Shares in alt baby food maker Else jump on upbeat Q1 results

Shares in Else Nutrition were up 12.9 per cent  to CAD$1.05; Beyond Meat's shares were down 28 per cent to $31.24 and shares in DoorDash were down 10.1 per cent to $66.23.

Shares in Else Nutrition were up 12.9 per cent  to CAD$1.05 in the week ending May 20, according to the Future Food Finance FoodTech Index, in the week it raised growth guidance for Q2.

The Israel-based baby alt milk and food products firm, founded in 2012,updated guidance after reporting “solid” Q1 results.

While its shares enjoyed a weekly bounce, its shares, which are listed on the Toronto Stock Exchange (TSX), have lost more than half their value since June last year, when they were priced at CAD$2.55.

In the first quarter, revenues came in at $1.6m at Else, a 26 per cent increase compared to the previous quarter, driven by the growth of its toddler products across all channels.

It said that sales on Amazon were up 40 per cent from the previous quarter.

Else now said it expects revenue in Q2 to be in the range of $2m to $2.2m, an uplift of between 25 per cent and 38 per cent on Q1, amid a formula shortage in the baby food market.

Hamutal Yitzhak, CEO of Else Nutrition, said: “We are experiencing a wave of growth driven by the formula shortage crisis. 

“We see a strong acceleration in sales on Amazon.com, and other channels, driven by new and existing customers. While revenues on Amazon.com already increased by 40 per cent QoQ in 1Q22, our Amazon.com daily sales doubled in the last few days. 

"In addition, the number of Else subscribers on Amazon.com grew by 20 per cent over the previous four weeks, reaching more than 1200. The retail demand is also increasing, and we expect entry to major nationwide brick and mortar retail channels in the coming months.“

Elsewhere, this week shares in Beyond Meat endured another tough week on the back of its Q1 results, which missed analyst estimates.

In the week, Beyond Meat's shares were down 28 per cent to $31.24.

In its Q1 results, its gross profit margin of 0.2 per cent was significantly worse than the 30.2 per cent recorded in the prior-year quarter.

Here is the Motley Fool’s take on it.

And finally, shares in DoorDash were down 10.1 per cent to $66.23.