REHOVOT, Israel - Steakholder Foods Ltd. (NASDAQ:STKH), an innovator in alternative proteins and 3D printing technologies, has announced its first purchase order from Wyler Farm Ltd. for its proprietary SH™ - Beef premix blend. This agreement follows a previous purchase order for the company's SH™ - Fish premix blend earlier this month.
The purchase order is part of 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, including meatballs, burgers, and minced beef, are scheduled to hit the market no later than early 2025 and will be sold under the "Whaat Meat?! by Steakholder" brand.
Wyler Farm, known as Israel's largest tofu producer, has commenced the initial production phase, aligning with the planned schedule for a successful product launch. The products will be distributed through Wyler Farm's established channels, expanding Steakholder Foods' premix revenue stream and potentially leading to significant revenue growth as the deal matures in 2025.
Arik Kaufman, CEO of Steakholder Foods, expressed enthusiasm about the commencement of production at Wyler Farm and the potential for recurring revenue from multiple products and partners. He emphasized the company's commitment to expanding its commercial presence in the alternative protein sector.
Steakholder Foods, founded in 2019, specializes in developing 3D-printing production machines and proprietary premix blends, aiming to produce alternative proteins that closely mimic the texture of traditional meats and seafood. The company is also exploring the integration of cultivated cells in anticipation of future food technology advancements.
This press release contains forward-looking statements regarding Steakholder Foods' operations and financial performance, reflecting the company's current views and based on assumptions subject to risks and uncertainties. The actual results may differ materially from those projected in the forward-looking statements.
The information reported is based on a press release statement from Steakholder Foods Ltd.
In other recent news, Steakholder Foods Ltd. has secured its first revenue stream in 2024, marking a significant phase in the company's commercialization journey. The revenue comes from an initial purchase order from Bondor Foods Ltd. for Steakholder's proprietary alternative protein premixes. The premixes will be supplied for Bondor Foods' new product line of white fish and salmon patties, indicating Steakholder Foods' transition into full-scale production.
The partnership with Bondor Foods, known for its diverse vegan and vegetarian ready-to-eat products, is expected to enhance its offerings in the alternative protein category. These developments are based on a commercial agreement established earlier and are considered a validation of Steakholder Foods' product's commercial viability.
While these are forward-looking statements regarding Steakholder Foods' operations and financial performance, they are subject to risks and uncertainties. The company urges not to place undue reliance on these forward-looking statements, which may change based on various factors.
InvestingPro Insights
As Steakholder Foods Ltd. (NASDAQ:STKH) embarks on its commercial journey with Wyler Farm Ltd., investors might benefit from a closer look at the company's financial health and market performance. According to InvestingPro data, Steakholder Foods has a market capitalization of just $0.06 million, reflecting its early-stage status in the alternative protein market.
An InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, which could provide some financial flexibility as it scales its operations to meet new purchase orders. This liquidity position is crucial for a company in the growth phase, especially as it transitions from research and development to commercial production.
However, another InvestingPro Tip indicates that Steakholder Foods is quickly burning through cash. This is not uncommon for companies in the early stages of commercialization, but it underscores the importance of the recent purchase orders in potentially improving the company's cash flow situation.
The company's Price to Book ratio stands at a low 0.01, as noted by InvestingPro data. This could suggest that the stock is undervalued relative to its book value, but it's essential to consider this in the context of the company's overall financial performance and growth prospects.
It's worth noting that Steakholder Foods is not currently profitable, with an adjusted operating income of -$11.11 million over the last twelve months. This aligns with the company's focus on growth and market penetration rather than immediate profitability.
Investors interested in a more comprehensive analysis can access additional insights through InvestingPro, which offers 13 more tips for Steakholder Foods, providing a deeper understanding of the company's financial position and market dynamics.
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