Q1 2022: Order pattern in Americas gave a weaker start to the year

Important events during the first quarter

• Net sales decreased by 10% (-16% adjusted for currency effects) to SEK 155 m (171).
• The EBITDA margin was 25% (28).
• The Americas were affected by customers' order patterns, which contributed to a weaker quarter. EMEA and APAC on par with the previous year adjusted for milestone-related revenue.
• Important step in the technological transfer of Blis products with the first commercial production batch of BLIS K12.
• New laboratory completed in Lund with the aim of improving pre-clinical ability and providing increased opportunities for product development.
• New Vice President Research & Development to take up position on April 1, 2022.

CEO Comments: Our focus is on regaining momentum in a turbulent world
The start of 2022 was particularly turbulent around the world and especially for us here in Europe. We are seeing a terrible war in our European neighbors Ukraine, something that affects us all in different ways. At the same time, the pandemic is far from over and in China, among other places, restrictions are very extensive. Macroeconomic indicators point to greater turbulence, price increases and rising inflation.

Q1 2022, showed a decline in net sales of 10% and 16%, adjusted for currency effects, which can be attributed to our performance in the Americas region. The lower volumes had an effect of our profitability, and our EBITDA margin was 25% (28).

Developments in the Americas region did not meet our expectations during Q1, and net sales decreased by 9%. Order patterns for some of our larger customers in the region contributed to the lower outcome in the quarter. Interest in our products and probiotics in general remains high and we have many exciting projects with both new and existing customers. An important focus area going forward is to increase sales of ClinBac™ in the region and we have set ambitious goals for this. Our assessment is that in the short term we will see a more stable development in the region, with levels corresponding to the previous year.

The EMEA region saw a strong quarter. Although net sales were 15% lower than last year, this can be due to milestone-related revenue in connection with the Perrigo launch last year. We saw good development in the region and Perrigo's rollout continues. Our collaboration with Oriflame has gained momentum and saw a launch in a couple of markets during the second half of 2021. Oriflame is greatly exposed to Russia and Ukraine, which affects their operations. This will mean delays in launches in these markets and instead there will be focus on other regions.

Net sales in the APAC region were at the same level as last year, which was a relatively strong quarter. Our customer Sinopharm Foreign Trade has completed the launch of Probi Defendum^® according to plan. Subsequently, the launch of Probi^® Osteo is planned for Q2, followed by Probi Ferrosorb^® later in 2022.

During the quarter, an important step in the technological transfer of Blis Technologies products was achieved when we completed the first production batch of BLIS K12. The transfer has gone in the best possible way thanks to the investments we have made in fermentation technology through our upgrade program. We expect to see initial revenues from Blis products, produced at our own facility, during the second half of this year.

We have also recently welcomed our new Vice President of Research & Development, Anita Johansen, who has a solid background from major international companies in biotechnology and pharmaceuticals. She will be an important addition to group management.

We look forward with confidence to the rest of 2022. If there is one thing we have learned in the last two years, it is that changes can occur quickly. It has made us more agile and adaptable - something we will benefit from in the future. Our focus for 2022 is to regain momentum and to get back on track towards growth.

Tom Rönnlund
CEO

Invitation to teleconference
Probi's interim report for Q1 2022 is published on April 26, 2022, at 8.00 a.m. On the same day at 10.00, a teleconference will be held with Tom Rönnlund, CEO and Henrik Lundkvist, CFO, who will present the report. The conference call can be accessed on [phone]. The presentation is available at www.probi.com and www.financialhearings.com

Contact
Tom Rönnlund, CEO, Tele: [phone], E-mail: [e-mail]
Henrik Lundkvist, CFO, Tele: [phone], E-mail: [e-mail]

This information is information that Probi AB is obliged to make public pursuant to the EU Market Abuse Regulation. The Information was submitted for publication, through the agency of the CEO and CFO, on April 26, 2022 at 08:00 CET. This is a translation of the Swedish version of the interim report. When in doubt, the Swedish wording prevails.

https://news.cision.com/probi/r/q1-2022--order-pattern-in-americas-gave-a-weaker-start-to-the-year,c3552831

https://mb.cision.com/Main/1556/3552831/1568790.pdf

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