Else Nutrition Reports 2025 First Quarter Financial Results and Provides Business Update

Conference call to be held today at 10:00 AM Eastern Time

VANCOUVER, BC, Aug. 21, 2025 /CNW/ - ELSE NUTRITION HOLDINGS INC. (TSX: BABY) (OTCQX: BABYF) (FSE: 0YL.F) ("Else" or the "Company"), today reported financial results for the 2025 first quarter ended March 31, 2025. The financial statements and MD&A are available on SEDAR under the Company's profile.

2025 First Quarter Financial Results
All figures are in CAD unless otherwise indicated.

• Revenue for the first quarter of 2025 was $2.1 million, the same level as the first quarter of 2024.
• Operating expenses for the first quarter of 2025 were $2.2 million, a decrease of 48% compared to $4.2 million for the first quarter of 2024.
• Gross profit for the first quarter of 2025 increased to $0.5 million, compared to $0.18 million for the first quarter of 2024.
• Gross profit margin for the first quarter of 2025 increased significantly to 25%, compared to 8% in the first quarter of 2024.
• Cash balance as of March 31, 2025, was $0.2 million (including restricted cash).

"As we entered 2025, we continued reshaping Else Nutrition—implementing strategic changes essential to long-term success," commented Hamutal Yitzhak, CEO & Co-Founder of Else Nutrition. "Despite the lingering headwinds from 2024, we held revenue steady while significantly reducing operating expenses and driving a sharp improvement in gross profit. We are now operating with more discipline, sharper focus, and growing confidence in our direction. We've made tough but necessary decisions to realign our structure and eliminate inefficiencies, allowing us to protect core capabilities and build a more resilient foundation."

"Operationally, a major milestone is our planned shift toward manufacturing powder formulas in Europe. This initiative will allow us to reduce production costs, improve gross margins, and better control inventory and logistics. This geographic diversification is a key part of mitigating supply chain risks, navigating tariffs, and strengthening the reliability of our product delivery. On the commercial front, we reevaluated our retail distribution model and rebalanced it to focus on higher-potential partnerships- supported by a more targeted, data-driven go-to-market approach."

"On the regulatory front, we remain deeply committed to advancing access to plant-based infant nutrition. The launch of Operation Stork Speed and the advancement of the FY2026 Agriculture Appropriations Bill mark pivotal progress in modernizing U.S. policy around infant formula. These efforts support streamlined FDA approval pathways and expanded access to clean-label, non-dairy, non-soy alternatives—needs that have long gone unmet. We are optimistic that this evolving landscape will pave the way for clinical trials of our infant formula and help close a critical gap for families seeking trusted, science-based alternatives."

"The remainder of 2025 will be an important period as we continue to implement the changes necessary to strengthen the business. We are focused on deepening our retail partnerships, expanding our global manufacturing capabilities, and driving growth across our core product categories. We are also exploring select strategic collaborations that align with our mission and can accelerate our path to scale. As we continue executing our transformation, our commitment remains clear: to deliver clean, innovative nutrition solutions to more families around the world while building a stronger, more agile business for the long term."

Conference Call

Else Nutrition management plans to host a business update conference call today at 10:00 a.m. Eastern Time to discuss the Company's financial results for the first quarter of 2025 ended March 31, 2025, as well as the Company's corporate progress and other developments.

The conference call will be available via telephone by dialing toll free 1-877-407-9219 for U.S. callers or [phone] for international callers. A webcast of the call may be accessed at https://event.choruscall.com/mediaframe/webcast.html?webcastid=f7UwQpaT or on the Investor Relations section of the Company's website at https://investors.elsenutrition.com/.

A webcast replay will be available on the Investor Relations section of the Company's website (https://investors.elsenutrition.com/), through August 21, 2026. A telephone replay of the call will be available approximately three hours following the call, through September 3, 2025, and can be accessed by dialing 1-877-660-6853 for U.S. callers or [phone] for international callers and entering conference ID: 13755545.

To delve deeper into Else Nutrition's offerings and its revolutionary approach to kids' nutrition, visit www.elsenutrition.com

About Else Nutrition Holdings Inc.
Else Nutrition Holdings Inc. (TSX: BABY, OTCQX: BABYF, FSE: 0YL) is a food and nutrition company in the international expansion stage focused on developing innovative, clean, and plant-based food and nutrition products for infants, toddlers, children, and adults. Its revolutionary, plant-based, non-soy formula is a clean-ingredient alternative to dairy-based formulas. Since launching its Plant-Based Complete Nutrition for Toddlers, made of whole foods, almonds, buckwheat, and tapioca, the brand has received thousands of powerful testimonials and reviews from parents, gained national retailer support, and achieved rapid sales growth.

Awards and Recognition:

• "2017 Best Health and Diet Solutions" award at Milan's Global Food Innovation Summit
• #1 Best Seller on Amazon in the Fall of 2020 in the New Baby & Toddler Formula Category
• "Best Dairy Alternative" Award 2021 at World Plant-Based Expo
• Nexty Award Finalist at Expo West 2022 in the Plant-Based lifestyle category
• During September 2022, Else Super Cereal reached the #1 Best Seller in Baby Cereal across all brands on Amazon
• In May 2024 Else Nutrition's Ready-to-Drink Kids Vanilla Shake Named Among the Best in Family-Friendly Products by the Prestigious Mom's Choice Awards®

TSX
Neither the TSX nor its regulation services provider (as that term is defined in the policies of the TSX) accept responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward-Looking Statements
This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements are typically identified by words such as "will" or similar expressions. Forward-looking statements in this press release include statements with respect to the anticipated dates for filing the company's financial disclosure documents. Such forward-looking statements reflect current estimates, beliefs, and assumptions, which are based on management's perception of current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. No assurance can be given that the foregoing will prove to be correct. Forward-looking statements made in this press release assume, among others, the expectation that there will be no interruptions or supply chain failures as a result of COVID-19 and that the manufacturing, broker, and supply logistic agreement with the company does not terminate. Actual results may differ from the estimates, beliefs, and assumptions expressed or implied in the forward-looking statements. Readers are cautioned not to place undue reliance on any forward-looking statements, which reflect management's expectations only as of the date of this press release. The company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

SOURCE Else Nutrition Holdings Inc.

Investor Relations Contact: Alexandra Schilt, Crescendo Communications, LLC, Office: [phone], Email: [email protected]