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

Core Viewpoint - Else Nutrition Holdings Inc. reported steady progress in its transformation journey despite macroeconomic pressures, focusing on regulatory advancements and operational streamlining to support long-term growth [2]. Financial Performance - Revenue for Q2 2025 was CAD $1.5 million, down from CAD $2.6 million in Q2 2024 [5]. - Operating expenses decreased by 62% year-over-year to CAD $1.3 million from CAD $3.4 million [5]. - Gross profit for Q2 2025 was a loss of CAD $0.06 million, compared to a profit of CAD $0.26 million in Q2 2024, resulting in a gross profit margin of -3.7% versus 10% in the previous year [5]. - Cash balance as of June 30, 2025, was CAD $0.9 million, including restricted cash [5]. Operational Developments - The company is encouraged by regulatory developments in the U.S. that may modernize infant formula standards, which supports its clinical trials for plant-based infant formula [2]. - Temporary inventory constraints and out-of-stocks impacted revenue, but production is expected to resume next month [2]. - Operating expenses have been reduced significantly, with a 65% decrease over the last 15 months, including a 50% reduction in wages, leading to a more than 50% cut in operating loss for Q2 2025 [2]. Strategic Outlook - The company aims to achieve cash-flow positivity by late 2026 or early 2027 while balancing financial discipline with strategic growth [2]. - Discussions with multinational companies regarding distribution and R&D collaborations are ongoing, indicating strong brand demand and potential for growth [2].