Else Nutrition reports Q4 revenue $2.4M vs. $1.3M last year

Hamutal Yitzhak, CEO of Else Nutrition, commented, "We are very pleased with the significant progress we made in 2022, as we continue our journey to become a global leader in the plant-based nutrition arena. We are becoming a recognized national brand in the US, carried by major grocery and drug retailers. We ended 2022 with Else products listed in over 11,000 store locations, an incredible growth from roughly 1,200 stores at the end of 2021. Our customers now include prominent retailers such as CVS and Walmart, as well as leading e-commerce sites such as Amazon, Walmart.com, Tmall, and JD. We expect to reach 20,000 retail locations in 2023. We also expanded our geographic reach during 2022, as we entered the Canadian and Chinese markets. Furthermore, we widened our product assortment, from a single SKU to more than 15, adding Nutritional Kids Shakes, Baby Super Cereals, and Toddler Omega. We expect to double our SKU count in 2023 which should further accelerate our growth. We are pleased to announce that the product shortages which limited our ability to supply our customers, thus hampering our sales growth in recent months, are essentially behind us. We worked diligently to secure two additional manufacturing facilities in the US and Europe and have been manufacturing at our new US facility for weeks. The two new facilities have more than tripled our current production capacity, mitigating the risk of future out-of-stock situations. We estimate the revenue impact due to the product shortage to be roughly $1.5M during the second half of 2022, roughly over 15% of our annual sales. As we look out into 2023, we remain focused on our growth objectives. We continue to be enthusiastic about our international expansion. Growing our sales in China will be a priority in 2023, following our successful launches on Tmall Global and JD.com. China is the world’s largest infant formula market, valued at roughly $33 billion and expected to grow to $40 billion by 2025. Our entry into Canada in August had a much greater than anticipated start, and the outsized demand has continued. We expect to roughly double our store base in Canada in 2023. Furthermore, we are excited to enter the UK and Australia in the second half of 2023, as demand for an alternative to dairy and soy formula continues to increase in those regions. In 2023 we will begin our infant growth clinical study for the FDA and European permits, with expected conclusion in 2024. Receiving FDA approval is a very high priority for Else Nutrition, as we believe that becoming the first non-dairy and non-soy FDA-approved infant formula will be transformational for the valuation of the Company."