Else Nutrition (BABY) investor relations material

Executive summary

• Revenue declined to $1.5 million for Q1 2026 from $2.1 million year-over-year due to out-of-stock challenges.

• Gross margin improved to 40% from 24% in Q1 2025, reflecting inventory and supply chain optimization.

• Net loss reduced significantly to $0.6 million from $3.4 million year-over-year, driven by restructuring and efficiency initiatives.

• Operating expenses dropped 45% to $1.2 million from $2.2 million in the prior year period.

• Continued focus on operational efficiency, regulatory progress for infant formula, and maintaining market access.

Financial highlights

• Revenue for Q1 2026 was $1.5 million, down from $2.1 million in Q1 2025.

• Gross profit reached $0.6 million (40% margin), up from $0.5 million (24% margin) year-over-year.

• Operating expenses were $1.2 million, a 45% reduction from $2.2 million in Q1 2025.

• Net loss narrowed to $0.6 million from $3.4 million in the same period last year.

• Cash balance as of March 31, 2026, was $245 thousand, including restricted cash.

Outlook and guidance

• Management remains focused on disciplined execution, strategic partnerships, and operational efficiency.

• Ongoing efforts to resolve out-of-stock issues and expand production capacity are underway.

• Regulatory advancement of infant formula remains a key strategic priority.

• Parallel pursuit of a Canadian Securities Exchange listing to ensure market continuity.