Else Nutrition (BABY.TO) after trade Friday said its first-quarter revenue fell while its loss narrowed year-over-year.
The food and nutrition company reported a loss for the quarter ended March 31 of $0.6 million, compared with a loss of $3.4 million a year ago. Operating expenses fell 45% to $1.2 million from $2.2 million in the year-prior quarter.
"These results demonstrate the impact of the restructuring and efficiency initiatives we have implemented over the past year, including streamlining lower-margin activities and optimizing marketing spend," Chief Executive Hamutal Yitzhak said.
Revenue fell to $1.5 million from $2.1 million a year ago, "mainly due to out-of-stock (OOS) challenges, our operational initiatives resulted in a significant improvement in profitability metrics and overall cost structure," Yitzhak added.
Gross margin was up 40% compared with 24% in the first quarter of 2025, according to the statement.
"We are working diligently to produce more products, to reduce and eventually eliminate the damaging OOS situations, yet our production capabilities depend on our free cash position," the CEO said.
The company's shares closed down $0.005 to $0.04 on the Toronto Stock Exchange.