Hofseth Biocare ASA: FOURTH QUARTER 2022 & FULL YEAR FINANCIAL REPORT

10 Feb 2023 08:00 CET

In Q4, the ingredients business continued to show favorable momentum with growth
of 87 %, compared to same quarter last year on an underlying basis, generating
sales revenues of NOK 34m, compared to NOK 18m in the same period last year.

The finished goods business delivered record fourth quarter and Full Year
revenue and cash margin, with revenue at +68 %, NOK 31.7m, compared to 18.8m in
the same period in 2021, and the fourth quarter alone delivering NOK 10.7m,
compared to 3.7m last year.

HBC has seen a 103 % increase in sales from 31m in the second half of 2021, to
63m in H2 2022. In addition, we have lowered cost base and increased our gross
margins on all products.

Cash flow from operations during the fourth quarter was NOK -5.5m, compared to
NOK -16.2m in fourth quarter last year. Cash and cash equivalents decreased by
NOK 13.8m during the quarter, leaving total holding of cash and cash equivalents
at NOK 69.4m in free liquidity, including credit facility, by the end of 2022.

Highlights in the fourth quarter

* In October, Stanford School of Medicine successfully completed pre-clinical
trial work testing ProGo bioactive peptides in effective gut health support.
* HBC has hired Mrs. Christel Kanli as new CFO/COO. She has extensive global
experience from Orkla ASA and several start-ups and will start in March
2023.
* First significant ProGo order from China for iron deficiency applications
commenced in Q4 and the pipeline is building.

Please find the HBC Q4 2022 Financial report attached.

For further information, please contact:
Jon Olav Ødegård, CEO of Hofseth BioCare ASA
Phone: +47 936 32 966
E-mail: joo@hofsethbiocare.no (mailto:joo@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 branches in Oslo,
London, Zürich, Ningbo, New Jersey and Menlo Park, CA.

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

More information:
Access the news on Oslo Bors NewsWeb site

581983_HBC Q4 2022 Financial Report.pdf