Nine month report Q3 January – September 2021

N E W N O R D I C H E A L T H B R A N D S A B ( P U B L ) N I N E M O N T H R E P O R T

J A N U A R Y - S E P T E M B E R 2 0 2 1

Net sales, kSEK

Change in SEK, %

Change in local currencies, %

.YVZZWYVÄ[R:,2 Gross margin, % EBITDA kSEK EBITDA, % 6WLYH[PUNWYVÄ[R:,2 Operating margin, % 7YVÄ[MVY[OLWLYPVKR:,2

7YVÄ[HM[LY[H_MVY[OLWLYPVKR:,2 EBITDA per share *, SEK ,HYUPUNZWLYZOHYLHM[LY[H_:,2

* There are no dilutive effects

NINE MONTHS	NINE MONTHS	Q3 2021	Q3 2020
2021	2020
393 836	332 300	124 894	115 273
18.5%	-1.8%	8.3%	-2.4%
22.9%	-0.1%	8.0%	2.0%
271 472	230 119	88 678	78 069
68.9%	69.3%	71%	67.7%
33 504	20 007	8 939	8 189
8.5%	6.0%	7.2%	7.1%
32 825	19 426	8 698	8 010
8.3%	5.8%	7.0%	6.9%
32 401	18 804	8 453	7 843
25 802	15 101	6 700	6 445
5.41	3.23	1.44	1.32
4.16	2.44	1.08	1.04

C O M M E N T S B Y C E O K A R L K R I S T I A N B E R G M A N J E N S E N

Sales revenue increased by 23 percent in local currencies in the first nine months of the year 2021, compared with the corresponding period in 2020. Converted to Swedish kronor, net revenues increased by 19 percent. During the period, we had earnings per share of SEK 4.16 after tax. Compared with 2019, we have had a revenue increase of 16 percent. Revenues have increased in all geographical areas.

Both existing and new customers show every day that they appreciate our products and demand is increasing. We have succeeded well in focusing on our best-selling products which has shown a nice growth driven by increased marketing and effective campaigns in collaboration with our resellers. In addition, growth has been fueled by increased distribution through new collaborations with retail chains in North America. The entire New Nordic team at our head offices in Malmö and Roskilde and in the individual country offices in Europe, North America, China and Australia, has contributed with great commitment to achieve the fine results.

Our Beauty In & Out with the launch of cosmetic products has gone well in the Scandinavian market and we will now launch the natural skin and hair care products internationally. The products will primarily be distributed through the retailers we already work with, but we will also work to find new retail partners in the beauty industry.

Our sales via our own online stores around the world are increasing nicely, even though it is still only a small part of our total sales. We work to improve this, as we see an advantage in having direct contact with our loyal customers. We estimate that 35-40 percent of our international sales are made through online purchases at our online and omni-channel retailers. Online sales through our retail partners has been up to about 50 percent of sales during the pandemic, but we see that a large proportion of customers return to the physical stores after they reopen. At online retailers, it is mainly discounts and price reductions as well as club benefits that are the competitive parameter and we are currently experiencing increasing price competition between retailers.

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Our implementation of international digital marketing campaigns has got off to a good start and now goes hand in hand with local marketing on social media. It sharpens our international profile and increases awareness and value for the New Nordic brand everywhere. The local initiatives and the international campaigns complement each other well and show that we are present and active locally in our markets.

We have just started selling and marketing New Nordic in the Czech Republic and Portugal. We now have a number of countries where we are newly established and undergo a period with the investments and losses that are usually required to establish our brand in new markets. In the next few years, we will ensure that we establish ourselves well in the new markets as soon as possible and that we create good sales and profitability. Markets under establishment and where New Nordic has subsidiaries are Switzerland, Spain, Portugal, China, Hong Kong, Australia, Slovakia, Romania and Kazakhstan. Our operations in the United States, Germany and the United Kingdom continue to represent the greatest immediate growth potential and we will continue to focus on increasing our operations there.

Changes in product mix and increased costs for shipping in particular mean that our gross margin has decreased from 69.3 to 68.9 during the first nine months of the year. However, the gross margin was better during the third quarter, where it amounted to 71.0 percent against 67.7 percent last year. We will do our best to maintain a high gross profit and we will use all profit-enhancing parameters in this regard. Sales of "gummies" are increasing and in the US they now make up 25 percent of our revenue there. The gross margin on gummies is smaller than on tablets, but it is gummies that the market is increasingly demanding.

