NEW
YORK, Aug. 15, 2024 /PRNewswire/ - Borealis
Foods Inc. ("Borealis" or the "Company") (Nasdaq: BRLS), a
pioneering food tech company dedicated to crafting premium-quality,
nutritious food solutions accessible to all, today announced that
CEO Reza Soltanzadeh has issued a
letter to shareholders discussing second quarter financial results
and the Company's strategic developments.
Dear Fellow Shareholders:
We continued to make steady progress during the second quarter
and while our reported results included some important
accomplishments, the real excitement lies in the transformative
work happening behind the scenes as we laid critical groundwork for
advancing our goal of being a leading, innovative food-tech company
with accelerating sales in the second half of 2024 and beyond.
Here's a glimpse of the progress we're making:
- Continued margin improvement – We reported second
quarter gross margin of 7.9%, marking the third consecutive quarter
of positive margins and reflecting an expansion of margins from the
first quarter and an improvement in gross profit dollars of 24%
from the year-ago quarter. To be successful, it is imperative that
we continue to expand margins. During the quarter we were faced
with intense price and promotion activity from our competitors in
the value ramen category. We responded by accelerating our
longer-term strategy of pivoting to our higher margin products, led
by our flagship Chef Woo brand, which saw shipments increase over
5x from the year ago quarter. This strategic decision enabled us to
continue our margin expansion and we intend to continue working
hard to maximize our margins. Stay tuned as we continue to optimize
our product lineup and introduce groundbreaking offerings to the
market
- Stronger second half ahead – Historically, the soup
market heats up with the arrival of fall, and this year is poised
to be no different. We're strategically positioned to capitalize on
this seasonal surge with a revamped sales mix and expanded product
lines. Our efforts to increase our distribution channels give me
optimism that we are on a path to deliver a combination of growing
sales and expanded margins.
- Distribution expansion & plant utilization – Our
efforts to broaden our distribution network are paying off. New
agreements are bringing Borealis products to a wider range of
retailers and distribution channels, including food service and
humanitarian food programs. We're also forming strategic
partnerships with major multinational food companies and look
forward to sharing more about these developments. Additionally, our
institutional channel sales, especially with schools across the
U.S., are set to ramp up this fall. We've already begun shipping to
schools in 20 states, and this expansion is driving improved plant
utilization and cost absorption, further boosting our margins.
- Gordon Ramsay, Borealis Brand
Ambassador & investor – We're thrilled to have culinary
superstar Chef Ramsay as our Brand Ambassador and shareholder. His
latest creations are sure to dazzle ramen aficionados and set new
standards in the industry. We can't wait to unveil these exciting
new flavors and expect to see them hit store shelves this
fall.
In summary, we have a lot to be excited about, especially as our
much-anticipated second half is now at hand. During the last few
months, we have accomplished a tremendous amount and I look forward
to being able to share those initiatives with our fellow
shareholders soon. Our vision is to be a leading innovative food
tech company that creates a range of products that advance our
mission of fighting malnutrition. We're still very much in the
early stages of our journey and hope to share more news on all
we've been working on very soon.
In addition to executing on the many pieces of our strategic
plan, we are also highly focused on resolving the going concern
issue that was contained in reference to the financial statements
in our recent SEC filings, and are making solid progress on this
front. We are enthusiastic about Borealis' growth strategy and
outlook, and I look forward to reporting on Borealis Foods'
continued developments.
In Good Health,
Reza Soltanzadeh
CEO
Borealis Foods Inc.
About Borealis
Borealis is an innovative food
technology company with a mission to address global food security
challenges through its research and development of tasty, highly
nutritious and functional food products that are both affordable
and sustainable. The Company's focus on affordability and
sustainability reflects its commitment to making a positive impact
on both human life and the planet. Borealis distributes its food
products throughout the United
States, Canada,
Mexico and recently began
distributing its products in Europe.
Forward Looking Statements
Certain statements made in this release are "forward looking
statements" within the meaning of the "safe harbor" provisions of
the United States Private Securities Litigation Reform Act of 1995,
including statements regarding the and future financial condition
and performance of Borealis, and the expected financial impacts of
the Business Combination (including future revenue and pro forma
enterprise value), markets, and expected future growth and market
opportunities. Forward-looking statements generally relate to
management's current expectations, hopes, beliefs, intentions,
strategies, plans, objections or projections about future events or
Borealis' future financial condition or operating performance. When
used in this press release, the words "estimates," "projected,"
"expect," "anticipate," "forecasts," "plans," "intend," "believe,"
"seek," "may," "will," "should," "future," "propose" and variations
of these words or similar expressions (or the negative versions of
such words or expressions) are intended to identify forward-looking
statements.
These forward-looking statements are not guarantees of future
performance, conditions or results, and involve a number of known
and unknown risks, uncertainties, assumptions and other important
factors, many of which are outside Company's control, that could
cause actual results or outcomes to differ materially from those
discussed in the forward-looking statements. These risks,
uncertainties, assumptions and other important factors are detailed
in the Company's periodic and current reports filed with the
Securities and Exchange Commission, including the disclosures under
"Risk Factors" in the Company's Form 10-Q for the quarter ended
March 31, 2024 and its Form 8-K/A
filed with the Securities and Exchange Commission on April 15, 2024. As such, readers are
cautioned not to place undue reliance on any forward-looking
statements and readers should not rely on these forward-looking
statements as predictions of future events.
Forward-looking statements are based upon estimates and
assumptions that, while considered reasonable by management of
Borealis, are inherently uncertain. Factors that may cause actual
result to differ from current expectations include, but are not
limited to: financial and operating performance; changes to
existing applicable laws or regulations; the possibility that
Borealis or the combined company may be adversely affected by
economic, business, or competitive factors; Borealis' estimates of
revenue, expenses, operating costs and profitability; the evolution
of the markets in which Borealis competes and Borealis' ability to
enter new markets effectively; and the ability of Borealis to
implement its strategic initiatives and continue to innovate its
existing services.
Forward-looking statements speak only as of the date they are
made. Investors are cautioned not to put undue reliance on
forward-looking statements and Borealis assumes no obligation and
does not intend to update or revise these forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by securities and other applicable
laws.
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SOURCE Borealis Foods, Inc.
