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Essentially Group reports strong 2023 performance, positions for continued growth

11:46, 27th June 2024
Victor Parker
Vox Newswire

Essentially Group (ESSNFollow | ESSN, a UAE-focused manufacturer of healthy snacks and drinks, announced its inaugural audited results for the period of September 1, 2022 to December 31, 2023.

Essentially noted a number of milestones during the period, including its listing on AQSE in March 2023, and the installation and trial completion of its advanced high-pressure processing (HPP) equipment in Q1 2023. 

Additionally, ESSN's subsidiary Essentially Juices Manufacturing (EJM) secured a supply contract for the UN Climate Change Conference aka COP28, held from 30 November to 12 December 2023 in Dubai, significantly expanding the group's international visibility.

Financially, ESSN reported revenues of £1.59m for the period. Cash balance was robust at £301k despite an operating loss before IPO costs of £488k and a loss for the period of £960k.

Post-period, Essentially completed the acquisition of Best of Latin Foodstuff Trading (BLF) for a total consideration of £1.945m completed through an all-shares agreement, in line with the group's long-term M&A strategy.

Raja Wail Abuljebain, CEO of Essentially, commenting: "We are pleased with our achievements in this period, including our listing on the Aquis Stock Exchange, the acquisition and installation of our HPP equipment, the securing of key contracts with renowned franchises and more recently, welcoming Best of Latin Foodstuff Trading LLC (BLF) to the Group. These strategic decisions and steps have positioned the Company for continued strong growth in the coming years, in both existing and target markets. We are confident that the Company can build off of the work done in 2023 and achieve even more in 2024 and beyond."

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Essentially has delivered its inaugural annual report for FY23 to December 31, 2023, marking a significant milestone for the company. After incorporation in August 2022, ESSN became the first international business to float on AQSE in March 2023, and has since expanded its footprint, partnership agreements, and turnover significantly.

During FY23 and into H1 2024, ESSN delivered significant operational progress, accelerated by the company's selection as a preferred supplier of juice for the UN Climate Change Conference in Dubai in December 2023. Throughout the period, ESSN's operational subsidiary Essentially Juices Manufacturing (EJM) secured several contracts with major franchises in the UAE, resulting in sustained demand for the company's premium juices and protein snacks.

The post-period acquisition of BLF was in line with the group's ambitious expansion strategy. The move should diversify ESSN's product line, further enhance its market position and reach within the Middle East market, and cut costs through new operational efficiencies.

Furthermore, the purchase of advanced HPP (high-pressure processing) equipment by EJM has allowed Essentially to extend the shelf life of its products, enhancing gross margins and facilitating new product development.

The food and beverage sector in the UAE, Essentially's main market, has been bolstered by a recent resurgence in consumer spending and increase in international visitors, expected to boost ESSN's sales in FY24. Additionally, government initiatives to boost local production and enhance food security are expected to further stimulate growth.

Looking ahead, the group is well-funded and well-positioned to continue product development, contract expansion, and M&A, driving toward profitability in the medium term.

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