We have good control over our costs, which have increased by 13 percent against a revenue increase of 19 percent.

With the increasing sales during the first nine months of the year, our receivables as of September 30, 2021 have increased by SEK 11 million compared with the same date last year. At the same time, our debt to suppliers has increased by SEK 23 million. Inventories increased by SEK 26 million and now amount to SEK 104 million. The increase in inventories means that cash flow from our current operations has only increased by just over SEK 2 million.

Liquidity is still good. We can implement our organic growth plans without having to raise capital.

During the first nine months this year, demand seems to have been characterized by consumer euphoria and a strong recovery from the pandemic. During the third quarter, we experience that demand has been more subdued and closer to a more normal level. I am still very humble in the face of the situation we are in now. Corona infection is currently increasing in several of the countries in which we operate, which may slow down demand. The situation also affects our suppliers in many countries and it affects the transport of raw materials and finished goods.

We are currently continuing our growth plans at full speed, but we are aware that we may be facing rapid changes in the world around us. The entire team at New Nordic is very committed to continuing our growth and achieving the goals we have set, but they are also prepared for the challenges we may have to face.

It has been a pleasure to welcome Ditte Søndergaard Bihorac, who took over as Chief Operating Officer on 1 September. Ditte comes from a Nordic position at Chanel and has deep knowledge of the beauty industry. She has had a good start in New Nordic.

We see an increasing demand globally for dietary supplements, natural skin care and natural hair care and we are well positioned to take advantage of the development. We develop the existing dietary supplement business internationally and with skin and hair care we create new supplementary revenue streams. We are increasing the value of the New Nordic brand worldwide every day and for our owners we focus on increasing earnings per share.

It is a very exciting time for New Nordic and I look forward to contributing to creating results. I am convinced that 2021 will be a good year.

Sales

Sales during the first nine months amounted to SEK 393.8 M (332.3), an increase of 18.5 percent. In local currencies, the increase was 22.9 percent. Sales increased in all geographical areas: the Nordic countries,

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the rest of Europe, North America and the rest of the world.

Results for the nine months

Gross profit for the nine months increased to SEK 271.5 million (230.1). This corresponds to a gross margin of 68.9 percent (69.3). EBITDA amounted to SEK 33.5 million (20.0). This corresponds to an EBITDA margin of 8.5 percent (6.0). Operating profit amounted to SEK 32.8 million (19.4). This corresponds to an operating margin of 8.3 percent (5.8). Profit after financial items amounted to SEK 32.4 million (18.8). Profit after tax for the nine-month period was SEK 25.8 million (15.1).

Comments to the third quarter

Sales in local currencies increased by 8.0 percent. Converted to SEK, sales increased by 8.3 percent to SEK

124.9 million (115.3). The growth in sales is satisfactory. Sales increased in all regions: the Nordic countries, the rest of Europe, North America and the rest of the world.

The gross margin increased to 71.0 percent (67.7) due to changes in product mix. Personnel, sales and admi- nistration costs amounted to SEK 79.7 M (69.9), an increase of 14.1 percent. Marketing costs accounted for the largest absolute increase. The number of employees at the end of the period was 65 (61).

EBITDA increased by SEK 0.7 million to SEK 8.9 million and profit after tax by SEK 0.3 million to SEK 6.7 mil- lion. Depreciation was a status quo of SEK -0.2 million (-0.2). Interest and other financial items were also in the status quo SEK -0.2 million (-0.2).

Profit after financial items increased by 7.8 percent and amounted to SEK 8.5 million (7.8). Profit after tax in- creased by 4.0 percent and amounted to SEK 6.7 million (6.4).

Financial position and cash flow

The Group's total assets as of September 30, 2021 amounted to SEK 244.3 M (203.6), an increase of 20.0 percent compared with the same period last year.

Inventories increased by 33.6 percent compared with the same period last year and amounted to SEK 104.1 million (77.9). Inventories have increased significantly over the past year due to increased activity and increased purchases of raw materials as well as production of finished goods to cope with any worsening supply problems in the wake of the corona crisis.

During the first nine months, operating activities generated a positive cash flow of SEK 2.3 million (7.3). Receivables increased by SEK 24 million. At the same time, debt to suppliers has increased by SEK 23 million. The relatively low positive cash flow was characterized by the increase in inventories of SEK 23 million.

Cash and cash equivalents at the end of the period amounted to SEK 13.8 M (11.2). The Group's equity / assets ratio was 50.7 percent (51.0).

