Mr. Tomer Bar Meir reports

ESHBAL REPORTS FIRST-HALF 2026 REVENUE OF US$8.8 MILLION, UP 30% YEAR-OVER-YEAR

Eshbal Functional Food Inc. has released its financial results for the three and six months ended June 30, 2026.

Eshbal reported revenue of $8.76-million (U.S.) for the first six months of 2026, an increase of 30.4 per cent compared with $6.72-million (U.S.) for the same period in 2025. Gross profit increased 19.4 per cent to $2.06-million (U.S.) from $1.73-million (U.S.). For the second quarter of 2026, revenue was $3.38-million (U.S.), an increase of 13.9 per cent compared with $2.97-million (U.S.) in Q2 2025.

The year-over-year comparison reflects the continued evolution of Eshbal following completion of its reverse takeover in April, 2025. Accordingly, the first four months of the 2025 comparative period primarily reflected Eshbal's operations prior to completion of the RTO and did not include the company's current public-company cost structure or its subsequently acquired North American operations.

Financial highlights:

• H1 (first half) revenue: $8.76-million (U.S.), up 30.4 per cent;
• Q2 revenue: $3.38-million (U.S.), up 13.9 per cent;
• H1 gross profit: $2.06-million (U.S.), up 19.4 per cent;
• H1 gross margin: 23.5 per cent, compared with 25.7 per cent in H1 2025;
• Total assets: $15.18-million (U.S.) at June 30, 2026, compared with $12.24-million (U.S.) at Dec. 31, 2025.

During the first half of 2026, the company continued to expand its North American platform through acquisitions, local manufacturing, food service, retail and e-commerce initiatives, while continuing to grow its core operations. The company's condensed interim consolidated financial statements and MD&A (management discussion and analysis) for the three and six months ended June 30, 2026, are available under the company's profile on SEDAR+.

About Eshbal Functional Food Inc.

Eshbal Group is an international food group focused on developing, manufacturing and commercializing better-for-you, gluten-free, GLP-1-friendly food products and dietary supplements. Built on more than three decades of industry experience, the group combines product innovation, manufacturing expertise and commercial expertise to develop and grow a portfolio of innovative health and wellness brands. The group's strategy is to build a leading platform of health and wellness brands through organic growth, strategic acquisitions, operational excellence and international expansion.

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