Arctic Blue Beverages AB: Half Year Report, Jan-Jun 2022

THE HALF-YEAR PERIOD JANUARY – JUNE 2022

• Revenues (Jan - Jun): SEK 5,861 thousand (SEK 2,935 thousand on corresponding period 2021)
• Significantly increased revenues due to highly increased delivery volumes
• EBITDA: SEK -20,659 thousand (SEK -7,193 thousand)
• Profit declined mainly due to one-off expenses related to group re-organization (Swedish TopCo) and share issue costs
• EBIT: SEK -21,450 thousand (SEK -7,710 thousand)
• Net result: SEK -21,786 thousand (SEK –7,704 thousand)
• Earnings per share (EPS) -1.27 SEK / share
• Cash and cash equivalents: SEK 6,244 thousand (30 June 2022)

APRIL – JUNE 2022

• Revenues (Apr - Jun): SEK 2,554 thousand (SEK 1,363 thousand on corresponding period 2021)
• Significantly increased revenues due to highly increased delivery volumes
• EBITDA: SEK -14,728 thousand (SEK -4,732 thousand)
• Profit declined mainly due to one-off expenses related to group re-organization (Swedish TopCo) and share issue costs
• EBIT: SEK –15,252 thousand (SEK –4,991 thousand)
• Net result: SEK -15,587 thousand (SEK –4,972)
• Earnings per share (EPS) -0.91 SEK / share

SIGNIFICANT EVENTS DURING APRIL – JUNE 2022

• Arctic Blue Beverages AB listed at the Nasdaq First North Growth Market Stockholm
• The San Francisco World Spirit Competition (SFWSC) 2022:
  • Arctic Blue Legacy Gin Double Gold Award
  • Arctic Blue Gin Rose, Double Gold Award
  • Arctic Blue Oat, Silver Award
• Singapore World Spirits Competition (SWSC) 2022:
  • Arctic Blue Gin Rose, Double Gold Award & Best of Class
  • Arctic Blue Legacy Gin, Silver Award
  • Arctic Blue Gin, Silver Award
  • Arctic Blue Oat, Silver Award
  • Arctic Blue Gin Navy Strength, Bronze Award
• Distribution agreement with leading Southeast Asian distribution platform Buy2sell for joint effort co-operation to distribute Arctic Blue Beverage’s products.
• Distribution agreement with Solera Sweden who will distribute Arctic Blue products across Sweden.
• Launched Arctic Blue Gin Rose and Hang Oat RTD.

SIGNIFICANT EVENTS AFTER PERIOD

• IWSC (International Wine and Spirit Competition) 2022
  • Hang Oat Vanilla, Silver Award

REPORT HIGHLIGHTS

“On the 12th of May, trading with the share Arctic Blue Beverages AB at Nasdaq First North Growth Market Stockholm begun. During May 2022 Arctic Blue Beverages carried out an oversubscribed offering of shares, which provided the company with gross proceeds of approximately 28 MSEK, before deductions for issue costs and set- off of interest-free shareholder loans.

Markets have opened after the pandemic and sales increase in the second quarter 2022 was 174% compared to the same period a year ago. Total sales revenue in the second quarter 2022 has increased by 30% compared to the first quarter in 2022. The good development is coming mainly from travel retail and domestic market. The sales to Asia-Pacific i.e. Japan still in some extent suffered from pandemic, but we are seeing some positive signals that we believe will turn into results during the 2nd year half 2022. In Australia we are making good progress with our distributor.

We succeeded in the major spirits competitions where our products collected many prestigious awards. From The San Francisco World Spirit Competition (SFWSC) we collected two double gold awards and one silver award. From The Singapore World Spirits Competition (SWSC) we collected one double gold and best of class award, three silver awards and one bronze award. These are overwhelming results, for a relatively small player in the global alcohol industry.

We signed a distribution agreement with Solera Sweden who will distribute Arctic Blue products across Sweden. We also signed a distribution agreement with leading Southeast Asian distribution platform Buy2sell for joint effort co-operation to distribute Arctic Blue Beverage’s products starting with Singapore. With this distribution partnership Arctic Blue Beverages will reach more than 100.000 B2B customers across Southeast Asia.

New Arctic Blue Gin Rose as been a big success and has rapidly gained share both in travel retail and domestic market. Due to its performance in Finland, the product sold the amount needed for standard selection listing in Alko in just a few months.

Despite the challenging world- and the economic situation, we as a company have been able to move forward in accordance with our strategy. We have increased sales in Finland opened new markets such as Sweden, and brought new products to the market, such as Arctic Blue Gin Rose and Hang Oat RTD. We have won prizes with our products in major international competitions, which help our products’ visibility, increase awareness and sales globally.” says Valtteri Eroma, CEO of Arctic Blue Beverages.

From this day onwards the company will use only English in all official communications.