GREY WOLF ANIMAL HEALTH REPORTS FIRST QUARTER 2025 FINANCIAL RESULTS

TORONTO, May 22, 2025 /CNW/ - Grey Wolf Animal Health Corp. (TSXV: WOLF) ("Grey Wolf" or the "Company"), a Canadian diversified health company, today announced financial results for the three months ended March 31, 2025.

Highlights

• Revenue for the quarter increased year over year by 31.0% to $7.9 million.
• Gross profit increased year over year by 34.0% to $4.2 million for the quarter.
• Adjusted EBITDA¹ increased year over year by 47.4% to $1.3 million for the quarter.
• Launched our first innovative small animal compounded product for the management of feline infectious peritonitis in cats.

"We posted a solid first quarter for both revenue and Adjusted EBITDA," said Angela Cechetto, Chief Executive Officer.  Ms. Cechetto went on to say, our growth was driven by an increase in our Pharmacy business by 66.1% to $5.2 million due to an increase in sales of compounded products and the full quarter impact of the acquisition of the Compounding Pharmacy of Manitoba (CPM).  Excluding the impact of CPM, we experienced organic growth of 10.8% across our animal and human pharmacy businesses."

Ms. Cechetto continued, "our Animal Health business unit saw a decline in revenue for the quarter of 6.5% to $2.7 million mainly due to a decline in sales of established products and offset by an increase in commissions and new products introduced during the prior year.  We continued to experience softness in the veterinary channel carrying into the first quarter; however, we remain confident in the value of our product portfolio for animal health supported by the launch of new products at the end of 2024."

Key Financial Data and Comparative Results

			Three months ended
			Mar 31, 2025	Mar 31, 2024
Revenue			$7,921,835	$6,046,505
Gross profit			4,169,712	3,112,159
Gross profit %			52.6 %	51.5 %
Total operating expenses			3,648,513	2,821,010
Operating income for the period			521,199	291,149
Income tax expense (recovery)			53,155	53,771
Net income for the period			27,248	126,072
Earnings per share
Basic and diluted			$0.001	$0.004
EBITDA			1,170,906	606,961
Adjusted EBITDA			1,260,811	855,231
			Mar 31, 2025	Dec 31, 2024
Total assets			$65,049,221	$65,602,178
Total liabilities			36,173,703	36,771,017

Results of Operations for the First Quarter-ended March 31, 2025

Total revenue for the three-month period ended March 31, 2025 increased 31.0% to $7.9 million over the same period in 2024.  Revenue in the Pharmacy business unit increased by 66.1% to $5.2 million from $3.1 million due to an increase in sales of compounded products and the impact of the acquisition of CPM.  Revenue in the Animal Health business unit decreased by 6.5% to $2.7 million from $2.9 million mainly due to a decline in sales of established products and offset by an increase in commissions and new products introduced during the prior year.

Gross profits for the three-month period ended March 31, 2025 were 52.6% compared to 51.5% for the same period in 2024. Gross profits were impacted by increased margins in the Pharmacy business unit as a result of decreased material and labour costs and the impact of the CPM acquisition, offset by reduced margins in the Animal Health business unit as a result of product mix.

Total expenses for the three-month period ended March 31, 2025 increased 29.3% to $3.6 million over the same period in 2024. During the three-month period, there was an increase in salary, bonus, and benefits related to operational growth and the CPM Acquisition as compared to the same period in 2024, an increase in freight expenses related to the CPM Acquisition and one-time transaction costs related to the CPM Acquisition.

Adjusted EBITDA¹ was $1.3 million in the first quarter 2025 compared to $0.9 million in the same period in 2024, mainly due to decreased net income for the period after adjusting the related impacts from the CPM Acquisition on interest and accretion expenses and depreciation and amortization cost, and transaction costs specific to the period ended March 31, 2025.

Cash and cash equivalents were $6.8 million at March 31, 2025 compared to $6.4 million at December 31, 2024.  The Company generated cash from operations of $1.1 million, which was primarily impacted by net income for the current period offset by changes in non-cash working capital items, most significantly changes in trade and other receivables, inventories, prepaid expenses, and accounts payable and accrued liabilities.

