Mr. Skip Bourdo reports

NEIGHBOURLY ANNOUNCES STRONG FOURTH QUARTER AND FULL YEAR RESULTS

Neighbourly Pharmacy Inc. has released its financial results for the 12-week period and fiscal year ended March 25, 2023 (fourth quarter 2023 and fiscal 2023, respectively).

"I'd like to congratulate the team on a successful year, and I look forward to continuing to realize Neighbourly's tremendous growth potential in the future," stated Skip Bourdo, the company's chief executive officer. "I am excited about Neighbourly's long runway, driven by both our robust acquisition pipeline, and through the opportunities to drive incremental organic growth and profitability across our existing network. We have a full agenda of initiatives, and a talented and capable team to accelerate Neighbourly's growth trajectory forward," concluded Mr. Bourdo.

Fourth quarter 2023 highlights:

• Revenue for the fourth quarter increased to $190.6-million, up $78.3-million, or 69.7 per cent. Ninety-nine per cent of the growth was driven by pharmacies acquired in the past 12 months.
• Same-store sales in the fourth quarter increased 1.6 per cent.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the fourth quarter increased to $19.6-million, up 73.4 per cent due to the incremental contributions from pharmacies added to the company's network.
• Announced two acquisitions subsequent to the quarter-end, adding 10 pharmacies and $6-million of adjusted EBITDA on a pro forma basis, with the purchase price consistent with the company's historical multiples for transactions of this size. Both transactions are expected to close by the end of June, 2023.
• Initial network optimization initiative has resulted in the closure or consolidation of four existing locations.
• Announced a greenfield location in Kingston, Ont., specializing in compounding and pain management.
• Pharmacy network to continue growing from a strong base of 291 locations across Canada.
• Adjusted earnings per share for the fourth quarter of six cents, up compared with five cents for the fourth quarter of 2022.

Full-year 2023 highlights:

• Revenue for fiscal 2023 increased to $749.1-million, up $321.6-million, or 75.2 per cent, due to contributions from new acquisitions and organic growth in the existing store base.
• Same-store sales for fiscal 2023 increased 2.9 per cent.
• Adjusted EBITDA for fiscal 2023 was $79.2-million, an increase of $33.3-million, or 72.6 per cent.
• Adjusted earnings per share for fiscal 2023 of 45 cents, up from 38 cents for fiscal 2022.
• Pro forma revenue of $876.1-million and pro forma adjusted EBITDA of $99.3-million.
• Acquired 112 pharmacies and added one greenfield location in fiscal 2023.

Declaration of dividend

Neighbourly announced today that a quarterly dividend will be paid on Aug. 3, 2023, to the company's common shareholders of record as of July 6, 2023. The amount of the dividend will be 4.5 cents for each common share. This dividend is an eligible dividend for Canadian income tax purposes.

Conference call and webcast information

A conference call will be held at 8:30 a.m. ET on June 8, 2023, to discuss Neighbourly's financial results for the fourth quarter 2022. Participants may join the company's conference call by dialling 416-764-8650 or 1-888-664-6383 (ID: 22502525). For those unable to participate, playback will be made available an hour after the event at 416-764-8677 or 1-888-390-0541, utilizing passcode 502525 followed by the pound key. The webcast of the call will also be archived and available on the company's website.

The conference call will also be available by webcast on the investor section of Neighbourly's website.

Neighbourly's unaudited consolidated financial statements and accompanying notes, and management's discussion and analysis for the fourth quarter 2022 are available on the company's website and on SEDAR.

About Neighbourly Pharmacy Inc.

Neighbourly is Canada's largest and fastest growing network of community pharmacies. United by their patient-first focus and their role as essential and trusted health care hubs within their communities, Neighbourly's pharmacies strive to provide accessible health care with a personal touch. Since 2015, Neighbourly has expanded its diversified national footprint to include 291 locations, reinforcing the company's reputation as the industry's acquirer of choice.

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