#Canada #Vancouver #Functional Food #Gluten-Free #Eshbal

Eshbal Functional Food Inc. Unveils First Consolidated Financial Results Post-RTO

Eshbal Functional Food Inc. (TSXV: ESBL), a trailblazer in gluten-free and health-oriented food solutions, has recently reported its inaugural consolidated financial results following the completion of its reverse takeover (RTO) in April 2025. This milestone not only marks a pivotal moment for the company but also sets the stage for its ambitious growth strategy in both domestic and international markets.

Financial Performance Overview

In the second quarter of 2025, Eshbal reported revenues of approximately US$2.97 million, reflecting a notable increase of US$413 thousand compared to the same quarter last year, where revenues stood at US$2.55 million. The gross profit during this period also saw a significant rise, amounting to US$628 thousand which represents 21.2% of total revenues, up from the previous year's Q2 gross profit of US$478 thousand or 18.7% of revenues. This growth underscores Eshbal's effective management of its operational expenses and its robust product offerings.

When considering the first half of 2025 as a whole, Eshbal achieved total revenues of US$6.72 million, marking a 12% increase from US$5.99 million in the same period of 2024. The company's gross profit notably rose to US$1.73 million, which is 25.7% of revenues compared to 23.1% in the prior year, confirming a consistent upward trend.

Despite these positive figures, the RTO process introduced various new public company expenses that impacted Eshbal's bottom line. Specifically, a one-time non-cash listing expense of US$1.69 million related to the RTO led to net losses of US$2.0 million in Q2 2025 and US$1.61 million over the six-month period ending June 30, 2025. The company acknowledges the complexity surrounding year-over-year comparisons due to the combined results from its Israeli subsidiary and historical assessments.

Strategic Vision and Future Plans

Eshbal’s vision extends beyond just financial metrics; it aims to enhance its footprint within the growing health food sector on a broader scale. The company's strategy includes expanding its range of products that cater to diverse consumer diets, including gluten-free, vegan, low-carb, and sugar-free options. This focus aligns with increased consumer demand for healthier food alternatives.

In the wake of the RTO, Eshbal is actively scaling its presence, particularly in the North American market. The company views this expansion as integral to its long-term vision and operational efficiency. Efforts are being made to assess merger and acquisition opportunities that could further enhance its capabilities and product offerings.

The company's commitment to organic growth is evident as it evaluates various marketing strategies to cater to the 'better-for-you' food category. Eshbal's management remains optimistic about realizing its plans while ensuring alignment with market trends and consumer demands.

Corporate Governance and Investor Relations

Eshbal is dedicated to maintaining transparency and effective communication with its stakeholders. The company has clarified specific points related to its investor relations, particularly regarding Fairfax Partners Inc., emphasizing that there are no affiliations or financial interests tied to this entity concerning Eshbal’s securities.

Conclusion

In summary, Eshbal Functional Food Inc. stands at a crucial juncture in its evolution as a publicly listed company. The initial consolidated financial results post-RTO serve not only as a reflection of current operational performance but also as a foundation for future growth and market expansion. As they continue their journey in the health-focused food industry, investors and stakeholders alike will be watching closely to see how Eshbal navigates this dynamic landscape. For more information about the company's innovative product offerings, please visit EshbalFoods.com.