Quarterly Activities/Appendix 4C Cash Flow Report

• Q4 FY24 revenue of $594K USD, down 5.9% QoQ
• Gross margin of 33.9% for Q4 FY24, with an average of 33% for the year
• Walmart modular renewed for an additional year with a third product added

Nutritional Growth Solutions Ltd (ASX: NGS), a health, nutrition, and wellness company headquartered in the United States, has released its Quarterly Activities Report and Appendix 4C Cashflow Statement for the period ended 31 December 2024 (Q4 FY24). The company reported Q4 FY24 revenue of $594,446 USD ($956,470 AUD), representing a decrease of 5.9% quarter-on-quarter. This was attributed to conservative consumer buying activity around the US election period and increased media costs, which reduced the effectiveness of advertising and impacted anticipated sales performance. The Q4 FY24 gross margin was 33.9%, with an average of 33% for the full year. NGS remains focused on improving margins and aims to further expand its Healthy Chef product portfolio in FY25 to drive gross margins over 50%. The company was informed that its modular at Walmart will be renewed for an additional year, running from May 2025 through May 2026. Additionally, NGS will be adding a third flavor to the KidzProtein® brand assortment, increasing exposure to the product line. NGS remains on track to achieve a breakeven position in FY25, targeting a minimum of $380K USD per month in revenue in the first half of FY25 and over 50% gross margins. The company also announced new distribution agreements in China and Vietnam, with repeat orders already received and expectations of continued growth in 2025. As of 31 December 2024, NGS had a cash balance of $31,000 USD ($49,879 AUD), with the company's Managing Director exercising options and contributing $32,000 USD ($50,000 AUD) to the business. Subsequent to the quarter, an additional $124,299 USD ($200,000 AUD) was received from options exercised by shareholders.

Targeting a minimum of $380K USD per month in revenue in 1H FY25 and over 50% gross margins, driven by the expansion of the Healthy Chef product range.

NGS remains on track to achieve a breakeven position in FY25, with continued OPEX reductions and revenue growth, and is targeting positive operational cash flow by the end of 1H FY25.