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

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

VANCOUVER, BC, Aug. 21, 2025 /PRNewswire/ — Else Nutrition Holdings Inc. (TSX: BABY) (OTCQX: BABYF) (FSE: 0YL.F) (“Else” or the “Company”), a player in the plant-based baby and toddler nutrition market, has released its financials for Q1 2025, ending March 31st. The full report can be found on SEDAR under the company’s profile.

Key Takeaways from Else Nutrition’s Q1 2025 Report:

Revenue held steady year-over-year at $2.1 million CAD, despite what the company characterized as “lingering headwinds” from 2024. This suggests resilience in Else’s core market and brand recognition.
Operating expenses saw a significant reduction, dropping 48% to $2.2 million CAD from $4.2 million CAD in Q1 2024. This cost-cutting strategy points towards improved operational efficiency and resource allocation.
Gross profit jumped to $0.5 million CAD, up from $0.18 million CAD the prior year. This improvement indicates a successful effort in optimizing pricing strategies and/or reducing the cost of goods sold.
The gross profit margin experienced a substantial increase, reaching 25% compared to 8% in Q1 2024. This metric highlights the company’s ability to generate more profit from each dollar of revenue, showcasing enhanced profitability.
Cash balance stood at $0.2 million CAD (including restricted cash) as of March 31, 2025. This reflects the immediate liquidity position of the company.

CEO Hamutal Yitzhak emphasized the strategic changes implemented to reshape Else Nutrition for long-term success. “We are now operating with more discipline, sharper focus, and growing confidence in our direction,” Yitzhak stated, highlighting the “tough but necessary decisions” made to realign the company’s structure and eliminate inefficiencies.

A key operational shift involves moving powder formula manufacturing to Europe. This move is projected to reduce production costs, bolster gross margins, and improve inventory management. Yitzhak noted that this geographic diversification is a risk mitigation strategy against tariffs and potential supply chain disruptions. Commercially, Else Nutrition is focusing on “higher-potential partnerships” supported by data-driven marketing.

Else Nutrition is actively working towards advancing plant-based infant nutrition through regulatory channels. The launch of “Operation Stork Speed” and progress on the FY2026 Agriculture Appropriations Bill represent its commitment to modernizing U.S. infant formula policy. The company is optimistic about the potential for clinical trials of its infant formula, aiming to fill the gap for families seeking clean-label, non-dairy, non-soy alternatives.

Looking ahead, Else Nutrition will continue to focus on strengthening retail partnerships, expanding global manufacturing, and driving growth in core product categories. The company is also exploring strategic collaborations to accelerate its growth trajectory and deliver innovative nutrition solutions globally.

Conference Call Details

Management is hosting a conference call today at 10:00 a.m. Eastern Time to discuss the results and provide a business update. Interested parties can tune in via telephone by dialing toll-free 1-877-407-9219 for U.S. callers or +1-412-652-1274 for international callers. A live webcast is also available. A replay will be accessible on the Investor Relations section of the company website through August 21, 2026. A telephone replay 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 +1-201-612-7415 for international callers and entering conference ID: 13755545.

For more information about Else Nutrition and its plant-based nutrition products, visit www.elsenutrition.com.

About Else Nutrition Holdings Inc.

Else Nutrition Holdings Inc. (TSX: BABY, OTCQX: BABYF, FSE: 0YL) is 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 presents an alternative to dairy-based formulas.

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.

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