Aqua Bio Technology: affected by the pandemic – preparing expansion

Aqua Bio Technology ASA was adversely affected by the corona pandemic in the first half of 2020. The expected sales in the company’s new markets in Europe, the Middle East and Asia did not materialize, as the markets have more or less been locked down for the most par of the half year. At the same time, ABT has continued its preparations for expansion when markets are returning to a normal state.

ABT posted income of NOK 0.3 million in the first half, which is a decline from NOK 0.7 million in the same period last year. The company’s EBITDA ended at NOK -7.5 million, which is a slight improvement over last year’s EBITDA of NOK -8.5 million. ABT’s net result for the period was NOK -7.6 million, compared to NOK -8.7 million in the first half of 2019.

Through 2019 and 2020 ABT has established distribution channels through local partners in several new markets in Europe, the Middle East and Asia. In a normal situation, the company will have access to markets totalling 1.7 billion people. ABT’s partner in India received marketing approval for the skincare series Moana in June and will start preparing for sales as soon as the corona situation allows. ABT’s partner in India expects Moana to receive approval during the second half of the year, enabling marketing to commence early 2021, pandemic allowing.

In June, ABT entered into a collaboration with a Canadian manufacturer of skincare products. The cooperation allows ABT to offer a range of skincare products as private labels to pharmacy chains, spa and skincare clinic chains as well as brand owners. The company has launched two private label concepts based on the collaboration and is in the process of establishing a sales organisation for this segment.

The need for additional working capital after a demanding half year, as well as for the coming expansion, made Aqua Bio Technology ASA conduct an equity issue in August. NOK 12.6 million in new equity was raised.

A broader product portfolio and an expanded international marketing network makes ABT well positioned for a significant sales growth. However, the further development of the pandemic will determine when the company’s markets are able to return to a normal situation and sales can increase.

For further information, please contact CEO Espen Kvale, telephone .

Aqua Bio Technology (ABT) is developing and commercializing sustainable biotechnology for use in skin care products. ABT's cosmetics ingredients are highly effective and they provide the cosmetics industry with natural alternatives to traditional ingredients. ABT is also marketing and distributing natural skin care products developed by partners towards consumers and professional users. Aqua Bio Technology is listed on the Axess market of the Oslo Stock Exchange.

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

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