As at March 31, 2025, the Company had outstanding borrowings of $26.4 million, of which $2.1 million are current and $24.3 million are non-current. The Company repaid borrowings of $0.5 million in the quarter. The Company's debt consists of three fixed rate term loans, including a mortgage of $4.4 million secured against the CPM land and building. The Company's net debt/Adjusted EBITDA¹ ratio is approximately 2.9x (2.3x excluding real estate) using 2024 proforma Adjusted EBITDA¹ of $6.7 million.

Grey Wolf's financial statements and accompanying Management Discussion and Analysis for the three months ended March 31, 2025 are available under the Company's profile on www.sedarplus.ca.

¹Non-IFRS Measures

Management uses both IFRS and Non-IFRS Measures to assess the financial and operating performance of the Company's operations. These Non-IFRS Measures are not recognized measures under IFRS, do not have a standardized meaning under IFRS and are unlikely to be comparable to similar measures presented by other companies. The Non-IFRS Measures referenced in this press release includes Adjusted EBITDA. The Company defines Adjusted EBITDA as earnings before transaction costs (including, for greater certainty, transaction costs related to the CPM Acquisition), settlement costs, interest income, interest and accretion expense, income taxes, depreciation of property and equipment, depreciation of right of use assets, amortization of intangible assets, share-based compensation, foreign exchange gains or losses and other income The Company considers Adjusted EBITDA as an additional metric in assessing business performance and an important measure of operating performance and cash flow, providing useful information to help analyze and compare profitability between companies for investors and analysts.

The following table provides a summary of the differences between Grey Wolf's consolidated IFRS and Non-IFRS financial measures, which are reconciled below:

EBITDA and Adjusted EBITDA

			Three months ended
			Mar 31, 2025	Mar 31, 2024
Net income for the period			$27,248	$126,072
Interest income			(30,398)	(54,067)
Interest and accretion expense			463,667	140,250
Income taxes			53,155	53,771
Depreciation of property and equipment			193,804	75,255
Depreciation of right of use assets			29,180	21,930
Amortization of intangible assets			434,250	243,750
EBITDA			1,170,906	606,961
Adjustments
Share-based compensation			17,109	(22,601)
Foreign exchange loss			7,526	25,123
Transaction costs			65,270	-
Settlement costs			-	245,748
Adjusted EBITDA			1,260,811	855,231

About Grey Wolf Animal Health Corp.‎

Grey Wolf Animal Health Corp., headquartered in Toronto, Canada, is a diversified health ‎company founded by a veterinarian to bring to market a broad portfolio of products that meets the ‎unmet needs of veterinarians, physicians and patients.  The Company's strategy is to in-license, acquire or compound prescription and non-prescription products for commercialization in the animal and human health market ‎in Canada. For additional information, please visit: www.greywolfah.com.‎

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Forward Looking Statements

Certain information included in this press release contains forward-looking information with the meaning of applicable Canadian securities laws. This information includes statements concerning the Company's objectives, its strategies to achieve those objectives, as well as statements with respect to management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking information generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "would", "expect", "intend", "estimate", "anticipate", "believe", "should", "plan", "continue", or similar expressions suggesting future outcomes or events or the negative thereof. Such forward-looking information reflects management's beliefs and is based on information currently available. All forward-looking information in this press release is qualified by the following cautionary statements.

Forward-looking information necessarily involve known and unknown risks and uncertainties, which may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, assumptions may not be correct and objectives, strategic goals and priorities may not be achieved. A variety of factors, many of which are beyond the Company's control, affect the operations, performance and results of the Company and its subsidiaries, and cause actual results to differ materially from current expectations of estimated or anticipated events or results.

A more detailed assessment of the risks that could cause actual results to materially differ than current expectations is contained in the Risk Factors section of Grey Wolf's Management Discussion and Analysis for the three months ended March 31, 2025. The forward-looking information included in this press release is made as of the date hereof and should not be relied upon as representing the Company's views as of any date subsequent to the date hereof. Management undertakes no obligation, except as required by applicable law, to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

SOURCE Grey Wolf Animal Health Corp.

For further information, please contact:‎ Angela Cechetto, Chief Executive Officer, E-mail: [email protected]