New Nordic Healthbrands : Six month report Q2 January – June 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 ) S I X M O N T H R E P O R T

J A N U A R Y - J U N E 2 0 2 1

Net sales, kSEK Change in SEK, %

Change in local currencies, % Gross profit, kSEK

Gross margin, % EBITDA kSEK EBITDA margin, % Operating profit, kSEK Operating margin, % Profit for the period, kSEK Earnings per share EBITDA, SEK Earnings per share * after tax, SEK

* There are no dilutive effects

SIX MONTHS	SIX MONTHS	Q2 2020
2021	2020
268 943	217 027	141 112
23,9	-1.4	34,7
30,8	-1.2	40,9
182 796	152 050	97 114
68,0	70.1	68,8
24 566	11 818	11 151
9,1	5.4	7,9
24 129	11 416	10 934
9,0	5.3	7,7
19 102	8 656	8 716
3,97	1.91	1,80
3,08	1.40	1,41

Q2 2020

104 769 -10.1-9.9

71 717

68.5

4 768

4.6

4 535

4.3

3 261

0.77

0.53

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

Demand for New Nordic's products was high in 2021. Growth in sales accelerated during the first half of the year and exceeded our expectations. The second quarter was a record. During the first half of the year, we had a growth of 31 percent in local currencies and 24 percent after conversion to Swedish kronor. Sales reached SEK 269 million. The increased sales have resulted in a good half-year result with an increase of 120 percent in earnings per share. Our entire international team has done a good job of achieving this great result.

We have had growth in all geographical areas, driven by increased marketing with a focus on our best sel- lers. We have had surprisingly great success with our campaign activities at Hair Volume ™ in connection with the product's 10th anniversary. In Canada, too, we have had great success with campaign activities with Hair Gro ™ in membership only warehouses. It is also gratifying to see that we have had growth in Swe- den and Norway this year after a decline in 2020. In Australia, we have had good results from our efforts to build partnerships with distributors in all states and we have now achieved nationwide distribution. We are currently starting business in both Spain and Portugal as well as the Czech Republic. After this, we have only a few countries left to open before New Nordic becomes available in all countries in Europe.

During the first half of the year, we also focused on increasing sales on our own website, which is our "online New Nordic flagship store". Among other things, we are now introducing subscription sales in all 26 countries where we run our own local New Nordic online store. We expect high growth in our own online stores in the coming years.

However, the half year has still been challenging due to Covid-19 restrictions. This is especially true in the UK. We expect sales here to increase in connection with the opening and normalisation of the market.

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Due to changes in product mix and increased costs for shipping in particular, our gross profit has decreased from 70 to 68 percent compared to last year. We will do our best maintaining a high gross profit and we will use all profit-increasing parameters in this regard. We have good control over our costs, which have increased by 13 percent, which is significantly less than our revenue increase.

Cash flow from operating activities was only a small plus, despite an increase in cash flow from operating activities before changes in working capital, amounted to SEK 19.2 million. This is due to an increase in inventories of SEK 11.9 million and an increased difference between receivables and current liabilities of SEK

7.1 million. The increased receivables are mainly related to the large increase in sales in Canada and Den- mark. Liquidity is still good. We can implement our organic growth plans without the need for more capital.

Beauty In & Out™ has got off to a really good start in the test market in Denmark. Both the hair products and the skin care products are doing well and have been very well received by both the trade and the consumers. We have already won several prestigious awards for the products and in April 2021 we won the Danish beauty award as "Series of the Year". Here is the judges' statement: "New Nordic has surpassed itself and launched a cross-over series that combines inner and outer beauty. It is complete and nice to be able to debut in the external skin care market with such a hit of a series, so New Nordic can now deliver beauty in and out - in top class. All the judges were very impressed."

Our strategy is firm. Our continued work in 2021 will be to execute it efficiently and focus on creating "larger products and larger markets", not least to continue to establish Hair Volume as a global brand. In all countries where we operate, our country offices drive the bestsellers forward in collaboration with our retailers such as pharmacies, drugstores, health stores and online stores. Our international position in the category of inner beauty is strengthened day by day. With the good test results in Denmark, we will do what we can to increase success and become a leading and driving supplier in the category of inner beauty and Beauty In & Out. We are planning an international "Roll Out" by Beauty In & Out which will also require expansion to new sales channels and an increased presence in department stores, beauty shops and "Travel Retail".

Although Beauty In & Out represents great opportunities, we will not forget our vitality products, lifestyle products and premium vitamin products that are also growing and form a large part of New Nordic.

Innovation and increased marketing are our two growth engines. The development of new products and technologies is in full swing with a focus on herbs, vitamins, minerals and probiotics. Our major marketing efforts and advertising campaigns will grow further at the international level and there will be an even greater focus on internationally coordinated digital marketing.

The USA, Germany and the United Kingdom are countries that, with our current position in the market, represent great growth potential. We must take advantage of that. Of course, China also represents great opportunities, but here the opportunities depend on how well we manage to find the sales activities that can increase our sales.

We are currently preparing to move our share from First North Growth Markets in Stockholm to Nasdaq Main Markets Stockholm in 2022. This also means that we are currently expanding our international re- porting, upgrading our accounting system and preparing for the transition to IFRS accounting standards. .

For investors who want to invest in a company that mainly focuses on dietary supplements and is active internationally, the New Nordic share is unique. There are very few alternatives to New Nordic on the international stock exchanges, so we expect a lot from being on the Main Market list.

During the first half of the year, we have had exceptionally good campaigns with our retailers and growth has been higher than expected. I am very positive about the continued development, but it is difficult to assess whether the high demand right now is a result of the current euphoria of consumption or whether it is the beginning of a more long-term trend. In addition, I am very humbled by the situation we are in when it comes to new corona outbreaks and restrictions. The entire New Nordic team is enthusiastic and works purposefully to increase sales and results as well as spread knowledge about New Nordic throughout the world.

