11/09/2023 - PHARMANUTRA S.P.A.: THE BOD APPROVED THE FIRST HALF FINANCIAL REPORT AS AT 30 JUNE 2023

PHARMANUTRA S.P.A.: THE BOD APPROVED THE FIRST HALF FINANCIAL

REPORT AS AT 30 JUNE 2023

Strong growth in sales revenue and confirmed expected margin trend due to the investments in the Group's new development projects

• • • Sales revenue €49.6 M (+25% compared to 30/06/2022)
  • Gross Operating Margin €14.1 M (+13.2% compared to 30/06/2022)
• Adjusted net result for the period €9.2 M (+12.2% compared to 30/06/2022)
• • Net Financial Position €10.0 M (-€20.7 M compared to 31/12/2022)

Pisa, 11 September 2023 - The Board of Directors of PharmaNutra S.p.A.(MTA; Ticker PHN), a company specialising in mineral-based nutritional supplements and medical devices for muscles and joints, today has approved the First Half Financial Report as at 30 June 2023 (subject to limited audit).

Roberto Lacorte, Vice Chairman of PharmaNutra S.p.A., stated: "PharmaNutra's second quarter closed with a performance perfectly in line with the first three months of the year, in terms of parameters, and with everything the company has always expressed, since it was established. This is an extremely significant result, achieved at a particular time, when PharmaNutra is making significant investments to support very important growth drivers, which will mark a change of pace and size for the company in the future. All this is possible thanks to the spending capacity, i.e. the finance accumulated to date, and the profitability guaranteed on a daily basis by the core businesses in which our company is successfully engaged."

ANALYSIS OF CONSOLIDATED RESULTS FOR THE FIRST HALF OF 2023

• the Net Result of the period and Net earnings per share excluding non-recurring items as at 30/06/2023 do not include the accrual made to the Provision for Taxes for the amount of Euro 2 million, which represents the estimated amount related to the definition of the tax periods between 2017 and 2021 with the aim of adhering to the institute of cooperative compliance provided for by Italian Legislative Decree no. 128 of 5 August 2015.

The Group's growth for the first half of 2023 confirmed the values already shown in the first quarter, with sales revenues increasing by 25% compared to the same period of the previous year. The process of setting up the business activities of the subsidiaries PharmaNutra España, PharmaNutra USA and the new Cetilar® Nutrition line continued, resulting, as expected, in a reduction in margins due to the startup costs incurred. On the financial side, there was a temporary drawdown of liquidity, which, together with the provision of a mortgage loan to cover the investment for the construction of the new headquarters, led to a reduction in the net financial position.

After having defined the 2016 tax period by means of a deed formalised in March, the Parent Company began discussing with the Provincial Directorate of the Inland Revenue Agency at the Pisa office to also settle the tax periods from 2017 to 2021 with the aim, already informally anticipated to the tax supervisory authorities, of adhering to the cooperative compliance program provided for by Italian Legislative Decree no. 128 of 5 August 2015. This discussion will address the same type of remarks already considered for the 2016 tax period and, although it follows a general audit carried out by the tax

authorities, it will not point out any additional types of tax remarks for the Company. To this end, in the financial statements as at 31 December 2022, a provision of Euro 1.4 million had been accrued to the tax provision. The checks carried out as part of the dialogue process with the Inland Revenue revealed the need to make a further allowance to the tax provision, which was estimated at Euro 2 million.

Adhering to the collaborative compliance program is a fundamental step in the creation of value for the Group's stakeholders, since it allows for a prior and constant dialogue with the tax authorities, abandoning the current system that envisages assessments after the tax return is submitted aimed at sanctioning any irregularities it may contain. The prior and constant communication with the tax authorities provides the taxpayer with immediate tax certainty prior to the tax return, prevents the risk of tax disputes and eliminates the risk of administrative and criminal sanctions, integrates and strengthens the corporate governance and internal control system, making it possible to correctly plan investments and their expected return because of the certainty of the tax rate.

Revenues from sales

Consolidated sales revenue in the first half of 2023 increased by 25% compared to the corresponding period of the previous year and amounted to Euro 49.6 million (Euro 39.7 million as at 30 June 2022).

Revenues - Italy

Revenues from sales on the Italian market increased by 22.6% to Euro 35.5 million (Euro 28.9 million as at 30 June 2022). They include Euro 2.3 million generated by Akern, which was not consolidated as at 30 June 2022.

Revenues - Foreign markets

Revenues from sales in foreign markets amounted to Euro 14.2 million (Euro 10.8 million in the first half of the previous year), an increase of 31.5%, and accounted for 28.5% of total revenues compared to 27.1% in the first half of the previous year. The result achieved is in line with expectations, and the Group already

has orders in hand for the whole of the third and fourth quarters. Akern's revenues generated in foreign

markets in the period amounted to Euro 0.4 million.

TURNOVER BY PRODUCT LINE

The first half of 2023 shows growth in sales of Sideral®, Cetilar® and Ultramag® and a more restrained growth of Apportal® due to seasonality.

SiderAL® line, the market leader in iron-based supplements, shows a growth of 20.4% compared to 30 June 2022, reaching a value market share of 53.5%1 in the iron-based supplements market.

Sales of the Cetilar® line show an increase of approximately 26.7% compared to the first half of 2022.

Operating Costs for the first half of 2023 amounted to Euro 36.2 million, an increase of 31.5% compared

to 30 June 2022 (Euro 27.5 million), attributable to the costs incurred for the start-up of the business of

the subsidiaries PharmaNutra USA and PharmaNutra ESPAÑA, in particular recruiting, administrative and

commercial advisory service and personnel costs, and higher marketing investments made to support

the Group's brands.

1 Source: Iqvia data, June 2023

PharmaNutra Group's EBITDA for the half year closed at 30 June 2023 was Euro 14.1 million (Euro 12.4 million in the first half of 2022), corresponding roughly to a 28% margin on revenues, and an approximate increase of 13.2% compared to the same period of the previous year.

The Net result for the period amounted to Euro 7.2 million for the first half of 2023 (Euro 8.2 million as at 30 June 2022).

The Net result for the period excluding non-recurring items, represented by the accrual to tax provision mentioned above, amounted to Euro 9.2 million.

The Net result per share for the first half of 2023 was Euro 0.75 compared to Euro 0.85 as at 30 June 2022.

The Net result per share excluding non-recurring items for the first half of 2023 was Euro 0.96 compared to Euro 0.85 as at 30 June 2022.

The Net Financial Position as at 30 June 2023 showed a negative balance of Euro 10 million compared to the positive balance (net cash) of Euro 10.6 million as at 31 December 2022, after paying dividends of Euro 7.7 million and purchasing treasury shares for Euro 1.6 million; capital expenditures in the half year amounted to about Euro 10 million, of which about Euro 7 million related to the progress of construction work of the Group's new headquarters. Cash generated by operations in the period amounted to Euro 0.2 million due to the cash drawdown generated by the implementation of inventory management policies, costs incurred in the half-year whose competence extends to the following half-year, the purchase of tax credits, and the payment of medium/long-term emoluments to the Executive Directors following the expiry of their term of office.

The change in the net financial position compared to 31 December 2022 was also affected by the approval of a mortgage loan based on the progress of the construction to cover the investment for the realization of the new headquarters, of which the amount of Euro 9 million was disbursed.