Else Nutrition Announces 219% Increase in Fiscal Year 2021 Revenue


VANCOUVER, British Columbia, March 31, 2022 (GLOBE NEWSWIRE) — OTHER NUTRITION HOLDINGS INC (BABY) (BABYF) (0YL.F) (“Other” or the “Company”) the plant-based nutrition company for babies, toddlers and children, today announced results for its fourth quarter and fiscal year ended December 31, 2021. Financial statements and MD&A are available on SEDAR under the company profile.

Fourth Quarter and Fiscal 2021 Financial Highlights

  • Revenue in fiscal 2021 was $4.7 million, an increase of 219% from $1.5 million in fiscal 2020, driven by the expansion of our products for toddlers across all channels and the introduction of the new line of complete nutritional shakes for kids.

  • 4Q21 revenue was $1.3M, an 8% increase from $1.2M in 3Q21, driven by continued expansion in retail stores and steady sales growth in line.

  • The cash balance as of December 31, 2021 was $25.5 million (including restricted cash and short-term bank deposit).

  • The Company had no loan liabilities as of December 31, 2021.

  • The company is a graduate of the Toronto Stock Exchange.

1Q2022 outlook: Else Nutrition expects Q1 2022 revenue to be between $1.45 and $1.6 million, representing a sequential increase of 15% to 25% from 4Q21. The robust preliminary results are due to the strong performance of our products in online and retail channels.

4th Quarter and Full Year 2021 Highlights –

  • Double sales on Else’s online store and on Amazon.com in 2021.

  • Expanded US retail presence to over 1,200 stores and continued to increase retail sales velocity (achieved 1.2 UPSPW at Sprouts). Several retailers have already added the new Kids products to their range.

  • Successfully listed on Walmart.com and Kroger owned online platforms.

  • Following the success of Amazon in the United States, Else has been invited by Amazon EU to launch a unified European account which will allow Else to sell its products in Amazon’s main European markets, including the United Kingdom, Germany , France, Italy, Spain, the Netherlands and Sweden, representing a market of more than 300 million people.

  • Launched complete nutritional shake for children (3 years and older; in powder form) in online and retail channels. The product is available on elsenutrition.com, Amazon.com and iHerb, and will soon be available on Walmart.com, Kroger-owned online platforms, Sprouts Farmers Market, Rouses and Thrive Market.

  • Completed the development of a new product line – Super Cereals, for infants (6 months and older) and toddlers. These new products will be launched in April 2022 in the United States.

  • Pursue the development of a range of ready-to-drink products.

  • Launched an intensive HCP initiative in the United States that includes a dedicated HCP website and a campaign to reach over 80,000 pediatricians. This effort is led by Mr. Mike Glick, General Manager of Else’ North America, former Senior Director of Pediatric and Adult Nutrition for Abbott.

  • Conducted an independent research survey demonstrating that Else products significantly improved major eating disorders and symptoms in a large majority of children.

  • Expanded Else’s advisory board to include key global pediatric opinion leaders.

  • Prepared to initiate a clinical study with Children’s Hospital Colorado and Denver School of Medicine to validate the growth benefits of Else’s herbal nutrition product.

Management commentary

Hamutal Yitzhak, CEO of Else Nutrition, said, “We are pleased with the progress we have made in 2021 as we continue our journey to becoming a global leader in plant-based nutrition. In 2021, we focused on growing our online sales while entering US retail stores, and we are proud to announce that our complete plant-based toddler nutrition products can be found in more of 1,200 physical stores as well as in 5 major reputable online retailers. We are delighted that retailers are experiencing strong and growing sales velocity of our products, and we are seeing an increase in restocking at many of these retailers. In 3Q21, we expanded our product offering with the launch of our Kids Shakes, which were well received by the market with orders from retailers such as Sprouts and distributors such as KeHE.

