FINANCIAL INFORMATION:

FOURTH QUARTER

• Net sales grew organically with 6% and amounted to MSEK 2,118 (2,089). Total change amounted to 1% and the currency impact was -4%.
• EBITA amounted to MSEK 123 (137).
• Adjusted EBITA amounted to MSEK 139 (142).
• EBIT amounted to MSEK 78 (90).
• Adjusted EBIT amounted to MSEK 94 (94).
• Cash flow from operating activities amounted to MSEK 206 (132).
• Profit and loss after tax amounted to MSEK 15 (28).
• Earnings per share before and after dilution amounted to SEK 0.03 (0.06).

TWELVE MONTHS

• Net sales grew organically with 7% and amounted to MSEK 8,097 (7,708). Total change amounted to 5% and the currency impact was -2%.
• EBITA amounted to MSEK 435 (555).
• Adjusted EBITA amounted to MSEK 559 (563).
• EBIT amounted to MSEK 249 (361).
• Adjusted EBIT amounted to MSEK 373 (369).
• Cash flow from operating activities amounted to MSEK 515 (285). Cash flow from operating activities includes repayment of tax deferrals of MSEK -92.
• Profit and loss after tax amounted to MSEK 16 (109).
• Earnings per share before and after dilution amounted to SEK 0.04 (0.25).

SIGNIFICANT EVENTS:

DURING THE QUARTER

• On October 2nd, the Board of Directors of Humble Group AB appointed Noel Abdayem as acting CEO after Simon Petrén, in consultation with the Board, decided to leave Humble.
• Number of shares and votes increased during December as a result of the issue of C 2025 shares within the framework of Humble’s incentive program 2025/2028. The number of shares increased by a total of 3,467,476 shares with one-tenth of a vote per share.

AFTER THE QUARTER

• The Board of Directors proposes that no dividend will be paid for the financial year 2025.

CEO COMMENT FROM THE REPORT
” Humble Group concludes the year with an organic sales growth of 6%, with gross profit in line with the previous year. The fourth quarter also marked an important shift for us as a company. Our transformation efforts have accelerated, with clearer priorities to create a more result‑oriented Humble, characterized by higher operational discipline, more efficient capital allocation, improved cash flows, and a reduced leverage ratio.

FINANCIAL PERFORMANCE
Net sales increased during the quarter to MSEK 2,118 (2,089), corresponding to an organic growth of 6%, mainly driven by strong development in the Future Snacking and Quality Nutrition segments.

Adjusted EBITA amounted to MSEK 139 (142), and the work to realize the previously communicated profitability improvements is ongoing. The increasingly stronger Swedish krona has had a negative impact on revenue, profitability, liquidity, and leverage.

Gross profit amounted to MSEK 665 (659), with a gross margin of 31.4% (31.6). Currency effects impacted profitability by MSEK -33 and the gross margin by -0.3 percentage points during the quarter.

Cash flow from operating activities, after changes in working capital, amounted to MSEK 206 (132). We continue to work with strong focus on optimizing inventory levels and strengthening cash flow.

Net debt continued to decline during the quarter to 2.6x (2.9x). Adjusted for currency effects on profitability and cash, net debt amounts to 2.4x and we remain firmly committed to further reducing the leverage ratio.

THE DEVELOPMENT OF OUR FOUR SEGMENTS
The past quarter confirms the breadth and resilience of Humble Group. Despite a challenging market environment, we are seeing stable demand across our segments, with both Future Snacking and Quality Nutrition showing strong organic growth.

The Future Snacking segment continues to grow. During the fourth quarter, organic growth in the segment reached 21%. Several brands within the segment continue to gain market share through new launches and increased listings. During the quarter, we initiated installation of our new production facility in Skövde. Over time, the new facility is expected to strongly contribute to the segment’s future international expansion opportunities while strengthening our position in the Swedish market.

Sustainable Care had a more challenging quarter, with organic net sales declining by -1%. We continue to see a volatile market in the UK and Germany. Our subsidiary Solent, which constitutes a significant part of the segment, performed fundamentally well, although the loss of a distribution contract negatively impacted growth. EBITA in the segment was affected by currency effects of MSEK -5.

Within Quality Nutrition, organic growth amounted to 11%. We have seen a strong recovery in the production of sports nutrition products, and our assessment is that this positive development will continue into the new year. The conditions for continued growth are considered favorable.

Nordic Distribution grew organically by 3% during the quarter, with a stable gross margin development. The business continues to contribute significant value through an established distribution model with broad market presence, strengthening both our own brands and external partnerships. At the same time, we see good opportunities to win additional major contracts with Swedish retail chains during the year.

OUTLOOK AND FOCUS AHEAD
After one quarter as Acting CEO, my view is clear. Humble has taken an important step toward a more operational approach, where we act more actively as owners and devote more time and effort to ensuring that our businesses reach their full potential. The efficiency program is progressing according to plan, and we are confident in achieving the communicated cost saving targets.

In parallel, the strategic review is ongoing with several processes underway regarding divestments, selective acquisitions, and strategic partnerships. Our long-term goal is to create a more focused and profitable group. Our ambition is to communicate concrete steps within the coming months.

We assess that the Swedish krona will continue to be challenging and impact the group in the short term. That said, we remain determined to act decisively in executing the measures now being implemented. The transformation currently underway within Humble is important and necessary to ensure a more profitable business in the medium term.

Our primary focus is to create long term shareholder value through increased profitability, stronger cash flows, and a more predictable Humble. With a clearer focus, we see strong conditions for taking the next step in Humble’s continued development journey together with the group’s hardworking entrepreneurs.”

The report is attached and can also be downloaded in its entirety on the company's website.

Forward-looking statements
This press release contains forward-looking statements that reflect Humble’s intentions, beliefs, or current expectations about and targets for Humble’s future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which Humble operates. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believe”, “expect”, “anticipate”, “intend”, “may”, “plan”, “estimate”, “will”, “should”, “could”, “aim” or “might”, or, in each case, their negative, or similar expressions. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although Humble believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. Humble does not guarantee that the assumptions underlying the forward-looking statements in this press release are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this press release or any obligation to update or revise the statements in this press release to reflect subsequent events. Readers of this press release should not place undue reliance on the forward-looking statements in this press release. The information, opinions and forward-looking statements that are expressly or implicitly contained herein speak only as of its date and are subject to change without notice. Neither Humble nor anyone else undertake to review, update, confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this press release, unless it is not required by law or Nasdaq Stockholm's rule book for issuers.