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BranchOut Food Inc. Announces Record First Quarter 2024 Results, Gross Margin Increased to 19%, On Track for ~$8M Run Rate

U.S. Army Selects BranchOut Food Products for Field Test with Aim of Revolutionizing MREs

BOF Has Its Products in nearly 3,400 stores nationwide


Hello Everyone,

We have another company that we want you to research immediately before the bell tomorrow.

This is a company that we have never profiled before and we have never seen featured in any other newsletter.

Hopefully that is all about to change.

Pull up BOF immediately and start your research on the company.  

BranchOut Food is an international food-tech company delivering truly great natural snacks and real superfood ingredients enabled by its licensed dehydration technology. The company’s GentleDry technology is the next generation in dehydration technology, preserving up to 95% of the original nutrition of fresh fruits and vegetables. BranchOut’s technology is protected by more than 17 patents. BranchOut Food is proud to be a leading provider of high-quality dehydrated fruit and vegetable-based products and its commitment to quality and innovation sets it apart as a trusted brand and private label supplier.

GentleDry Technology uses a combination vacuum chamber & radiant energy, resulting in a rapid, gentle drying process. The vacuum removes the air around the product, eliminating nearly all oxidation and browning. In addition, the vacuum lowers the water’s boiling point, enabling a more efficient energy transfer. The energy is absorbed by the material volumetrically, promoting a uniform dehydration process. By controlling the pressure and energy, they can effectively control the product’s temperature and final moisture to dial in the desired texture, crunchy or chewy.

U.S. Army Selects BranchOut Food Products for Field Test with Aim of Revolutionizing MREs

Cinnamon Churro Banana Bites and Chili Lime Pineapple Chips—Both Made with GentleDry Technology—Excelled in Recent Shelf Life and Sensory Tests

BEND, Ore., June 24, 2024 (GLOBE NEWSWIRE) — BranchOut Food Inc. (NASDAQ: BOF), a pioneering food technology company and producer of dehydrated fruit and vegetable-based products, is taking the next step in its strategic collaboration with the U.S. Army Combat Capabilities Development Command (DEVCOM) to enhance Meals Ready-to-Eat (MRE) through its proprietary GentleDry technology. Following BranchOut Food’s successful six-month shelf-life test and sensory panels, the U.S. Army selected Cinnamon Churro Banana Bites for a subsequent field test with live soldiers, and will likely include the company’s Chili Lime Pineapple Chips pending an additional iteration.

Made with GentleDry technology at low temperatures to preserve flavor and up to 95% of the original nutrition of fresh produce, both products passed the shelf life and sensory tests with excellent scores and offer calorie- and nutrient-density that are both functional and appealing for U.S. Army soldiers. If the products perform well in the field, they may be selected for addition into one or more MREs. The volume for each product selected and incorporated into one MRE will be about 1,500,000 units per year. This volume will increase if multiple items are selected and incorporated into multiple MREs.

“We are excited to advance our partnership with the U.S. Army as our innovative snacks have passed rigorous tests and captured the troops’ interest with their freshness and flavor,” said Eric Healy, CEO of BranchOut Food. “These snacks not only provide the nutritional density needed in the field but also offer the taste of real fruit, which is a welcome addition to the MREs. As we continue to develop new MRE concepts, we are focused on enhancing meal variety and enjoyment for soldiers, reinforcing our commitment to delivering high-quality, nutritious, and enjoyable options.”

Dedicated to offering extraordinary natural snacks and real superfood ingredients, BranchOut Food is committed to delivering products that excel in flavor, color and nutrition, while also providing an exceptional taste experience.

About DEVCOMThe U.S. Army Combat Capabilities Development Command (DEVCOM) is a major research and development organization within the U.S. Army. DEVCOM leads scientific research, technology development and engineering efforts to provide innovative solutions to the Army’s operational challenges and maintain its technological advantage.

BranchOut Food Inc. Announces Record First Quarter 2024 Results, Gross Margin Increased to 19%, On Track for ~$8M Run Rate

  • Achieved a 1,407% revenue increase to $1.47 million in Q1 2024.
  • Increased gross margin to 19% in Q1 2024, up from -3% last year.
  • Secured $8 million in recurring revenue plus $1.1 million in rotational retailer commitments.

