Interim report Q3 2022

STRAX – still facing challenges but actions taken and a positive outlook for 2023

The Group’s sales for the period January 1 – September 30, 2022, amounted to MEUR 83.2 (65.1) with
a gross margin of 20.6 (19.0) percent.

The Group’s result for the period January 1 – September 30, 2022, amounted to MEUR -6.4 (-1.3) corresponding
to EUR -0.05 (-0.01) per share.

EBITDA from remaining operations for the period January 1 – September 30, 2022, amounted to
MEUR 4.9 (4.0).
Equity as of September 30, 2022, amounted to MEUR 4.7 (17.1) corresponding to EUR 0.04 (0.14) per share.
Following a decision by the board of directors in September 2022 to have a more focused strategy
and simplified group operating structure, these brands and businesses are reported as discontinued
operations: own brands Dóttir and grell, licensing business under Telecom Lifestyle Fashion, and
the Health and Wellness business.
External factors continued to have negative impact on sales of own mobile accessories and personal audio products, whilst sales of lower margin health products remained relatively stable. Our average blended gross margin does therefore remain compressed relative to those we achieved prior to the Covid-19 pandemic.

“The new streamlined STRAX is well positioned for profitable growth and all the remaining own brands have a sound potential for continued expansion, particularly in North America. By focusing on the European distribution business and fewer brands we will be able to enhance efficiency, growth, and profitability as we are freeing up both resources and management attention. Some of the businesses that will be divested also have viable commercial potential, but we believe those will benefit more under a different ownership. We don’t expect the divestments to generate any losses.”

Gudmundur Palmason, CEO

This information is information that STRAX AB is obliged to make public pursuant to the EU Market Abuse Regulation.
The information was submitted for publication, through the agency of the contact person set out above, at 08:55 CET on November 24, 2022.