The information contained withing this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as incorporated into the laws of England and Wales by virtue of the European Union (Withdrawal) Act 2018 (as amended) and certain other enacting measures ("UK MAR"). With the publication of this announcement via a Regulatory Information service ("RIS"), this inside information is now considered to be in the public domain.

18 August 2025

MicroSalt plc

("MicroSalt" or the "Company")

 H1 2025 Trading Update

MicroSalt plc (AIM: SALT), a leading manufacturer of full-flavour natural salt with approximately 50% less sodium, is pleased to announce continuing advancement of its B2B bulk business during the six months ended 30 June 2025 ("H1 2025"). Furthermore, it has recently received increased North America volume projections from whom the Company describes as Customer 3, one of the world's largest food, soft drink and snack manufacturers.

While non-contractual, MicroSalt is confident in these volume projections which include a single new item, representing an addition to the Company's existing sales pipeline with Customer 3 and its divisions. The volume projections for this product (in North America only) indicate commencing rollout in Q2 2026 and resultant sales exceeding $5m in 2026 and expanding to $11m in 2027.

Meanwhile, the advancement of the Company's B2B bulk revenues continued during H1 2025. Total sales were a Company record of $0.9m in H1 2025, an increase of nearly $0.4m (c.72%) against H2 2024. Further, total H1 2025 sales represent 121% of sales for the entirety of 2024. This includes shipments to existing markets of Mexico, United States and Canada, as well as newly opened markets in the UK and Belgium.

Bulk sales in H1 2025 were dominated by repeat orders from different entities and geographies of Customer 3, and in particular:

·   Customer 1 (Mexican division of Customer 3) purchased $0.6m for use in three mainstream items with two more planned to begin in Q3 or Q4 2025;

·   Customer 2 (North American division of Customer 3 - Canada, US) purchased $0.2m for one full brand (multiple items) with two more planned for Q4 2025; and

·    Non bulk sales to retail and ecommerce customers total $0.1m.

Microsalt Premium, initially targeting the quick service and fast service restaurant (QSR/FSR) market, has been expanded to include larger food service outlets, GPO's and school districts with a focus on readymade menu items. We continue to be in the final stages of consideration with a major fast-food company.

Gross cash as at 30 June 2025 was US$0.9m (31 December 2024: US$0.3m) following the fundraising of US$2.9m (before expenses) in February 2025. The key movement in H1 2025 was a $1.2m investment in inventory to meet expected much higher sales orders in H2 2025, albeit as detailed further below, there will be some delays in new product formulations due to the US FDA's focus on the elimination of petroleum-based food colourings alongside existing low sodium initiatives. Accordingly, H2 2025 cash utilisation will be much lower than that incurred in H1 2025.

Regulations globally continue to support the movement of healthier foods and lower sodium consumption. The unexpected focus by the US FDA on the elimination of petroleum-based food colouring has delayed the larger rollout from Q4 2025 into 2026 which has resulted in the Company adjusting its 2025 sales estimate to $2.0m (previously $2.5m) with a continuing acceleration through 2026 and 2027.  

The Company is now projecting 2026 sales to total $6.7m based on in-hand volume estimations and its current customer base.

Rick Guiney, CEO of MicroSalt, said: "We are pleased with our H1 2025 sales results and continued scale up of our deployment with Customer 3 and its group. The robust sales pipeline and our ability to deliver consistent functionality across varied reformulation platforms underpins our confidence of future success."

For more information, please visit www.microsaltinc.co, follow on X @microSaltPLC or contact:

About MicroSalt®

MicroSalt® produces a patented full-flavour, low-sodium salt for food manufacturers and consumers.

MicroSalt is a major potential disruptor in the food market, thanks to its micron sized particles which deliver the same sense of saltiness to a wide range of foods but with approximately 50% less sodium. Excess sodium consumption is a significant contributor to cardiovascular disease and MicroSalt's solution meets the rising demand for healthier alternatives to traditional salt. The WHO has set a target for reducing global sodium intake by 30% by 2025, which it estimates will save 7 million lives by 2030.

Each year, cardiovascular disease costs the UK £19 billion - if the average salt intake was reduced by one gram per day, it has been estimated that 4,147 lives and £288 million would be saved each year in the UK. As a nation, the UK consumes 183 million kilograms of salt each year, and 70 per cent. of the typical person's sodium intake is hidden in processed foods.

Operational since 2018, MicroSalt uses patent-protected technology which helps create high barriers to entry within the reduced-sodium salt market. The group has a US patent and 14 patent applications pending in other jurisdictions globally.

The Directors believe that MicroSalt is well positioned to capture growth in the low sodium market, which is expected to grow exponentially, and that there is also potential to enter the larger salt market.