New Nordic Healthbrands Six-month report January - June 2015

COMMENTS BY KARL KRISTIAN BERGMAN JENSEN, CEO

Sales increased 9.9 percent to SEK 149.4 million during the first six months of the year. In local currencies, sales increased 2.9 percent. EBITDA increased to EUR 8.9 million and earnings per share after tax increased to 0.86 SEK.

We grew in all geographic areas. The countries that have contributed most to our absolute growth in sales is US, UK and Denmark. Although most markets have had success, there are some markets where growth does not match our ambitions and markets where we even experienced a slight decrease. It was particularly notable in the second quarter. Where growth has not met our expectations it has been due to a combination of several marketspecific conditions. Some of these challenges we can solve relatively quickly and so we do. In other cases, we rely on external factors, and these take longer to adjust to. The effectiveness of our marketing, our cooperation with retailers and the success of our new product launches will be decisive for our performance. Our product portfolio is well tuned and further innovations are planned for introduction in the fall. The launch of Nordic Organic Fish Oil™ has been well received on the Danish market. Launch of this product is planned in a number of additional markets in the second half of 2015.

Our costs are under control. Our gross margin increased during the first half of 2015 to nearly 67 per cent and it is now at a satisfactory level. We have increased our staff from 37 to 43 people so we are better prepared for future growth. We also increased our marketing expenses to support the broadened product portfolio and our efforts to take more market share.

On 5 October this year, New Nordic can celebrate its 25th anniversary. Our growth from nothing but an idea to what New Nordic stands for today demonstrate the effectiveness of our strategy. A strategy that builds on the strengths of our brands and an entrepreneurial spirit. All employees are passionate about our business and our international expansion and I look forward to the second part of 2015 and the next 25 years with optimism.

Karl Kristian Bergman Jensen, CEO

New Nordic Healthbrands AB
Södra Förstadsgatan 3 C
SE-211 43 Malmö, SWEDEN

The information in this press release is that which New Nordic Healthbrands AB (publ) is required to disclose under Sweden's Securities Market Act. It will be released for publication at 9.00 (CET) on July 31st, 2015.

For a full report see attached pdf.

Malmö July 31, 2015