THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.

9 February 2026

Chill Brands Group plc

("Chill Brands" or the "Company")

Trading update

Chill Brands Group Plc (LSE: CHLL), the consumer packaged-goods distribution company, is pleased to provide an update on its current trading.

Highlights

·    Product sales revenue averaged over 55% month-on-month growth between October 2025 and January 2026

·    Combined monthly revenues from product sales and service fees materially higher than during the prior financial reporting period (being the 18 months ended 30 September 2025)

·    Strategic product range expansion into sundries, beverages and confectionery underway

·    Chill.com domain asset independently appraised at in excess of its acquisition cost

·    Leaner cost base following resolution of historical legal matters with over £800,000 of exceptional costs and over £500,000 of operational costs eliminated following exit from legacy US business

Chill Connect revenue growth

The Company's Chill Connect platform has demonstrated exceptional commercial momentum since 30 September 2025. Between October 2025 and January 2026, product sales revenue (excluding retainer and service fees) achieved an average month-on-month growth rate in excess of 55%.

In addition to product sales, the Company generates service fee revenues from clients who engage Chill Connect for brand representation and market access services. Combined product sales and monthly service fee revenues have grown materially, with over £150,000 of combined revenue generated in January 2026. Monthly revenues will continue to fluctuate based on order timings and product mix, with growth subject to the availability of capital resources to the Company to fulfil demand. However the underlying market trajectory remains strongly positive.

As a result, on a like-for-like basis, the four-month trading period from October 2025 to January 2026 has generated revenues close to the total achieved in the 18-month reporting period to 30 September 2025. When combined with the exceptional income from the settlement reached with the Company's former advisers announced in October 2025, the Company's total income for the four-month period ended 31 January 2026 surpasses the prior 18-month total, underlining the material acceleration in the Company's commercial momentum.

This sustained growth trajectory validates the Company's business model and demonstrates strong market demand for the Chill Connect offering. The Board believes this performance trend positions the business well for continued expansion.

Market demand and strategic opportunities for Chill Connect

The UK convenience retail sector is experiencing significant structural change. Independent convenience retailers are navigating increasingly complex and fragmented markets, with product ranges expanding rapidly across multiple categories. This complexity creates a clear market need for specialist support, which Chill Connect is well positioned to address.

The Company's direct-to-convenience model has proven highly effective in this changing environment. Chill Connect's national field sales team maintains extensive retailer relationships across the UK and provides critical advisory services to convenience operators seeking to optimise their product mix. For Chill Connect's brand partners, the platform offers established market access and launch support into the convenience channel, combining distribution capability with on-the-ground expertise.

Revenue growth, coupled with customer enquiries, is now providing clear evidence of the success of the Chill Connect model with demand regularly running ahead of capacity. Revenue growth continues to be primarily constrained by working capital availability rather than market opportunity. Access to additional capital resources would enable the Company to carry broader inventory ranges, fulfil larger orders and accelerate the capture of commercial opportunities currently beyond immediate capacity.

Chill Connect product range expansion and market diversification

As part of its strategic evolution, the Company is actively expanding its product range beyond the vaping and nicotine categories. The expansion roadmap includes sundries, beverages, confectionery and other product lines relevant to the convenience retail sector.

This diversification strategy creates significant commercial advantages. A broader product range increases average transaction values, enhances customer retention by becoming a more essential supplier partner and creates natural cross-selling opportunities across the existing customer base. The wider the product mix, the greater the operational efficiency and competitive differentiation Chill Connect can achieve in serving the convenience channel.

Chill.com asset valuation

As part of its recent audit, the Company sought an independent professional appraisal of its Chill.com domain name asset. The valuation indicated a fair market value in excess of the original acquisition cost of USD 1.6 million. Shareholders should note that this appraisal represents an indicative valuation for accounting purposes only and may not necessarily reflect the proceeds that could be realised in an actual market transaction.

While the Company's operational focus has evolved toward the Chill Connect distribution platform, the domain remains a valuable strategic asset and a material component of its balance sheet.

Operational efficiency and cost base

Following the completion of operational restructuring in 2025, the Company now operates from a materially reduced cost base. The financial reporting period ended 30 September 2025 included significant exceptional costs totalling over £800,000 comprising extraordinary legal expenses, professional adviser fees, and other one-off charges. These exceptional items will not recur in the current year. Additionally, the board estimates that over £500,000 of operational costs will be saved following the closure of legacy US operations.

The ongoing monthly operational expenditure (excluding cost of goods sold) has been significantly reduced, with the primary overhead being personnel costs to support the field sales operation. Management's priority remains revenue growth and market penetration, with the leaner cost structure enabling revenue growth to flow through with greater operational leverage even while maintaining competitive pricing to support market share expansion.

The Company has maintained its operational liquidity comparable to the position at 30 September 2025, supplemented by drawings from its convertible loan note and inventory working capital facilities. As the business continues to evolve, the Board is conducting a comprehensive review of the optimal corporate and operational structure to ensure the Company remains optimally positioned and resourced to support its growth ambitions and deliver shareholder value.

Commenting on current trading conditions, Callum Sommerton, Chief Executive Officer of Chill Brands, said:

"The Company's operational performance validates everything we've built with Chill Connect so far. Significant month-on-month revenue growth resulting in increasing monthly revenues since the beginning of the current financial year demonstrate that our model works and that market demand is substantial. Our field team is executing exceptionally well, retailers are responding positively, and brands want to work with us.

"It is particularly encouraging that demand continues to run ahead of supply and the opportunity ahead is clear. We have retailers asking for more product lines and brands seeking our distribution reach. The market opportunity in convenience retail is only growing larger, and we are determined to take it."

-ENDS-

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About Chill Brands Group

Chill Brands Group plc (LSE: CHLL, OTCQB: CHBRF) is a distribution-led consumer packaged goods company serving the UK convenience retail sector. Through its Chill Connect platform, the Company operates a national field sales team providing direct-to-store distribution and advisory services to brands seeking to expand their distribution into the independent convenience channel. The Company's product range spans vaping and nicotine alternatives, with active expansion into sundries, beverages, confectionery, and other fast-moving consumer goods. Chill Brands partners with established FMCG businesses and emerging brands to provide comprehensive route-to-market solutions. The Company also owns the premium Chill.com domain name.

Publication on website

A copy of this announcement is also available on the Group's website at http://www.chillbrandsgroup.com