Hofseth Biocare ASA: FOURTH QUARTER & FULL YEAR 2024 FINANCIAL REPORT

14 Feb 2025 08:45 CET

HBC achieved full-year sales revenue of NOK 256.8 million, a 35% increase from
2023, with strong momentum in higher-margin B2B human nutrition. The shift
towards premium products, particularly CalGo® and OmeGo®, contributed to the
revenue boost, while gross margins improved across all segments.

The company's restructuring efforts in Q4 led to improved scalability, with cost
optimization initiatives streamlining operations. Organization re-structuring
during the fourth quarter, resulted in one-time cost effects of 1.9m, related to
personnel turnover and dismissals. Gross margins strengthened, particularly in
B2B, reaching 42.4% in Q4, up from 37.4% last year. Capacity utilization at the
Midsund facility improved to 89% in the quarter. HBC secured record-high long-
term contracts in the pet and feed segment, while renewed growth in the consumer
health division was driven by increased retail distribution and e-commerce
traction.

Significant progress was made in validating the health benefits of core
products. Studies confirmed ProGo®'s metabolic health impact, with new findings
supporting its role in weight management. OmeGo® demonstrated strong immune-
supporting properties in urban pollution studies. HBC's research yielded
promising results, particularly in osteoarthritis and oncology. Preclinical
studies indicate strong tumor-suppressing effects in prostate cancer, with
additional studies underway.

HBC decided in the fourth quarter to start a project to build a second
hydrolysis plant in Berkåk through HBC Berkåk AS.

Please find the HBC Q4 2024 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 company founded on the core values of
sustainability, optimal utilization of natural resources and full traceability.
It upcycles the side streams of the salmon industry by taking fresh filleted
salmon and converting it from a waste product into ingredients to improve human
and pet health.

These ingredients are ProGo®, a mix of bioactive peptides and collagen, OmeGo®,
a whole salmon oil, with all the fatty acid fractions contained in fish, and
CalGo® / NT-II® salmon bone powder containing calcium hydroxyapatite and
undenatured collagen for bone and joint health.

HBC places scientific evidence at the forefront which has led to important
academic partnerships and the identification of unique health benefits. This
includes the demonstration of improved iron metabolism by boosting the body's
ability to take up and use iron resulting in increased energy and vitality with
ProGo® as well as the activation of the GLP-1 receptor with fat reduction in
overweight adults. OmeGo® has shown important immune health benefits including
recovery from viral infection and improved respiratory health and sleep in
adults troubled by particulate matter pollution. Finally, CalGo® has shown both
bone and joint health benefits to support healthy ageing and active lifestyles.
This work has also resulted in the granting of a number of patents protecting
these discoveries. It has also led to the discovery of potential therapeutics
and HBC has spun out a biotech-focused company, HBC Immunology (HBCI), that has
raised external finance, and the lead program is in prostate cancer followed by
ovarian cancer. A separate molecule is targeted as an oral, steroid-sparing
therapy for asthma. HBC's headquarters are in Ålesund, Norway with branches in
Oslo, London, Zürich, New Jersey and Palo Alto.

HBC is listed on Oslo Stock Exchange with ticker "HBC".

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

638778_HBC Q4 2024 Financial Report.pdf