BranchOut Food Inc.
2023 net revenue of $2.83M, up 276% versus prioryear due to major retailer engagements
BEND, Ore., April 02, 2024 - BranchOut Food Inc. (NASDAQ: BOF), a pioneering food technology company and producer of dehydrated fruit and vegetable-based products, today announced its recent accomplishments and financial results for the fourth quarter and year ended December 31, 2023.
Eric Healy, CEO of BranchOut Foods, said: “We are very pleased with BranchOut Food’s significant growth and accomplishments since our IPO in June 2023. In the ensuing nine months, we have built strong, long-term relationships with some of the nation’s leading retailers, and our products have now established popularity among shoppers in stores throughout the country.
“The fourth quarter was marked by revenue nearly doubling that of the previous total year, while gross margin improved as the year progressed. We also expect revenue to continue to grow in 2024. Our rising gross profit percentage is attributed to reduced retailer chargebacks compared to previous quarters. A depreciation expense of $223,856 is also included in cost of sales, which lowered gross profit. We look forward to continued improvements in gross margins.
“Our corporate strategy has propelled strong revenue growth in 2023, and we expect to continue this trajectory in 2024. Our current commitments are now at $9.0M in annualized sales for 2024. However, we anticipate additional sales wins throughout the remainder of the year that should push this even higher.”
Operational Highlights
- In Q4, BranchOut Food’s top branded snack expanded into the Bay Area Region of the Nation's largest warehouse club following significant commercial success in the retailer’s Southern California region. The sales velocity was nearly double the retailer’s expectation. As a result, BranchOut Food has secured roughly $1.1 million in commitments for 2024, expanding into eight states.
- In Q3, the company’s branded line launched in Jacksons Food Stores, with approximately 300 locations, marking BranchOut's first foray into the Convenience Store Channel. Additional new Grocery Channel launches include Family Foods, Market of Choice, Harmons, and Giant Martin.
- Subsequent to quarter end, BranchOut Food announced the successful completion of part of its strategic collaboration with the U.S. Army Combat Capabilities Development Command (DEVCOM) to enhance MREs (Meals Ready-to-Eat) through the implementation of BranchOut Food's proprietary GentleDry technology. The company anticipates the completion of shelf-life testing in the first half of 2024.
- In February 2024, the company expanded its relationship with the nation’s largest retailer. The new agreement is valued at an estimated $7.6 million annually.
- In March 2024, BranchOut Food launched two new product lines, salad toppers and kids’ snack packs, at the Natural Products Expo West. The products extend the company’s reach outside of the snacking category and into two additional use cases.
Financial Highlights
- Net revenue for the full year was $2.83 million, compared to $752,178 for the year ended December 31, 2022, an increase of $2,073,677, or 276%.
- Net loss for the twelve months ended December 31, 2023 decreased by 19%.
- BranchOut Food had approximately $0.657 million in cash, cash equivalents and marketable securities, and over $1.6 million of combined cash, accounts receivable and inventory, as of December 31, 2023.
- Investors are encouraged to read the Company’s Annual Report on Form 10-K when it is filed with the Securities and Exchange Commission (the “SEC”), which will contain additional details about BranchOut Food’s financial results as of and for the period ended December 31, 2023.
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 Statement
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.
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SOURCE: BranchOut Food Inc.