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Sales

Sales during the first half of the year amounted to SEK 268.9 M (217.0), an increase of 23.9 percent. In local currencies, the increase was 30.8 percent. Sales increased in all geographical areas: the Nordic countries, the rest of Europe, North America and Asia.

Results for the six months

Gross profit for the first half of the year increased to SEK 182.8 million (152.1). This corresponds to a gross margin of 68.0 percent (70.1). EBITDA amounted to SEK 24.6 M (11.8). This corresponds to an EBITDA margin of 9.1 percent (5.4). Operating profit amounted to SEK 24.1 million (11.4). This corresponds to an operating margin of 9.0 percent (5.3). Profit after financial items amounted to SEK 23.9 million (11.0). Profit after tax for the half-year amounted to SEK 19.1 million (8.7).

Comments to the second quarter

Sales in local currencies increased by 40.9 percent. Converted to SEK, sales increased by 34.7 percent to SEK 141.1 million (104.8). The increase in sales is strongly influenced by increased demand for Covid-19 Pandemic and to a large extent by extraordinary good campaigns at Hair Volume ™ in Denmark and at Hair Gro ™ in Canada. The gross margin increased to 68.8 percent (68.5). Personnel, sales and administration costs amounted to SEK 86.0 M (66.9), an increase of 28.4 percent. The number of employees at the end of the period was 67 (58). The largest cost increase was related to increased marketing costs, while the cost increases for personnel and other costs were slightly lower. EBITDA increased by SEK 6.4 million and profit after tax increased by SEK 5.5 million. A result of higher sales and smaller increases in costs. Depreciation was the status quo of SEK -0.2 million (-0.2). Interest and other financial items decreased to SEK -0.1 million (-0.3).

Profit after financial items increased by 158.3 percent and amounted to SEK 10.8 million (4.2). Profit after tax increased by 167.3 percent and amounted to SEK 8.7 million (3.3).

Financial position and cash flow

The Group's total assets as of June 30, 2021 amounted to SEK 236.6 M (205.0), an increase of 15.4 percent compared with the same period last year. Inventories increased by 6.7 percent compared with the same period last year and amounted to SEK 92.5 million (86.7). During the first six months, operating activities generated a positive cash flow of SEK 0.2 M (8.4) despite an increase in cash flow before changes in working capital of SEK 19.2 million. This is due to an increase in inventories of SEK 11.9 million and a decrease in cash flow due to an increased difference between receivables and current liabilities of SEK 7.1 million. Cash and cash equivalents at the end of the period amounted to SEK 11.0 million (10.2).

The Group's equity / assets ratio was 49.6 percent (47.4). Equity divided by the outstanding 6,195,200 (6,195,200) shares was SEK 18.94 per share (15.68) on June 30, 2021.

Expansion

The New Nordic business adds value to its costumers and shareholders. In 2020 and onwards, the company will continue to develop herbal food supplements and beauty products to satisfy specific health and beauty needs. New Nordic will market these products to a growing number of consumers all over the world. All with care for people and nature. The products will be marketed under the characteristic New Nordic brand. A brand that reflects the Scandinavian heritage, the Scandinavian values, and the company's passion for herbs and healthy living.

Parent company

During the first half of 2021, the Parent Company had net sales of SEK 117.3 million (82.1).

Comment current quarter

Sales during the first few weeks of July have started satisfactory.

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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 Retail 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 earnings and operations. Many of these can be handled through internal routines, while some others are more affected by external influences. There are risks and uncertainties associated with consumer trends, weather conditions, adverse macroeconomic changes, geopolitical risks, sustainability and external factors in developing countries, regulatory issues, trade interventions, foreign exchange and taxation, but also related to expansion into new markets, launch of new products, changes in consumer behavior and how the brand is handled. There are also certain risks related to the group's reputation, so-called "reputational risks".

For a more detailed description of risks and uncertainties, please refer to the annual report and consolidated accounts for 2020 under "Risk factors".

Accounting principles

The Group prepares its accounts in accordance with the Annual Accounts Act and the Swedish Accounting Standards Board's general advice 2012: 1 (K3). Information on the accounting principles in general is provided in the 2020 annual report

Certified Adviser

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

Upcoming reports
Nine month report 2021	October 29, 2021
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

For further information contact:

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

This report has not been audited.

Malmö 31 July 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 30 July 2021.

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

(kSEK) Sales

Cost of goods sold

Gross profit

Personnel expenses

Other external expenses

EBITDA

Depreciations

Operating profit (EBIT)

Interest and other financial items

Profit after financial items

Tax

Profit for the period

Average number of shares

Number of shares by the end of the period * Earnings per share, SEK

EBITDA per share, SEK

SIX MONTHS	SIX MONTHS
Q2 2021	Q2 2020
2021	2020
268 943	217 027	141	112	104 769
-86 147	-64 977	-43 998	-33 052
182 796	152 050	97 114	71 717
-28 146	-23 506	-14 573	-11 663
-130 084	-116 726	-71 390	-55 286
24 566	11 818	11 151	4 768
-437	-402		-217	-233
24 129	11 416	10 934	4 535
-181	-455		-108	-344
23 948	10 961	10 826	4 191
-4 846	-2 305	-2 110	-930
19 102	8 656	8 716	3 261
6 195 200	6 195 200	6 195 200	6 195 200
6 195 200	6 195 200	6 195 200	6 195 200
3,08	1.40		1,41	0.53
3,97	1.91		1,80	0.77

* There are no dilutive effects

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