TSXV: ESBL
VANCOUVER, BC, Aug. 28, 2025 /PRNewswire/ - Eshbal Functional Food Inc. (TSXV: ESBL) ("Eshbal" or the "Company"), a developer of gluten-free and health-focused food products, today reported its first consolidated financial results following completion of its April 2025 reverse takeover (the "RTO") and provides a corporate update regarding ongoing business activities.
Financial Results Discussion
(The following disclosure does not constitute full disclosure of the Company's financial and operational condition and is qualified by, and should be read in conjunction with, the Company's Management Discussion and Analysis for the period ending June 30, 2025 and corresponding financial statements available at sedarplus.ca)
The second quarter ("Q2") of 2025 represents the Company's first set of consolidated financial statements following completion of the RTO. As such, the Q2 2025 figures include the results of Eshbal Functional Food Inc. (following the RTO) together with its Israeli operating subsidiary, while the comparative period in 2024 reflects only the standalone performance of Eshbal Israel (Agricultural Cooperative) Ltd. ("Eshbal Israel"). Accordingly, year-over-year comparisons should be interpreted with caution.
For the three months ended June 30, 2025, the Company reported revenues of US$2.97 million, an increase of US$413 thousand over US$2.55 million in the corresponding prior-year period. Gross profit improved to US$628 thousand (21.2% of revenues), compared to US$478 thousand (18.7% of revenues) in Q2 2024, reflecting both higher absolute profit and stronger margins.
For the six-month period ended June 30, 2025, revenues totaled US$6.72 million, up from US$5.99 million in the first half of 2024, an increase of US$725 thousand (12%). Gross profit rose to US$1.73 million (25.7% of revenues), compared to US$1.39 million (23.1% of revenues) in the prior year, representing approximately 25% growth.
Operating income for the six-month period ended June 30, 2025 was US$204 thousand, remaining positive despite new public company costs introduced following the RTO. Net results for both Q2 2025 and the six month period ended June 30, 2025 were significantly impacted by a non-recurring US$1.69 million non-cash listing expense directly associated with the RTO transaction. As a result, the Company reported a net loss of US$2.0 million for Q2 2025 and US$1.61 million for the six month period ended June 30, 2025. In addition, the Company notes that the news release, published on July 3, 2025, in which we announced the signing of a letter of intent between the Company and GF Nation did not mature to a final agreement.
Investor Relations Clarification
The Company wishes to provide expanded disclosure to its news release of June 28, 2025. The Company advises that Fairfax Partners Inc. ("Fairfax"), a company located in Vancouver, British Columbia, has not and will not receive any securities of the Company as compensation and that the Company is unrelated and unaffiliated to Fairfax. Neither Farirfax nor any of its principals has an interest, directly or indirectly, in any securities of the Company, or any right or intent to acquire such an interest. Further information about Fairfax can be found at www.fairfax.partners.
About Eshbal Functional Food
Eshbal Functional Food Inc. is a developer and manufacturer of health-focused food and nutraceutical products. With extensive experience in food innovation, the Company leverages proprietary R&D and specialized production technologies to deliver gluten-free, vegan, low-carb, sugar-free, and supplement-based solutions across a range of categories - from baked goods and spreads to protein blends, cereals, and dietary supplements.
Eshbal serves a diverse mix of industrial, foodservice, and retail clients in Israel and abroad, and is actively scaling its presence across the North American market. This expansion follows the completion of a reverse takeover (RTO) with Hakken Capital Corp., through which Eshbal became a publicly listed company on the TSX Venture Exchange as of April 14, 2025. The second quarter of 2025 represents the Company's first set of consolidated financial statements, marking the beginning of its journey as a public entity with integrated reporting across its operations.
Looking ahead, Eshbal continues to advance its strategic efforts in North America, focusing on organic growth initiatives, evaluating M&A opportunities, and expanding its presence in the growing "better-for-you" food category. The Company remains committed to executing its plans efficiently and aligning its operations with long-term growth opportunities in the gluten-free and health-focused food markets.
To learn more, visit: https://EshbalFoods.com
Disclaimers: Neither the TSX Venture Exchange Inc., nor its Regulation Servicer provider accepts responsibility for the adequacy or accuracy of this release.
This press release contains "forward-looking statements" within the meaning of the securities laws. Words such as "expects" "anticipates", "intends", "plans", "believes", "seeks," "estimates" and similar expressions or variations of such words are intended to identify forward-looking statements. Forward-looking statements are not historical facts, and are based upon management's current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management's expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward- looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company's reports filed from time to time at sedarplus.ca. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward- looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. The Company is not responsible for the contents of third-party websites.
This press release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities described herein in the United States or elsewhere. These securities have not been, and will not be, registered in the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons unless registered or exempt therefrom.
SOURCE Eshbal Functional Foods Inc
