• Conference call to be held on Monday, November 17 at 10:00 AM Eastern Time

ELSE NUTRITION HOLDINGS INC. (BABY) (BABYF) (0YL.F) ("Else" or the "Company"), today reported financial results for the 2025 third quarter ended September 30, 2025. The financial statements and MD&A are available on SEDAR under the Company's profile.

2025 Third Quarter Financial Results:
All figures are in CAD unless otherwise indicated.

• Gross Profit Margin (GPM) surged to 34%, compared to negative 9% in Q3 2024 and negative 4% in Q2 2025, reflecting successful cost optimization and manufacturing transition.
• Operating expenses decreased by 68% year-over-year, totaling $1.15 million in Q3 2025 vs. $3.56 million in Q3 2024, driven by disciplined cost management.
• Operating loss reduced to $0.58 million compared in Q3 2025 vs. $3.72 million in Q3 2024, marking a major milestone in financial sustainability.
• Revenue remained stable at $1.66 million, slightly down from $1.79 million in Q3 2024 due to temporary out-of-stock issues, which the Company is actively addressing.
• Cash position at quarter-end: $91K (including restricted cash).
• Significant reduction of 46% in trade payables from $2.84 million as of December 31, 2024 to $1.53 million as of September 30, 2025, strengthening the Company's ability to manage its debt.

"The third quarter represented a period of stabilization, focus, and disciplined execution for Else Nutrition," said Hamutal Yitzhak, Chief Executive Officer of Else Nutrition. "We delivered a dramatic improvement in our fundamentals. Our gross margin expansion to 34% and a 68% reduction in operating expenses demonstrate the effectiveness of our restructuring and cost-control initiatives. With a leaner organization and a materially reduced operation expenses, we are well-positioned for sustainable growth and heading towards profitability."

"On the regulatory front, we are encouraged by the ongoing modernization of U.S. infant formula standards, which we believe will pave the way for greater innovation in our category. Else is actively preparing for its next clinical phase to advance our plant-based infant formula toward market readiness. We also continue to engage with international partners exploring strategic collaborations across commercial, R&D, and manufacturing fronts. These discussions reflect the credibility of our brand, the strength of our intellectual property, and the increasing recognition of Else as a pioneer in plant-based nutrition."

"Overall, we continue to focus on resolving supply chain challenges, expanding our retail and online presence, and advancing regulatory milestones for our plant-based infant formula, and these achievements—together with ongoing discussions with strategic partners—reinforce our confidence in Else's recovery trajectory. Supported by inventory normalization and strategic initiatives designed to accelerate revenue growth while maintaining cost discipline, we expect continued operational improvements in Q4."

Conference Call

Else Nutrition management plans to host a business update conference call on Monday, November 17, at 10:00 a.m. Eastern Time to discuss the Company's financial results for the third quarter of 2025, ended September 30, 2025, as well as the Company's corporate progress and other developments.

The conference call will be available via telephone by dialing toll free 1-877-407-9219 for U.S. callers or +1-412-652-1274 for international callers. A webcast of the call may be accessed at https://event.choruscall.com/mediaframe/webcast.html?webcastid=5ZSyvIjp or on the Investor Relations section of the Company's website at https://investors.elsenutrition.com/.

A webcast replay will be available on the Investor Relations section of the Company's website (https://investors.elsenutrition.com/), through September 17, 2026. A telephone replay of the call will be available approximately three hours following the call, through December 1, 2025, and can be accessed by dialing 1-877-660-6853 for U.S. callers or +1-201-612-7415 for international callers and entering conference ID: 13757060.

To delve deeper into Else Nutrition's offerings and its revolutionary approach to kids' nutrition, visit www.elsenutrition.com

About Else Nutrition Holdings Inc.
Else Nutrition Holdings Inc. (TSX: BABY, OTCPINK: BABYF, FSE: 0YL) is a food and nutrition company in the international expansion stage focused on developing innovative, clean, and plant-based food and nutrition products for infants, toddlers, children, and adults. Its revolutionary, plant-based, non-soy formula is a clean-ingredient alternative to dairy-based formulas. Since launching its Plant-Based Complete Nutrition for Toddlers, made of whole foods, almonds, buckwheat, and tapioca, the brand has received thousands of powerful testimonials and reviews from parents, gained national retailer support, and achieved rapid sales growth.

Awards and Recognition:

• "2017 Best Health and Diet Solutions" award at Milan's Global Food Innovation Summit
• #1 Best Seller on Amazon in the Fall of 2020 in the New Baby & Toddler Formula Category
• "Best Dairy Alternative" Award 2021 at World Plant-Based Expo
• Nexty Award Finalist at Expo West 2022 in the Plant-Based lifestyle category
• During September 2022, Else Super Cereal reached the #1 Best Seller in Baby Cereal across all brands on Amazon
• In May 2024 Else Nutrition's Ready-to-Drink Kids Vanilla Shake Named Among the Best in Family-Friendly Products by the Prestigious Mom's Choice Awards®

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Caution Regarding Forward-Looking Statements
This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements are typically identified by words such as "will" or similar expressions. Forward-looking statements in this press release include statements with respect to the anticipated dates for filing the company's financial disclosure documents. Such forward-looking statements reflect current estimates, beliefs, and assumptions, which are based on management's perception of current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. No assurance can be given that the foregoing will prove to be correct. Forward-looking statements made in this press release assume, among others, the expectation that there will be no interruptions or supply chain failures as a result of COVID-19 and that the manufacturing, broker, and supply logistic agreement with the company does not terminate. Actual results may differ from the estimates, beliefs, and assumptions expressed or implied in the forward-looking statements. Readers are cautioned not to place undue reliance on any forward-looking statements, which reflect management's expectations only as of the date of this press release. The company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.