In a letter to shareholders, Borealis Foods CEO Reza Soltanzadeh outlined the company’s strong second-quarter performance and expressed optimism for the remainder of 2024. Despite facing intense competition in the value ramen category, Borealis achieved a third consecutive quarter of positive margins, with gross margin reaching 7.9%. This positive result was driven by a strategic shift towards higher-margin products, particularly the flagship Chef Woo brand, which saw shipments increase over five times from the previous year. Soltanzadeh emphasized the company’s continued focus on expanding margins through product optimization and the introduction of innovative offerings. Looking ahead, Borealis is poised to capitalize on the seasonal surge in the soup market during the fall, with a revamped sales mix and expanded product lines. The company is also making significant progress in expanding its distribution network, securing new agreements with retailers, food service providers, and humanitarian food programs. Notably, Borealis has formed strategic partnerships with major multinational food companies and is actively expanding its institutional channel sales, especially with schools across the United States. These efforts are driving improved plant utilization and cost absorption, further contributing to margin growth. The company is also excited to unveil new flavors created by its brand ambassador and shareholder, culinary superstar Chef Gordon Ramsay, which are expected to hit store shelves this fall. Soltanzadeh highlighted the company’s commitment to fighting malnutrition through its innovative food technology, aiming to be a leading player in the industry. Borealis is also actively working to address the going concern issue previously mentioned in its SEC filings and is making significant progress on this front. In conclusion, Borealis is enthusiastic about its growth strategy and expects continued progress in the second half of 2024. The company is well-positioned to capitalize on market trends and deliver both increasing sales and expanded margins.
Borealis Foods CEO Highlights Strong Second Quarter Performance and Outlook for Growth in 2024
