10:47 AM EDT, 04/01/2024 (MT Newswires) -- Else Nutrition ( BABYF ) on Monday announced revenue for 2023 increased 11% to $9.4 million compared with $8.5 million for the same period last year. It noted that revenue for the fourth quarter increased 38% sequentially to $2.4 million compared to $1.7 million for Q3 2023, reflecting an 85% and 106% increase within both the US and Canadian retail channels, respectively.

Operating expenses fell 23% to $16.8 million, from $21.8 million in FY 2022.

Else Nutrition ( BABYF ) reported that cash balance as of December 31, 2023, was $5.9 million (including restricted cash and short-term bank deposits).

Hamutal Yitzhak, CEO, in a statement said: "Had it not been for some temporary delays by certain large retail chains, our results would have been even stronger. Nevertheless, the planned rollouts are moving forward and feedback from our retail network has been overwhelmingly positive. In fact, we are now actively selling products in over 14,000 stores throughout North America. We have also launched our kids ready-to-drink product (RTD), which allows us to cost effectively leverage our existing retail distribution channels and growing brand recognition by introducing this new and highly anticipated product.

"For the full year, our revenue increased 10% to $9.4 million, despite manufacturing challenges earlier in the year. However, we took swift action to remedy these challenges and now have three main manufacturing partners-two in North America and one in Europe. As a result, we have more than adequate capacity to support our aggressive growth plans going forward. Additionally, we recently announced a transformative agreement with a premier U.S.-based powder manufacturer which reduces our cost of goods and improves our margins, while securing essential powder production capacity to meet our growing product demand through the end of 2025. Importantly, the new process is designed to better preserve the nutritional content of our products. The cutting-edge low-heat method not only better retains vital nutrients, but also enhances the solubility and texture of the powder. We also secured new, more cost-effective powder packaging partners both in the U.S. and in Europe, and a strong partner for RTD production in Canada."

To build on momentum in North America, the company launched its toddler product in the UK. "Having secured multiple partnerships with leading UK distributors in the health food sector, we now have a solid foothold to enter this multi-billion dollar market with our innovative plant-based, dairy-free, whole food toddler products. At the same time, we are continuing to progress discussions with the FDA in order to commence our infant formula trial as soon as possible. Overall, we believe we have positioned ourselves for success and look forward to continuing to execute for our shareholders," added Ms. Yitzhak.