• Revenue: $8 million for fiscal year 2024, a decrease of approximately 15% from $9.54 million in 2023.

• Gross Loss: $1.2 million for fiscal year 2024, compared to $0.1 million in 2023.

• Inventory Write-Down: $2.2 million recognized in cost of sales during 2024.

• Adjusted Gross Profit: $1.1 million, representing a 13% gross margin, excluding inventory write-down.

• Operating Expenses: $13.6 million for fiscal year 2024, a decrease of approximately 20% from $16.9 million in 2023.

• Retail Distribution: Products available in over 600 Lola stores and nationwide launch in 1,000 Walmart retail stores.

• Warning! GuruFocus has detected 2 Warning Sign with BABYF.

Release Date: June 03, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Else Nutrition Holdings Inc (BABYF) has taken decisive steps to optimize operations and reduce costs, including targeted reductions in headcount and overhead cost reductions.

• The company is preparing to start manufacturing its powder formula in Europe, which is expected to lower production costs, improve margins, and enhance product quality.

• Else Nutrition Holdings Inc (BABYF) has expanded its retail distribution, with products now available in over 600 Lola stores and a nationwide launch of kids RTD products in 1,000 Walmart retail stores.

• The company is actively engaging with the FDA to establish a clear regulatory pathway for its plant-based infant formula, aligning with the FDA's Operation Stork Speed initiative.

• Else Nutrition Holdings Inc (BABYF) has introduced its first adult ready-to-drink product in Canada, marking its entry into the growing adult nutrition market.

Negative Points

• Else Nutrition Holdings Inc (BABYF) faced significant challenges in 2024, including limited marketing resources and funding constraints, which impacted revenue growth.

• The company's revenue for the 2024 fiscal year decreased by approximately 15% compared to the previous year.

• Else Nutrition Holdings Inc (BABYF) experienced inventory shortages due to insufficient funding for production and packaging.

• The company's gross loss for the 2024 fiscal year was $1.2 million, with a write-down of inventories amounting to $2.2 million.

• Funding constraints have led to a decline in shareholder confidence and share price, impacting the company's ability to accelerate growth.

Q & A Highlights

Q: When the distribution has significantly decreased, is this because of a more targeted approach to consumer demographics or simply a lack of demand? A: Hamutal Yitzhak, CEO: Some retailers removed our products, but we added important retailers like AGB and Mayer. The demand varies by demographics and product performance. We are optimistic about retail sales growth in 2025, especially with our products now in 1,000 Walmart stores. Funding limitations have led us to focus on high-return marketing channels.