The operating profit for the quarter totalled about ILS 18.5 million – growth of about 10.8% compared to last year

The net profit for the quarter totalled about ILS 12.5 million – growth of about 19.6% compared to last year

The adjusted EBITDA for the quarter totalled about ILS 33.3 million (about ILS 27.5 million prior to the impact of IFRS 16) – growth of about 13.0% compared to last year

Eran Taus, Novolog’s CEO: “We are pleased to present another quarter of good results with growth in the Group’s revenues and profitability. We recently announced our 60% acquisition of Gsap, which is considered the leading consulting firm in Israel for the implementation of regulatory, clinical and quality control processes in the pharma and medical device sectors. This transaction was executed as part of our strategy to expand our basket of services and the added value that we offer to our customers, while continuing our efforts to enhance our existing operations and identify additional synergetic acquisitions in Israel and abroad. We are continuing to invest in building additional infrastructures for our future, long-term growth and to achieve the targets we set for ourselves.”

Key results for Q2 2022 (including IFRS 16)

The revenues in the second quarter totalled about ILS 361.4 million, compared to about ILS 309.7 million for the corresponding quarter last year, representing growth of about 16.7%. The increase derived mainly from revenue growth in most of our divisions and from the consolidation of the financial results of Gastromed and Ein Tal.

The gross profit for the second quarter totalled about ILS 42.8 million, compared to about ILS 36.4 million for the corresponding quarter last year, representing growth of about 17.6%.

The selling, administrative and general expenses in the second quarter totalled about ILS 24.4 million, compared to about ILS 18.9 million in the corresponding quarter last year, representing an increase of about 28.7%. The increase derived mainly from the consolidation of the financial results of Gastromed and Ein Tal and from an increase in expenses for the continued expansion of the Company’s operations.

The operating profit for the second quarter totalled about ILS 18.5 million, compared to about ILS 16.7 million for the corresponding quarter last year, representing growth of about 10.8%, which derived mainly from the growth in profit in our logistics segment and, on the other hand, from a decline in profit in the healthcare services division as a result of changes in the competitive environment relating to ventilator activities, and from a decline in profit from our laboratory services as a result of the discontinuation of a project relating to coronavirus vaccinations.

The net profit for the second quarter totalled about ILS 12.5 million, compared to about ILS 10.5 million for the corresponding quarter last year, representing growth of about 19.6%.

The adjusted EBITDA  for the second quarter totalled about ILS 33.3 million, compared to about ILS 29.5 million for the corresponding quarter last year, representing growth of about 13.0%.

The Company’s cash balance correct to 30.6.2022 totalled about ILS 199.2 million, compared to about ILS 214.3 million as on 31.3.2022, with immaterial financial debt of about ILS 2.7 million.

The Company’s equity correct to 30.6.2022 totalled about ILS 444.4 million, compared to about ILS 429.9 million as on 31.3.2022.

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Key results of H1 2022 (including IFRS 16)

The revenues totalled about ILS 736.8 million, compared to about ILS 625.7 million for the corresponding first half of 2021, representing growth of about 17.7%. The increase derived mainly from revenue growth in each of our divisions and from the consolidation of the financial results of AML, Gastromed and Ein Tal.

The gross profit totalled about ILS 87.4 million, compared to about ILS 74.2 million for the corresponding first half of 2021, representing growth of about 17.8%.

The selling, administrative and general expenses totalled about ILS 49.0 million, compared to about ILS 38.4 million in the corresponding first half of 2021, representing an increase of about 27.7%. The increase derived mainly from the consolidation of the financial results of Gastromed, Ein Tal and AML and from an increase in expenses for expansion of the Group’s operations.

The operating profit totalled about ILS 39.2 million, compared to about ILS 35.9 million for the corresponding first half of 2021, representing growth of about 9.2%.

The net profit totalled about ILS 25.7 million, compared to about ILS 24.0 million for the corresponding first half of 2021, representing growth of about 7.0%.

The adjusted EBITDA  totalled about ILS 67.4 million, compared to about ILS 59.8 million for the corresponding first half of 2021, representing growth of about 12.8%.

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About Novolog Group

Novolog Group engages in healthcare services. The company was founded in 1966 and currently employs about 800 employees. Novolog’s shares have been listed on the Tel-Aviv Stock Exchange since 2017. Novolog operates through three divisions:

the Logistics Division – offering complex logistics services and supplementary services in the fields of pharmaceuticals, medical devices and clinical trials;

the Healthcare Services Division – offering medical services to patients in their homes;

the Digital Division – offering medical information and services to patients and physicians.

For additional details:

Jonathan Raz Investor Relations Ltd.

Tel.: 03-5167620

jonathan@km-ir.co.il

www.km-ir.co.il

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