“We made substantial progress in 2021 despite the challenges of COVID-19. The global pandemic has impacted all areas of our business, including delays in raw material deliveries, significant increases in transportation costs, delays in clinical and product development projects, and the absence of key personnel. Due to shutdowns and other COVID-19 related measures, most of our meetings, marketing events, conferences and exhibitions have either been canceled or gone virtual, which has slowed the pace of our business development efforts. With the easing of restrictions in 2022, we expect the pace of our growth to pick up again. »

  • We continue to see more and more restocks from retailers we started selling to in 2021. Additionally, by the end of 2022, we plan to triple our door count to around 4,000.

  • In 2022, our product line will grow to approximately 8-10 products and over 20 SKUs in the US alone. We have and will be introducing two exciting new product lines, a non-organic Toddler Omega product with a more affordable price that will allow more babies to enjoy Else, and Super Cereal in flavors for babies 6 months and older. We also plan to add liquid products for children and/or adults later in the year.

  • International expansion will be a priority for Else in 2022. In 2Q2022, we will launch in Canada through Amazon.ca, our own online store, and at health and independent food retailers, regional grocery stores and pharmaceutical retailers. Additionally, by the end of the second quarter, we plan to enter the UK and Western Europe through Amazon. We also plan to start selling online in China (Cross Border) in mid-2022.

FDA Update

  • In the fourth quarter of 2021, Else successfully concluded a preclinical safety study on its plant-based infant formula, as part of the marketing of its infant formula.

  • Study results demonstrated proper growth, similar to dairy-based infant formula, in a neonatal preclinical model, which is a key first step on the way with the Food and Drug Administration (FDA) of the United States, as well as with other regulatory authorities, to demonstrate the safety and bioavailability of the nutrients in infant formula and its ingredients. Study results will be presented at two key scientific meetings focused on pediatric nutrition and will be published in peer-reviewed scientific journals. Else is in close communication with the FDA, sharing plans and results to receive guidance throughout Else’s infant formula development process. Else also worked on the preparations for the three clinical studies planned for 2022. In 2022, we plan to continue our research activity demonstrating the safety of infant formulas and to provide scientific support for our products, including the preparation of studies additional clinics.

About Else Nutrition Holdings Inc.

Else Nutrition GH Ltd. is an Israel-based food and nutrition company focused on developing innovative, clean, plant-based food and nutrition products for infants, toddlers, children and adults. Its revolutionary plant-based, soy-free formula is an alternative to dairy-based formula’s own ingredients. Else Nutrition (formerly INDI) won the “2017 Best Health and Diet Solutions” award at the Global Food Innovation Summit in Milan. Else Complete Plant-Based Nutrition for Toddlers was recently ranked #1 Best Seller in the Baby & Toddler Formula category on Amazon. The company recently received the World Plant-Based Award for “Best Alternative Dairy Product” in New York at the World Plant-Based Expo in late 2021. The holding company, Else Nutrition Holdings Inc., is a publicly traded company, listed as the Toronto Stock Exchange under the symbol BABY and is listed on the US OTC Markets QX board under the symbol BABYF and on the Frankfurt Stock Exchange under the symbol 0YL. Else executives include executives from leading infant nutrition companies. Many members of Else’s advisory board have held senior positions at companies such as Mead Johnson, Abbott Nutrition, Plum Organics and leading infant nutrition companies, and some of them currently hold various positions 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 at the University Hospital of Brussels, Belgium.

For more information visit: elsenutrition.com or @elsenutrition on Facebook and Instagram.

Contact with Investor Relations:
Lytham Partners, LLC
Mr Ben Shamsian
New York | Phoenix
Email: shamsian@lythampartners.com
Phone. : 646-829-9701

Toronto Stock Exchange

Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock 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 laws. Forward-looking statements are generally identified by words such as “will” or similar expressions. Forward-looking statements in this press release include statements regarding the expected dates for the filing of the Company’s financial disclosure documents. These 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 deems appropriate in the circumstances. No assurance can be given that the foregoing will prove to be accurate. Forward-looking statements made in this press release assume, among other things, the expectation that there will be no supply chain disruptions or failures as a result of COVID 19 and that the manufacturing agreement , brokerage and supply logistics with the Company does not end. Actual results may differ from the estimates, beliefs and assumptions expressed or implied by the forward-looking statements. Readers are cautioned not to place undue reliance on 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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