BEND, Ore., May 15, 2024 (GLOBE NEWSWIRE) — BranchOut Food Inc. (NASDAQ: BOF), a leading food technology company specializing in dehydrated fruit and vegetable-based products, today announced its recent accomplishments and financial results for the first quarter ended March 31, 2024. The Company reported a 1,407% increase in revenue for the first quarter ending March 31, 2024 of $1.47 million compared to $97,000 in the year ago quarter. Additionally, BranchOut Food achieved a gross margin of 19% in Q1 2024, a significant improvement from -3% in Q1 2023.

Eric Healy, CEO of BranchOut Food, commented, “This quarter’s exceptional performance confirms the strong momentum of our growth strategy. We now have contracts totaling about $8 million in annualized revenue that will continue to layer on throughout the year. Additionally, we have commitments for approximately $1.1 million in rotation orders from the nation’s largest warehouse club retailer expected in Q3 and Q4. Furthermore, demonstrating our commitment to innovation and meeting the needs of our growing customer base, BranchOut Food has expanded its product range with the launch of salad toppers and kids’ snack packs, broadening our offerings beyond traditional snacking categories.

“The gross margin of 19% this quarter marks a tremendous improvement from past performances, largely due to strategic adjustments in our cost management and enhanced supply chain consistency and management. This is expected to increase to 40-50% with our new production facility in Peru. This strategic move into a region abundant with low cost fruits and vegetables enhances our control over production and significantly boosts operational efficiency. Looking ahead, the Company anticipates growing momentum in the overall business and remains focused on achieving profitability while executing on additional value-enhancing strategic initiatives.”

Recent Accomplishments:

  • Retail Expansion: BranchOut Food secured its third contract with the nation’s largest retailer, bringing total annualized revenue to over $8M. This new $300,000 commitment will place BranchOut’s dried fruit products in 1,400 stores by September 2024.
  • Warehouse Club Expansion: After several successful rations in the California regions in 2023, selling at nearly 2X the retailer’s threshold, BranchOut receives $1.1M in reorders for 2024, expanding into 7 additional states.
  • Production Expansion: BranchOut Food secures a 50,000 square foot production facility in Peru, enhancing vertical integration with a $40 million capacity and projected 40-50% gross margins, set to begin production in August.
  • Successful Sale of Notes and Warrants: BranchOut Food raised a total of $1,150,000through the sale of Senior Secured Promissory Notes and Warrants and has board approval to raise another $850,000. This supports its product roadmap and new equipment purchases to meet rising demand, aiming to enhance long-term shareholder value.

Q1 2024 Financial Highlights:

  • Net Revenue: BranchOut Food reported net revenue of $1.47 million for Q1 2024, a substantial increase from $97,000 in Q1 2023. This surge reflects the successful expansion of the Company’s product lines and increased sales with large retail partners.
  • Gross Profit: The company achieved a gross profit of $283,588 for the quarter, a significant turnaround from a gross loss of $29,642 in the same period last year. This improvement is due to enhanced operational efficiencies and cost-effective sourcing strategies.Investors are encouraged to read the Company’s Annual Report on Form 10-Qfiled with the Securities and Exchange Commission (SEC), which will contain additional details about BranchOut Food’s financial results as of and for the period ended March 31, 2024.

Q1 2024 Operational Highlights:

  • Strategic Partnerships: The Company expanded its relationship with the nation’s largest retailer, securing a new agreement estimated at $8 million annually. This partnership enhances BranchOut Food’s presence and accessibility across the country.
  • Military Collaboration: BranchOut Food partnered with the U.S. Army to enhance MREs using its proprietary GentleDry technology, successfully completing the rigorous 6 month shelf life test, passing troop evaluations and showing promising results in ongoing shelf life testing to deliver greater utility and value.
  • Product Expansion: BranchOut Food launched two innovative product lines, salad toppers and kids’ snack packs, at the Natural Products Expo West. These launches broaden the company’s portfolio beyond traditional snacking categories.
  • Manufacturing Partnership: EnWave signed a toll manufacturing agreement with BranchOut Food to produce vegetable snack products using REVworx capacity, securing two months of production starting in early March 2024, with options for additional manufacturing as needed.
  • Technology Advancements: BranchOut Food continued to leverage its proprietary GentleDry technology to deliver superior nutritional value in its dehydrated products, contributing to the success of its offerings in nearly 3,400 stores nationwide.



