Star Metro - Nepra Foods Inc. Reports Q2 Fiscal 2026 Financial Results with Continued Revenue Growth

For the six-month period ended September 30, 2025, Nepra reported total revenue of $3,741,439 CAD ($2.73 million USD, based on average exchange rates for the period), representing a 49% increase compared to $2,511,736 CAD ($1.84 million USD) for the same period in fiscal 2025 and a 60% increase from Q1. This growth was primarily driven by expanded sales of the Company's core custom starch ingredients and plant proteins to key commercial customers for gluten-free and better for you consumer food products.

Gross profit for the six-month period rose to $1,218,894 CAD ($890,000 USD), up from $513,288 CAD ($376,000 USD) in the prior year, reflecting improved operational efficiencies and a higher gross margin of 33% compared to 20% in the six months ended September 30, 2024. These enhancements stem from optimized production processes and better sourcing of raw materials, which have helped mitigate input cost pressures in the plant-based ingredients market.

For the three-month period ended September 30, 2025 (Q2 fiscal 2026), revenue totaled $1,925,448 CAD ($1.41 million USD), a 60% increase from $1,206,553 CAD ($884,000 USD) in Q2 fiscal 2025. Gross profit was $661,144 CAD ($483,000 USD), with a margin of 34%, compared to $281,712 CAD ($206,000 USD) and a 23% margin in the prior-year quarter.

The increased net loss for the quarter was primarily due to non-cash fair value adjustments of USD-denominated outstanding warrants and the absence of the one-time gains from debt settlement and lease forgiveness in the prior period. Cash position strengthened to $118,983 from $44,737 at March 31, 2025, bolstered by $170,067 in equity issuances. Full details are available in our filings on SEDAR+.

"We are encouraged by the 49% year-over-year revenue growth to $3.74 million CAD in the first half of fiscal 2026, underpinned by expanded sales to key commercial customers. The improvement in gross margins to 33% demonstrates our progress in optimizing production and supply chain efficiencies, positioning us well for continued advancement toward sustainable profitability." - David Wood, Chief Financial Officer

Nepra continues to prioritize operational cash flow generation and strategic financing to support expansion. Investors are encouraged to review the full financial statements and MD&A for detailed segment analysis, risk factors, and forward-looking information.

About Nepra Foods Inc.

Nepra Foods is a specialty food company focused on innovative and proprietary allergen and gluten-free food ingredient technologies. The company supports food manufacturers globally with formulations, ingredients, and technical support to produce the next generation of healthy, nutritious foods. For more information on the company, visit www.neprafoods.com.

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Forward-Looking Statement

This news release contains statements and information that, to the extent that they are not historical fact, constitute "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information, including, but not limited to, statements relating to the Company's financial performance, business development, results of operations, and those listed in filings made by the Company with the Canadian securities regulatory authorities (which may be viewed at www.sedarplus.ca). Accordingly, readers should not place undue reliance on any such forward-looking information. Further, any forward-looking statement speaks only as of the date on which such statement is made. New factors emerge from time to time, and it is not possible for the Company's management to predict all of such factors and to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. The Company does not undertake any obligation to update any forward-looking information to reflect information, events, results, circumstances or otherwise after the date hereof or to reflect the occurrence of unanticipated events, except as required by law including securities laws.

SOURCE: Nepra Foods