Mr. Skip Bourdo reports

NEIGHBOURLY ANNOUNCES STRONG SECOND QUARTER RESULTS

Neighbourly Pharmacy Inc. has released its financial results for the 12-week period ended Sept. 9, 2023 (the second quarter of fiscal 2024).

"Neighbourly's second quarter results reflect the increasing momentum of our pharmacy business, our focus on operational execution, and the ongoing contributions from our robust M&A [merger and acquisition] pipeline," stated Skip Bourdo, the company's chief executive officer. "The team continues to deliver on our growth initiatives as we maintain an unwavering focus on delivering exceptional patient care," concluded Mr. Bourdo.

Second quarter 2024 highlights:

• Revenue for the second quarter increased to $203.2-million, up $24.3-million, or 13.6 per cent, compared with the prior year. Seventy-five per cent of the growth was driven by pharmacies acquired in the past 12 months.
• Same-store sales growth continued on a strong trajectory, increasing 4.0 per cent in the second quarter.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the second quarter increased to $21.4-million, up 8.0 per cent primarily due to the incremental contributions from pharmacies added to the company's network in the past 12 months.
• The company acquired one more pharmacy location subsequent to quarter-end, bringing the pharmacy network to 292 locations across Canada.
• Adjusted earnings per share for the second quarter were 13 cents, compared with 12 cents in the second quarter of 2023.
• Pro forma revenue was $889.2-million and pro forma adjusted EBITDA was $97.1-million.

Declaration of dividend

Neighbourly announced today that a quarterly dividend will be paid on Dec. 19, 2023, to the company's common shareholders of record as of Nov. 21, 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 Oct. 24, 2023, to discuss Neighbourly's financial results for the second quarter of 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 142967 followed by the number sign. 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, accompanying notes, and management discussion and analysis for the second quarter of 2024 are available on the company's website and on SEDAR+.

Persistence Capital Partners' letter of intent to take Neighbourly private

With respect to Persistence Capital Partners' letter of intent to take Neighbourly private, announced on Oct. 3, 2023, neither Neighbourly nor the transaction committee expects to make further public comment regarding such matter until a definitive agreement is reached. As a result, no updates in connection thereto will be made or discussed during the scheduled second quarter 2024 conference call.

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 292 locations, reinforcing the company's reputation as the industry's acquirer of choice.

We seek Safe Harbor.