VANCOUVER, BC / ACCESS Newswire / March 4, 2025 / Nepra Foods Inc. (CSE:NPRA)(FSE:2P6)(OTC PINK:NPRFF) ("Nepra" or the "Company"), a pioneer in gluten-free, allergen-free and plant-based protein solutions, is pleased to announce its condensed consolidated financial results for the third quarter ended December 31, 2024. The period reflects steady progress, with notable gains in revenue, gross margins, and cost management, underscoring Nepra's ability to deliver value in a dynamic market.
Q3 2025 highlighted the Company's focus on operational efficiency and customer-driven innovation, positioning it well within the expanding gluten-free and functional food sector.
Q3 2025 Financial and Operational Highlights
Revenue Surge: Revenue for the quarter rose to CAD $1,450,641, a 25.3% increase from CAD $1,158,107 in Q3 2023-an uptick of CAD $292,534. For the nine months ended December 31, 2024, revenue grew 16.3% to CAD $3,962,377 from CAD $3,406,206 in 2023, driven by new customer wins and robust sales of specialty starch products.
Gross Margin Growth: Gross profit improved to CAD $397,580 in Q3 2025, up from CAD $281,712 in the previous quarter ending September 30, 2024, with gross margin expanding from 23.3% to 27.41%. This significant gain reflects lower raw material costs and a higher share of blending services revenue.
Reduced Expenses: Operating costs saw meaningful declines, with salaries and benefits dropping by CAD $29,599 (8.1%) to CAD $335,567 and research and development decreasing by CAD $83,190 (86.8%) to CAD $12,682 compared to Q3 2023. These savings highlight a disciplined approach to cost control.
Narrowed Net Loss: The net loss for Q3 2025 decreased to CAD $559,191, a 45.4% improvement from CAD $1,024,206 in Q3 2023, supported by stronger gross profits and reduced expenses. For the nine months, net loss improved 56% to CAD $1,338,344 from CAD $3,039,523 in 2023.
Strategic Advances: In October 2024, Nepra retired a CAD $232,765 SBA loan, appointed two independent directors, and solidified the audit and compensation committees-steps that strengthen financial health and governance.
A Platform for Continued Success
"Our Q3 results reflect the hard work of our team to enhance efficiency while growing revenue and margins," said William Hogan, CEO. "These improvements demonstrate our commitment to building a sustainable business that meets the needs of our customers and shareholders. We're well-positioned to capitalize on the rising demand for gluten-free and allergen-free ingredients."
Why This Matters
Market Opportunity: The global gluten-free market is expected to reach USD $14 billion by 2032, (Statista, 2024) and Nepra's high-quality, customer-focused solutions-like its "Absolutely Essential" Blends and Rheoflex® starches-are meeting this demand head-on.
Operational Strength: Cost reductions and profitability gains provide a solid base to support future innovation, including recent hemp protein developments announced in February 2025.
Shareholder Focus: With improved cash flow management and reduced debt, Nepra is delivering measurable progress for its investors.
Looking Forward
Nepra's leadership is committed to sustaining this positive momentum. Operating from its 31,000 sq ft facility in Centennial, Colorado, and serving a growing network of bakery and food manufacturer clients, the Company is primed to thrive in the plant-based ingredient space. Full details of Q3 2025 performance are available in the consolidated financial statements and MD&A, filed on SEDAR+ at www.sedarplus.ca.
About Nepra Foods Inc.
Nepra Foods is a vertically integrated innovator crafting allergen-free, plant-based ingredients. With a century of combined expertise, Nepra empowers food manufacturers worldwide with proprietary blends and technical know-how, making healthy eating both accessible and delicious. Visit www.neprafoods.com for more.
The CSE has neither approved nor disapproved the contents of this news release. The CSE does not accept responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
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.
