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This plant-based company is poised for global domination

Consumer, Economy, Sponsored
TSX:BABY
05 June 2023 09:00 (EST)

Else Nutrition Holdings Inc. (TSX:BABY) continues to grow its global footprint as a plant-based food and nutrition products company

With nearly 12,000 stores and 25,000 points of distribution, Else Nutrition is well-positioned as a leader of plant-based food and nutrition products for infants, toddlers, and children.

With 2023 getting closer and closer to the halfway mark, Else Nutrition officially released its Q1 2023 results in mid-May, noting a 23 per cent revenue growth during the quarter compared to Q4 2022. In other words, consumers are hungry for plant-based products and Else Nutrition is reaping the benefits.

Else Nutrition’s Q1 2023 results

During the quarter, the company’s revenue totaled $2.9 million, representing a staggering 89 per cent increase from $1.6 million in Q1 2022. Meanwhile, the company’s sales from its brick-and-mortar locations in the US and Canada increased by 105 per cent compared to Q4 2023.

The company also said it expanded its product distribution to over 7,000 CVS stores, more than 750 Walmart Stores, over 440 Loblaws and 600 Sobeys stores and 161 Giant Food Stores.

“In 1Q23, Else returned to strong sequential growth, after two quarters in which we experienced severe product shortages. Over the past months, we secured two additional manufacturing facilities in the US and Europe. The two new facilities have more than tripled our current production capacity, mitigating the risk of future out-of-stock situations,” Hamutal Yitzhak, CEO of Else Nutrition, said in a statement.

As the company officially entered the Canadian market during the quarter through the launch of brick-and-mortar stores and on Amazon.ca, the company’s revenue in Canada increased over 240 per cent in Q1 2023 and represented 28 per cent of Else Nutrition’s formula sales.

Else Nutrition also increased its in-store sales velocity — in particular its Toddler Organic product in natural food stores, which grew over 50 per cent in the last year.

Latest updates

Following the company’s financial results, Else Nutrition announced in May that Walmart added the company’s Toddler Organic and Toddler Omega to its shelves alongside other products of the company already available in store.

Else Nutrition also notched another key milestone by expanding its plant-based products to over 900 locations in Canada’s largest pharmacy retailer, Shoppers Drug Mart. The company’s product-roll out across 11 provinces and territories will focus on its Else Toddler Formula.

“We are exceptionally proud to once again grow our presence in Canada with one of the most visited and trusted retailers in the country, and an institution that shares our unwavering vision of a healthy and sustainable future for Canadian families,” Yitzhak said in a statement.

What’s next for Else Nutrition

Over the course of the rest of the year, the company said it is on pace to begin its infant growth clinical study for US Food and Drug Administration (FDA) and European permits. Notching FDA approval is high on Else Nutrition’s priority list in becoming the first company to have non-dairy and non-soy FDA-approved products under its belt.

In order to bring these products to the market, the company completed two successful preclinical safety studies throughout 2021 and 2022 on its plant-based infant formula. The intention was to show the safety and nutrient bioavailability of the formula and the ingredients.

Else Nutrition has now submitted the infant growth study protocol to the FDA and is waiting for confirmation from the agency to move ahead.

Else Nutrition is also looking to expand into the UK and Australian markets in the second half of the year and carry on with its move into the Chinese market.

In Australia, the company plans to enter the market through Amazon, followed by drug and grocery chains. Else Nutrition will also enter the UK market through Amazon and natural food distributors, with other countries across Europe thereafter.

Else Nutrition at a glance

Year-to-date, shares of Else Nutrition have increased 33.93 per cent to C$0.75 as of May 17, 2023. The company’s share price increase is not only good for the company, but investors interested in the plant-based market and reaping the benefits of a company proving it can deliver on its promises.

With operations in the US, Canada and Europe, Else Nutrition Holdings Inc. is focused on developing plant-based products for infants, toddlers, and children.

Learn More about Else Nutrition.

This is sponsored content issued on behalf of Else Nutrition Inc., please see full disclaimer here.


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