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

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

VANCOUVER, BC, Sept. 16, 2025 /PRNewswire/ - ELSE NUTRITION HOLDINGS INC. (BABY) (BABYF) (0YL.F) ("Else" or the "Company"), today reported financial results for the 2025 second quarter ended June 30, 2025. The financial statements and MD&A are available on SEDAR under the Company's profile.

"The second quarter marked steady progress in our transformation journey," commented Hamutal Yitzhak, CEO & Co-Founder of Else Nutrition. "Despite continued macroeconomic pressures and funding constraints, we streamlined operations, advanced regulatory momentum, and continued to build a pipeline for long-term sustainable growth."

"We are especially encouraged by the regulatory developments in the United States, including Operation Stork Speed, the FY2026 Agriculture Appropriations Bill, and recommendations from the National Academies of Sciences, Engineering, and Medicine. Together, these signal a clearer pathway for modernizing infant formula standards and give us increased confidence in advancing our plant-based infant formula clinical trials."

"From a financial standpoint, revenue was impacted by temporary inventory constraints and out-of-stocks, however, demand for our products remains strong and production is now underway with expected availability next month. As a result, our gross profit was temporarily negative this quarter. It is important to note that late 2024 deductions totaling approximately CAD $270 thousand in the U.S. and Canada reduced both revenue and gross profit, though these were not reflective of Q2's operating performance. With our planned transition to European-based powder production, and continued supply chain optimization, including the restructuring of our Canadian operations to build a more profitable and sustainable distribution model, we are confident in our ability to restore and expand gross margins over the coming quarters."

"At the same time, we are actively reducing costs, with operating expenses down more than 60% year-over-year and over the last 15 months, operating expenses were down 65%, including wages by 50%, which helped us cut our operating loss by more than half for the second quarter of 2025. We are also in discussions with several multinational companies regarding distribution and R&D collaborations, which validate both the strength of our brand and the global demand for plant-based infant nutrition."

"Looking ahead, we remain committed to balancing financial discipline with strategic growth, expanding our international footprint, and driving innovation for children and adults alike. We aim to achieve cash-flow positivity by late 2026 or early 2027, and remain confident in Else's ability to deliver meaningful, sustainable value for our shareholders."

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

• Revenue for the second quarter of 2025 was $1.5 million, compared to $2.6 million for the second quarter of 2024.
• Operating expenses for the second quarter of 2025 were $1.3 million, a decrease of 62% compared to $3.4 million for the second quarter of 2024.
• Gross profit for the second quarter of 2025 was a loss of $0.06 million, compared to a profit of $0.26 million for the second quarter of 2024.
• Gross profit margin for the second quarter of 2025 was -3.7%, compared to 10% in the second quarter of 2024.
• Cash balance as of June 30, 2025, was $0.9 million (including restricted cash).

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 second quarter of 2025 ended June 30, 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 +1-412-652-1274 for international callers. A webcast of the call may be accessed at https://event.choruscall.com/mediaframe/webcast.html?webcastid=f1El7gnS 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 September 16, 2026. A telephone replay of the call will be available approximately three hours following the call, through September 30, 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: 13755876.

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
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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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SOURCE Else Nutrition Holdings Inc.