Key Highlights:
- Projecting $3.8M in Q1 revenue, with strong growth throughout the year
- Inflecting to Positive Cash Flow Beginning in Q1 2025
- Peru Facility Now Operational, Producing Initial Orders and Capturing High Margins
- Nation’s Largest Warehouse Club Reorders $1.7M After Strong Per-Store Sales, Expanding Regions and Tripling SKUs.
- Planning 2025 Sales Strategy for the Ingredient Channel; in talks with Exclusive Sales Partner on a $5-6M commitment for 2025.
- Debt-Free Target by Q4 2025
BEND, Ore., Oct. 24, 2024 (GLOBE NEWSWIRE) -- BranchOut Food Inc. (NASDAQ: BOF), a cutting-edge leader in food technology, today unveiled transformative developments that position the company for a banner year of growth and profitability. With the commissioning of its state-of-the-art production facility in Peru and a surge of major customer reorders, BranchOut is projecting $3.8M in net revenue for Q1 2025—up 150% from the prior year—and expects to achieve positive cash flow in the same quarter.
BranchOut’s new Peru facility, with its innovative GentleDry™ technology, marks a significant milestone for BranchOut, allowing the company to take production in-house, driving higher margins and enabling immediate profitability.
Driving Growth Through Key Strategic Partnerships
- The nation’s largest warehouse club has expanded its relationship with BranchOut following exceptional sales across the Bay Area and Southeast regions, where per store performance exceeded retailer expectations by more than 200%. A total of $1.7M reorders for Q1 2025 have been secured, with expectations of additional orders in Q2. As a result, the retailer has expanded its product offerings, ordering three BranchOut products—Pineapple Chips, Organic Chewy Bananas, and Bell Pepper Crisps.
- This October, BranchOut successfully launched three new private-label products at the nation’s largest retailer, including its novel Brussels Sprout Crisps and Carrot Sticks. These innovative products are now available nationwide, with the retailer already placing follow-up reorders to meet demand.
- BranchOut has signed an initial $175k order with the nation’s top salad kit producer, supplying them with crunchy cherry tomatoes, a new innovation for the category. Additionally, BranchOut is engaged with a top online grocery retailer to produce and private-label its avocado chips and chewy banana bites—products difficult to manufacture with legacy technologies.
- Lastly, BranchOut has been finalizing its sales strategy for the ingredient market, which could be as large or larger than the snack market. Discussions are far advanced with a potential exclusive sales partner - which already has established relationships with all major CPG companies - targeting 2025 revenues of $5+ million.
Peru Facility Now Fully Operational, Supporting $40M Production Capacity
BranchOut’s newly commissioned 50,000-square-foot facility in Peru is now operational, producing Brussels Sprout Crisps and Carrot Sticks to fulfill reorders from the nation’s largest retailer. Production for the nation’s largest warehouse club will begin in November, featuring large-scale batches of Organic Chewy Bananas, Pineapple Chips, and Bell Pepper Crisps. This advanced facility, with a capacity of 800 metric tons, utilizes BranchOut’s proprietary GentleDry™ technology, which is disrupting and replacing legacy dehydration methods by delivering superior quality, nutrition, and efficiency. Combined with Peru’s abundant supply of affordable raw materials and labor, BranchOut is positioned as a global leader in innovative, cost-effective food production, driving record top-line revenue and profitability.
A Transformative Year Ahead
“Bringing our Peru facility online marks a pivotal moment for BranchOut,” said Eric Healy, CEO of BranchOut Food. “We are well-positioned to scale operations efficiently while driving profitability. As we look ahead to 2025 and beyond, we see tremendous growth opportunities fueled by increasing demand from major retailers, ingredient customers and large CPG brands. Given the rapid growth, we are exploring the acquisition of a fourth large scale machine in 2025, which would increase our production capacity from $40M to approximately $50M and support our current and future sales goals for the next two years.”
BranchOut remains laser-focused on expanding growth while maintaining disciplined financial management. With a strong pipeline of customer orders and industry-leading technology, the company is on track to eliminate all outstanding debt by Q4 2025, setting the stage for a debt-free, high-margin growth phase.
About BranchOut Food Inc.
BranchOut Food is a leading international food technology company, specializing in the production of high-quality dehydrated fruit and vegetable-based products through its proprietary GentleDry Technology. This next-generation dehydration method preserves up to 95% of the original nutrition of fresh produce, offering superior quality and taste. Protected by over 17 patents, BranchOut’s technology enables it to stand out as a trusted brand, ingredient and a private-label supplier. For more information, visit www.branchoutfood.com or follow us on social media here.
Forward-Looking Statements
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," “position”, "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.
For more information:
info@branchoutfood.com
Investor Contact:
Jeff Ramson
PCG Advisory
646-863-6893
jramson@pcgadvisory.com
