"Seasonally, the first quarter is the weakest for our operations. Nevertheless, we have had a good start to the year and we have begun to see the effects of our work to improve operational efficiency in the group. We have continued to have high demand for our products and have maintained strong organic growth. We reached a net turnover of SEK 1,592 million (SEK 873 million) and an adjusted EBITDA of SEK 147 million (SEK 113 million), which corresponds to a margin of 9.2 percent. Although some of the companies have had some challenges in adapting to the tough market environment with high inflation and volatility, I am pleased with several of the group-wide initiatives that we have put in place to support our entrepreneurs. We are already starting to see the results from the work to improve cash flow and we will continue to prioritize actions that contribute to strengthening our liquidity and balance sheet. All in all, I have a positive view of 2023 and the opportunities that exist by growing the group with our attractive brands, innovations, and products." - Simon Petrén, CEO Humble Group AB.

FINANCIAL INFORMATION:
FIRST QUARTER

• Net sales amounted to 1 592 MSEK (873).
• EBITDA amounted to 156 MSEK (64)
• Adjusted EBITDA amounted to 147 MSEK (113)
• EBITA amounted to 130 MSEK (47).
• Adjusted EBITA amounted to 121 MSEK (95).
• EBIT amounted to 85 MSEK (14).
• Adjusted EBIT amounted to 76 MSEK (62).
• Adjusted EBIT per share amounted to 0,25 SEK (0,25).
• Cash flow from operating activities amounted to 183 MSEK (9).
• Earnings per share before and after dilution amounted to -0,01 SEK (-0,12) respectively.

• Humble Group has completed the acquisitions of Privab Ystad, Privab Trollhättan, Privab Grossisterna AB and Napame Holding AB.

• Humble Group has given notice of the annual general meeting to be held on Friday May 19, 2023.
• Peter Werme, chairman of the board, has informed the nomination committee that he is not available for re-election as either board member or chairman of the board at the annual general meeting 2023.

CEO COMMENT FROM THE REPORT 
" INTENSE FIRST QUARTER WITH FOCUS ON OPERATIONS

Seasonally, the first quarter is the weakest for our operations. Nevertheless, we have had a good start to the year and we have begun to see the effects of our work to improve operational efficiency in the group. We have continued to have high demand for our products and have maintained strong organic growth. We reached a net turnover of SEK 1,592 million (SEK 873 million) and an adjusted EBITDA of SEK 147 million (SEK 113 million), which corresponds to a margin of 9.2 percent. Although some of the companies have had some challenges in adapting to the tough market environment with high inflation and volatility, I am pleased with several of the group-wide initiatives that we have put in place to support our entrepreneurs. We are already starting to see the results from the work to improve cash flow and we will continue to prioritize actions that contribute to strengthening our liquidity and balance sheet. All in all, I have a positive view of 2023 and the opportunities that exist by growing the group with our attractive brands, innovations, and products.

Operational focus
During the quarter, we continued with the strategically important work of defending and strengthening our gross profit margins. We still have a way to go in order to reach the historically normal levels from before the shipping and inflation crisis. At the same time, I am convinced that the work we are doing will benefit us going forward and that with the right activities we have good possibilities to reach an even higher profitability margin than the standard for our companies in previous years.

Our objective is to optimize the group's working capital structure in order to convert the group's profit generation and assets into cash flow more quickly. It is of course challenging to reduce the working capital with the strong growth that many of our businesses have, but in the long term we should be able to reduce our inventory levels and become more efficient in the dynamics between accounts receivable and accounts payable.

The work to realize synergies within the operating segments continues. Quality Nutrition and Future Snacking have developed well during the quarter and we see great potential in acting on exciting business opportunities within both segments. One of the initiatives within Quality Nutrition, which we call Arena Nutrition, involves gathering the segment's commercial expertise under one and the same umbrella. In this way, it will be easier to attract new customers and offer an overall solution as a full-service supplier in sports nutrition. We are already starting to see the effect of the initiative and I am convinced that it is a model that we will be able to use in other areas of the group.

Within Future Snacking, we have carried out several successful launches. Pändy is the latest example in the group, whose sugar-reduced sweets have received strong listings in Sweden and rank high in the top lists of online pharmacies. It is proof that the concepts work and are gaining wider acceptance among modern consumers.

During the quarter, we completed the acquisition of a production property in Borås, which enables La Praline Scandinavia to keep long-term production within the group. We are today the owner of 15 properties that our manufacturing units produce in. Through a possible divestment of such properties, we have the flexibility to refine the group's focus and strengthen the balance sheet going forward if we desire to.

The Sustainable Care segment has performed a stable quarter with continued growth in most of the subsidiaries. In some of the companies that offer premium products, we have noticed to some extent price sensitivity among the consumers. In general, however, we have managed to handle the challenges well through, among other things, strategic price and packaging adjustments. We continuously evaluate how we can strengthen the product offering and supplement with white-label and price fighters to create an attractive overall mix for our retailers.

For the Nordic Distribution segment, we have noted a certain margin pressure, where the transfer of increased input prices has not been executed at the desired rate. We work continuously to ensure long-term sustainable gross margins. The segment has performed very well historically and I feel confident that we will be successful in regaining the margin in the long term. We have several exciting ongoing synergy projects where we see an opportunity to consolidate sales force and centralize resources for increased efficiency.

During the quarter, we completed the previously communicated strategic acquisitions of the Privab companies and we are now fully focusing on developing the cooperation between the various units. We are also reviewing how we can further develop the group's distribution and channel strategy from a strategic perspective to become a comprehensive partner for both our internal and external brands. The goal is for us to be the preferred partner for brands to collaborate with in order to achieve successful distribution in the Nordics.

Outlook
Consolidation of the operations is proceeding according to plan. With the slower pace of acquisitions, we can dedicate additional resources to optimize value creation for all our companies. In general, we have noted a change in behaviour among some of our suppliers in recent weeks, where many of the price increases that characterized the entire 2022 are now conspicuous by their absence. To the contrary, we see potential for a reverse development in the market with reduced purchase prices. This would mean that we can maintain a stable price position with our customers and at the same time be able to strengthen profitability going forward.

The work on the list change is progressing well and we have several exciting projects at group level to further enhance our sustainability development and follow-up. The challenging market climate is of course difficult to navigate, but we continue to work intensively towards our goal of growing Humble into the FMCG group of the future."

The report is attached and can also be downloaded in its entirety on the company's website here (https://humblegroup.se/investerare/finansiella-rapporter/).

For more information, please contact:
Simon Petrén, CEO, Humble Group AB
Phone: +468 61 32 888
Email: simon.petren@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 Swedish food-tech and FMCG-group, supplying the next generation of products that are good for people and the planet. Humble targets the segments of foodtech, eco, sustainability and vegan to drive high organic growth, acquisitions and utilize synergies in the different operation entities: Brands, Distribution, Manufacturing and Ingredients and R&D. Humble's technology solutions, refined through scientific research and extensive market experience, facilitate new formulations and recipes that improve the taste and texture of the next generation of sugar-reduced, sustainable and vegan products. For more information visit www.humblegroup.se

Humble is listed on Nasdaq Stockholm, First North Growth Market, under the ticker HUMBLE.
FNCA Sweden AB is Humble's certified adviser. Tel: 08-528 00 399 E-mail: info@fnca.se

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.