VANCOUVER, BC, Nov. 30, 2020 /PRNewswire/ - ELSE NUTRITION HOLDINGS INC.(TSXV: BABY) (OTCQX: BABYF) (FSE: 0YF) ("Else" or the "Company") the plant-based baby, toddler and children nutrition company, today announced results for its third quarter ended September 30, 2020.
The following will summarize our major achievements in the third quarter of 2020, as well as our business. Full financial results can be found in the Company News section of our website at https://elsenutrition.com/pages/investor-relations.
Q3 2020 Financial Highlights
- Else has achieved both quality product and the establishment of production lines expecting significant ramp-up in sales during 2021.
- In Q3 the company has focused on preparing the product initial soft launch into the U.S. markets online and in retail shops, growing the brand awareness and obtaining the finance necessary for a 2021 full commercialization of the product line.
- The company completed the first two (2) commercial manufacturing runs of Else Complete Nutrition for Toddlers powder product.
- The company launched online sales in North America on www.elsenutrition.com and on Amazon.com.
- The company performed the 3 rd and largest funding round ( C$25.7 million). Closing date was October 6 th and would be fully implemented in Q4 Financials.
- Revenues were C$379 thousand, compared to C$219 thousand in the third quarter of 2019. The increase is mainly attributed to the beginning of online sales of Else Nutrition toddler product in North America.
- Operating loss was C$2,817 thousand, compared to C$1,056 thousand in the third quarter of 2019.
- Net loss was C$3,968 thousand, or C$0.05 per share, compared to C$1,058 thousand, or C$0.02 per share in the third quarter of 2019.
- Cash flow used for operating activities was C$3,001 thousand, compared to C$2,089 thousand in the third quarter of 2019.
- Cash position was C$5,121 thousand as of September 30, 2020.
Nine Months Financial Highlights
The company started its operation in June 2019 so there are no comparable figures from 2019.
- Revenues were C$887 thousand.
- Operating loss was C$5,616.
- Net income was C$10,114 thousand, or C$0.13 per share.
- Cash flow used for operating activities in the first nine months of 2020 was C$5,648 thousand.
Hamutal Yitzhak, Else CEO, commented: "I am very proud of our achievements this quarter. Although COVID-19 caused a slowdown on many fronts, we succeeded to complete two commercial manufacturing runs, package our product, launch our marketing campaign and start selling our revolutionary Plant-Based Complete Nutrition for Toddlers product in North America on our e-store and on Amazon.com. We also made significant progress on many other fronts, including the hiring of several retail brokers, listing on several natural food retail chains, onboarding to KeHE distributors, product development, clinical research, and more. By the end of the quarter we also completed our third and largest funding round ( C$25.7 million), securing funds for operations for the next 18 months. We are very happy with the growth rate of our online sales since we launched, and with the progress we are making in the retail channel."
Impact of COVID-19
We experience the effect of the pandemic in all areas of our business, from delays in raw material deliveries, to clinical and product development projects. 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.
Revenue Distribution for Q3 2020
The Baby Snacks business line in Israel represented 44%, Baby Bottles and Accessories business line in Israel represented 26% and the Else Formula business represented 30% of total revenues.
As we started selling our Else Complete Nutrition For Toddler products (singles and 4-packs of 22oz cans of powder) online on our e-store ( www.elsenutrition.com) on August 12, our revenue from this channel represent the first few weeks of sales only, and amounted to C$109 thousand.
We started selling the same products also on Amazon.com on September 20, and during these few days we completed well over 100 first sales which amounted to $C5 thousand.
Sells to retail stores did not commence in Q3, so no revenue was recorded yet from this channel.
Revenue Distribution for Nine Months 2020
The Baby Snacks business line in Israel represented 44%, Baby Bottles and Accessories business line in Israel represented 43% and the Else Formula business represented 13% of total revenues.
About Else Nutrition Holdings Inc.
Else Nutrition GH Ltd. is an Israel-based food and nutrition company 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 formula. Else Nutrition (formerly INDI) won the "2017 Best Health and Diet Solutions" award at the Global Food Innovation Summit in Milan. The holding company, Else Nutrition Holdings Inc., is a publicly traded company, listed as TSX Venture Exchange under the trading symbol BABY and is quoted on the US OTC Markets QX board under the trading symbol BABYF and on the Frankfurt Exchange under the symbol 0YL. Else's Executives includes leaders hailing from leading infant nutrition companies. Many of Else advisory board members had past executive roles in companies such as Mead Johnson, Abbott Nutrition, Plum Organics and leading infant nutrition Societies, and some of them currently serve in different roles in leading medical centers and academic institutes such as Boston Children's Hospital, Pediatrics at Harvard Medical School, USA, Tel Aviv University, Schneider Children's Medical Center of Israel, Rambam Medical Center and Technion, Israel and University Hospital Brussels, Belgium.
For more information, visit: elsenutrition.com or @elsenutrition on Facebook and Instagram.
TSX Venture Exchange
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts 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 do 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.