ELSE Nutrition: Strong Upside, Showing Promise

Else Nutrition Holdings Inc. (BABYF) is an Israeli company that develops, manufactures, markets, and sells plant-based food and nutrition products for infants and children, with a secondary market in adult nutrition.

ELSE is changing the face of early life nutrition with the world’s cleanest, most sustainable, plant-based nutrition—the first plant-based dairy and soy-free baby formula that meets the human-milk nutritional gold standard.

Euromonitor U.S. market data from 2020 shows that 40% of Baby Formulas sold contain cow’s milk, but dairy allergies and intolerances continue to threaten the wellness of infants all over the world. ELSE provides an alternative product, avoiding controversial proteins and highly processed ingredients. 

ELSE Graduates to TSX Uplisting

ELSE recently graduated from the Toronto Stock Exchange Venture Exchange (TSXV) to the Toronto Stock Exchange (TSX). TSXV is an exchange that offers early-stage companies access to public venture capital, while TSX is reserved for companies valued at over $50 million. 

Moving from TSXV requires meeting industry-specific requirements, and then submitting an application along with detailed, audited financial statements. The uplisting represents a major milestone that substantially increases visibility to institutional and private investors globally. 

ELSE Nutrition’s Financial Position Remains Strong

ELSE is well capitalized for 18-24 months, with no debt and U.S. $14.4 million in cash on hand. With patents granted in 20 countries and patents pending in 45 countries, ELSE is poised for high growth in the $68 billion infant formula and baby food market. Third-quarter revenue for formula alone was 8 times higher than in that quarter in the previous year. 

ELSE products are sold at more than 1,200 retail locations, and the company has engaged with more than a dozen natural food, grocery, and drug retailers representing another 30,000 locations. The company has surpassed all benchmarks in its category.

Furthermore, online sales at Amazon have grown 570% since inception and show a 15% Average MoM (multiple of money) in 2021. Amazon reported that ELSE exceeded all metrics of competitors and that 62% of sales are to repeat customers. Amazon recently invited the company to launch a European Unified account to sell ELSE products across Europe. Sales are also growing steadily on the company’s website, with a 400% increase since the beginning and an average of 6% MoM in 2021.

Strong Leadership Behind ELSE’s Growth

ELSE’s leadership team brings both experience and passion to the table. The company’s co-founders, Hamutal Yitzhak and Uriel Kesler, also co-founded Golden Heart Baby Snack Co. Yitzhak is Director and CEO of ELSE, and prior to founding the company, was Head of Infant Nutrition at Abbott Labs Israel. Kesler is Director and COO at ELSE Nutrition and previously held the title of GM PL Infant Formula at Promedico Healthcare Group in Israel.

Kesler and Yitzhak are joined at ELSE by Michael Azar, who currently sits as Co-founder and CTO of the company. Azar is the former CEO and Chief Food Technologist at Materna, a company that was later acquired by Nestle. 

ELSE nutrition also has world-class scientific advisory boards in both North America and Europe. Several of the advisory board members have a background holding executive positions at reputable companies in the industry including Plum Organics, Mead Johnson, and Abbot Nutrition. Other board members are currently affiliated with esteemed academic institutions and leading medical centers, including Tel Aviv University, Rambam Medical Center and Technion, Boston Children’s Hospital, and Harvard Medical School. 

Wall Street’s Take on ELSE

Else Nutrition (BABY) traded at $1.21 at market close on 01/28/2022.

Analysts recommend BABY as a Moderate Buy. It is valued well below its average BABY price target of $3.13, with all indicators pointing to an increase in value in 2022.

Looking at the 52-week price range, BABY has a high of $4.50 and a low of $1.06. With market capitalization at 126.13M and outstanding shares at 96.141M, BABY offers significant upside potential of 158.6% to its investors.

Conclusion

ELSE has secured and stabilized its supply chain for future growth and is poised to be a frontrunner in the infant and toddler nutrition market. Investment opportunities were expedited when ELSE graduated to TSX, and the company is likely to continue to meet and surpass expectations with its impressive leadership team and massive distribution network.

Its unique and exciting product line has gained wide acceptance and is secured by its robust global I.P. protection, with granted patents in infant and toddler applications as well as adult applications, making it a choice for growth-ready investors to consider. 

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