- Achieved a 1,407% revenue increase to $1.47 million in Q1 2024.
- Increased gross margin to 19% in Q1 2024, up from -3% last year.
- Secured $8 million in recurring revenue plus $1.1 million in rotational retailer commitments.
BEND, Ore., May 15, 2024 (GLOBE NEWSWIRE) -- BranchOut Food Inc. (NASDAQ: BOF), a leading food technology company specializing in dehydrated fruit and vegetable-based products, today announced its recent accomplishments and financial results for the first quarter ended March 31, 2024. The Company reported a 1,407% increase in revenue for the first quarter ending March 31, 2024 of $1.47 million compared to $97,000 in the year ago quarter. Additionally, BranchOut Food achieved a gross margin of 19% in Q1 2024, a significant improvement from -3% in Q1 2023.
Eric Healy, CEO of BranchOut Food, commented, “This quarter's exceptional performance confirms the strong momentum of our growth strategy. We now have contracts totaling about $8 million in annualized revenue that will continue to layer on throughout the year. Additionally, we have commitments for approximately $1.1 million in rotation orders from the nation's largest warehouse club retailer expected in Q3 and Q4. Furthermore, demonstrating our commitment to innovation and meeting the needs of our growing customer base, BranchOut Food has expanded its product range with the launch of salad toppers and kids' snack packs, broadening our offerings beyond traditional snacking categories.
“The gross margin of 19% this quarter marks a tremendous improvement from past performances, largely due to strategic adjustments in our cost management and enhanced supply chain consistency and management. This is expected to increase to 40-50% with our new production facility in Peru. This strategic move into a region abundant with low cost fruits and vegetables enhances our control over production and significantly boosts operational efficiency. Looking ahead, the Company anticipates growing momentum in the overall business and remains focused on achieving profitability while executing on additional value-enhancing strategic initiatives.”
Recent Accomplishments:
- Retail Expansion: BranchOut Food secured its third contract with the nation's largest retailer, bringing total annualized revenue to over $8M. This new $300,000 commitment will place BranchOut's dried fruit products in 1,400 stores by September 2024.
- Warehouse Club Expansion: After several successful rations in the California regions in 2023, selling at nearly 2X the retailer’s threshold, BranchOut receives $1.1M in reorders for 2024, expanding into 7 additional states.
- Production Expansion: BranchOut Food secures a 50,000 square foot production facility in Peru, enhancing vertical integration with a $40 million capacity and projected 40-50% gross margins, set to begin production in August.
- Successful Sale of Notes and Warrants: BranchOut Food raised a total of $1,150,000 through the sale of Senior Secured Promissory Notes and Warrants and has board approval to raise another $850,000. This supports its product roadmap and new equipment purchases to meet rising demand, aiming to enhance long-term shareholder value.
Q1 2024 Financial Highlights:
- Net Revenue: BranchOut Food reported net revenue of $1.47 million for Q1 2024, a substantial increase from $97,000 in Q1 2023. This surge reflects the successful expansion of the Company's product lines and increased sales with large retail partners.
- Gross Profit: The company achieved a gross profit of $283,588 for the quarter, a significant turnaround from a gross loss of $29,642 in the same period last year. This improvement is due to enhanced operational efficiencies and cost-effective sourcing strategies.
Investors are encouraged to read the Company’s Annual Report on Form 10-Qfiled with the Securities and Exchange Commission (SEC), which will contain additional details about BranchOut Food’s financial results as of and for the period ended March 31, 2024.
Q1 2024 Operational Highlights:
- Strategic Partnerships: The Company expanded its relationship with the nation's largest retailer, securing a new agreement estimated at $8 million annually. This partnership enhances BranchOut Food's presence and accessibility across the country.
- Military Collaboration: BranchOut Food partnered with the U.S. Army to enhance MREs using its proprietary GentleDry technology, successfully completing the rigorous 6 month shelf life test, passing troop evaluations and showing promising results in ongoing shelf life testing to deliver greater utility and value.
- Product Expansion: BranchOut Food launched two innovative product lines, salad toppers and kids' snack packs, at the Natural Products Expo West. These launches broaden the company's portfolio beyond traditional snacking categories.
- Manufacturing Partnership: EnWave signed a toll manufacturing agreement with BranchOut Food to produce vegetable snack products using REVworx capacity, securing two months of production starting in early March 2024, with options for additional manufacturing as needed.
- Technology Advancements: BranchOut Food continued to leverage its proprietary GentleDry technology to deliver superior nutritional value in its dehydrated products, contributing to the success of its offerings in nearly 3,400 stores nationwide.
About BranchOut Food Inc.
BranchOut Food is an international food-tech company delivering truly great natural snacks and real superfood ingredients enabled by its licensed dehydration technology. The company’s GentleDry Technology is the next generation in dehydration technology, preserving up to 95% of the original nutrition of fresh fruits and vegetables. BranchOut’s technology is protected by more than 17 patents. BranchOut Food is proud to be a leading provider of high-quality dehydrated fruit and vegetable-based products and its commitment to quality and innovation sets it apart as a trusted brand and private label supplier. For more information about BranchOut Food Inc. and its products, please visit www.branchoutfood.com and follow us on LinkedIn and Twitter.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts of future events. Forward-looking statements may be identified using words such as "forecast," "intend," "seek," "target," "anticipate," "believe," "expect," "estimate", "plan," "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements with respect to the operations of BranchOut Food, Inc., (the Company) strategies, prospects and other aspects of the business of the Company are based on current expectations that are subject to known and unknown risks and uncertainties, which could cause actual results or outcomes to differ materially from expectations expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Although it may voluntarily do so from time to time, the Company undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
For more information
Jeff Ramson
PCG Advisory
646-863-6893
jramson@pcgadvisory.com
