Translation from CEO Mårten Hellbergs comments to the Interim Report.

Q3, 1 July - 30 September 2025

The Group compared with 2024

» Net revenue amounted to SEK 22.47 (28.88) million

» The gross margin amounted to 17.5 (23.0) %

» EBIT amounted to SEK -6.42 (-3.01) million

» Cash-flow from operating activities amounted to SEK -8.48 (-1.66) million

1 January – 30 September 2025

The Group compared with 2024

» Net revenue amounted to SEK 87.83 (105.80) million

» The gross margin amounted to 22.0 (27.5) %

» EBIT amounted to SEK -13.23 (-2.99) million

» Cash-flow from operating activities amounted to SEK -11.26 (-1.10) million

CEO comments

A challenging quarter with a focus on a reduced cost base and continued progress in our strategic customer projects

The third quarter was a weak quarter due to lower volumes from our two largest customers, mainly due to shifts in delivery plans. However, we have implemented several strategically important initiatives, such as the collaboration with Klättermusen in China for OrganoTex and progress in our nonwoven projects regarding washcloths wipes and food pads. During the quarter, we also received new financing in place via our rights issue of SEK 20 million and a shareholder loan of SEK 10 million. To improve profitability, we are now implementing an efficiency program, which together with previously communicated efficiency program, will provide a cost reduction of approximately SEK 18 million when fully implemented. Despite weak sales in the quarter, we now see signs of increasing demand from both existing and new customers for our green products.

Financial development third quarter

During the third quarter, the Group had a sales loss of -22.2% (-13.7%) to SEK 22.5 (28.9) million. The sales loss came primarily from the Nonwoven & Fiber Technologies and Green Coatings & Maintenance Products business units, while Functional Wood had a smaller loss after good sales growth in Germany. Due to the lower sales, the operating profit deteriorated to -6.4 (-3.0) MSEK.

Nonwoven & Fiber Technologies

For the Nonwoven & Fiber Technologies business unit, sales decreased by -28% (-31%) to SEK 7.3 (10.1) million due to a volume shift from our largest customer from the third to the fourth quarter. However, the negative development we have had over the past two years now looks set to reverse. The forecast for the coming quarters shows positive development from both existing customers but also from new customers who are planning launches of wipes and food pads.

Green Coatings & Maintenance Products

For the Green Coatings & Maintenance Products business unit, sales decreased by -28% (24%) to SEK 7.3 (10.1) million. The loss came primarily during July-August from our private label customers in car care, but our OrganoTex brand also had weak summer months due to continued high inventory at a major customer. However, double-digit sales growth returned for the business area in September, driven by good sales of OrganoTex.

Functional Wood

The strategic focus on the German market continues successfully. During the quarter, sales to Germany grew by over 200% and total sales growth (Jan-Sept) in Germany is now up to 79%, totaling SEK 9.4 (5.3) million. In a continued weak Swedish construction market, we continue to lose sales, which resulted in a sales loss for the entire business unit of ​​-9% (-19%) to SEK 7.8 (8.5) million during the quarter.

Reduced cost base

Today we are launching a strengthened efficiency program that will reduce the parent company's costs by approximatly SEK 14 million. This includes both reduced operating costs and a reduction in the workforce by just over 20%, which will have a gradual effect during the first half of 2026. Together with the previously announced efficiency program of just over SEK 4 million in our partly owned subsidiary OrganoWood AB, we are reducing the Group's costs by approximately SEK 18 million at full effect. Structural costs for the program of approximately SEK 5 million will be reserved in the fourth quarter.

Outlook

With our reduced cost base and the improved sales we are now seeing both from existing industrial customers and from the product launches planned by new customers, our goal is to achieve a significantly improved result in 2026. At the same time, we continue to drive our strategic future projects such as our European expansion of OrganoTex, our customer projects in new nonwoven applications and the out-licensing of OrganoWood production. All to improve our competitiveness, turn to profitable growth and replace plastics and harmful chemicals with our biobased solutions.

The complete version of the Interim Report is attached in this press release and is available on the companys´ homepage. The informationen in this Interim Report is according to the rules of Nasdaq First North Growth Market.