Arctic Blue Beverages

THE INTERIM PERIOD JANUARY – SEPTEMBER 2024

• Revenues (Jan - Sep): SEK 3 780 thousand (SEK 5 441 thousand on corresponding period 2023)
• EBITDA: SEK –9 319 thousand (SEK –11 879 thousand)
• EBIT: SEK –10 474 thousand (SEK –13 591 thousand)
• Net result: SEK –10 770 thousand (SEK –14 691 thousand)
• Earnings per share (EPS) -0,41 SEK / share
• Cash and cash equivalents: SEK 693 thousand (30 September 2024)

THE PERIOD JULY – SEPTEMBER 2024

• Revenues (Jul - Sep): SEK 1 110 thousand (SEK 1 121 thousand on corresponding period 2023)
• EBITDA: SEK –2 959 thousand (SEK –3 029 thousand)
• EBIT: SEK –3 254 thousand (SEK –3 615 thousand)
• Net result: SEK –3 277 thousand (SEK –3 859 thousand)
• Earnings per share (EPS) -0,13 SEK / share

SIGNIFICANT EVENTS DURING JULY – SEPTEMBER 2024

• Arctic Blue Beverages was awarded the Best Premium Gin Brand in Finland for the second year in a row
• Company entered into loan agreements amounting to a total of EUR 400 000

SIGNIFICANT EVENTS AFTER PERIOD

• Nordic craftsmanship and design took centre stage in Tokyo: Arctic Blue Beverages and Lundia presented a unique design and taste experience
• The Company launched Arctic Blue Webshop, Offering Direct Delivery to Seven European Countries
• Company entered into loan agreements amounting to a total of EUR 100 000

REPORT HIGHLIGHTS
“The summer of 2024 was challenging in Finland both in terms of restaurant sales and Alko’s sales. Due to our strong brand, we have been able to maintain our market position and achieve many new Hotels, Restaurants and Catering (“HoReCa”) listings. An example of our brand’s appeal and reputation, Arctic Blue Beverages was awarded the Best Premium Gin Brand in Finland for the second year in a row by the Luxury Lifestyle Awards 2024. Our products continuously collect international awards, which we are very proud of. Now we are happy that also the Arctic Blue Company brand, which supports our products and the story behind them, seems to be on a similar winning strike.
The expansion of the Arctic Blue product portfolio to lower price points with Arctic Blue Long Drink has also shown its strength. 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 summer 2024 sales start has shown us that this is the right and potentially very significant product for the Company both in domestic and export markets.

During the third quarter of 2024, our sales revenue stayed the same compared to the corresponding period last year. We were successful in compensating for the declining demand on our domestic market. This was achieved through growth in export, new product sales such as Arctic Blue Long Drink and new listings in domestic HoReCa.
Customer satisfaction has remained at a very high level, and as a sign of that, we have been able to renew all the listing contracts that were expiring by the end of 2024.
Despite the challenging market situation, we have continued putting more efforts into our sales and marketing activities which we believe will give us a better position when economic conditions improve.

Although the market situation remains tough, we have made progress in many areas. The new Arctic Blue Long Drink has proven to be an important addition to the Company’s product range, which as a more affordable product has been generating revenue when sales of the more expensive premium gin portfolio is challenging.
The opening of the Arctic Blue Distillery has been delayed due to a shortage of components and issues with interpreting the safety regulations of the production facility. However, it now looks like we will be able to open the distillery during the fourth quarter 2024.
Arctic Blue Distillery brings a whole new addition to the Company’s product offering when we get to develop new unique products, organize local 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. We are already looking forward to the start of the distillery and especially when the first new batch of Arctic Blue gin is born. It will be a special moment”, says Valtteri Eroma, CEO of Arctic Blue Beverages.

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