Statement by CEO – Karl Kristian Bergman Jensen

2026-10-30

Growth and measures to improve future profitability
New Nordic continues to grow, supported by new product launches and positive performance across several markets. Revenue increased by just under 4 percent in the third quarter. For the first nine months of the year, revenue grew by just over 3 percent in Swedish kronor and 6 percent in local currencies.

We see opportunities to build on this progress by strengthening our product offering, expanding our digital sales channels and improving operational efficiency. However, growth and earnings for the quarter fell short of our expectations. Market conditions remain challenging, particularly in Europe, where consumers and retailers are increasingly focused on promotions and special offers.

The gross margin was 63.6 percent, slightly below the corresponding period last year, primarily reflecting a higher proportion of sales to distributors. We recorded a modest operating profit, while earnings for the period were affected by higher tax expenses arising from an adjustment to our transfer pricing model. To improve profitability, we are reviewing operations across all markets and implementing measures tailored to each country. We expect these initiatives to contribute to improved profitability in 2027.

We are also strengthening our international capabilities in digital marketing and sales. Platforms such as TikTok Shop, alongside our own online stores, create opportunities to reach more consumers and build closer customer relationships. We expect these enhanced capabilities to be in place during the first half of 2027.

Nordic region
Revenue in the Nordic region increased by just under 7 percent during the quarter, with growth in Denmark, Sweden and Norway. New product launches and increased marketing activity supported this performance. We continue to strengthen our partnerships with retailers while expanding direct-to-consumer sales and engagement.

Europe
In the rest of Europe, sales declined by 5 percent during the quarter and by 7 percent in the first nine months of the year. We are adapting our operations to challenging market conditions, with targeted measures to support sales and improve profitability.

New product launches are performing well and are expected to support future growth. In England, our largest market, retail sales to consumers remained in line with the previous year, despite a decline in our sales to retailers. We expect the initiatives now under way to deliver results over the next six months.

North America
Sales in North America were unchanged in the third quarter and declined by 1 percent in the first nine months of the year. In Canada, changes to our media mix have improved marketing effectiveness. In the US, we have revised our arrangements with online retailers and are progressing with the establishment of our California office. These initiatives are intended to strengthen online sales and social media marketing, with benefits expected in the first half of 2027.

Rest of the world
Combined sales in Vietnam and China increased by 113 percent in the third quarter and by 144 per cent in the first nine months of the year. This strong performance was driven primarily by new product launches in Vietnam and a revised product focus in China. Following the end of the quarter, we launched in South Korea, with the first shipments dispatched in October.

New Nordic Extracts
Sales of our branded herbal extracts continue to develop positively, supported by strong interest. During the quarter, we expanded our network through new distribution and agency agreements in Asia and began supplying manufacturers in France. We continue to develop the business and expect New Nordic Extracts to make a positive contribution to earnings in 2027.

Strategic priorities and outlook
Our strategic priority is to strengthen our position in existing markets while establishing distribution partnerships in additional strategically important countries. Our international sales and marketing platform, together with online stores in 23 countries, provides a strong foundation for continued growth.
Our ambition is to make New Nordic the world’s most trusted Nordic brand for premium herbal supplements and beauty products. We aim to achieve this by combining deep botanical expertise, scientific innovation, and an understanding of evolving consumer needs. Rooted in Nordic values, we translate nature’s potential into distinctive, desirable products and exceptional consumer experiences across retail and digital channels worldwide. Care for people and nature guides our work. Looking ahead, our priorities are to drive organic growth, improve operational efficiency, and increase earnings
per share. I am confident that the initiatives we are implementing in the fourth quarter of 2026 and throughout 2027 will strengthen profitability and support long-term, sustainable growth and increased shareholder value.

Karl Kristian Bergman Jensen, CEO
New Nordic Healthbrands AB
Södra Förstadsgatan 3 C
SE-211 43 Malmö
Sweden