Else Nutrition (BABY) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 23% sequentially to $2.6 million, with strong retail sales growth in the U.S. (88%) and Canada (111%) over Q1 2024.

• Expanded distribution by adding major retailers such as Wegmans, HEB, Meijer, and 600 new Walmart U.S. stores, plus Walmart.ca in Canada.

• Kids ready-to-drink (RTD) products gained rapid market traction and received the Mom's Choice Award.

• First shipment delivered to Navy Exchange Service Command (NEXCOM), opening access to military retail channels.

• U.S. powder production moved to a new plant, halving production costs and improving packaging and shelf-life.

Financial highlights

• Q2 2024 revenue increased 10% year-over-year to $2.6 million from $2.37 million in Q2 2023.

• Operating expenses decreased 19% to $3.4 million compared to $4.2 million in Q2 2023.

• Gross profit reached $263 thousand (10% of revenue), reversing a gross loss of $50 thousand (-2% of revenue) in Q2 2023.

• Cash balance as of June 30, 2024, was $1.4 million; an additional US$2 million was raised after quarter-end.

Outlook and guidance

• Plans to add another powder production and packaging facility in Europe for further cost savings and quality improvements.

• Focused on capturing a significant share of the multi-billion market and progressing toward profitability.