Eric Healy—CEO and Chairman of the Board. Eric has been our Chief Executive Officer since inception in November 2017. Mr. Healy brings over 13years of experience as a mechanical engineer, product development engineer, and a food entrepreneur. Prior to founding BranchOut, Mr. Healy was the owner/partner of the No-Bake Cookie Company, running all aspects of the company. Mr. Healy served as a Senior Mechanical Engineer at Stratos Product Development, Synapse Product Development (both consumer product development engineering firms) as well as a Mechanical Engineer at the Boeing Company. Eric earned a BS in Mechanical Engineering from Oregon State University.

John Dalfonsi—CFO and Director. Since 1995, Mr. Dalfonsi has closed public and private equity and debt financings, merger and acquisitions, advisory and fairness opinion transactions and Nasdaq and NYSE/AMEX IPOs. He has worked with companies in the healthcare, industrial, consumer, technology, cleantech and resource sectors. During this period, Mr. Dalfonsi has spent the bulk of his career at ROTH Capital Partners, LLC and Paulson Investment Company, LLC. Mr. Dalfonsi has been the Managing Member at Eagle Vision Fund G/P., LLC since . Mr. Dalfonsi earned his Bachelor of Science degree in Industrial Engineering from Northwestern University and his Master of Business Administration from the University of Chicago Booth School of Business.

David Israel—Independent Director. DavidIsrael, one of our co-founders and a nominee as independent director, boasts a successful history of food entrepreneurship. As the Chief Executive Officer of Good Planet Foods since 2018, David brings extensive experience in natural food product development and management. Additionally, as the Chief Executive Officer of BFY Food Group since 2017, David brings an immediate network of distributors and buyers that will continue to scale BranchOut as growth accelerates. David developed and created Pop Gourmet as its founder.

Greg Sommerville—Independent Director. Greg Sommerville is an accomplished 30-year Sales and Marketing veteran of the U.S. Food Industry. Greg is currently North America Controller & Chief Executive Officer at Savencia Fromage and Dairy, which is the world’s leading specialty cheese company and has held the position since August of 2021. In North America, Savencia has top share positions in cream cheese, domestically-produced and imported specialty cheeses, hummus, and plant-based dips and snacks. Prior to joining Savencia, Mr. Sommerville spent 20 years at Land O’Lakes, Inc., starting in July of 2001 and leaving in July of 2021, where he held a variety of leadership positions in sales, customer marketing, category & consumer insights and sustainability. Mr. Sommerville is a trusted industry expert as he previously held board positions at the National Frozen & Refrigerated Foods Association and the International Dairy Deli Bakery Association. Mr. Sommerville’s proven track record managing branded food products across the retail, food service and B2B ingredients segments will be invaluable toward supporting BranchOut’s future growth. Greg has a BS in Business from the University of Wisconsin and an MBA from Quinlan School of Business.

Byron Riché Jones—Independent Director. Byron was appointed to our board of directors and the chairman of the Company’s audit committee on January 10, 2024. Mr. Jones is a distinguished executive with over 15 years in Project Management and Business Solutions experience, and has served as director of several publicly traded and privately held companies, specifically in the Commercial Real Estate, Consumer Goods, Hospitality, Technology, and Cannabis Sectors. Since 2012, Mr. Jones has been the Director of Project Management at Jones Lang LaSalle, one of the largest global real estate companies in the world, where for the past 10 years he has overseen over $50M (US) in capital and improvements for one of the leading Global Technology Institutions. Since 2021, Mr. Jones has also been the principal of ELEVEN03 Hospitality LLC, a growth portfolio company with holdings in notable Bay Area nightlife venues, including “NOVA nightclub’ and “Wild Rose Eatery and Lounge”. Mr. Jones earned an Honors BS degree in Business Management from the WP Carey School of Business with an emphasis in Small Business Entrepreneurship from Arizona State University in 2005.




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