Else Nutrition Reports Significant Operational Turnaround in Q3 2025 with Gross Margin Expansion and Cost Reduction

Core Viewpoint - Else Nutrition Holdings Inc. reported significant improvements in its financial performance for Q3 2025, highlighting a focus on stabilization, cost control, and preparation for future growth [3]. Financial Performance - Gross profit margin increased to 34%, compared to negative 9% in Q3 2024 and negative 4% in Q2 2025, indicating successful cost optimization [7]. - Operating expenses decreased by 68% year-over-year, totaling CAD 1.15 million in Q3 2025, down from CAD 3.56 million in Q3 2024, reflecting disciplined cost management [7]. - Operating loss reduced to CAD 0.58 million in Q3 2025, compared to CAD 3.72 million in Q3 2024, marking a significant milestone in financial sustainability [7]. - Revenue remained stable at CAD 1.66 million, slightly down from CAD 1.79 million in Q3 2024 due to temporary out-of-stock issues [7]. - Cash position at quarter-end was CAD 91K, including restricted cash [7]. - Trade payables decreased by 46%, from CAD 2.84 million as of December 31, 2024, to CAD 1.53 million as of September 30, 2025, enhancing the company's debt management capabilities [7]. Strategic Initiatives - The company is preparing for the next clinical phase to advance its plant-based infant formula toward market readiness, encouraged by the modernization of U.S. infant formula standards [3]. - Else Nutrition is actively engaging with international partners to explore strategic collaborations across commercial, R&D, and manufacturing sectors, reflecting the brand's credibility and strength in intellectual property [3]. - The company continues to focus on resolving supply chain challenges, expanding retail and online presence, and achieving regulatory milestones for its plant-based infant formula [3]. Upcoming Events - Else Nutrition management plans to host a business update conference call on November 17, 2025, to discuss the financial results and corporate progress [4].