THE PERIOD JANUARY – MARCH 2023 

• Revenues (Jan - Mar): SEK 2,269 thousand (SEK 3,307 thousand on corresponding period 2022 which was positively affected by one-time other operating income of SEK 1,345 thousand) 

• EBITDA: SEK –4,534 thousand (SEK –5,931 thousand) 

• EBIT: SEK –5,091 thousand (SEK –6,198 thousand) 

• Net result: SEK –5,103 thousand (SEK –6,199) 

• Earnings per share (EPS) -0.21 SEK / share 

• Cash and cash equivalents: SEK 505 thousand (31 March 2023) 

SIGNIFICANT EVENTS DURING JANUARY – MARCH 2023 

• Starting to introduce Arctic Blue Beverages’ products to British Columbia’s large craft gin market, after a good start on the Albertan market with Arctic Blue Beverages’ products available in over 30 retail locations across Alberta, Canada 

• Distribution agreement signed for the Finnish market with Oy Sinebrychoff Ab 

• Distribution agreement signed for Benelux and German markets with Market Entry.EU, member of STEX Group b.v. 

• Distribution agreement signed for the Japanese domestic and travel retail market with ID SHOJI Co.,Ltd. 

SIGNIFICANT EVENTS AFTER PERIOD 

• Arctic Blue Beverages launched premium liquorice liqueur, Arctic Blue Laku together with the Finnish luxury liquorice producer Kouvolan Lakritsi. Strong sales start on the Finnish market, with the product being available in over 250 Alko stores in only a few days from launching. Alko is the national alcoholic beverage retailing monopoly in Finland 

• Proceeds of approximately SEK 0,83 million before issue costs of exercising TO2 warrants 

• New distribution and logistics setup completed and operational in Finland and Nordic travel retail. In Finland, the Company now has two very experienced and focused distributors 1) Norex Selected Brands Oy, which distributes Arctic Blue Beverages’ products to the Finnish alcohol monopoly Alko, to wholesale and in the HoReCa field 2) Oy Sinebrychoff Ab, which distributes selected Arctic Blue Beverages’ products in the HoReCa field. In the Nordic travel retail, Norex Selected Brands Oy acts as Arctic Blue Beverages’ products sales agent. Arctic Blue Beverages also has a new logistics provider, Skanlog Oy, an independent 3rd party logistics specialist. Through this partnership, Arctic Blue Beverages aims to improve the efficiency of the Company’s travel retail and export logistics operations 

REPORT HIGHLIGHTS

“The big change in the way we distribute our products in Finland and Nordic Travel Retail was under planning during the second half of 2022, with the aim to streamline and enhance our sales and distribution operations on these markets. During the fourth quarter of 2022 we were able to release the first phase of the change, through signing a distribution agreement for the Finnish- and Nordic travel retail market with Norex Selected Brands Oy. 

During the first quarter of 2023, the second phase of the renewed distribution model for the Finnish- and Nordic travel retail market was set, when we signed a distribution agreement for the Finnish market with Oy Sinebrychoff Ab. 
This new distribution setup results in us having two very experienced and focused distributors for the Finnish- and Nordic travel retail markets; Norex Selected Brands Oy and Oy Sinebrychoff Ab. Oy Sinebrychoff Ab distributes selected Arctic Blue Beverages’ products in the HoReCa field, starting from 1st of April. Norex Selected Brands Oy distributes our products to the national beverage retailing monopoly Alko, to wholesale and in the HoReCa field. Norex Selected Brands Oy also acts as Arctic Blue Beverages’ products sales agent.

This new arrangement enables us to concentrate many channels into two experienced sales organizations, and thus ensure a consistent brand image and competitive product portfolio in all our important channels. Together with Norex Selected Brands and Sinebrychoff, we now have the best possible distribution partners in Finland and Nordic travel retail. 

In the first quarter of 2023, our sales revenue increased by 15% compared to the same period last year. The main reason for the increase was a very good progress on the home market Finland, where sales in the first quarter of 2023 was three times higher than corresponding period last year. The increase in sales from the Finnish market is partly a sign of a positive collaboration start with our new distributor Norex Selected Brands Oy. The collaboration has started off well both on the HoReCa field and in Nordic travel retail. 
Total sales revenue in the first quarter 2023 went down by 13%, compared to the previous quarter, mainly due to seasonal changes. However, there was good development in Nordic travel retail, on the Benelux and German market and in Western Canada. 

We signed a distribution agreement for the Benelux and German markets with MarketEntry.EU, a member of the STEX Group b.v. Together with our new distributor, we are looking forward to expanding our product availability in the growing European craft-and premium gin market. For the Japanese domestic and travel retail market we signed a long-term distribution agreement with ID SHOJI Co.,Ltd. The signed agreement with ID SHOJI Co.,Ltd marks a substantial milestone for us on our ongoing expansion in the Japanese craft gin market – an expansion that now takes full wind in the sails after the challenges brought by Covid-19. The agreement covers distribution on both the domestic and travel retail markets, giving us the means to introduce our premium craft gins to a wide audience. 

Due to the challenging world - and economic situation, the progress on new markets have been slower than anticipated and we have continued to adjust our operations and activities to adapt to the current situation in the best possible way. Our efficiency program has started to show results in lower operational costs. However, we have already seen positive signs from the Benelux and German markets, and in Canada we have taken our first step to introduce our products to the province British Columbia, after a successful start in Alberta. 

Going in to the second quarter of the year 2023 I am looking forward to getting our renewed distribution model in Finland and in Nordic travel retail strengthened with focus on increasing our availability in the HoReCa field. The new distribution setup for Finland and Nordic travel retail, with two experienced partners, Norex Selected Brands Oy and Oy Sinebrychoff Ab, is a setup in which I believe very positively. 
Additionally, strengthen the collaboration with our new distributors, ID SHOJI Co.,Ltd for the Japanese market and MarketEntry.EU for the Benelux and German markets”, says Valtteri Eroma, CEO of Arctic Blue Beverages