First quarter in brief

Revenue 2 048 (1 044) TSEK
Operating result -2 682 (-3 230) TSEK
Result after tax -2 697 (-3 249) TSEK
Earnings per share* -0.09 (-0.32) SEK
Earnings per share after full dilution* -0.08 (-0.28) SEK

* The number of shares is calculated at 30 329 964. The number of outstanding warrants is 2 500 604.

Significant events during the reporting period

- Order intake for the quarter was 2.7 MSEK against a budgeted 1 MSEK.
- A record order of 17,000 kg of EUREBA® D-01 was booked by Bayn's distributor in Estonia.
- Bayn carried out a new share issue that provided the company with SEK 4.9 million.
- It was announced that free warrants will be distributed to shareholders, with conditions 1:6. The subscription period is June 13-18. Price 1.10 SEK which gives a total of 5 MSEK.
- Bayn's production partner in China, Honsea, produces ice cream in China for the Chinese New Year. 6.6 tons of EUREBA® D-01 are used in this production.
- Bayn's EUREBA® D-01 is used in the newly launched sugar-free ice cream mix from Hemglass.
- Bayn starts cooperation with ZDS, center for education in confectionery and food technology in Solingen, Germany.
- Bayn's Dr. Aidoo was invited to speak at the ProSweet fair in Cologne.

Significant events after the reporting period

Bayn is ISO certified after a successful audit.

The CEO speaks

Growing turnover and increased confidence

Sales tripled compared to the first quarter of 2018, which meant increased purchases during the quarter. The purchases are secured with delivery contracts and deliveries are evenly distributed over the rest of the year. We also expect a continued increase in sales during the year. One of the solutions was to finance ourselves by issuing new shares, as we did at the end of February, when we issued about five million shares to a group of long-term private investors and funds.

In order not to disadvantage previous owners, the board decided to also distribute free warrants with the same conditions to existing shareholders. These favorable subscription conditions meant that interest in the share increased, which has benefited the turnover in the share and we can note that the number of shareholders has increased from about 950 to almost three thousand, which we are pleased about. It is clear that confidence in Bayn as a company has been further cemented.

The first quarter brought various challenges, but also progress. On the market side, we increased our overall order intake with continued exploitation of EUREBA® D-01, our proprietary sugar substitute, which can replace sugar outright without further formulation. The product is unique in that it is produced entirely from raw materials made from natural ingredients and the user does not have to worry about dosage or secondary flavors. For example, Hemglass launched a no added sugar range based on EUREBA®.

In time for the Chinese New Year, Bayn delivered a subcontracted volume of 6.6 tons of EUREBA® to a Chinese stakeholder who produced one million ice creams with this amount. In the same period, sales of raw materials under the NAVIA® brand name increased. In the last quarter we booked our first order for oral hygiene products and this was followed up with repeat orders in the first quarter of 2019. Furthermore, Bayn has started regular deliveries to a manufacturer of sugar-free jelly candy.

In the development department, a new product with a lower carbohydrate content has been developed to meet the requirements of customers producing weight loss products. Bayn has received several requests for collaborations aimed at using these types of ingredients and in order to assess them, we need to evaluate these additives in a lab environment.

Financial report

REVENUE
Total revenue during the first quarter has increased to 2 048 (1 044) TSEK. Net sales amounted to 1 656 (587) TSEK.

COSTS
Costs increased during the quarter to 4 730 (4 274) TSEK. The cost increase is attributable to the purchase of goods and depreciation.

RESULT
The operating result improved to -2 682 (-3 230) TSEK.

CASH FLOW AND FINANCIAL POSITION
Cash flow from operating activities amounted to -3 375 (-1 361) TSEK. Cash and cash equivalents at the end of the period amounted to SEK 1,889 (225) thousand. The company's liquidity situation is continuously monitored and the company is in need of additional financing. This is met through the upcoming new issue.

INVESTMENTS
Investments in fixed assets amounted to TSEK 360 (341) for the period, and consisted of capitalized development costs of TSEK 360 (341).

OTHER
Employees
The average number of employees during the period was 9 (8) and the number of employees at the end of the period was 11 (10).

Number of shares
The company had 30 329 964 shares on March 31 (10 061 587). There were 2 500 604 outstanding warrants as of March 31 (1 500 604). The average number of shares during the period was 26 356 631 (9 880 783). (9 880 783) shares. After dilution 28 857 235 (11 381 387).

RISKS AND UNCERTAINTIES
Bayn Europe AB's results and financial position are affected by various risk factors that must be considered when assessing the company and its future potential. For other risks, please refer to the company's website www.bayneurope.com

ACCOUNTING PRINCIPLES
This quarterly report has been prepared in accordance with the Annual Accounts Act and BFNAR 2012:1 and consolidated accounts (K3). The principles are unchanged compared to the previous year.

RELATED PARTY TRANSACTIONS
There were no related party transactions during the period.

NEXT REPORTING DATE
The interim report for the period April-June 2019 will be published on August 27, 2019.

Mangold Fondkommission AB (tel. +46 8 5030 1550) is the Company's Certified Adviser. 

 This quarterly report has not been reviewed by the company's auditors.

Stockholm, May 23, 2019
Bayn Europe AB (publ.)

Board of Directors

The report is available in PDF format at https://www.bayneurope.com/investors/finansiella-rapporter/

Annexes