Else Nutrition Reports First Quarter 2026 Results Highlighting Significant Improvement in Gross Margin and Reduced Net Loss

VANCOUVER, BC, May 15, 2026 /PRNewswire/ - ELSE NUTRITION HOLDINGS INC. (BABY) (BABYF) (0YL.F) ("Else" or the "Company"), today reported financial results for the 2026 first quarter ended March 31, 2026, all figures are in CAD unless otherwise indicated. The financial statements and MD&A are available on SEDAR under the Company's profile.

"During the first quarter of 2026, we remained intensely focused on strengthening the operational foundation of the business while navigating a challenging capital markets and retail environment," said Hamutal Yitzhak, Chief Executive Officer of Else Nutrition. "While revenue declined for the quarter to $1.5 million compared to $2.1 million in the prior-year parallel period mainly due to out-of-stock (OOS) challenges, our operational initiatives resulted in a significant improvement in profitability metrics and overall cost structure. Gross margin improved to 40% compared to 24% in the first quarter of 2025, reflecting the benefits of inventory optimization, tighter supply chain management, and disciplined operational execution. We are working diligently to produce more products, to reduce and eventually eliminate the damaging OOS situations, yet our production capabilities depend on our free cash position."

"We also significantly reduced our quarterly net loss to $ 0.6 million, compared to $3.4 million in the same period last year, while dramatically reducing the operating expenses by 45% to $1.2 million from $2.2 million in the prior year period. These results demonstrate the impact of the restructuring and efficiency initiatives we have implemented over the past year, including streamlining lower-margin activities and optimizing marketing spend."

"Importantly, we continue to see a growing demand for our products, and our belief in the long-term opportunity for clean-label, plant-based nutrition products is strengthening. Consumer awareness around dairy-free, minimally processed and sustainable nutrition solutions continues to expand globally, and Else remains uniquely positioned with differentiated products developed specifically for infants, toddlers, children, and for adults. We believe our proprietary formulations and plant-based platform continue to provide a strong foundation for future growth opportunities across multiple markets and channels. We understand that AI changes how consumers search for solutions, and we are working hard to adapt to this changing environment."

"We also continue to work closely with the U.S. Food and Drug Administration and other regulatory authorities to advance our infant formula product toward commercialization. Advancing our infant formula through the regulatory process remains a key strategic priority for the Company, and we remain committed to supporting all required clinical, scientific, and regulatory activities necessary to bring this important product to market. We believe the infant formula category represents a significant long-term opportunity for Else and an important extension of our plant-based nutrition platform."

"Management remains highly focused on maintaining trading continuity and preserving access to the public markets for our shareholders. While we continue to make every effort to maintain our current TSX listing, management is acting cautiously and diligently and is pursuing in parallel a listing on the Canadian Securities Exchange to help ensure market continuity for the benefit of our shareholders. We believe applying for a CSE listing represents an important step toward supporting continued liquidity and operational flexibility while we execute on our strategic priorities. Although the TSX delisting process has presented additional challenges, we remain focused on advancing the business, strengthening our financial position, and continuing to build long-term value around our differentiated plant-based nutrition platform."

"Looking ahead, our priorities remain centered on disciplined execution, strategic partnerships, operational efficiency and strengthening the Else brand as we continue working to create long-term value for shareholders and advance our mission of delivering innovative plant-based nutrition products to families worldwide," concluded Ms. Yitzhak.

2026 First Quarter Financial Results
All figures are in CAD unless otherwise indicated.

• Revenue for the three months ended March 31, 2026 was $1.5 million, compared to $2.1 million in the first quarter of 2025.
• Operating expenses for the quarter were $1.2 million, compared to $2.2 million in the first quarter of 2025.
• Gross profit for the first quarter of 2026 was $0.6 million (40%), compared to $0.5 (24%) million in the comparable prior-year quarter.
• Cash balance as of March 31, 2026, was $245 thousand dollars, including restricted cash.

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.

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SOURCE Else Nutrition Holdings Inc.