Year-end report 2014

JANUARY – DECEMBER 2014
- Net sales amounted to SEK 187.7 million (175.5)
- EBITDA adjusted for currencies was SEK -25.9 million (-26.8)
- Earnings per share totaled SEK -0.82 (-0.90) before dilution

OCTOBER – DECEMBER 2014
- Net sales amounted to SEK 60.3 million (43.6)
- EBITDA adjusted for currencies was SEK 1.9 million (-11.4)
- Earnings per share totaled SEK -0.09 (-0.35) before dilution

HIGHLIGHTS
Increase in net sales and gross margin during 2014
- Net sales increased by 7% to SEK 187.7 million
- Gross profit increased by 23% to SEK 70.4 million

Focus on new growth opportunities
- Establishment in new markets
- Extending the product portfolio with niche products

Outlook 2015
- Continued growth in net sales and expansion in gross margin
- Improved EBITDA profitability

BUSINESS UPDATE
After a challenging period during the first six months of the year when net sales declined due to significant stock-outs, the development in net sales improved during the last six months of the year, and in particular during the last quarter. As the incremental revenue added during the fourth quarter was associated with a higher than average gross margin, this increase in net sales had a fundamental impact on the company’s results as we were able to achieve a better leverage of our existing organizational structure. Adjusted for currencies, the company achieved an important internal ambition by presenting a positive EBITDA of SEK 1.9 million for the fourth quarter. The increase in net sales during the fourth quarter primarily resulted from the new tender in Spain, where the first volumes were supplied during the period, as well as the initial deliveries to our partner in Iraq but also a general increase in contribution from other markets.

Establishment in new markets
During 2014, the company signed an agreement with a local distributor in Iraq for marketing of a selection of Bluefish products in this region. The initial deliveries were supplied during the fourth quarter, and the remaining goods will be shipped during the first six months of 2015. During the year, Bluefish has also 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. We have established a partnership with Tranzone, a local logistics company, who will handle the distribution of products for these markets. The aim is to grow the business in this territory together with existing and new partners by launching additional products as well as securing new and repeat orders.

Development projects progressing
Several of the company’s proprietary formulation projects are reaching the final stages of development. For the most advanced product, the health authorities in Sweden have confirmed a slot for submission of the registration file in March 2015. The procedure will include several of Bluefish key markets, with market launches expected in 2016. In addition, the company is actively seeking partners for this product in markets outside Bluefish territories. The development project pipeline is expected to contribute to net sales growth in 2016 and beyond.

New share issue and extension of convertible debt
During the second quarter of 2014, the company completed a new share issue of SEK 50 million with funds primarily provided by the company’s largest shareholders. Further, the offer to extend the holding in the convertible debt until 30 June 2017 was accepted by holders of debt equivalent to SEK 21.7 million, while SEK 18.4 million was repaid in June 2014. At the end of the year, total net debt amounted to SEK 56.4 million compared to SEK 60.2 million at the beginning of the year.

OUTLOOK
The relative contribution from each market will fluctuate over time, however, we expect that net sales in 2015 will grow. The increase will come from already secured tenders, planned new product launches as well as a general increase in market share. The expansion in gross margin is expected to continue, however, not in parity with that of the fourth quarter of 2014. With an expected increase in revenues, together with an expansion of the gross margin, we anticipate a positive EBITDA in 2015.


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

About Us

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 80 products and is growing. The company is owned by its founder Karl Karlsson, together with a number of investment funds and private investors.

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