06.04.2020 07:45:20: Doubled revenue in Q1 - demonstrated scalability



Oslo, Norway (6 April 2020) - NattoPharma has seen a significant demand for our
products during the first quarter, and we are experiencing more than 100% growth
compared to the same period last year, with revenues exceeding NOK 55 million in
the period. The Gross Margin is expected to be in the previously indicated range
of 42% to 47%. The Adj. EBITDA is expected to be in excess of NOK 10 million for
the period.

The increase in demand is a combination of organic growth and impact from the
COVID-19 situation where individual customers have placed stock-orders to ensure
they have product in case of disruption in supply. Due to the uncertainty
related to the situation in the world markets we are not updating the general
revenue guiding for the year at this stage and will come back to more
information related to the outlook for 2020 in the Q1-2020 earnings release that
will be held on May 6[th]. Although we have planned to host face to face
presentations going forward, this earnings release will be held as a web
-conference due to the ongoing COVID-19 situation.

During the unprecedented situation the world now is going through we want to
provide an update on what the NattoPharma team is doing to ensure that we
continue to meet our customers needs during this period and beyond. The attached
statement related to the COVID-19 situation has been shared with all major
customers and partners when this situation started to develop. The NattoPharma
team continue to work diligently to ensure all these measures are still
maintained so that our commitment to our customers and partners can continue as
before this situation arose.

Further, in the finalization of the 2019 Annual Accounts, due to be released on
April 30[th], the company has late March received a notice from the US Customs
and Border Protection (CBP) department that the tariff code for formulated
products containing vitamin K2 has been set to be a tariff code with higher duty
than previously calculated. This has a retroactive effect on imports up to 4
years back in time and will have a negative impact on the 2019 financial
results. The estimated impact is approx. NOK 2,7 million and will be accounted
for in the 2019 Annual Accounts.

This change in ruling from the US CBP will have a future effect on import to the
US of formulated products, however, due to more production now taking place
locally in the US, the impact to the gross margin is limited, and is on an
annual basis for 2020 estimated to be between 0,5% and 1,5% of total sales. Due
to this limited impact we are not at this stage changing our guiding on Gross
Margin for the year and maintain the expectation to be between 42% and 47% as
earlier communicated.



For more information, please contact:

Kjetil Ramsøy, CEO, NattoPharma, kjetil.ramsoy@nattopharma.com

This information is subject to the disclosure requirements pursuant to section 5
-12 of the Norwegian Securities Trading Act.
https://newsweb.oslobors.no/message/500504