Else Nutrition (BABY) investor relations material

Executive summary

• Second quarter 2026 results reflect improved margins and reduced net loss, driven by restructuring and cost-efficiency initiatives.

• Revenue was constrained by working capital limitations and inventory shortages, impacting product availability and sales.

• Management is prioritizing capital raising, inventory replenishment, and restoring service levels to drive revenue recovery and profitability.

Financial highlights

• Q2 2026 revenue was $1.02 million, down from $1.50 million in Q2 2025; first half 2026 revenue was $2.49 million, down from $3.59 million year-over-year.

• Gross profit for Q2 2026 was $224 thousand (22% margin), compared to a gross loss of $55 thousand in Q2 2025; first half 2026 gross margin rose to 32% from 13% year-over-year.

• Operating expenses for Q2 2026 decreased to $1.24 million from $1.34 million in Q2 2025; first half 2026 operating expenses fell 32% to $2.43 million.

• Net loss for Q2 2026 was $1.05 million, down from $1.44 million in Q2 2025; first half 2026 net loss reduced 69% to $1.61 million.

• Cash and cash equivalents as of June 30, 2026 were $116 thousand.

Outlook and guidance

• Management believes restoring inventory and product availability, subject to securing capital, can drive revenue recovery without increasing historical cost structure.

• With adequate funding, initial profitability is targeted within 12 to 15 months.

• Immediate priorities include securing capital, rebuilding inventory, and converting operational efficiencies into sustainable financial performance.