FINANCIAL INFORMATION:

THIRD QUARTER

• Net sales amounted to MSEK 2,093 (1,950), an increase of 7% compared to the corresponding period last year. The organic growth for the period was 10% and the currency impact was -3%.
• EBITA amounted to MSEK 77 (146).
• Adjusted EBITA amounted to MSEK 143 (154).
• EBIT amounted to MSEK 30 (96).
• Adjusted EBIT amounted to MSEK 96 (104).
• Cash flow from operating activities amounted to MSEK 195 (142). Cash flow from operating activities includes repayment of tax deferrals of MSEK -45.
• Profit and loss after tax amounted to MSEK -15 (27).
• Earnings per share before and after dilution amounted to SEK -0.03 (0.06).

NINE MONTHS

• Net sales amounted to MSEK 5,979 (5,618), an increase of 6% compared to the corresponding period last year. The organic growth for the period was 8% and the currency impact was -2%.
• EBITA amounted to MSEK 312 (418).
• Adjusted EBITA amounted to MSEK 420 (422).
• EBIT amounted to MSEK 172 (271).
• Adjusted EBIT amounted to MSEK 279 (275).
• Cash flow from operating activities amounted to MSEK 309 (153). Cash flow from operating activities includes repayment of tax deferrals of MSEK -90.
• Profit and loss after tax amounted to MSEK 2 (82).
• Earnings per share before and after dilution amounted to SEK 0.00 (0.18).

SIGNIFICANT EVENTS:

DURING THE QUARTER

• In July, Humble increased its existing credit facilities with MSEK 300 and extended the maturity date for the credit facilities to 2027.
• In September, Humble launched an efficiency program that expects to provide annual cost savings of approximately 80 MSEK. A cost provision has been recognized of MSEK -52 during the third quarter, including severance pay to former CEO

AFTER THE QUARTER

• On October 2nd, the Board of Directors of Humble Group AB appointed Noel Abdayem as acting CEO after Simon Petrén, in consultation with the Board, has decided to leave Humble.

CEO COMMENT FROM THE REPORT 

"During the third quarter, organic growth reached 10 percent. Cash flow continued to strengthen, and we launched several initiatives aimed at driving stronger growth and improving long-term profitability. As the newly appointed CEO, I see great opportunities to harness the entrepreneurial spirit that runs through Humble and let it play an even bigger role in driving our performance. Looking ahead, it’s about sharpening our focus, working smarter, and building an even stronger Humble, both operationally and financially.

FINANCIAL PERFORMANCE
Sales increased during the quarter to MSEK 2,093, corresponding to growth of 7 percent and organic growth of 10 percent, primarily driven by strong development in the Future Snacking and Nordic Distribution segments.

Gross profit amounted to MSEK 636 (608) with a gross margin of 30.4 percent (31.2). The development primarily reflects a changed product mix where distribution operations continue to grow at a rapid pace, as well as currency effects of MSEK -22.

Adjusted EBITA amounted to MSEK 143 (154). Our increased investment in sales and marketing of MSEK -119 (-97) reflects the ambition to continue building strong brands and driving global growth. Going forward, we will focus more on efficiency and profitability, without losing the entrepreneurial drive that built Humble. The lower gross margin in Nordic Distribution affects the profit mix, but the segment remains strategically important for our market presence and long-term growth

Cash flow from operating activities, after changes in working capital, amounted to MSEK 195 (142). We continue to work focused on optimizing inventory levels and strengthening cash flow. Net debt decreased during the quarter to 2.7 times adjusted EBITDA excluding leasing, with the goal of reaching below 2.5 times in the long term.

THE DEVELOPMENT OF OUR FOUR SEGMENTS
I remain impressed by the strength of our group and the ability to deliver strong growth in all business areas despite a challenging market situation. Our investments in innovation, efficiency and brand building continue to yield results and create good conditions for both continued growth and improved profitability going forward.

