Interim report January - September 2014
JANUARY – SEPTEMBER 2014
- Net sales amounted to SEK 127.5 million (131.9)
- EBITDA was SEK -32.7 million (-17.1)
- Earnings per share totaled SEK -0.73 (-0.54) before dilution
JULY – SEPTEMBER 2014
- Net sales amounted to SEK 44.7 million (42.0)
- EBITDA was SEK -6.9 million (-7.0)
- Earnings per share totaled SEK -0.19 (-0.18) before dilution
HIGHLIGHTS
Recovery in net sales and profitability during the third quarter
- Net sales growth of 6% compared to third quarter last year
- Increase in gross profit of 9% compared to third quarter last year
Continued efforts to grow in new territories
- New sales office established in Dubai
- Tranzone is logistics partner for Middle East and Africa
Outlook 2014
- Strong net sales development by the end of the year
- Improved profitability from new markets and product launches
BUSINESS UPDATE
Following a challenging period during the first six months of 2014 with stock-outs having a negative impact on both net sales and margins, net sales and gross profit recovered during the third quarter. In fact, the company noted all-time high sales in four different markets with stable margins during September. One of the company’s key markets with the strongest sales development during the first nine months of 2014 is Spain. The development in Spain has been particularly strong following the award of a tender with the government in Andalucia in November last year. This has allowed sales in Spain to grow significantly during 2014. The deliveries for the next tender announced earlier this year will begin during the fourth quarter, which will allow Spain to maintain a strong growth also during 2015. The increase in net sales and gross profit during the third quarter have had a positive impact on EBITDA profitability, which improved during the third quarter compared to the first six months.
Since the beginning of the year, the company has made major efforts to improve net sales and profitability by identifying new market and product opportunities. These efforts are expected to materialize during the fourth quarter of this year as we will launch several new products within the niche segment, and deliver siginificant volumes to the new tender in Spain as well as to our partner in Iraq.
Development projects are progressing
Several of the company’s proprietary formulation projects are reaching the final stages of development. The company expects to submit four of its development products during next year with market launches expected in 2016. On an annual basis, the total net sales value for these four products in Bluefish’s markets is estimated to be approximately SEK 100 million. Furthermore, discussions are ongoing with potential partners for markets beyond Bluefish’s existing territory.
Establishment in new markets
Since last year, Bluefish has actively been seeking opportunities to increase revenues outside Europe by entering into partnerships with local companies that take the main responsibility for marketing and distribution as well as assume the inventory risk. During 2014, Bluefish has established a local company in Dubai, from where we will have a broad coverage of several markets, including the Middle East, North- and Sub-Saharan Africa. Tranzone, our logistics partner in the region, will handle the distribution of products for these markets. The initial deliveries to our new partner in Iraq are planned for the fourth quarter.
OUTLOOK
With several new revenue sources added in the fourth quarter, the company expects incremental net sales of approximately SEK 15 million in Q4 2014. This is equivalent to an increase of 35% compared to Q4 2013. Net sales growth for the full year 2014 is expected to be between 5-10%. The incremental sales is estimated to have a positive impact on profitability in the fourth quarter.
For more information, contact
Karl Karlsson, President & CEO Bluefish Pharmaceuticals
Tel. 46 8 519 116 00
Email: karl.karlsson@bluefishpharma.com
Susanna Urdmark, CFO Bluefish Pharmaceuticals
Tel. 46 8 519 116 00
Email: susanna.urdmark@bluefishpharma.com
About Bluefish Pharmaceuticals
Bluefish has undergone significant international expansion since the company was founded in 2005. Bluefish focuses on the development, manufacture and sale of generic pharmaceuticals. The company conducts marketing operations in a large number of European markets and is expanding into territories outside Europe. The product portfolio consists of a total of approximately 80 products and is growing.
www.bluefishpharma.com