Else Nutrition Reports 2024 Fiscal Year Financial Results and Provides Business Update

Rhea-AI Summary

Else Nutrition (BABYF) reported its fiscal year 2024 results, showing a 14.8% revenue decline to $8 million from $9.4 million in 2023. The company faced significant challenges including funding constraints, inventory shortages, and limited marketing budget. Operating expenses decreased 20% to $13.6 million from $16.9 million in 2023, with cash balance at $0.3 million as of December 31, 2024. Management implemented strategic changes including cost reduction, operational optimization, and closure of Israel lab. Notable achievements include launching Adult Ready-to-Drink product and expanding Kids RTD retail presence. The company is engaged with FDA's Operation Stork Speed initiative to modernize guidelines for plant-based infant formula. Future plans include expanding retail distribution, scaling European production, and enhancing brand visibility.

Positive

• Operating expenses reduced by 20% to $13.6 million through cost optimization and restructuring
• Successfully launched new Adult Ready-to-Drink (RTD) product and expanded Kids RTD retail placement
• Engagement with FDA's Operation Stork Speed initiative for plant-based infant formula guidelines
• Strategic plans to expand manufacturing in Europe to lower production costs and improve margins

Negative

• Revenue declined 14.8% to $8 million compared to $9.4 million in 2023
• Significant cash constraints with only $0.3 million in cash balance
• Faced major operational challenges including funding constraints and inventory shortages
• Forced to exit unprofitable retail partnerships and reduce marketing spend

Conference call to be held Tuesday, June 3^rd at 10:00 AM Eastern Time

VANCOUVER, BC, June 2, 2025 /PRNewswire/ - ELSE NUTRITION HOLDINGS INC. (TSX: BABY) (OTCQX: BABYF) (FSE: 0YL.F) ("Else" or the "Company"), reported financial results for the 2024 fiscal year ended December 31, 2024. The financial statements and MD&A are available on SEDAR under the Company's profile.

"2024 was a defining year for Else Nutrition, marked by significant challenges that ultimately led to pivotal decisions shaping our future," commented Hamutal Yitzhak, CEO & Co-Founder of Else Nutrition. "While we encountered major headwinds, including funding constraints, inventory shortages, and a limited marketing budget, we took decisive actions to secure our future. Specifically, we optimized operations, significantly reduced overhead costs, and secured essential funding. We also streamlined our cost structure by cutting underperforming roles, reducing low-ROI marketing spend, and exiting unprofitable retail partnerships. In addition, we restructured R&D operations, including the closure of our Israel lab, to preserve innovation capacity while improving financial performance. Furthermore, we plan to expand our manufacturing and prepare our powder formula in Europe, which will lower production costs, improve margins, and enhance product quality."

"Despite our challenges, we made important progress including successfully launching our first Adult Ready-to-Drink (RTD) product, expanding retail placement for our Kids RTD product, and increasing our presence in the U.S. through e-commerce platforms. These milestones reflect the growing demand for plant-based, allergen-friendly nutrition, and we intend to capitalize on these opportunities."

"On the regulatory front, we are encouraged by the FDA and HHS's launch of Operation Stork Speed, an initiative aimed at expanding infant formula options and strengthening supply chain resilience. Through our continued bipartisan advocacy efforts, we aim to make significant progress toward modernizing FDA guidelines for plant-based, non-soy, non-dairy infant formula. We look forward to working closely with regulators to establish a clear pathway, ensuring that parents have access to safe, high-quality, and scientifically backed nutrition alternatives."

"Furthermore, we were recently featured in an op-ed published in The Washington Times, titled "Operation Stork Speed will ensure babies get the nutrition they need." The piece highlights the importance of accelerating access to clean-label, plant-based alternatives and aligns with our broader mission and ongoing advocacy efforts in Washington to promote science-backed updates to infant nutrition guidelines."

"Looking ahead to 2025, we are focused on expanding our retail distribution, scaling our European production, and enhancing brand visibility through targeted marketing and strategic partnerships. With a solid foundation in place, Else Nutrition is well-positioned for long-term growth, and we remain committed to delivering clean-label, plant-based nutrition solutions that meet the needs of families worldwide."

2024 Fiscal Year Financial Results
All figures are in CAD unless otherwise indicated.

• Revenue for 2024 decreased approximately 14.8% to $8 million compared to $9.4 million for 2023.
• Operating expenses for 2024 was $13.6 million, a decrease of 20% compared to $16.9 million for 2023
• Cash balance as of December 31, 2024, was $0.3 million (including restricted cash).

