Mr. Skip Bourdo reports

NEIGHBOURLY ANNOUNCES STRONG FIRST QUARTER RESULTS

Neighbourly Pharmacy Inc. has provided its financial results for the 12-week period ended June 17, 2023 (the first quarter of 2024).

"Neighbourly's first quarter results reflect a strengthening top-line momentum and our increasing focus on operational execution," stated Skip Bourdo, the company's chief executive officer. "The team continues to deliver against our full agenda of growth driving initiatives and a robust M&A [merger and acquisition] pipeline, while maintaining a firm focus on providing high-quality care to our patients," concluded Mr. Bourdo.

First quarter 2024 highlights

• Revenue for the first quarter increased to $196.8-million, up $82.5-million or 72.1 per cent. Ninety-five per cent of the growth was driven by pharmacies acquired in the past 12 months.
• Same-store sales growth accelerated in the first quarter, increasing 4.1 per cent.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the fourth quarter increased to $19.9-million, up 76.5 per cent, primarily due to the incremental contributions from pharmacies added to the company's network in the past 12 months.
• Successfully closed on two previously announced acquisitions, completed in late June, 2023, bringing pharmacy network to 291 locations across Canada.
• Adjusted earnings per share for the first quarter of 11 cents, up compared with nine cents for the first quarter of 2023.
• Pro forma revenue of $882.2-million and pro forma adjusted EBITDA of $97.1-million.

Declaration of dividend

Neighbourly announced today that a quarterly dividend will be paid on Sept. 26, 2023, to the company's common shareholders of record as of Aug. 29, 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. Eastern Time on Aug. 1, 2023, to discuss Neighbourly's financial results for the first quarter 2024. Participants may join the company's conference call by dialling 416-764-8650 or 1-888-664-6383. 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 369825 (pound sign). The webcast of the call will also be archived and available on the company's website.

The conference call will also be available via 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 first quarter 2024 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.

We seek Safe Harbor.