Jeffs’ Brands Reports Record $13.6 Million Revenue for 2024

Rhea-AI Summary

Jeffs' Brands (Nasdaq: JFBR) reported record revenue of $13.68 million for FY2024, marking a 36.8% increase from $10.3 million in 2023. The growth was primarily driven by strong sales from its subsidiary Fort Products in the UK and Europe, particularly in France.

Key developments in Q1 2025 include: completion of Fort's AI-Based pest control app development, acquisition of Pure NJ Logistics for U.S. operations, and progress on Fort's proposed merger with a Canadian public company, with Fort's valuation estimated at $11.6-14.2 million. The company secured a $2.85 million convertible note to support Fort's U.S. expansion and entered discussions to sell its Smart Repair Pro subsidiary.

Notable achievements include Fort's selection as an Amazon UK Key Account in September 2024, qualifying for the top seller program.

Positive

• Record revenue of $13.68M with 36.8% YoY growth
• Fort Products valued at $11.6-14.2M in recent valuation report
• Secured $2.85M convertible note financing
• Strategic expansion with U.S. logistics center acquisition
• Amazon UK Key Account status achievement

Negative

• Potential shareholder dilution from $2.85M convertible note
• Planned divestiture of Smart Repair Pro subsidiary

Insights

Financial Analyst

Jeffs' Brands' 36.8% revenue growth to $13.68 million represents a significant positive development for a microcap company with only $1.97 million market capitalization. The revenue growth outpaces many e-commerce peers and demonstrates successful market penetration in Europe, particularly through their Fort Products subsidiary.

The valuation report placing Fort at $11.6-14.2 million is particularly noteworthy, as it exceeds JFBR's entire market cap by 5-7x. This substantial valuation disconnect suggests potential unlocked shareholder value that could be realized through the planned merger with a Canadian public company. The selection of Fort as an Amazon UK Key Account further validates their product quality and market position.

The company appears to be strategically restructuring its operations - divesting Smart Repair Pro while securing $2.85 million in financing to accelerate Fort's expansion. The acquisition of Pure NJ Logistics adds valuable infrastructure to support U.S. market entry, potentially replicating their European success model.

While revenue growth is impressive, the absence of profitability metrics in this announcement leaves a critical gap in evaluating overall financial health. The convertible note financing, while providing growth capital, may lead to future dilution depending on conversion terms.

E-Commerce Strategist

Being selected as an Amazon UK Key Account represents a significant competitive advantage for Fort Products within JFBR's portfolio. This status typically delivers enhanced visibility, preferred placement in search results, and dedicated Amazon support resources - all translating to higher conversion rates and reduced customer acquisition costs.

The completion of Fort's AI-based pest control app signals JFBR's evolution beyond traditional e-commerce toward technology-enhanced product offerings. This approach creates differentiation in the commoditized pest control market and potentially enables premium pricing power.

The Pure NJ Logistics acquisition demonstrates vertical integration that should yield three key benefits: improved inventory management, faster shipping times, and potentially higher margins by eliminating third-party logistics costs. This infrastructure investment is perfectly timed to support Fort's planned U.S. expansion.

JFBR's data-driven approach appears to be yielding results, with their strategic focus on Fort Products paying dividends through their 36.8% revenue growth. The planned divestiture of Smart Repair Pro indicates disciplined portfolio management - concentrating resources on their highest-performing assets rather than maintaining underperforming business units.

Tel Aviv, Israel, April 01, 2025 (GLOBE NEWSWIRE) -- Jeffs' Brands Ltd (“Jeffs’ Brands” or the “Company”) (Nasdaq: JFBR, JFBRW), a data-driven e-commerce company operating on the Amazon Marketplace, today announced the filing of its Annual Report on Form 20-F for the fiscal year ended December 31, 2024 (the “2024 Annual Report”) with the Securities and Exchange Commission (the “SEC”).

The 2024 Annual Report includes the Company’s audited financial statements for the year ended December 31, 2024. The 2024 Annual Report can be accessed at the SEC’s website at https://www.sec.gov/ and Jeffs’ Brands’ investor relations website at https://investor.jeffsbrands.com/secfilings.  This press release is being issued pursuant to Nasdaq Listing Rule 5250(d)(1)(C).

