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Steakholder Foods begins revenue generation with key orders

Published 10/15/2024, 07:14 PM
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REHOVOT - Steakholder Foods Ltd. (NASDAQ:STKH), an innovator in alternative proteins and 3D printing technologies, has announced the commencement of its revenue generation phase with the acquisition of its first purchase orders. CEO Arik Kaufman outlined the company’s transition to recurring revenue and its growth outlook for 2025 in a recent letter.

The company has secured orders from Bondor Foods Ltd. and Wyler Farm Ltd., marking a significant commercial milestone. Bondor Foods, a sister company of Premazon, has placed an order for Steakholder Foods' proprietary SH™ - Fish premix blends, which will be integrated into Bondor’s new line of plant-based white fish and salmon patties. These products are expected to hit the market by the end of 2024.

Additionally, Wyler Farm has ordered SH™ - Beef premix blends for the development of plant-based meatballs, burgers, and minced beef, slated for release in early 2025. Following this launch, Steakholder Foods will assist Wyler Farm in producing an additional line of products using their 3D printing technology, including printed beef steaks.

The company’s collaboration with the Industrial Technology Research Institute (ITRI) in Taiwan continues to progress, focusing on developing products suited to local tastes. Furthermore, the opening of Steakholder Foods' first full-scale Demonstration Center showcases their 3D printing technologies and production process of plant-based meat and seafood alternatives to potential clients and partners.

Steakholder Foods anticipates substantial revenue growth in 2025 as their initial agreements come into full effect and they attract more interest from the market. This optimism is rooted in the company's transition from development to commercialization and the establishment of initial revenue streams.

The company, established in 2019, specializes in developing 3D-printing production machines and proprietary premix blends. They are also exploring the integration of cultivated cells to prepare for future advancements in food technology.

This news is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. These statements are not guarantees of future performance, and actual results may differ materially from those projected.

In other recent news, Steakholder Foods Ltd. has made notable strides in its commercialization journey. The company has secured its first purchase order from Wyler Farm Ltd. for its SH™ - Beef premix blend. This order follows a commercial cooperation agreement signed in May 2024, under which Steakholder Foods will supply its SH™ - Beef premix blend for Wyler Farm's upcoming line of plant-based meat products. These products are scheduled to hit the market no later than early 2025.

In addition to the Wyler Farm agreement, Steakholder Foods has also marked a significant phase in its commercial journey by securing its first revenue stream in 2024 from an initial purchase order from Bondor Foods Ltd. for its proprietary alternative protein premixes. These premixes will be supplied for Bondor Foods' new product line of white fish and salmon patties.

These are recent developments for Steakholder Foods, which has been expanding its commercial presence in the alternative protein sector. The company is also exploring the integration of cultivated cells in anticipation of future food technology advancements. However, these forward-looking statements are subject to risks and uncertainties, and the actual results may differ materially from those projected. The information reported is based on press release statements from Steakholder Foods Ltd.

InvestingPro Insights

As Steakholder Foods Ltd. (NASDAQ:STKH) embarks on its revenue generation phase, investors should consider some key financial metrics and insights from InvestingPro. The company's market capitalization stands at a modest $0.46 million, reflecting its early stage in the commercial journey.

An InvestingPro Tip highlights that Steakholder Foods holds more cash than debt on its balance sheet, which could provide financial flexibility as it scales its operations. This is particularly important as the company transitions from development to commercialization, potentially requiring capital for production and marketing efforts.

Another relevant InvestingPro Tip indicates that the stock is trading at a low Price / Book multiple of 0.06. This could suggest that the market is undervaluing the company's assets, which may include its proprietary technologies and intellectual property in 3D printing and alternative proteins.

However, it's worth noting that the company is not currently profitable, with a negative operating income of $11.11 million over the last twelve months as of Q2 2024. This aligns with the company's recent transition to the revenue generation phase and underscores the importance of monitoring its progress in converting purchase orders into sustainable revenue streams.

For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Steakholder Foods, providing a deeper understanding of the company's financial health and market position as it navigates this crucial phase of commercialization.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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