PHARMANUTRA S.P.A.: BOARD OF DIRECTORS APPROVES INTERIM

MANAGEMENT REPORT AS AT 30 SEPTEMBER 2022

The growth trend in revenues and margins was confirmed, while the strengthening of the company's leadership on the oral iron supplement market continued. First consolidation of Akern S.r.l., the new Group company.

    • Sales Revenues € 60.3 M (+21.9% compared to 30/09/2022)
      • EBITDA € 19.1 M (+20.7% compared to 30/09/2021)
  • Net result of the period excl. non rec. items € 12.8 M (+23.1% compared to 30/09/2021)
    • Positive Net Financial Position € 7.3 M (€ -20.7 million compared to 31/12/2021)

Pisa, 7 November 2022 - The Board of Directors of PharmaNutra S.p.A.(MTA; Ticker PHN), a company specialising in mineral-based nutritional supplements and medical devices for muscles and joints, approved today its Interim Management Report as at 30 September 2022 (not subject to auditing).

Roberto Lacorte, Deputy Chairman of PharmaNutra S.p.A., stated: "Again this quarter, PharmaNutra achieved results that go far beyond the growth forecasts made in the previous months, especially if we compare the change with the same period of the previous year. The most important figure we see is the sharp increase in all product lines, even greater than the general growth of the market. This is a vital boost to organic growth, which feeds into and supports all the current strategic drivers, such as the integration and acceleration of the growth of Akern S.r.l., the new company acquired by the Group, and the quick process of internationalisation, which is undergoing a significant phase of expansion on new key markets, such as China and the United States. Moreover, the results of the third quarter form a solid base for the inclusion of new products in our portfolio, which will begin from 2023."

ANALYSIS OF CONSOLIDATED RESULTS AS AT 30 SEPTEMBER 2022

After acquiring the shares representing 86.48% of the capital of Akern S.r.l. in July, in the consolidated financial statements as at 30 September 2022, the subsidiary was consolidated starting on 1 July 2022. The acquisition of the residual 13.52% is planned by the end of the year.

ECONOMIC DATA (€/million)

2022

%

2021

%

CHANGE

REVENUES

60,5

100,0%

49,7

100,0%

21,9%

SALES REVENUES

60,3

99,6%

49,3

99,3%

22,2%

EBITDA

19,1

31,5%

15,8

31,8%

20,7%

NET RESULT OF THE PERIOD

12,8

21,2%

10,9

21,9%

17,9%

NET RESULT OF THE PERIOD excl. non rec.items

12,8

21,2%

10,4

21,0%

23,1%

EPS - NET EARNINGS PER SHARE

1,33

1,12

18,0%

BALANCE SHEET DATA (€/million)

2022

2021

CHANGE

NET INVESTED CAPITAL

41,8

17,0

24,7

NET FINANCIAL POSITION (cash positive)

7,3

28,1

(20,7)

NET EQUITY

(49,1)

(45,1)

(4,0)

  • The Net Result excluding non-recurring items of 2021 was net of the tax credit obtained on the costs incurred in 2021 for the transition to the Euronext Star market (€ 457 thousand).

SALES REVENUES FOR THE FIRST QUARTER 2022

Consolidated net revenues as at 30 September 2022 amounted to € 60.3 million, an increase of € 11 million on the same period of the previous year (+22.2%). Sales volumes of finished products as at 30 September 2022, amounting to around 8.4 million pieces, increased by around 27% on 30 September 2021 (6.6 million pieces).

SALES REVENUES - ITALY

Revenues realised on the Italian market (BL1), amounting to € 42.5 million (€ 35.4 million as at 30 September 2021) showed an increase of 20%, with an incidence on total revenues of 70.5% compared to 71.8% in the same period of the previous year. The increase derives from greater sales of finished products, while the sales of raw materials decreased by around € 200 thousand compared to the same period of the previous year.

SALES REVENUES - INTERNATIONAL

Revenues deriving from sales on foreign markets (BL2) amounted to € 16.9 million, compared to € 13.9 million as at 30 September 2021, a net increase of € 3 million (+21.4%). The change recorded on the previous quarters is attributable to the trends in foreign orders, which were specifically concentrated in the first six months of 2022.

SALES REVENUES - AKERN

Net revenues generated by Akern in the three months subject to consolidation amounted to € 0.9 million, of which € 0.1 million generated by foreign markets.

SALES BY PRODUCT LINE

As at 30 September 2022, the growth in revenues for all the main lines of finished products was confirmed.

