Element Nutritional Sciences Provides Business Update and 2023 Outlook
Element Nutritional Sciences (CSE:ELMT)
BURLINGTON, ONTARIO, CANADA, January 11, 2023 /EINPresswire.com/ — Element Nutritional Sciences Inc. (CSE:ELMT; OTC:ELNSF; FRANKFURT:93X) (the â€œCompanyâ€� or â€œElementâ€�), today provides a business update reviewing its operational milestones in 2022 and an outlook for 2023.
Message from Stuart Lowther, Founder and Chief Executive Officer of Element
The commercial opportunity for Element and its Rejuvenateâ„¢ and Prominoâ„¢ brands remains as attractive as ever. In the U.S. alone, the functional beverage market is estimated to be over $48 billion and is forecast to grow at a CAGR of 6.6%. This growth is being driven by consumers evolving to become more knowledgeable and selective about the products they consume, with 73% of adults currently consuming drinks promoting some type of added functional benefit. The Company expects the trends in the functional beverage market to remain favourable and allocated its resources in 2022 to rebranding and reformulating its flagship brands to better align with consumer preferences and optimize profitability.
Elementâ€™s strategy continues to focus on driving sales by developing innovative products that improve muscle health. We have already started to realize results from our rebranding and improved product formulation as demonstrated by recent purchase orders from Shoppers Drug Mart and Walgreens for our Rejuvenateâ„¢ Muscle Activator stick packs. Today, we have established 33,000 points of distribution in the U.S. and Canada. Our most recent financial results show revenue has increased over 100% from the same period in 2021, along with gross margins of 23%.
Looking forward to 2023, regulatory changes from Health Canada are expected to result in expedited time-to-market for Rejuvenateâ„¢ Muscle Activator ready-to-drink beverages by enabling listings with key retailers in Canada. The Company expects that aligning U.S. and Canadian retail launches for its patented ready-to-drink beverage will create significant synergies and economies of scale that will contribute to higher gross profit margins and new points of distribution in the North American retail channel. Additionally, we are implementing new supply chain initiatives that will significantly lower raw material costs on finished goods and increase gross profit margins on all products.
The sports nutrition market is expected to drive incremental growth for Element in 2023. Our proprietary sports nutrition brand, Prominoâ„¢, is the first patented NSF Certified for SportÂ® supplement to be made available to major sport leagues. Through a strategic partnership with James LaValle and Mike Potenza, Prominoâ„¢ is being hand-delivered into the training rooms of virtually all major pro sports teams via the conditioning and nutrition teams for trial programs. Already Prominoâ„¢ is in the locker rooms in the NBA, NHL, NFL and NCAA. This strategic outreach program will continue to seed this breakthrough product with todays premier athletes and will be recognized as one of the most highly beneficial muscle recovery, repair and strength supplements available, displacing whey protein as the go-to protein source.
Element is entering 2023 on sound footing. Changes to demographics and the continued demand for functional beverages are expected to provide tailwinds as we build revenue for our suite innovative and patented brands. With a new formulation, changes in product mix, rigorous cost discipline and growing sales, we also believe we can improve profitability as we scale. In Q4 2022, we completed significant consumer insight work with our new ready-to-drink brand. We have positive consumer acceptance across the board in all areas including flavor, packaging, concept and price. This work is expected to translate into retail acceptance and consumer demand.
I would like to personally thank all our investors for their support. In 2022, we made significant progress towards unlocking our potential and improving muscle health for global consumers. We believe our team is well equipped to maintain our momentum into 2023 by breaking into new distribution channels with brands that are among the most innovative muscle health products in the nutritional market and that can lead the way to help millions of people improve their overall health and well being.
Key Milestones in 2022
â€¢ Received purchase orders Shoppers Drug Mart Inc. (“Shoppers”) to distribute Rejuvenateâ„¢ Muscle Activator stick-packs across 594 Shoppers locations in Canada
â€¢ Announced Rejuvenateâ„¢ Muscle Activator ready-to-drink beverage is scheduled to launch in Canada ahead of schedule, following Health Canada regulatory changes, with expected Canadian retail launch in April 2023
â€¢ Entered into a contract with Dr. James LaValle and Mike Potenza to promote and educate professional sports leagues and teams on the benefits of Prominoâ„¢, Elementâ€™s proprietary sports nutrition brand
â€¢ Announced that Rejuvenateâ„¢ Immune Health is available to consumers on the Amazon platform in the U.S. through a distribution partnership with e-commerce accelerator Pattern Inc.
