DDC Enterprises, Ltd. (NYSEAM:DDC), ("DayDayCook," "DDC," or the "Company"), a leading multi-brand Asian consumer food company, today issued a corporate update in a Letter to Shareholders from CEO Norma Chu.
To Our Valued Shareholders:
I am pleased to share important updates and improvements from DayDayCook as we reflect on our first year as a publicly listed company. While we have faced our share of challenges during this transition, we have proactively addressed them and are emerging as a stronger organization.
Improved Corporate Infrastructure
To enhance our operational capabilities, we have established a new finance and accounting team dedicated to managing our ongoing financial filing requirements. On September 30, 2024 we appointed Enrome LLP ("Enrome") as our independent registered public accounting firm. This engagement will be led by our newly hired co-CFO and principal accounting officer, Tony Tao. Additionally, we welcomed Jeff Ervin in June, who serves as co-CFO in a fractional capacity, focusing on our strategic financial initiatives. With this experienced finance team in place, we are confident in our ability to meet future filing deadlines.
Revenue Momentum and Strong Cash Position
The Company ended 2023 with estimated total 2023 revenue between $28 and $29 million USD, representing an increase of 10-14% over 2022. Profitability also improved with gross margin increasing from 24.5% to an estimated 24.9-25.1% by the end of the year. We ended 2023 with estimated USD 25.8m of cash and short-term investment.
Driving Growth and Revenue Through Acquisitions
This year, we successfully completed two important acquisitions that enhance our presence in the United States: Yai's Thai and Omsom. These well-respected brands align perfectly with our business vision. Following the acquisition of Yai's Thai, we implemented distribution synergies that expanded brand availability with retailer Sprouts, resulting in a nationwide launch of Yai's Thai packaged sauce series and a notable increase in presence across Sprouts locations. We remain disciplined in our analysis of acquisition opportunities, focusing on targets that not only broaden our product portfolio but also deliver meaningful financial and operational synergies. In June, we welcomed Malik Sadiq as Chief Operating Officer, who brings invaluable industry experience and expertise in integrating acquisitions and optimizing internal efficiencies.
Retiring Debt
In August, we announced the successful elimination of $4.8 million in debt, significantly enhancing our balance sheet. We anticipate utilizing cash on hand and other strategic measures to further reduce outstanding debt by year-end. We believe that the current interest rate environment and our balance sheet improvements will enable us to refinance additional outstanding obligations, resulting in increased future cash flows.
Overall, we have enriched our leadership team with experienced professionals who are committed to refining our internal processes. With our portfolio of well-recognized Asian food brands, including Omsom, Yai's Thai, and others, we have a robust foundation for sustainable growth. We believe that DayDayCook is well positioned to become the most influential player in the Asian food market in the U.S. Additionally, with our foundational operations in China, we expect to benefit from the recent announcement of economic stimulus in the country. Together, these factors position us to seize the momentum in the ready-to-heat and ready-to-eat Asian food market.
Thank you for your continued support.
Sincerely,
Norma Ka Yin Chu
Founder & CEO
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