Hofseth Biocare ASA: THIRD QUARTER 2024 FINANCIAL REPORT

08 Nov 2024 08:15 CET

HBC had gross operating revenues of NOK 67.9m (49.9m) in the third quarter and
NOK 200.6m (171.1m) in the first nine months. The operating loss (EBITDA) for
the quarter was NOK -21.0m (-16.2m) and NOK -39.2m (-26.3m) for the first nine
months. Operating result (EBIT) amounted to NOK -30.5m (-25.2m) in the third
quarter 2024. Cash and cash equivalents decreased by NOK 1.9m during the
quarter, leaving a total holding at NOK 23.4m at the end of September, compared
to NOK 25.3m at the end of the second quarter 2024. Including credit facilities,
HBC had NOK 31.3m in free liquidity as of the end of September 2024.

Highlights in the third quarter

* Sales grew by 36% in Q3 2024, compared to Q3 2023 and B2B gross margin ended
at 41.2%, compared to 33.9% in Q3 2023. A stronger gross margin in the B2B
segment was driven by higher pricing of our ingredients and increased sales
of CalGo®.
* In July, HBC announced the transfer of its eosinophil-targeting drug
candidate MA-022a to HBC Immunology Inc. ("HBCI"). The patent underlying the
project was valued at $4.5m and HBC received 956,813 common shares in HBCI
for the transfer of the patent to HBCI.
* In August, HBC published a groundbreaking study of our full spectrum omegas
oil OmeGo® to support COVID-19 recovery in the International Journal of
Molecular Sciences. The research demonstrates that OmeGo® improved immune
response and reduced inflammation in individuals with mild to moderate
COVID-19 infection.
* For B2B sales in the human nutrition channel, the third quarter showed
strong sales growth with revenue up 91%, compared to 2023. Growth was driven
by continued strong demand in Europe for CalGo® and sales of ProGo® in Asia.
During the quarter, HBC worked closely with our distributor network and
undertook a series of key customer meetings across Asia.

Subsequent events

* In October, HBCI completed prostate cancer xenograft studies with its lead
peptide FT-002a in combination with standard of care hormone-targeting
therapy. The novel oral formulation of FT-002a (FT-002a-O) significantly
augmented the anti-tumour activity of enzalutamide (Xtandi®), the market-
leading androgen receptor inhibitor.

Please find the Q3 Financial report attached.

For further information, please contact:
Jon Olav Ødegård, CEO of Hofseth BioCare ASA
Phone: +47 93632966
E-mail: investor@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 using the Company's bioactive peptides as a Medical
Food for the protection of the Gastro- Intestinal (GI) system against
inflammation (including ulcerative colitis and the orphan condition necrotizing
enterocolitis). The Company is founded on the core values of sustainability,
optimal   utilization of natural resources and full traceability.  Through
innovative and patent protected hydrolysis technology, HBC can preserve the
quality of the lipids, proteins and calcium from fresh salmon off-cuts.

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

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

631696_HBC Q3 2024 Financial Report.pdf