New Nordic Healthbrands : Six month report Q2 January – June 2022

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 2

	SIX MONTHS	SIX MONTHS	Q2 2022
	2022	2021
Net sales, kSEK	254 048	268 943	130 712
Change in SEK, %	-5,5	23,9	-7,4
Change in local currencies, %	-10,7	30,8	-12,6
Gross profit, kSEK	167 613	182 796	84 706
Gross margin, %	66,0	68,0	64,8
EBITDA kSEK	-4 261	24 566	-6 299
EBITDA margin, %	-1,7	9,1	-4,8
Operating profit, kSEK	-4 874	24 129	-6 633
Operating margin, %	-1,9	9,0	-5,1
Profit for the period, kSEK	-6 496	19 102	-7 476
Earnings per share EBITDA, SEK	-0,69	3,97	-1,02
Earnings per share * after tax, SEK	-1,05	3,08	-1,21

* There are no dilutive effects

Q2 2021

141 112

34,7

40,9

97 114

68,8

11 151

7,9

10 934

7,7

8 716

1,80

1,41

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

Entering 2022 we had planned for growth in sales and profit via increased marketing and innovation. We had a fine January even though we realised that corona testing and lockdowns in many European countries meant reduced sales in those countries. Immediately when the Russian invasion of Ukraine started last week of February, we understood that many of our customers changed buying behavior. Our products are of high quality and premium priced in the market. Our advertising and other marketing activities did not create the sales it used to for so many years. The spend for the planned growth increased by 7 percent during the first half year but even so the sales decreased by 6 percent. Comparing this half year to first half year of 2021 is additionally blurred by the fact that we were very successful in 2021 due to the sell in of Hair Volume™ special 10 years anniversary packs.

Due to the current international geopolitical and economic situation, which we believe will last well into 2023, we are taking steps to reduce our marketing and innovation investments temporarily as well as we are introducing a shorter marketing planning horizon to become more agile and react quicker to both negative and positive changes in the world around us.

We expect that the reduction in investments during the second half year will result in lower sales in the second half year than in the first half year. Our liquidity is marked by the loss during the first half year, but it will benefit from our decision to reduce investments as well as our current inventory reduction efforts.

As soon as we see it opportune, we will increase our investments again and return to our growth path, which has provided a CAGR of 11 percent over the past five years. We plan to finance the growth beyond 2022 ourselves.

1

As a result of the current situation, we have decided to postpone our application for listing of our shares on NASDAQ Stockholm Main Market. So far until the end of 2023.

During the first half of the year, we reached a turnover of SEK 254 million. New Nordic's products are now available in almost all European countries, North America, Hong Kong, China, Vietnam and Australia. During the first half of the year, we have had growth in Asia. Sales were status quo in North America, while we have had a decline in the Nordics and the rest of Europe. If we look at the second quarter in isolation, we have had growth in Asia and in the rest of Europe.

Due to changes in the product mix, the gross profit has been reduced to 66 percent compared to 68 percent last year. It is above all the sale of "food supplement gummies" with lower gross profit and the sale of "dual- pack" units, that has had a negative impact on our gross profit. We will continue to have a strong focus on our gross profit and work to increase it again.

During the second quarter we made a loss bigger than the small profit in the first quarter so after six months the result is negative and not satisfactory. It will be our strong focus to change that during the second half year.

Good news is that we also won a prize at the Danish Beauty Awards this year. The winning price was given to our new liquid collagen and plant-based nutritional supplements that come in convenient "ready-to-drink sachets". Collagen ShotTM, as the product is named, has also been launched in England, where it is already one of our best sellers.

Cosmetic products in our "Beauty In & Out" still make up only a small part of our turnover, but sales are growing rapidly. As one of our top retail partners puts it: "We want to use the momentum of upcoming news and growth in the category right now to make New Nordic the inevitable top brand in natural skincare."

I thank the New Nordic team in all countries. We have experienced market challenges that we have not faced before, and the team has made an enormous contribution during these challenging and changing times.

I look forward to the second half of 2022 and I am convinced that we will restore profitability in the company. Sales

Sales during the first half of the year amounted to SEK 254.0 million (268.9), a decrease of 5.5 percent. In local currencies, the reduction was 10.7 percent. Sales increased in Asia, was status quo in North America and decreased in the Nordics and other parts of Europe.

Results for the six months

The gross result for the first half of the year decreased to SEK 167.6 million (182.8). This corresponds to a gross margin of 66.0 percent (68.0). EBITDA amounted to -4.3 MSEK (24.6) and the EBITDA margin was nega- tive, -1.7 percent (9.1 percent). The operating profit amounted to -4.9 MSEK (24.1) and the operating margin was negative, -1.9 percent (9.0 percent). The result after financial items amounted to SEK -5.2 million (23.9). The result after tax for the half year amounted to SEK -6.5 million (19.1).

