Eshbal Functional Food Inc. Reports Impressive Q1 2025 Financial Growth

Eshbal Functional Food Inc., a company formerly known as Hakken Capital Corp., has released its financial results for the first quarter of 2025, highlighting a robust performance driven by health-conscious consumer trends. This report comes on the heels of the April acquisition of Eshbal Functional Food (Agricultural Cooperative) Ltd., a wholly-owned subsidiary based in Israel, which now plays a pivotal role in the company’s strategic growth initiatives.

Financial Highlights

On May 30, 2025, Eshbal announced a 9% increase in revenues, growing from $3.44 million in Q1 2024 to $3.75 million in Q1 2025. This growth is particularly notable as it reflects heightened demand for gluten-free and health-oriented food products. Yuval Levy, the company's chairman, commented on the steady growth trend, emphasizing that Eshbal Israel has successfully leveraged its market position during the first quarter, known traditionally as its strongest period due to increased demand for Kosher and gluten-free items around Passover.

Furthermore, gross profit saw a significant upswing of 21%, rising from $908,000 to $1.098 million, with the gross profit margin increasing from 26% to 29%. This improvement indicates enhanced cost efficiency and operational performance, which bode well for future profitability. Operating profit also increased to $434,000, marking a 24% rise, with an operating margin improvement to 11.5% from 10.2% in the previous year.

Strategic Expansion Plans

Looking forward, Eshbal Functional Food is actively pursuing further expansion opportunities. The company is engaged in discussions concerning the acquisition of an early-stage health food business in Israel that specializes in plant-based products. This acquisition, if finalized, would complement the existing capabilities of Eshbal and bolster its product offerings as they prepare to enter the North American market.

Eshbal's growth strategy encompasses organic expansion alongside strategic mergers and acquisitions. The company is in conversations with various parties in both Israel and the United States, evaluating potential integrations or acquisitions that would enhance its portfolio and expedite market entry in North America.

Eshbal’s Commitment to Quality

Founded in 1940, Eshbal Functional Food Ltd. operates out of a 60,000 square foot facility in Israel, focusing on developing and manufacturing innovative