Hofseth Biocare ASA: First Quarter 2019 Financial Report

Hofseth BioCare had operating revenues of NOK 14.7m (14.8m) in the first quarter of 2019.

Cost of Goods Sold (CoGS) amounted to NOK 10.9m (12.3m) in the period. Operational profit (EBITDA) for the first quarter 2019 was negative NOK 12.9m (14.9m).

Cash and cash equivalents decreased by NOK 12.1m during the quarter, leaving total holding of cash and cash equivalents at NOK 36.5m by the end of the period.

In the first quarter 2019, HBC Midsund processed 3,152 tons of salmon and trout raw materials, which is 502 tons more than the previous quarter (an increase of 18,9%), and 490 tons more than first quarter in 2018 (an increase of 18,4%).

Raw material availability from our core suppliers is good and increasing. We expect the processed raw material to continue increasing during 2019.

HBC Berkåk produced 419 tons of finished products in the first quarter 2019, including the capacity lease manufactured products. ProGo production alone was 94,2 tons. Total production at Berkåk in previous quarter was 361 tons, which gives an increase of 16,1%.

HIGHLIGHTS IN THE FIRST QUARTER 2019

- Nøre™ Marine Calcium launched in the Norwegian market, with marketing campaigns in the B2C social media channels
- Production record set at the Berkåk spray-drying facility last week of January 2019
- Growth in Brilliant™ Salmon Oil sales after market activities last few months
- OmeGo® as a private brand launched in the Indian market in late January 2019
- HBC published a Study to Evaluate the Efficacy of CollaGo® (a new HBC Salmon Protein Hydrolysate Powder product) on Energy Increase and Anti-inflammatory Modulation in Healthy Males and Females. The study showed that 128-day supplementation with CollaGo® resulted in significant improvements in perceived total and average energy levels.

Please find the First Quarter 2019 Financial Report attached.

For further information, please contact:

Roger Hofseth, CEO of Hofseth BioCare ASA
Mob: +47 95147941
E-mail: rh@hofseth-as.no

Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Mob: +47 93632966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:

HBC is a Norwegian biotech company that offers high-value ingredients and finished products for humans and pets. The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC is able to preserve the quality of salmon oil, proteins and calcium, prepared of fresh salmon off-cuts. HBC's objective is to contribute to the efficient use of marine resources and deliver quality products for ingredients and finished consumer products in the nutrition market.

Hofseth BioCare's headquarters are located in Ålesund, Norway with branches in Oslo, Chicago, Mumbai and Tokyo. HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at www.hofsethbiocare.com and www.facebook.com/hofsethbiocare

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

Attachment

HBC Q1 2019 Financial Report