305 0 Kommentare BranchOut Food Inc. Announces Record First Quarter 2024 Results, Gross Margin Increased to 19%, On Track for ~$8M Run Rate

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.