2024 and Q1 2025 Key Highlights:

• Record Revenue: Revenue increased by approximately 36.8% to $13.68 million for the year ended December 31, 2024, a significant increase from $10.3 million for the year ended December 31, 2023. This increase was primarily due to strong sales from its subsidiary Fort Products Limited (“Fort”) in the U.K. and Europe, particularly in France.
• In March 2025, Jeffs’ Brands announced the completion of the development stage for Fort’s AI-Based pest control app.
• In March 2025, Jeffs’ Brands announced the closing of the strategic acquisition of Pure NJ Logistics LLC, a U.S. company that operates a U.S. based logistics center.
• In March 2025, the Company achieved an important milestone towards the completion of Fort’s proposed merger with a publicly traded company in Canada and received a valuation report of Fort for approximately $11.6 - $14.2 million.
• In January 2025, Jeffs’ Brands issued a $2.85 million non-recourse convertible promissory note to a certain institutional investor, aiming to leverage Fort’s success in the U.K. and support its expansion to the U.S.
• In January 2025, the Company entered into a non-binding letter of intent for the sale of its U.S. subsidiary, Smart Repair Pro, to a Canadian public company.
• In September 2024, Fort was selected by Amazon U.K. as a Key Account and became eligible for the top seller program.

Mr. Viki Hakmon, Chief Executive Officer of Jeffs’ Brands, said: “We are proud to report record revenues for 2024, reflecting the strength of our data-driven strategy and the growing recognition of Fort’s product line across key markets, particularly in the U.K. and Europe. In addition, we’ve made significant strategic progress, from advancing Fort’s AI-based pest control app to expanding our operational footprint with the acquisition of a U.S. logistics center, as well as the proposed merger of Fort with a publicly traded company. We believe these achievements have positioned us for continued momentum and potential enhanced value creation in 2025.”

About Jeffs’ Brands Ltd.

Jeffs’ Brands aims to transform the world of e-commerce by creating, acquiring products, and turning them into market leaders, tapping into vast, unrealized growth potential. Through our stellar team’s insight into the FBA Amazon business model, we aim to use both human capability and advanced technology to take products to the next level. For more information on Jeffs’ Brands Ltd. Visit https://jeffsbrands.com.

Forward-Looking Statement Disclaimer

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the “safe harbor” created by those sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “should,” “could,” “seek,” “intend,” “plan,” “goal,” “estimate,” “anticipate” or other comparable terms. For example, the Company is using forward-looking statements when discussing the growing recognition of Fort’s product line across key markets, particularly in the U.K. and Europe, the completion of the proposed merger of Fort or proposed sale of Smart Repair and the Company’s potential continued momentum from its strategic achievements and potential enhanced value creation in 2025. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company’s current beliefs, expectations and assumptions regarding the future of the Company’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company’s control. The Company’s actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause the Company’s actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the Company’s ability to adapt to significant future alterations in Amazon’s policies; the Company’s ability to sell the Company’s existing products and grow the Company’s brands and product offerings, including by acquiring new brands; the Company’s ability to meet the Company’s expectations regarding the revenue growth and the demand for e-commerce; the overall global economic environment; the impact of competition and new e-commerce technologies; general market, political and economic conditions in the countries in which we operate; projected capital expenditures and liquidity; the impact of possible changes in Amazon’s policies and terms of use; the impact of the conditions in Israel, and the other risks and uncertainties described in the Company’s Annual Report on Form 20-F for the year ended December 31, 2024, filed with the SEC, on March 31, 2025 and the Company’s other filings with the SEC. The Company undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Investor Relations Contact:

Michal Efraty
Adi and Michal PR- IR
Investor Relations, Israel
michal@efraty.com
 

FAQ

What was Jeffs' Brands (JFBR) revenue growth in 2024?

JFBR achieved revenue of $13.68 million in 2024, representing a 36.8% increase from $10.3 million in 2023.

What is the valuation range for Fort Products according to the 2025 valuation report?

Fort Products received a valuation range of $11.6-14.2 million in March 2025.

How much funding did JFBR secure in January 2025?

JFBR issued a $2.85 million non-recourse convertible promissory note to an institutional investor.

What strategic acquisitions did JFBR complete in March 2025?

JFBR acquired Pure NJ Logistics , a U.S.-based logistics center operator.

What significant Amazon recognition did Fort Products receive in 2024?

Fort was selected as an Amazon UK Key Account in September 2024 and became eligible for the top seller program.