BEND, Ore. - BranchOut Food Inc. (NASDAQ: BOF), a company specializing in dehydrated fruit and vegetable products, has announced an expansion of its partnership with EnWave Corporation (TSX-V: ENW | FSE: E4U) by purchasing a third large-scale dehydration machine. The addition aims to increase the company's new facility capacity in Peru, with operations expected to start in Q3, completing an estimated $40M in production capacity.
The new 100kW NutraRev System, different from the previously acquired QuantaREV systems, is intended to enhance throughput and improve gross margins, especially in the business-to-business ingredient sector.
BranchOut already operates a 60kW QuantaREV and has committed to a larger 120kW QuantaREV, both targeted at branded and private label snack products. The NutraRev System is anticipated to enhance BranchOut's capabilities across various product lines.
BranchOut's significant orders include approximately $8M from the nation's largest retailer and $1.1M from the nation's largest warehouse club, with additional potential customers in the pipeline. This expansion is set to make BranchOut one of the largest Radiant Energy Vacuum (REV™) installations globally and the largest in Latin America.
The strategic location in Peru is advantageous due to the abundance of fresh produce and low-cost labor, potentially giving BranchOut a competitive edge. CEO Eric Healy stated that the expansion is a crucial part of their growth strategy, aiming to scale operations and capture additional market share. Healy emphasized that integrating the NutraRev System will not only meet increasing demand but also significantly enhance operational efficiency.
BranchOut Food's technology, protected by over 17 patents, is designed to preserve up to 95% of the original nutrition of fresh fruits and vegetables. The company's commitment to innovation and quality has established it as a trusted brand and private label supplier in the dehydrated food industry.
This press release includes forward-looking statements regarding BranchOut Food's future operations and business strategies, which are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. This article is based on a press release statement from BranchOut Food Inc.
InvestingPro Insights
BranchOut Food Inc. (NASDAQ: BOF) is expanding its operational capabilities with the acquisition of a new dehydration machine, indicating a strong commitment to growth and efficiency in the dehydrated food sector. In light of this development, we present key insights from InvestingPro that shed light on the company's financial health and stock performance.
InvestingPro Data shows that BranchOut Food Inc. has a market capitalization of $6.19 million USD, which is relatively small, suggesting that it is a micro-cap stock with potential for growth but also possibly higher volatility.
The company has experienced a significant revenue growth of 586.25% over the last twelve months as of Q1 2023, indicating a robust expansion in sales. Despite this impressive top-line growth, the gross profit margin stands at a low 5.17%, reflecting challenges in converting sales into substantial gross profit.
From the perspective of stock performance, BranchOut Food's stock has seen a considerable decline, with a -14.04% return over the last week and -26.44% over the last month. This aligns with one of the InvestingPro Tips highlighting that the stock has taken a substantial hit recently, which could reflect market reactions to broader economic trends or company-specific events.
Another critical InvestingPro Tip for potential investors is the company's high shareholder yield, which could be attractive for those looking for companies that return value to shareholders. However, it's important to note that BranchOut Food Inc. does not pay a dividend, which might affect the investment decision for income-focused investors.
For those seeking more in-depth analysis and additional InvestingPro Tips, BranchOut Food Inc. has more insights available at InvestingPro. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a more comprehensive understanding of the company's financials and market potential.
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