Company Announcements

• Poised to Enter 2026 with Strengthened Momentum, FDA Breakthrough for a Clear Approval Pathway, and a Streamlined Path Toward Cash-Flow Breakeven

VANCOUVER, BC , Dec. 17, 2025 /CNW/ -ELSE NUTRITION HOLDINGS INC. (BABY) (BABYF) (0YL.F) ("Else" or the "Company"), today announced that 2025 marked a pivotal year defined by meaningful operational progress, disciplined execution, and a strengthened financial foundation. The Company enters 2026 as a leaner, more efficient, and strategically focused organization, positioned for sustainable long-term growth.

A Year of Transformation and Renewed Stability

Throughout 2025, Else Nutrition executed a company-wide transformation initiative that reshaped its operating structure and significantly improved its financial resiliency. The Company reduced headcount and operational costs, streamlined processes, tightened and optimized supply chain, improved manufacturing efficiency, and prioritized marketing investments around high-impact, consumer-driven product categories. These efforts resulted in a more lean and agile organization capable of stronger execution at a significantly reduced cost.

During 2025, insufficient funds for production caused temporary supply constraints, resulting in revenue losses. Heading into 2026, with more funds and a reduced operating cost, the Company expects a more stable inventory, which will facilitate revenue growth while maintaining strong underlying demand across its plant-based, specifically toddler and baby cereals product lines.

Strategic Advances in Innovation and Regulatory Progress

In parallel with its operational improvements, Else Nutrition continued advancing scientific and regulatory milestones related to its plant-based infant formula—its most significant long-term value driver. The evolving U.S. regulatory landscape increasingly supports modernization within the infant nutrition category, aligning with Else's mission to introduce cleaner, dairy-free, and more innovative solutions for families.

In November 2025, Else announced that the Food & Drug Administration (FDA) had been directed to streamline approval pathways for plant-based infant formulas, positioning Else Nutrition to capitalize on legislative momentum and rising consumer demand through President Trump's signing of a pivotal FDA funding package with a congressional directive streamlining the regulatory pathway for Non-Dairy, Non-Soy Plant-Based Infant Formula.

The Company also continued to attract interest from global nutrition and food companies exploring opportunities across distribution, co-manufacturing, and research collaboration. These conversations, while still in early stages, reflect growing recognition of Else's scientific credibility, brand differentiation, and potential for global scale.

"2025 was a year of meaningful transformation for Else Nutrition," said Hamutal Yitzhak, CEO and Co-Founder. "We took decisive actions to strengthen our operations, streamline our cost structure, and reinforce the foundation of our business. We emerge from the year more focused, more disciplined, and more aligned with the long-term opportunities ahead. As we enter 2026, we are energized by the momentum we have created and confident in our ability to achieve sustainable growth, advance our innovation pipeline, and move toward cash-flow breakeven. We are building a stronger, more resilient company—one that is positioned to shape the future of clean, plant-based nutrition for families around the world."

2026 Outlook

Looking ahead, Else Nutrition will continue building on the operational discipline achieved in 2025. The Company remains focused on manufacturing efficiencies, improved cost structures, and enhanced route-to-market strategies designed to expand margins and support responsible, profitable growth. With a more stable foundation and promising partnership discussions underway, Else maintains confidence in its path toward achieving cash-flow breakeven between late 2026 and early 2027.

As Else Nutrition approaches 2026, the Company does so with renewed stability, strong consumer demand fundamentals, and a more efficient, better-aligned organization. With its strengthened financial and operational position, Else is prepared to accelerate growth, deepen its global footprint, and continue delivering nutrition solutions that reflect the evolving needs and values of modern families.

About Else Nutrition Holdings Inc.
Else Nutrition Holdings Inc. (TSX: BABY) (OTC: 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 formulas are 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 2024Else 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.

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SOURCE Else Nutrition Holdings Inc.