Comments to the second quarter

Sales in local currencies decreased by 12.6 percent. Converted to SEK, sales decreased by 7.4 percent to SEK 130.7 million (141.1). The decrease in the first half year was largely affected by the economic and geopolitical uncertainty in the world. The gross margin decreased to 64.8 percent (68.8). Personnel, sales and administration costs amounted to SEK 91.0 million (86.0), an increase of 5.8 percent. The number of employees at the end of the period was 73 (67). The biggest cost increase was related to increased marketing costs, but also costs for personnel and other costs. EBITDA decreased by SEK 17.5 million and profit after tax decreased

2

by SEK 16.2 million. A result of lower sales and gross margin and a reduction in costs. Depreciation came to -0.3 MSEK (-0.2). Interest and other financial items were status quo -0.1 MSEK (-0.1).

The result after financial items was negative and amounted to SEK -6.7 million (10.8). The result after tax was negative and amounted to -7.5 MSEK (8.7).

Financial position and cash flow

The group's total assets as of June 30, 2022 amounted to SEK 249.9 million (236.6), an increase of 5.6 percent y-o-y with the same time last year. Inventories increased by 21.1 percent y-o-y with the same period of the previous year and amounted to SEK 112.1 million (92.5). During the first six months, ongoing operations generated a negative cash flow of -14.9 MSEK (0.2). Cash and cash equivalents at the end of the period amounted to SEK 6.0 million (11.0). The group's equity/assets ratio amounted to 43.4 percent (49.6). Equity divided by the remaining 6,195,200 (6,195,200) shares was SEK 17.49 per share (18.94) on June 30, 2022.

Expansion

New Nordic's operations create value for the company's customers and shareholders. During 2022 and bey- ond, the company will continue to develop plant-based nutritional supplements and health products to meet specific health and health needs. New Nordic will market these products to a growing number of consumers worldwide. Everything 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 nature and a healthy life.

Parent company

During the first half of 2022, the parent company had a net turnover of SEK 80.3 million (117.3).

Comment current quarter

No special events.

Transactions with related parties

During the period, there have not been any significant transactions with the latter, apart from the usual sales of New Nordic products at normal trade prices and terms to Dansk Detail APS (health shops), Denmark, jointly managed 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 handled through internal routines, while some others are affected more by external influences. There are risks and uncertainties in connection with consumer trends, weather conditions, negative macroeconomic changes, geopolitical risks, sustainability and external factors in production countries, regulatory issues, trade interventions, foreign exchange and tax, but also in connection with expansion into new markets, the launch of new products, changes in consumer behavior and how the business is managed. 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 2021 under "Risk factors".

Accounting principles

The group prepares its accounts in accordance with the Annual Accounts Act and the General Accounting Regulations 2012:1 (K3). Information about the accounting principles in   others appears in the 2021 annual report.

3

Certified Adviser

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

Upcoming reports
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 in Malmö	2023 April 27, 2023

For further information contact:

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

New Nordic Healthbrands AB

Hyllie Boulevard 34, SE-215 32 Malmö, Sweden Phone: [phone]

This report has not been reviewed by the company's auditor.

The board of directors and the executive directly ensure that the interim report provides a correct overview of the group's operations, position and results.

Jessica Tyreman, Board Member, Lennart Sj  lund, board member, Kirsten Aegidius, board member,

Marinus Bl  bjerg S  rensen, chairman of the board, Karl Kristian Bergman Jensen, CEO and board member

Malmö on July 29, 2022

New Nordic Healthbrands AB (publ)

The information in this document is that which New Nordic Healthbrands AB (publ) must make public according to the EU Market Abuse Regulation. The information was submitted for publication via the contact person listed above at 8:00 a.m. (CET) on 29 July 2022.

4

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

	SIX MONTHS	SIX MONTHS
(kSEK)	Q2 2022	Q2 2021
2022	2021
Sales	254 048	268 943	130 712	141	112
Cost of goods sold	-86 435	-86 147	-46 006	-43 998
Gross profit	167 613	182 796	84 706	97 114
Personnel expenses	-30 785	-28 146	-15 185	-14 573
Other external expenses	-141 089	-130 084	-75 820	-71 390
EBITDA	-4 261	24 566	-6 299	11 151
Depreciations	-613	-437	-334		-217
Operating profit (EBIT)	-4 874	24 129	-6 633	10 934
Interest and other financial items	-294	-181	-98		-108
Profit after financial items	-5 168	23 948	-6 731	10 826
Tax	-1 328	-4 846	-745	-2 110
Profit for the period	-6 496	19 102	-7 476	8 716
Average number of shares	6 195 200	6 195 200	6 195 200	6 195 200
Number of shares by the end of the period *	6 195 200	6 195 200	6 195 200	6 195 200
Earnings per share, SEK	-1,05	3,08	-1,21		1,41
EBITDA per share, SEK	-0,69	3,97	-1,02		1,80

* There are no dilutive effects

5