are committed to growing our revenue and capturing a significant share of this multi-billion market, while progressing towards profitability and driving value for our shareholders.”
Attend Else’s Q2 2024 conference call
Current and prospective investors can learn more about the company’s Q2 performance, corporate progress and other developments during a conference call scheduled for 10 am ET Wednesday. Register here or watch a replay on Else’s investor relations page until Aug. 14, 2025.
About Else Nutrition
Else develops whole plant-based and dairy-free food and nutrition products for infants, toddlers, children and adults.
Else Nutrition stock (TSX:BABY) last traded at C$0.12 per share. The stock has given back 76.85 per cent year-over-year and 79.17 per cent since 2019.
Join the discussion: Find out what everybody’s saying about this plant-based food stock’s Q2 2024 results on the Else Nutrition Holdings Inc. Bullboard and check out Stockhouse’s stock forums and message boards.
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