Future Snacking delivered strong organic growth of 18 percent during the quarter. Our leading brands continue to show strength and good profitability, while interest in Swedish candy is growing rapidly internationally. The launch of the global e-commerce swedishcandy.com further strengthens our international presence. The investment in Grahns Konfektyr's new factory in Skövde is expected to double capacity and contribute to higher profitability from the second half of 2026.

Sustainable Care grew organically by 4 percent, driven by a recovery in our UK business and improved profitability thanks to rapid adaptation and effective cost control. Order delays temporarily impacted sales, but new product launches, strong brands and close customer relationships are strengthening the segment's position and creating good conditions for continued growth.

Quality Nutrition delivered organic growth of 11 percent during the quarter. Gross margin was impacted by currency effects, while temporary sales and marketing efforts increased the cost base. We see a clear recovery in the production of nutritional products and good conditions for a strong end to the year.

Nordic Distribution grew 13 percent organically during the quarter. Through strong cost discipline and high operational efficiency, profitability is maintained despite a less favorable product mix. The business continues to create value through its strong store network and broad market reach, which benefits both our own brands and external partners.

LEADERSHIP AND FOCUS AHEAD
It is with great confidence that I step in as Acting CEO of Humble. As founder of The Humble Co. and former board member, I have followed the Group's journey closely and seen the strong platform that has been built under Simon Petrén's leadership.

Now we are entering the next phase. My focus is clear: to sharpen what works and change what needs to be improved and create a more profitable and focused Humble. Through improved cost discipline, more efficient processes and a focus on our core businesses, we will drive sustainable growth and strengthen cash flow.

The ongoing efficiency program is expected to generate annual savings of approximately MSEK 80 when fully implemented - an important investment to strengthen profitability and create long-term value. Since the program was announced, we have worked at a high pace and have made significant progress in its implementation, in close collaboration with our entrepreneurs. The program had a one-time impact of MSEK -52 in the quarter and is laying the foundation for a more efficient and profitable group.

In parallel, a structural review is underway with a focus on strengthening the core business and clarifying the Group's direction. As part of this, strategic alternatives, including possible divestments, are being evaluated with the goal of creating a more focused, profitable and long-term sustainable group. The work is progressing at a good pace and aims to unlock additional value for shareholders."

The report is attached and can also be downloaded in its entirety on the company's website here.

For further information, please contact:
Noel Abdayem, Acting CEO, Humble Group AB
E-mail: noel.abdayem@humblegroup.se

This information is such that Humble Group is required to publish in accordance with EU Market Abuse Regulation 596/2014. The information in this press release has been published by the above contact person, at the time specified by Humble Group's news distributor Cision at the time of publication of this press release.

About Humble
Humble Group is a corporate group specializing in driving value and accelerating growth in small and medium-sized companies within the fast-moving consumer goods (FMCG) sector. Through an entrepreneurial approach and active ownership, Humble Group focuses on transforming its businesses to align with the future needs of consumers. The company manages a portfolio of brands, a global distribution network, and production facilities where its subsidiaries operate autonomously within their respective business areas, while Humble Group provides strategic guidance and support. The group is headquartered in Stockholm. For more information visit www.humblegroup.com

Humble is listed on Nasdaq Stockholm Mid Cap, under the ticker HUMBLE.

Forward-looking statements
This press release contains forward-looking statements that reflect Humble’s intentions, beliefs, or current expectations about and targets for Humble’s future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which Humble operates. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believe”, “expect”, “anticipate”, “intend”, “may”, “plan”, “estimate”, “will”, “should”, “could”, “aim” or “might”, or, in each case, their negative, or similar expressions. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although Humble believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. Humble does not guarantee that the assumptions underlying the forward-looking statements in this press release are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this press release or any obligation to update or revise the statements in this press release to reflect subsequent events. Readers of this press release should not place undue reliance on the forward-looking statements in this press release. The information, opinions and forward-looking statements that are expressly or implicitly contained herein speak only as of its date and are subject to change without notice. Neither Humble nor anyone else undertake to review, update, confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this press release, unless it is not required by law or Nasdaq Stockholm's rule book for issuers.