Interim report January - September 2015
JANUARY – SEPTEMBER 2015
- Net sales amounted to SEK 210.9 (127.5) million
- EBITDA was SEK 9.2 (-32.7) million
- Basic earnings per share were SEK -0.21 (-0.73)
JULY – SEPTEMBER 2015
- Net sales amounted to SEK 74.2 (44.7) million
- EBITDA was SEK 6.5 (-6.9) million
- Basic earnings per share were SEK -0.06 (-0.19)
SIGNIFICANT EVENTS
Increase in net sales and gross profit during the first nine months of the year
- Net sales increased by 65% to SEK 210.9 million
- Gross profit increased by 144% to SEK 98.8 million
Positive EBITDA of SEK 9.2 million during the first nine months of the year
- Strong sales growth and improved gross margin
- Lower percentage of fixed overhead costs in relation to net sales
Future outlook 2015
- Fluctuation in net sales and earnings between quarters
- Positive EBITDA
OPERATIONS
The healthy growth in net sales during the first half of 2015 persisted through the third quarter. During the first nine months of 2015, net sales increased by 65% to SEK 211 million, which exceeds full-year sales for 2014. Growth was fueled by the strong sales performance in Spain. But the Nordic market, particularly Sweden, also contributed with considerably higher sales compared to the same period last year. Sales outside Europe contributed with approximately SEK 4 million during the first nine months of the year. On a 12-month rolling basis, sales at the end of the period amounted to SEK 271 million, which corresponds to a growth rate of 58%. The increase in sales is also associated with a higher-than-average gross margin. For the first nine months of the year, gross profit increased by 144% compared to the same period last year. This resulted in a positive EBITDA of SEK 9.2 million for the period. Accordingly, an important goal has been achieved, in that the higher level of sales achieved by the company in 2015 makes it easier to leverage the existing company structure. The positive sales development and improved profitability is also reflected in the company’s cash flow. Cash flow from operating activities was positive at SEK 27 million during the period.
Development of the product portfolio
The composition of the product portfolio in each market is critical to the company’s future growth and profitability. The expected earnings potential of products is also continually evaluated. During the third quarter, the product portfolio grew with the addition of two licensed products for a diverse number of markets. In total, eight new products were added to the portfolio in 2015. The products are expected to be launched during the latter part of 2016 and 2017. In addition, Bluefish decided to deregister the market approval for a large number of products during the third quarter because of the high maintenance costs and limited potential for generating revenue. These deregistrations will result in annual saving of SEK 1.4 million starting in 2016 due to lower product maintenance costs. Meanwhile, the registration procedures for the company’s own developed products are progressing in accordance with plan, with expected launches in several of Bluefish’s most important markets during the latter part of 2016 and 2017.
Future Outlook
Net sales per quarter have fluctuated over the years. The company expects that sales in the last quarter of the year will be below the level achieved in the third quarter, but that there will still be growth as compared to the same period last year. Accordingly, significant growth is anticipated for the full-year sales figures. The company also expects a slightly lower gross margin in the fourth quarter, compared to the previous quarters of 2015. However, gross margin for the full year is expected to exceed the level achieved last year. The growth in sales and improved profitability in 2015 has created a strong platform for the company’s continued development. New product launches during the latter part of 2016 and 2017 are expected to fuel sales growth even further, and this is also expected to have a positive impact on profitability.
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