Third quarter 2024 results for Aker BioMarine

01 Nov 2024 07:00 CET

Highlights third quarter 2024:

• Closed Feed Ingredients transaction for a purchasing price of USD 624
million for a net gain from the sale of USD 214.2 million
• Paid extraordinary dividend of USD 373 million, equivalent to NOK 45/share
• Revenue for the continued Group of USD 49.3 million, down 7% YoY
• Adjusted EBITDA for the continued Group of USD 8.4 million, up 10% YoY due
to improvements in Emerging Businesses
• Human Health Ingredient sales increased by 8% YoY with driven by volume,
adjusted EBITDA of USD 9.9 million
• Consumer Health Products sales decreased by 5% YoY, last year included
launch of Multivitamin Gummy
• Emerging Businesses sales increased 14% YoY due to increased online sales
to Amazon
• Kori krill oil launched in Costco Japan in August
• Initiated a process to divest the protein business Understory
• Company completed its refinancing with a NOK 1,600 million secured bond
issue, swapped to USD 150.7 million,
and a USD 30 million bank facility

“Our Q3 results reflects progress across our core segments. In Human Health
Ingredients, revenue grew due to increased krill oil demand, though margins
remains lower than our target due to customer and product mix. Consumer Health
Products had a good quarter, 16% up from Q2, but lower than Q3 last year which
was a very strong quarter due to the launch of the Gummy product. However,
operational efficiencies helped us maintain stable margins. As part of our focus
on core segments, we have initiated the divestment of Understory Protein,
positioning us to continue optimizing shareholder value.,” said Matts Johansen,
CEO of Aker BioMarine.

Revenue in the Human Health Ingredients segment grew by 8% year-over-year,
driven by an 11% increase in krill oil sales volume, with improvements noted
across several regions. While demand was strong, average krill oil pricing was
impacted by customer and product mix, which affected margins. Margin in the
quarter were also influenced by a higher proportion of lower-margin product
sales.

Consumer Health Products sales declined by 5% year-over-year. Despite declining
sales, the private label market remains robust, with Lang year-to-date
out-of-store sales (POS) up 3% compared to last year. Despite the lower sales,
margins remained on par with the same period last year, supported by operational
efficiencies.

The Emerging Business segment showed good progress, with Epion achieving a 12%
year-over-year revenue growth, fueled by online sales on Amazon and expansion at
Walmart. EBITDA losses were reduced to USD 1 million, reflecting a positive
trend towards break-even.

In line with the strategy to concentrate on growing the larger segments and
optimizing shareholder value, the company has initiated a process to divest
Understory and appointed a financial advisor.

At 09:00 CET today, the management hosts a webcast. The webcasted presentation
will be in English. To join, please use the link that is available at
www.akerbiomarine.com/investor.

A replay of the presentation will be made available soon after the presentation
at the same web address.

For further information, please contact
Christopher Robin Vinter, VP Strategic Finance & IR
Mobile: +47 911 60 820
Email: Christopher.vinter@akerbiomarine.com

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

About Aker BioMarine
Aker BioMarine is a leading human health and nutrition innovator that develops
krill-derived products for consumer health and nutrition. Krill is a natural,
powerful, and health-promoting source of nutrients from the pristine waters of
Antarctica, and Aker BioMarine has a unique position in its industry. The
ingredient portfolio consists of Superba Krill Oil, Lysoveta, FloraMarine, and
PL+, as well as the consumer brand, Kori Krill. The innovative approach also
extends into the spin-offs AION (reduce and recycle plastic waste across
industries) and Understory (a protein brand). Aker BioMarine is listed on the
Oslo Stock Exchange (AKBM). More information is available at
www.akerbiomarine.com.

More information:
Access the news on Oslo Bors NewsWeb site

630971_AKBM Q3 report 2024.pdf
630971_Aker BioMarine Q3 2024 Presentation v2.pdf