Else Nutrition

CN: BABY

Market CapC$93m

Last Close C$0.83

Else Nutrition is a plant-based baby food manufacturer. Its minimally processed formula is 100% plant-based, dairy and soy free, organic, vegan, gluten free and GMO free. Else has started to roll out its product beyond the US market and is expanding its product offering.

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Investment summary

Else Nutrition has a globally patented, 100% plant-based dairy- and soy-free formula, which offers a clean-label alternative for babies who are intolerant to dairy and soy and to families who are flexitarian or seeking more sustainable food options. It launched its toddler formula in August 2020 and successfully built sales infrastructure in the US during 2021, rolling out sales online and in-store. It has expanded by launching a nutritional drink for children and, more recently, a line of baby cereal. It is in the process of expanding into Canada, Western Europe and China during H222. Its infant formula is undergoing rigorous testing before launch, expected in FY25. Momentum is clearly building, with geographic and product expansion as major catalysts for growth. In June, Else raised $7.35m through an equity offering, leaving the company well capitalised to fund its ambitious growth plans.

Y/E Dec
Revenue (C$m)
EBITDA (C$m)
PBT (C$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2020A 1.5 (7.8) (8.0) (9.78) N/A N/A
2021A 4.7 (15.1) (15.5) (15.92) N/A N/A
2022E 13.6 (16.4) (17.3) (16.00) N/A N/A
2023E 33.0 (14.4) (16.8) (15.01) N/A N/A
Industry outlook

The infant nutrition market was valued at c US$ 79.4bn in 2020 and is expected to reach US$132.4bn by 2026 (source: Mordor Intelligence, Else annual information form), a CAGR of 8.9%. In 2020, 40% of infant milk formula sold in the US was specialty cow’s milk formula, catering to allergies/intolerances (source: US market data Euromonitor 2020).

Last updated on 10/08/2022
Content on Else Nutrition
Else Nutrition – Well funded for expansion
Consumer | research Update | 29 July 2022
Vegetable and fruit baby puree in white bowls with ingredients. Baby food concept.
Else Nutrition – Formula for growth
Consumer | research Initiation | 15 June 2022
Vegetable and fruit baby puree in white bowls with ingredients. Baby food concept.
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Share price graph
Balance sheet
Forecast net cash (C$m) 11.6
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 40.7 (30.3) (70.4)
Relative* 34.6 (30.2) (69.5)
52-week high/low C$3.2/C$0.6
*% relative to local index
Key management
Hamutal Cohen Yitzhak CEO
Sokhie Puar Lead director