Naples Soap Company, Inc. (the “Company”) (OTCPK: NASO), a leading provider and innovator of skin and hair care products made with natural ingredients, today announced the successful execution of a strategic, companywide organizational and financial turnaround with plans that have been underway for the past six months. This initiative, implemented across all business functions, is designed to position the Company for sustainable long-term growth, increased operational efficiency, product line innovations and enhanced shareholder value.

In response to the financial impacts of Hurricanes Helene and Milton in the fall of 2024, new market trends, the Company’s then financial structure, and a profitability assessment, Naples Soap Company proactively launched a robust internal review and overhaul, focused on mitigating weather-related disruptions and strengthening the Company’s operational and financial foundation. The Company has taken strategic steps to minimize future vulnerabilities to seasonality, expanded nationwide sales channels, and immersed in new innovation.

The turnaround addressed every aspect of financial structure, internal departments, and external business channels, including Retail, Wholesale, and E-commerce, with an emphasis on financial and human performance, accountability, and increasing profitability. Underperforming functions were either restructured, reimagined, or slated for elimination. Specific areas of transformation include:

• Structural and Financial Efficiencies: Detailed financial modeling, simulations, and data-driven restructuring efforts have already resulted in enhanced budget alignment as well as improved operational and cost efficiencies that are producing measurable bottom line positive results.
• R&D Innovations and Introducing New Products: The Company started a drive toward technology innovation and related products for skin care and wellness and plans to continue this focus through 2025 as it launches new product lines including botanical stem cell technology as well as enhanced product offerings with higher priced retail technology personal care devices.
• Retail and Wholesale Enhancements: Store-by-store performance evaluations, merchandising strategy adjustments, and restructured wholesale partnerships have improved margins and strengthened market presence.
• E-Commerce Revamp: Naples Soap Company completed a thorough digital channel analysis and optimized e-commerce operations by renegotiating digital management fees, upgrading platforms, and shifting away from underperforming sales channels, such as Amazon.
• Expense Optimization: Companywide reviews led to right-sized payroll budgets, improved software utilization, streamlined marketing, reduced merchandising expenses, and tighter retail operational cost controls.

“As we complete this critical restructuring phase, we are more confident than ever in Naples Soap Company’s future,” said Deanna Wallin, Founder and CEO of Naples Soap Company. “This comprehensive turnaround strategy strengthens every aspect of our business and sets the foundation for long-term growth and success. Our commitment to driving shareholder value is unwavering, and we believe the steps we’ve taken will not only improve near-term performance but also unlock the full potential of our brand and operations in the years ahead.”

About Naples Soap Company, Inc.

Naples Soap Company is a provider of high-quality skin and hair care products with a growing presence across retail, wholesale, and digital channels. Founded in 2009, the Company is known for its commitment to clean beauty, customer wellness, and product innovation.

Forward-Looking Statements

This press release contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements verbally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections and our business prospects and opportunities. You can identify forward-looking statements by those statements that use terminology such as “may,” “should,” “expect,” “anticipate,” “contemplate,” “estimate,” “believe,” “plan,” “projected,” “predict,” “potential,” or “hope” or the negative of these or similar terms. This document specifically contains forward-looking statements regarding the ultimate impact(s), if any, of our strategic initiatives, including whether our initiatives will ultimately result in increased operational efficiencies, expense reduction, sales growth, and enhanced shareholder value. In evaluating these forward-looking statements, you should consider various factors, including: our ability to keep pace with new technology and changing market needs; our ability to finance our intended development; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. We are not obligated to publicly update or revise any forward-looking statement except as required by law.

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