â€¢ Signed a distribution agreement with OCSB Emerging Brands Group (â€œOCS Brandsâ€�), whereby OCS Brands will distribute Rejuvenateâ„¢ across the convenience services channel in the U.S.
â€¢ Entered the U.S. grocery channel with Publix Super Markets Inc. with the original Rejuvenateâ„¢ formula
â€¢ Rejuvenateâ„¢ products became available online at Walgreens and across all Samâ€™s Club locations across the U.S.
â€¢ Integrated its industry-leading JAKTRXâ„¢ performance supplement branded products on Amazon.com
â€¢ Announced that its new and patented Prominoâ„¢ line of sports nutrition products became available on Amazon with sales and fulfillment facilitated through Pattern
â€¢ Completed development and commercialization for Clinical Strength Rejuvenateâ„¢ targeted towards the medical practitioner market
â€¢ Acquired the right to use the same plant-based amino acid formulation underlying its Rejuvenateâ„¢ muscle health products to develop a new higher dosage formulation for the sports nutrition market
â€¢ Announced that the clinically proven amino acid formulation used in Rejuvenateâ„¢ received a global Patent Cooperation Treaty patent issued by the U.S. Patent and Trademark Office
Financial and Corporate
â€¢ Generated revenue of $4.1 million for the year-to-date Q3 2022, a 100% increase over the same period in the prior year, with a gross margin of 23%
â€¢ Announced a short term bridge loan in the amount of up to $1,000,000 with an armâ€™s length lender
â€¢ Commenced trading on the OTCQBÂ® Venture Market (OTCQB) under the symbol â€œELNSFâ€� on February 2, 2022
Element is an innovative and research driven Canadian nutraceutical company specializing in the development of patented and science-based products for the global consumer packaged goods market, with a portfolio focused specifically on men and women over the age of 40. Elementâ€™s lead product, Rejuvenateâ„¢, is a proprietary formulation that is clinically proven to assist in the rebuilding, restoration and rejuvenation of natural loss of muscle mass due to aging or other medical conditions. Element also offers JAKTRXâ„¢, an elite brand of performance supplements. Element was founded in 2015 and is located in Burlington, Ontario.
To learn more about Element, visit elmtinc.com.
More information about Rejuvenateâ„¢ can be found at: www.rejuvenatemuscle.com
More information about JAKTRXâ„¢ and Prominoâ„¢ can be found at: www.jaktrx.com
Forward Looking Statements
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as â€œexpectsâ€�, or â€œdoes not expectâ€�, â€œis expectedâ€�, â€œanticipatesâ€� or â€œdoes not anticipateâ€�, â€œplansâ€�, â€œbudgetâ€�, â€œscheduledâ€�, â€œforecastsâ€�, â€œestimatesâ€�, â€œbelievesâ€� or â€œintendsâ€� or variations of such words and phrases or stating that certain actions, events or results â€œmayâ€� or â€œcouldâ€�, â€œwouldâ€�, â€œmightâ€� or â€œwillâ€� be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward looking statements in this news release include: the expected growth in the functional beverage market, the expected launch of Rejuvenateâ„¢ ready-to-drink beverage in Canada in April 2023 and that this launch will create synergies that lead to improved profitability, the expectation that points of distribution will increase in 2023, the expectation that revenue will accelerate in 2023, the expectation that Prominoâ„¢ will contribute to revenue in 2023, and improvements in the future profitability of the Company.
These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: fluctuations in general macroeconomic conditions; expectations regarding the size of the United States and Canadian health, nutraceutical and wellness markets and changing consumer habits; the viability of the Companyâ€™s products; availability of distribution channels for the Companyâ€™s product offerings; the ability of the Company to successfully achieve its business objectives; plans for expansion; successful development of the Companyâ€™s proposed products; the presence of laws and regulations that may impose restrictions or recalls on the sale of the Companyâ€™s products in the United States and Canada; customer and distributor relations; fluctuations in securities markets; and the inability of the Company to obtain adequate insurance to cover risks and hazards. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
For further information, please contact:
Chairman, CEO and President
Source: Element Nutritional Sciences Inc.