ARCTIC BLUE BEVERAGES AB: HALF-YEAR REPORT, JAN–JUN 2024

THE PERIOD JANUARY – JUNE 2024

• Revenues (Jan - Jun): SEK 2,670 thousand (SEK 4,291 thousand on corresponding period 2023)
• EBITDA: SEK –6,359 thousand (SEK –8,849 thousand)
• EBIT: SEK –7,219 thousand (SEK –9,976 thousand)
• Net result: SEK –7,493 thousand (SEK –10,832 thousand)
• Earnings per share (EPS) -0.29 SEK / share
• Cash and cash equivalents: SEK 2,319 thousand (30 June 2024)

THE PERIOD APRIL – JUNE 2024

• Revenues (Apr - Jun): SEK 1,675 thousand (SEK 2,022 thousand on corresponding period 2023)
• EBITDA: SEK –3,228 thousand (SEK –4,315 thousand)
• EBIT: SEK –3,526 thousand (SEK –4,885 thousand)
• Net result: SEK –3,525 thousand (SEK –5,728 thousand)
• Earnings per share (EPS) -0.13 SEK / share

SIGNIFICANT EVENTS DURING APRIL – JUNE 2024

• Company’s product portfolio was awarded multiple awards at the prestigious San Francisco World Spirits Competition 2024. Arctic Blue Gin Rose secured a Double Gold medal, while the Company’s flagship product, Arctic Blue Gin, was awarded Gold. Additionally, Arctic Blue Laku, a liquorice liqueur crafted in collaboration with Kouvolan Lakritsi, received a Silver medal
• Company launched two versions of the popular drink invented for the 1952 Helsinki Olympics, namely Arctic Blue Long Drink Grapefruit and Arctic Blue Long Drink Grapefruit Zero Sugar
• Company launched Arctic Blue Gin Cask Vintage 2023, adding a new flavour to its award-winning portfolio. The product is an amber-hued gin that has matured for two years in American white oak barrels
• Company entered into loan agreements amounting to a total of EUR 450,000

SIGNIFICANT EVENTS AFTER PERIOD

• Company entered into loan agreements amounting to a total of EUR 150,000

REPORT HIGHLIGHTS

“The second quarter was a significant milestone for the Company because we launched a new product, Arctic Blue Long Drink. This is our version of the popular drink developed for the 1952 Helsinki Olympics. Two variants of the product were immediately available, Arctic Blue Long Drink Grapefruit and Arctic Blue Long Drink Grapefruit Zero Sugar. With our new products, we bring the Arctic Blue brand into a completely new and highly competitive long drink category. As a newcomer in the category, this is quite exciting. However, I am confident because the initial product feedback has been very positive. In Finland, the products are already widely available in K-Group stores. Arctic Blue Long Drink is an important product for us because it brings the Arctic Blue brand and product to a completely new distribution channel and to new customer groups who shop in grocery stores. Building brand recognition in a new channel will take time, but I believe that this is the right and potentially very significant product for the Company.
We also continued building our gin portfolio by launching a new flagship product, Arctic Blue Gin Cask Vintage 2023. It is a unique and characterful product that has matured for two years in American white oak barrels. Soon after the launch, Arctic Blue Gin Cask Vintage 2023 was awarded with a prestigious gold medal in International Wine & Spirit Competition (IWSC 2024) held in the UK. In addition to IWSC, we had great success in the San Francisco World Spirits Competition which is the largest event of its kind and the most influential blind judging event globally, where our product portfolio was awarded multiple awards. Arctic Blue Gin Rose was awarded a Double Gold medal, Arctic Blue Gin, was awarded Gold, and Arctic Blue Laku, a liquorice liqueur crafted in collaboration with Kouvolan Lakritsi, was awarded a Silver medal.

During the second quarter of 2024, our sales revenue decreased by 13% compared to the corresponding period last year. The principal factor contributing to this downturn was an unfavourable sales trend evident in Finland, the travel retail sector and export sales, where we experienced a decline in sales. Due to challenging economic times consumers continue buying cheaper products and this can be seen across all our sales channels.
Despite the challenging market situation, during the second quarter we have accelerated our sales activities, especially in the export market. I believe that these activities will materialize as new customers during the second half of the year. Of course, it must be remembered that opening a new market takes years, but that is exactly why it is important to keep active sales work going on continuously.

Although the market situation remains challenging, we have made progress in many areas. The new Arctic Blue Long Drink is a significant addition to the Company’s product range, which as a more affordable product generates revenue even when sales of the more expensive premium gin portfolio is challenging. At the same time, we continue to expand the premium gin portfolio, a good example of which is the new and award-winning Arctic Blue Gin Cask Vintage 2023. The new products ensure a better revenue stream and bring new customers to the Arctic Blue brand.
The opening of the Arctic Blue Distillery has been slightly delayed due to a shortage of components for the distillery equipment. However, the work is now progressing well and if there are no more surprises, we will open the distillery at Kulttuurikasarmi during the third quarter of 2024. This brings a whole new addition to the Company’s product offering when we get to organize product tastings and other events at the Arctic Blue Distillery in the heart of Helsinki. In the long run, this will increase Arctic Blue’s product awareness and increase sales of the Company’s products”, says Valtteri Eroma, CEO of Arctic Blue Beverages.

Arctic Blue Beverages AB has published its January - June 2024 Half-Year Report on the Company’s website today. The Half-Year Report is available to download on the Company’s website www.arcticbluebeverages.com/investors/financial-reports/. A PDF version of the Half-Year Report is attached to this press release.