Genovis Interim Report January – September 2015
Summary: third quarter 2015
- Net sales increased by 105% to SEK 3,358k (1,639k).
- Gross profit improved by SEK 3,084 to SEK 822k (-2,262k).
- Loss after tax worsened to SEK 6,647k (loss: 5,545k). Non-recurring expenses had a negative impact on earnings of SEK 4,888k. Excluding non-recurring expenses, the result is better than last year.
- Comprehensive income was a loss of SEK 6,470k (loss: 5,545k).
- Comprehensive income per share totaled SEK -0.18 (-0.25).
- Cash flow from operating activities was SEK -2,698k (-4,537k).
- Cash and cash equivalents including short-term investments amounted to SEK 6,145k (12,003k) at the end of the period.
- Genovis reorganized, discontinued operations in the subsidiary GeccoDots and sold the intellectual property rights behind the Nanomotus project to the inventors against future royalties.
Summary of the first nine months of 2015
- Net sales rose by about 59% to SEK 9,770k (6,153k).
- Gross profit/loss improved by SEK 2,590 to SEK –1,293k (-3,883k).
- Loss after tax worsened to SEK 16,844k (loss: 14,187k). Non-recurring expenses had a negative impact on earnings of SEK 6,036k. Excluding non-recurring expenses, the result is better than last year.
- Comprehensive income was a loss of SEK 16,825k (loss: 14,187k).
- Comprehensive income per share totaled SEK -0.61 (-0.66).
- Cash flow from operating activities was SEK -12,177k (-16,515k).
Comments from CEO Fredrik Olsson
It is extremely satisfying to note that we more than doubled our sales in the third quarter compared with the same period last year. So far this year, sales have increased by almost 60 percent and for the first time in years, we can report a positive gross profit. Cash flow also improved substantially in the third quarter compared with previous quarters this year and the same period last year.
Operating earnings before depreciation (EBITDA) improved by almost SEK 3 million compared with the corresponding period last year. Even compared with the first and second quarters of this year, the improvement in earnings in the third quarter is significant.
Operations in GeccoDots were discontinued in the third quarter and we have divested parts of the company’s intellectual property rights to the inventors against future royalties. By discontinuing operations at GeccoDots we will also reduce costs moving forward, primarily relating to patent and personnel costs. Although some restructuring costs were already taken in the second quarter, most are charged to the current quarter. In connection with the restructuring, we also decided to write down all intangible assets in GeccoDots, which has a negative impact on earnings. In total, restructuring costs for the third quarter amounted to SEK 4.9 million; excluding these costs, third quarter results improved significantly compared with previous quarters this year and clearly demonstrate our commitment to move toward a profitable business.
Genovis’ product portfolio consists of two types of enzymes, proteases and glycosidases. The market for proteases for use throughout the life science area is approximately USD 100 million annually. All proteases that Genovis introduced in this market since 2010 currently account for about 2 percent of the market, and we intend to further increase our market share moving forward. Since its inception, Genovis has built on the idea that a good business is based on delivering a unique product that has a high value for the customer. Genovis has also chosen a path that has not been trodden before, and our philosophy for achieving high value is that it is necessary to go where others have not gone before. The products launched earlier this year continue to grow beyond expectations and thereby contribute to reducing Genovis’ dependence on individual products. The products we will launch in the future will also be unique and solve important problems for our customers.
We can conclude that the third quarter confirms that we are improving our business through close relationships with our customers. Solving our customers’ problems and challenges with unique products will drive our sales even further. We will therefore continue to prioritize sales and marketing with the launch of new products.
In addition, the number of scientific publications in which our enzymes were used almost doubled this year compared with last year, yet another confirmation of the uniqueness and relevance of our products to our customers. I am extremely pleased and proud of all employees at Genovis who contribute their energy and creativity every day to find new and more effective solutions to our customers’ problems.
For more information, please contact: Fredrik Olsson, CEO, Genovis AB Tel: 0046 (0)46 -101233 email@example.com
Genovis’ business concept is to offer customers in the pharmaceutical and medical device industries tools that facilitate and save time in the development of new treatment methods and diagnostics. Today Genovis sells several enzyme products known as SmartEnzymes all over the world in innovative product formats that facilitate development and quality control of biological drugs.
The Group consists of Genovis AB and the wholly owned subsidiary Genovis Inc. (USA).
Genovis shares are listed on Nasdaq First North Stockholm, and Consensus is Certified Adviser for the Company, t: 46 (0)31-745 50 00
This press release is a translation of the Swedish original. In the event of any discrepancy between this translation and the Swedish original, the Swedish version shall prevail.