Hofseth Biocare ASA: SECOND QUARTER 2023 FINANCIAL REPORT

The second quarter of 2023 shows a 100 % growth in sales compared to the same period last year and strong increase in margins. Sales revenues ended at NOK 52.9m vs NOK 25.8m last year. The underlying growth is coming from both the ingredients business and finished products channels.In June, HBC announced the sale of patents to the newly established associated company, HBC Immunology Llc. (HBCI) in USA. The net proceeds from this sale of assets amounts to NOK 23.5m, resulting in total...

Ålesund, 25/08/2023 (informazione.news - comunicati stampa - cibi e bevande)

The second quarter of 2023 shows a 100 % growth in sales compared to the same period last year and strong increase in margins. Sales revenues ended at NOK 52.9m vs NOK 25.8m last year. The underlying growth is coming from both the ingredients business and finished products channels.

In June, HBC announced the sale of patents to the newly established associated company, HBC Immunology Llc. (HBCI) in USA. The net proceeds from this sale of assets amounts to NOK 23.5m, resulting in total operating revenues in Q2 of NOK 76.4m. HBCI will focus on the discovery and development of peptides that normalize tumor micro-environments for co-treatment of prostate cancer, resulting in the improved performance of immunotherapies and chemotherapies. HBC holds 75 % shareholding in HBCI.

Adjusted for the sale of assets to HBCI, operating revenues in the second quarter and first half of the year were NOK 52.9m and NOK 97.7m respectively. Cost of sales (CoGS) amounted to NOK 27.1m (17.7m) in the quarter. Opex amounted to NOK 20.1m in the quarter compared to corresponding quarter last year of NOK 17.2m, leaving the operating profit (EBITDA) at NOK 18.3m (-18.3m), and at loss NOK -5.2m adjusted for the sale of assets. Operating result (EBIT) amounted to NOK 8.4m (-27.8m) in the second quarter 2023. Operational cash flow was positive NOK 3.1m in the second quarter and net financial items were NOK -2.6m.

Highlights in the second quarter

Highlights after the quarter

Please find the HBC Q2 & First Half 2023 Financial report attached.

For further information, please contact:
Christel Elise Kanli, CFO of Hofseth BioCare ASA
Phone: +47 41623188
E-mail: ck@hofsethbiocare.no

About Hofseth BioCare ASA:

HBC is a Norwegian consumer and pet health ingredient supplier and an incubator for new pharmaceutical drug leads. Research is ongoing to identify the individual elements within its ingredients that modulate inflammation and the immune response with pre-clinical studies ongoing in multiple clinics and university research labs. Lead clinical and pre-clinical candidates are focused on developing an oral treatment for inflammatory disease driven by eosinophils (a type of white blood cell). Clinical trial work with the oil is ongoing to ameliorate lung inflammation in eosinophilic asthma and COPD ("smokers lung").

Other leads are focused on the protection of the Gastro- Intestinal (GI) system against inflammation (including ulcerative colitis and the orphan condition necrotizing enterocolitis) and using peptide fractions of salmon protein hydrolysate (SPH also known as 'ProGo') as a Medical Food to help treat age-related Sarcopenia, and as a treatment for Iron Deficiency Anemia.

The company is founded on the core values of sustainability, optimal utilization of natural resources and full traceability. Through an innovative hydrolysis technology, HBC can preserve the quality of the lipids, proteins and calcium from fresh salmon off-cuts.

Hofseth BioCare's headquarters are in Ålesund, Norway with offices in Oslo, London, Zürich, New Jersey and Palo Alto, CA.

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act

Attachment