New Nordic Healthbrands AB (publ) Interim Report Q1 January - March 2025
The first three months (1 January 2025 - 31 March 2025)
- The Group's net sales in SEK increased by 10.4 percent during the quarter to 143.8 MSEK (130.2 MSEK). In local currencies, the increase was 10.6 percent.
- The gross margin increased to 64.6 percent (63.4 percent), and gross profit amounted to 92.9 MSEK (82.6 MSEK).
- Operating profit improved to 4.9 MSEK (-3.8 MSEK).
- Net profit after tax for the period improved to 2.7 MSEK (-3.4 MSEK), corresponding to 0.43 SEK (-0.55 SEK) per share*.
- Cash flow from operating activities amounted to -6.3 MSEK (-15.8 MSEK).
* There are no dilution effects
CEO COMMENTS BY KARL KRISTIAN BERGMAN JENSEN
The positive development observed during the fourth quarter of 2024 continued into the first quarter of 2025. Revenue increased by 10% this quarter, reaching 143.8 MSEK, while net profit after tax amounted to 2.7 MSEK.
We noted stable growth in the Nordics during this quarter. Denmark exhibited the strongest growth with a significant rise in sales, while Sweden and Norway experienced more modest gains. Our retail partners are evolving differently across countries, and we continue to face challenging market conditions in Sweden and Norway. Despite this, we remain optimistic about the future and expect ongoing regional growth.
The United Kingdom and Ireland reported robust growth in Europe, mainly fueled by successful product innovations. In Germany, we observed continued growth despite challenging market conditions. Most other European markets showed stable development, except for Italy, where we have initiated improvement efforts through innovation. In the Benelux, responsibility for distribution in Belgium and Luxembourg has now been entirely taken over internally, laying the groundwork for future revenue growth. The transition to a distributor-led operation in Central Asia has been successfully completed, and our partnerships are functioning well.
The USA and Canada both showed solid growth during this quarter. The USA experienced double-digit growth, driven by increased marketing efforts, while innovation was the primary driver behind growth in Canada.
Sales in other global markets declined compared to the previous year. This decline is primarily due to large initial purchases by our Chinese cross-border distributor during the same period in 2024. In Vietnam, our distributor continues to deliver strong results and remains our largest international partner.
We expect continued positive development of the company's revenue. Still, we are operating during a turbulent time when consumer confidence and purchasing behavior are challenging to predict, particularly due to the recent introduction of new U.S. and other international tariffs.
We launched several new products this quarter, reinforcing our position within strategic key categories. Among these are: Good Eyes™, several products within the Magic Magnesium™ series, and several new "gummies" variants. These products are expected to contribute significantly to growth during 2025.
Three of our most iconic products - Blue Berry™ eye tablets, Cran Berry™, and Apple Cider™ tablets - will celebrate 25 years on the market in 2025.
We have also started the year with notable awards: Herbal Joy™ Firming Body Lotion won the Swedish Beauty Award 2025 in the category "Body Care Product of the Year over 200 SEK," and New Nordic was named Supplier of the Year by the retail chain Kinsarvik Naturkost in Norway.
We continue to work toward our strategic goal of consolidating and strengthening our presence in all existing markets. With a strong sales and marketing network in Europe, North America, China, Vietnam, Hong Kong, and Australia and direct-to-consumer webshops in 23 countries, New Nordic stands on a solid platform for continued growth.
We will continue to focus on driving organic growth, improving operational efficiency, and increasing earnings per share.
We are confident that the initiatives planned for 2025 will further enhance shareholder value and position New Nordic for long-term, sustainable success.
Karl Kristian Bergman Jensen, CEO
New Nordic Healthbrands AB
Hyllie Boulevard 34
SE-215 32 Malmö
Sweden
This press release contains information that New Nordic Healthbrands AB (publ) is required to disclose pursuant to the EU Market Abuse Regulation. It was submitted for publication through the agency of the contact person set out above at 8:00 (CET) on 29 April 2025.
Link to report on New Nordic's investor relation web page: https://newnordicinvestor.com/reports-and-presentations
Contact:
Karl Kristian Bergman Jensen, CEO, telephone +46 40-236414, e-mail [email protected].
Ivan Ruscic, CFO, telephone +46 40-236414, e-mail [email protected]
New Nordic Healthbrands AB (publ), SE-215 32 Malmö, Sweden. Org. nr. 556698-0453.
Certified advisor: Mangold Fondkommission AB. +46 8 503 01 550, [email protected].
New Nordic Healthbrands AB (publ) was founded in 1990 and is listed on Nasdaq First North Growth Market Sweden since 2007. The company's business concept is to offer the most effective and safe dietary supplements, natural medicines and cosmetic products for specific health and beauty needs. All with care for people and nature. New Nordic products are now available in 44 countries in pharmacies, health stores, beauty shops, and travel retail. New Nordic has its own small sales and marketing companies in most European countries, Canada and the United States, to organise local marketing campaigns, serve retailers and serve end customers. In 2024, revenues were SEK 550 million. Almost all New Nordic products sold worldwide are manufactured in Scandinavia. For more information, visit www.newnordic.com.