GREY WOLF ANIMAL HEALTH REPORTS SECOND QUARTER 2025 FINANCIAL RESULTS

TORONTO, Aug. 25, 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- and six- months ended June 30, 2025. All results are reported in Canadian dollars.

Highlights

• Revenue for the quarter increased year over year by 32.3% to $9.5 million. Revenue increased by 31.7% to $17.4 million for the first six months of the year.
• Gross profit increased year over year by 40.6% to $5.3 million for the quarter and 37.6% to $9.5 million for the first six months of the year.
• Adjusted EBITDA¹ increased year over year by 56.8% to $2.2 million for the quarter and 53.2% to $3.4 million for the first six months of the year.

"Q2 2025 represented our strongest historical quarter for both revenue and Adjusted EBITDA¹", said Angela Cechetto, Chief Executive Officer. "Our Pharmacy business continues to perform well with sales up year-over-year by 51.4% to $6.2 million and 57.8% to $11.3 million respectively, in the quarter and year-to-date.  This growth is driven by an increase in sales of compounded products and the impact of the acquisition of the Compounding Pharmacy of Manitoba (CPM) in December 2024.  Excluding the impact of CPM, our pharmacy business continues to grow organically at 10.6% year to date."

Ms. Cechetto went on to say, "our Animal Health business was up 7.6% in the second quarter and relatively flat year to date over the prior year periods. While we saw a slight uptick, particularly in sales of our gastrointestinal and behavior products during the spring season overall, there continues to be softness in visits to veterinary clinics. Adjusted EBITDA¹ increased by 53.2% year to date as a result of higher revenue and gross margins, with our Adjusted EBITDA¹ margin improving to 19.6% year to date vs 16.9% in the prior year."

Key Financial Data and Comparative Results

	Three months ended		Six months ended
	Jun 30, 2025	Jun 30, 2024	Jun 30, 2025	Jun 30, 2024
Revenue	$9,523,600	$7,197,074	$17,445,435	$13,243,579
Gross profit	5,312,293	3,778,131	9,482,005	6,890,290
Gross profit %	55.8 %	52.5 %	54.4 %	52.0 %
Total operating expenses	3,833,453	2,774,697	7,481,966	5,595,707
Operating income for the period	1,478,840	1,003,434	2,000,039	1,294,583
Income tax expense (recovery)	306,954	325,699	360,109	379,470
Net income for the period	751,230	577,547	778,478	703,619
Earnings per share
Basic and diluted	$0.02	$0.02	$0.02	$0.02
EBITDA	2,153,686	1,332,918	3,324,593	1,939,879
Adjusted EBITDA	2,162,488	1,378,958	3,423,301	2,234,189
			Jun 30, 2025	Dec 31, 2024
Total assets			$64,850,002	$65,602,178
Total liabilities			35,206,145	36,771,017

Results of Operations for the Three- and Six- Months ended June 30, 2025

Revenue for the three- and six- month periods ended June 30, 2025 increased 32.3% to $9.5 million and 31.7% to $17.4 million, respectively, compared to the same period in 2024.  Revenue in the Animal Health business increased by 7.6% to $3.4 million and was relatively flat at $6.1 million, respectively, compared to the same three- and six-month periods in 2024. During the quarter, revenue growth was driven by increased sales in established and new products.  In the Pharmacy business, revenue grew year over year by 51.4% to $6.2 million and 57.8% to $11.3 million respectively, in the three- and six-month periods of 2025 due to growth in sales of compounded products and the impact of the acquisition of the Compounding Pharmacy of Manitoba (CPM) in December 2024 (the" CPM Acquisition").

Gross profit margins for the three- and six-month periods ended June 30, 2025 increased to 55.8% from 52.5% and 54.4% from 52.0% compared to the same periods 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- and six-month periods ended June 30, 2025, increased 38.2% to $3.8 million and 33.7% to $7.5 million, respectively, over the same periods in 2024. During the six-month period, there was an increase in salary, bonuses, and benefits related to operational growth and the CPM Acquisition as compared to the same period in 2024, and an increase in freight expenses and one-time transaction costs related to the CPM Acquisition.

Adjusted EBITDA¹ for the three- and six-month periods ended June 30, 2025 increased 56.8% to $2.2 million and 53.2% to $3.4 million compared to the same periods in 2024. The increase in Adjusted EBITDA¹ was mainly due to increased net income for the period after adjusting for 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 $6.1 million at June 30, 2025 compared to $6.4 million at December 31, 2024.  The Company generated cash from operations of $1.0 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 June 30, 2025, the Company had outstanding borrowings of $26.0 million, of which $2.1 million are current and $23.9 million are non-current. The Company repaid borrowings of $0.4 million in the quarter and $0.9 million since December 31, 2024. 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's Discussion and Analysis for the three- and six-months ended June 30, 2025 are available under the Company's profile on www.sedarplus.ca. This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.

Signs New Lease to Expand Pharmacy Business

Grey Wolf is pleased to announce that Trutina Pharmacy Inc., a wholly owned subsidiary of Grey Wolf, has signed a long-term lease for a new facility in Ancaster, Ontario. This is an important milestone in the expansion of the Company's pharmacy business and Grey Wolf believes it will position the Company for continued growth and innovation in both the animal and human compounding pharmacy industry.

The lease is for an approximately 29,000 square feet facility and has an initial term of 15 years from January 1, 2027, with two extensions of five years each. The new facility is located near the Company's current compounding pharmacy, which will remain in operation until the build-out is completed in an effort to ensure continuity of business and a seamless transition.

"The Ancaster expansion along with the recent CPM acquisition in Manitoba will strengthen the Company's ability to expand its current business." said Brandon Mair-Wren, Vice President, Pharmacy Operations.  Mr. Mair-Wren went on to say, "The new pharmacy has been designed to increase capacity to service existing and new customers for the Pharmacy business while maintaining the high-level of customer service that our customers deserve."

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		Six months ended
	Jun 30, 2025	Jun 30, 2024	Jun 30, 2025	Jun 30, 2024
Net income for the period	$751,230	$577,547	$778,478	$703,619
Interest income	(27,164)	(49,781)	(57,562)	(103,848)
Interest and accretion expense	456,127	136,654	919,794	276,904
Income taxes	306,954	325,699	360,109	379,470
Depreciation of property and equipment	195,942	77,119	389,747	152,374
Depreciation of right of use assets	29,181	21,930	58,361	43,860
Amortization of intangible assets	441,416	243,750	875,666	487,500
EBITDA	2,153,686	1,332,918	3,324,593	1,939,879
Adjustments
Share-based compensation	17,109	32,725	34,218	10,124
Foreign exchange loss	(8,307)	13,315	(780)	38,438
Transaction costs	-	-	65,270	-
Settlement costs	-	-	-	245,748
Adjusted EBITDA	2,162,488	1,378,958	3,423,301	2,234,189

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, including statements regarding the new facility in Ancaster, Ontario. 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's Discussion and Analysis for the three- and six-months ended June 30, 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]