F.P. revenues by product line

Incidence

€/1000

2022

2021

%

2022

2021

Sideral

42,871

37,678

13.8%

73.5%

79.4%

Cetilar

5,820

4,683

24.3%

10.0%

9.9%

Apportal

6,312

3,085

104.6%

10.8%

6.5%

Ultramag

647

690

-6.3%

1.1%

1.5%

Others

1,791

1,340

33.6%

3.1%

2.8%

Akern

906

0

100.0%

1.6%

0.0%

Total

58,347

47,477

22.9%

100%

100%

The SiderAL® line, the leader in the Italian market for iron-based food supplements, grew by 13.8% on 30 September 2021, reaching a market share value of 55.3%1 in the iron-based food supplement market.

The sales of the Cetilar® line increased by around 24% on the same period of 2021.

ApportAL® showed significant growth compared to the same period of the previous year, due to its vitality boosting, energising and restoring characteristics.

1 Source: IQVIA data

ECONOMIC RESULTS

Operating expenses as at 30 September 2022, equal to € 41.4 million (+22.4% on 30 September 2021), increased due to the growth in revenues.

EBITDA as at 30 September 2022 amounted to € 19.1 million (€ 15.8 million as at 30 September 2021), with a margin on total revenues of 31.5% and an increase of 20.7% on 30 September 2021.

The Net result for the period came to € 12.8 million (€ 10.9 million as at 30 September 2021).

Net earnings per share as at 30 September 2022 came to € 1.33 compared to € 1.12 in the same period of the previous year.

The Net financial position as at 30 September 2022 was a positive € 7.3 million, compared to € 28.1 million as at 31 December 2021. The cash flow generated by operations in the period amounted to € 5.6 million. Investments of € 17.2 million were made, of which € 10.8 million to acquire 86.48% of the shares of Akern and € 5.5 million to build the new headquarters. The acquisition of the Akern shares was financed through the disbursement by the banking system of two unsecured medium/long-term loans amounting to € 6 million each. Treasury shares were repurchased for a total of € 2.2 million.

Cash flow from operations in the amount came to € 8.9 million (€ 9.8 million as at 30 September 2021).

SIGNIFICANT EVENTS OCCURRING AFTER 30 SEPTEMBER 2022

No significant events occurred after 30 September 2022.

OUTLOOK FOR OPERATIONS

The results achieved in the first nine months of 2022, the performance of sales on the Italian market and the backlog of orders relating to deliveries on foreign markets in the fourth quarter will confirm results in line with expectations.

The strategy of the PharmaNutra Group is focused on strengthening its leadership in the oral iron market, where it already holds a market share value of around 55% due to SiderAL® brand products, increasing the market share for Cetilar® brand products and developing sales of ApportAL® and UltraMag®.

Specific attention continues to be paid to international development, with specific reference to the European, Asian and US markets. We plan to expand the range of products sold in the countries where

the Group operates and open new markets, possibly, if deemed strategically important, also through business partnerships.

The process of integration of Akern has begun, which is expected to provide synergies that will develop the company's presence on the Italian and foreign markets, thanks to the sales network and foreign distributors of PharmaNutra, increase sales of Group products and lay the foundation for the launch of new product lines.

Within the framework of general uncertainty of this period, the PharmaNutra Group will work as always to meet its commitments and targets, keeping a constant focus on efficiently managing its income statement and cash flow structures to flexibly and immediately respond to uncertainties.

*******

The interim management report as at 30 September 2022, not subject to auditing, will be made available to the public through the methods and within the time frames set out in the current regulations.

********

CERTIFICATION BY THE MANAGER IN CHARGE OF DRAFTING THE CORPORATE ACCOUNTING DOCUMENTS

The Manager in charge of drafting the corporate accounting documents, Mr. Francesco Sarti, declares, pursuant to paragraph 2 of Article 154 bis of Italian Legislative Decree 58/1998, that the accounting disclosure contained in this press release matches the accounting documents, books and records.

FINANCIAL STATEMENTS (NOT SUBJECT TO AUDITING)

Annex 1 - Consolidated Balance Sheet

Annex 2 - Consolidated Income Statement and Consolidated Statement of Comprehensive Income Annex 3 - Statement of Changes in Consolidated Net Equity

Annex 4 - Consolidated Cash Flow Statement (indirect method)

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Pharmanutra S.p.A. published this content on 07 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 November 2022 17:13:05 UTC.