HUMBLE RAISES FINANCIAL TARGETS AND INITIATE THE PROCESS FOR CHANGING ACCOUNTING PRINCIPLES TO IFRS AND CHANGING MARKET PLACE TO NASDAQ’S MAIN MARKET

The board of Humble Group AB (publ) (“Humble” or the “Company”) adopted financial targets for the Humble Group on 26 March 2021. On 10 August 2021, the board resolved to raise the financial growth target and the profitability target. Due to a continued strong growth, high access to attractive acquisitions and positive reception for new products and brands, the board has today resolved to again raise the financial growth target to a net turnover of SEK 16 billion and to raise and update the profitability target of a fixed adjusted EBITDA target from SEK 1.5 billion to a fixed adjusted EBITA target of SEK 1.9 billion. The other financial targets and the time period for the targets regarding the medium-term (2025) remain unchanged. The board has also resolved that the Company shall initiate the process of changing accounting principles from K3 to IFRS and to change marketplace to regulated market. Both changes are estimated to occur during 2023.

Raise of financial targets

Due to Humble’s strong development during the second half of 2021, the board has resolved to again raise the targets regarding growth and profitability in the medium-term (2025).

The reasons for raising the targets are mainly as follows:

• Humble has acquired more companies, and in a faster pace, than anticipated when the previous financial targets were established in March 2021 and updated in August 2021. During the first nine months of 2021, Humble has entered into agreements to acquire a total of 20 companies, where Humble sees a continued strong pipeline of acquisitions going forward.
• Humble has had a strong development since the targets were revised in August och sees a continued high growth, access to attractive acquisitions and a positive reception from the market for new products and brands, which is to the benefit of the organic growth.
• The Company has established a base of businesses, which have an underlying growth and at the same time generate strong and persistent cash flows.
• Humble has entered into a cooperation agreement with SEB as house bank, which strengthen the entire groups bank service- and credit-terms substantially compared to the previous ones.

As a result of the above, the financial targets are revised to the following:

Growth – SEK 16 billion net turnover
The Company aims to achieve a significant increase in turnover during the coming years, which will be primarily driven by organic growth in combination with acquisitions. The ambition of the Company is to achieve a net turnover of SEK 16 billion on a proforma basis and to have an average organic growth of at least 15 percent per year.

Profitability – SEK 1.9 billion adjusted EBITA
The Company’s target is to achieve an adjusted EBITDA of SEK 1.9 billion on a proforma basis.

Humble’s other financial targets in the medium-term (2025) can be seen below and remain unchanged:

Capital structure – Net debt divided by adjusted EBITDA <2.5
Net debt in relation to LTM (last twelve months) adjusted EBITDA shall not exceed 2.5 times. However, the Company can, under special circumstances, decide to exceed this level during shorter periods in connection with acquisitions. 

Dividend policy
Excess cash flow shall be paid out to the shareholders when the free cash flow exceeds available investment opportunities in profitable growth. Dividends to shareholders are dependent on the capital structure target being already fulfilled.

“With the strong underlying growth that we account for the third quarter, it is natural that we increase both the sales and profitability target, especially since we already are far ahead of the targets that were updated in August 2021. The fact that we also have such good underlying cash flow, despite that we in the report had not yet consolidated several of the most profitable acquisitions in full, enable us to use the financial instrument and cooperation agreements with banks in the best possible way and to minimize dilution for our shareholders during our growth journey. We have a continued strong pipeline and constantly notice the strength in our brands and the attraction from entrepreneurs who wants to join Humble Group.” says Simon Petrén, CEO Humble Group AB (publ).

Change of accounting principles and marketplace

Since 2014, Humble’s shares are traded on Nasdaq First North Growth Market. Following almost two years of very strong growth, Humble has reached a size where the Company is assessed to be mature to be prepared for a change of marketplace. A condition for admission to trading on a regulated market is that companies are using IFRS as accounting principles. Due to that, the board has resolved to initiate the process of changing accounting principles from K3 to IFRS and to change marketplace for Humble’s share from Nasdaq First North Growth Market to regulated market. Both changes are estimated to occur during 2023.

For further information, please contact:
Simon Petrén, CEO, Humble Group AB
Tel: +46 70 999 94 55
E-mail: simon.petren@humblegroup.se

The information is solely for further informational purposes and the content of this press release has already been published by the Company, and where the Swedish press releases shall prevail.

About Humble
Humble Group is a Swedish food-tech and FMCG-group, supplying the next generation of products that are good for people and the planet. Humble targets the segments of foodtech, eco, sustainability and vegan to drive high organic growth, acquisitions and utilize synergies in the different operation entities: Brands, Distribution, Manufacturing and Ingredients and R&D. Humble’s technology solutions, refined through scientific research and extensive market experience, facilitate new formulations and recipes that improve the taste and texture of the next generation of sugar-reduced, sustainable and vegan products. For more information visit www.humblegroup.se

Humble is listed on Nasdaq Stockholm, First North Growth Market, under the ticker HUMBLE
FN Sweden AB is Humble’s certified adviser. Tel: 08-528 00 399 E-mail: info@fn.se

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 First North Growth Market’s rule book for issuers.