#Canada #Vancouver #Q3 2025 #Else Nutrition #gross margin

Else Nutrition's Third Quarter 2025 Highlights

Else Nutrition Holdings Inc., a company focused on plant-based nutrition for families, announced its financial results for the third quarter of 2025, and the results show a dramatic turnaround. The figures released indicate a significant improvement in their gross profit margin and a considerable reduction in operating expenses, signaling a robust recovery for the company.

Financial Overview

In Q3 2025, the gross profit margin peaked at 34%, a remarkable rise from the negative margins seen in previous quarters—specifically negative 9% in Q3 2024 and negative 4% in Q2 2025. This improvement can be attributed to strategic cost optimization measures and a successful transition in manufacturing operations. Furthermore, the company successfully decreased its operating expenses by 68% year-over-year, bringing the total to $1.15 million, down from $3.56 million in Q3 2024. This disciplined cost management is indicative of Else Nutrition's commitment to operational efficiency.

Despite facing some challenges, revenue remained steady at $1.66 million, which represents a slight decline from $1.79 million in Q3 2024. The downturn in revenue was primarily due to temporary out-of-stock situations, a logistical hurdle that the company is now actively addressing. As of September 30, 2025, Else Nutrition's cash position was reported at $91,000, which includes restricted cash, further highlighting the company's focus on financial stability.

Trade payables also saw a significant reduction, decreasing by 46% from $2.84 million at the end of December 2024 to $1.53 million by the close of Q3 2025. This reduction enhances the company's ability to manage its debts more effectively.

CEO Commentary

Hamutal Yitzhak, the CEO of Else Nutrition, expressed optimism regarding the company's latest performance, calling the third quarter a period of stabilization, focus, and disciplined execution. "We achieved an impressive gross margin expansion of 34% and cut operating expenses significantly by 68%. These improvements reflect our restructuring efforts and effective cost-control measures. With our leaner organization, we are well-positioned for long-term growth and are aiming for profitability," stated Yitzhak.

He further elaborated on the regulatory landscape, mentioning the modernization of U.S. infant formula standards as a positive development that could spur innovation in the sector. Else Nutrition is gearing up for its next clinical phase to advance its plant-based infant formula towards market readiness and is actively engaging with international partners to explore strategic collaborations.

Future Outlook

As the company looks forward, the focus remains on overcoming supply chain challenges, expanding its retail and online presence, and hitting key regulatory milestones for its innovative infant formula. Management believes that these efforts, combined with ongoing discussions with strategic partners, will firmly establish Else Nutrition on its recovery path. In Q4, the company anticipates additional operational improvements, supported by inventory normalization and strategic initiatives that are designed to stimulate revenue growth while ensuring cost discipline.

Investor Conference Call

To provide more insight into its financial performance and strategic direction, Else Nutrition's management will host a business update conference call on Monday, November 17, at 10:00 AM Eastern Time. Interested participants can join the call by dialing the relevant numbers or by accessing the webcast through their official investor relations website.

In conclusion, Else Nutrition is navigating through significant operational changes, embracing a future focused on innovation in plant-based nutrition, while maintaining a firm grip on managing expenses and improving financial performance. The company looks poised for a promising trajectory in the upcoming quarters as it continues to build on its recent successes.