Equity distributed on the outstanding 6,195,200 (6,195,200) shares was SEK 19.98 per share (16.75) on September 30, 2021.

Expansion

New Nordic's operations create value for the company's customers and shareholders. During 2021 and onwards, the company will continue to develop herbal supplements and beauty products to meet specific health and beauty needs. New Nordic will market these products to a growing number of consumers world- wide. All with care for people and nature. The products will be marketed under the characteristic New Nordic brand. A brand that reflects the Scandinavian cultural heritage, the Scandinavian values and the company's passion for herbs and a healthy life.

Parent company

During the first nine months of 2021, the parent company had net sales of SEK 170.8 million. (120.1).

Comment current quarter

Sales in the first weeks of October have started well.

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Transactions with related parties

During the period, there were no significant transactions with related parties apart from the usual sales of New Nordic products at normal trading prices and terms to Dansk Detail APS (health stores), Denmark, which is jointly owned by Marinus Blåbjerg Sørensen and Karl Kristian Bergman Jensen.

Risks and uncertainties

A number of factors can affect New Nordic's results and operations. Many of these can be managed through internal routines, while some others are more affected by external influences. There are risks and uncertainties associated with consumer trends, weather conditions, negative macroeconomic changes, geopolitical risks, sustainability and external factors in production countries, regulatory issues, trade interventions, foreign currency and tax, but also in connection with expansion into new markets, the launch of new products, changes in consumer behavior and how the brand is managed. There are also certain risks related to the group's reputation, known as "reputational risks".

For a more detailed description of risks and uncertainties, please refer to the Annual Report and Consolidated Financial Statements for 2019 under "Risk Factors".

Accounting principles

This report has been prepared in accordance with the Annual Accounts Act (1995: 1554) and BNFAR 2012: 1 Annual Report and Consolidated Financial Statements (K3).

Certified Adviser

New Nordic Healthbrands AB's Certified Adviser är Mangold Fondkommission AB. Telephone: [phone].

Upcoming reports
Year-end report 2021	February 28, 2022
Annual Report 2021	March 25, 2022
Three-month report 2022	April 28, 2022
Annual General Meeting in Malmö	April 28, 2022
Six-month Report 2022	July 29, 2022
Nine-month Report 2022	October 28, 2022
Full Year Report 2022	February 28, 2023
Annual Report 2022	March 27, 2023
Three-month Report 2023	April 27, 2023
Annual General Meeting 2023	April 27, 2023

For further information contact:

Karl Kristian Bergman Jensen, CEO, [e-mail]

This report has not been audited.

Malmö 29 October 2021

New Nordic Healthbrands AB (publ)

Board of Dicrectors

New Nordic Healthbrands AB

Södra Förstadsgatan 3 · SE-211 43 Malmö · Sverige

Phone: [phone]

The information in this document is that which New Nordic Healthbrands AB (publ) is required to disclose, and made public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 8:00 (CET) on 29 October 2021.

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I N C O M E S T A T E M E N T

(kSEK)	NINE MONTHS	NINE MONTHS
Q3 2021	Q3 2020
2021	2020
Sales	393 836	332 300	124 894	115 273
*VZ[VMNVVKZZVSK	-122 364	-102 181	-36 216	-37 204
.YVZZWYVÄ[	271 472	230 119	88 678	78 069
7LYZVUULSL_WLUZLZ	-41 247	-34 276	-13 101	-10 770
6[OLYL_[LYUHSL_WLUZLZ	-196 721	-175 836	-66 638	-59 110
EBITDA	33 504	20 007	8 939	8 189
Depreciations	-679	-581	-241	-179
6WLYH[PUNWYVÄ[,)0;	32 825	19 426	8 698	8 010
0U[LYLZ[HUKV[OLYÄUHUJPHSP[LTZ	-424	-622	-245	-167
7YVÄ[HM[LYÄUHUJPHSP[LTZ	32 401	18 804	8 453	7 843
;H_	-6 599	-3 703	-1 753	-1 398
7YVÄ[HM[LY[H_	25 802	15 101	6 700	6 445
(]LYHNLUTILYVMZOHYLZ	6 195 200	6 195 200	6 195 200	6 195 200
5TILYVMZOHYLZI`[OLLUKVM[OLWLYPVK	6 195 200	6 195 200	6 195 200	6 195 200
,HYUPUNZWLYZOHYLHM[LY[H_:,2	4.16	2.44	1.08	1.04
EBITDA per share, SEK	5.41	3.23	1.44	1.32

* There are no dilutive effects

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