- 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.
“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
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 bySeptember 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 inPeru , 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 theSecurities and Exchange Commission (SEC), which will contain additional details about BranchOut Food’s financial results as of and for the period endedMarch 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 enhancesBranchOut Food's presence and accessibility across the country. - Military Collaboration:
BranchOut Food partnered with theU.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 earlyMarch 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.
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Source:
2024 GlobeNewswire, Inc., source