Conference Call

Else Nutrition management plans to host a business update conference call Tuesday, June 3^rd at 10:00 a.m. Eastern Time to discuss the Company's financial results for the 2024 fiscal year ended December 31, 2024, as well as the Company's corporate progress and other developments.

The conference call will be available via telephone by dialing toll free 1-877-407-9219 for U.S. callers or +1-412-652-1274 for international callers. A webcast of the call may be accessed at https://event.choruscall.com/mediaframe/webcast.html?webcastid=vDEyPa8B or on the Investor Relations section of the Company's website at https://investors.elsenutrition.com/.

A webcast replay will be available on the Investor Relations section of the Company's website (https://investors.elsenutrition.com/), through June 3, 2026. A telephone replay of the call will be available approximately three hours following the call, through June 17, 2025, and can be accessed by dialing 1-877-660-6853 for U.S. callers or +1-201-612-7415 for international callers and entering conference ID: 13754118.

To delve deeper into Else Nutrition's offerings and its revolutionary approach to kids' nutrition, visit www.elsenutrition.com

About Else Nutrition Holdings Inc.
Else Nutrition Holdings Inc. (TSX: BABY, OTCQX: BABYF, FSE: 0YL) is a food and nutrition company in the international expansion stage focused on developing innovative, clean, and plant-based food and nutrition products for infants, toddlers, children, and adults. Its revolutionary, plant-based, non-soy formula is a clean-ingredient alternative to dairy-based formulas. Since launching its Plant-Based Complete Nutrition for Toddlers, made of whole foods, almonds, buckwheat, and tapioca, the brand has received thousands of powerful testimonials and reviews from parents, gained national retailer support, and achieved rapid sales growth.

Awards and Recognition:

• "2017 Best Health and Diet Solutions" award at Milan's Global Food Innovation Summit
• #1 Best Seller on Amazon in the Fall of 2020 in the New Baby & Toddler Formula Category
• "Best Dairy Alternative" Award 2021 at World Plant-Based Expo
• Nexty Award Finalist at Expo West 2022 in the Plant-Based lifestyle category
• During September 2022, Else Super Cereal reached the #1 Best Seller in Baby Cereal across all brands on Amazon
• In May 2024 Else Nutrition's Ready-to-Drink Kids Vanilla Shake Named Among the Best in Family-Friendly Products by the Prestigious Mom's Choice Awards®

TSX
Neither the TSX nor its regulation services provider (as that term is defined in the policies of the TSX) accept responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward-Looking Statements
This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements are typically identified by words such as "will" or similar expressions. Forward-looking statements in this press release include statements with respect to the anticipated dates for filing the company's financial disclosure documents. Such 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 believes are appropriate in the circumstances. No assurance can be given that the foregoing will prove to be correct. Forward-looking statements made in this press release assume, among others, the expectation that there will be no interruptions or supply chain failures as a result of COVID-19 and that the manufacturing, broker, and supply logistic agreement with the company does not terminate. Actual results may differ from the estimates, beliefs, and assumptions expressed or implied in the forward-looking statements. Readers are cautioned not to place undue reliance on any 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.

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SOURCE Else Nutrition Holdings Inc.

FAQ

What were Else Nutrition's (BABYF) key financial results for fiscal year 2024?

Else Nutrition reported revenue of $8 million (down 14.8% from 2023), operating expenses of $13.6 million (down 20%), and a cash balance of $0.3 million as of December 31, 2024.

How is Else Nutrition addressing its operational challenges in 2024?

The company optimized operations, reduced overhead costs, cut underperforming roles, decreased marketing spend, exited unprofitable retail partnerships, and plans to expand manufacturing in Europe.

What is Operation Stork Speed and how does it affect Else Nutrition?

Operation Stork Speed is an FDA and HHS initiative to expand infant formula options and strengthen supply chains. Else Nutrition is working with regulators to establish guidelines for plant-based, non-soy, non-dairy infant formula.

What are Else Nutrition's strategic plans for 2025?

The company plans to expand retail distribution, scale European production, and enhance brand visibility through targeted marketing and strategic partnerships.

What new products did Else Nutrition launch in 2024?

Else Nutrition successfully launched their first Adult Ready-to-Drink (RTD) product and expanded retail placement for their Kids RTD product.