Interim report January-September 2021: Continued strong organic growth, improved gross margin and supply chain challenges

Third quarter: July-September 2021

• Net sales amounted to MSEK 315.6 (80.6), which corresponds to an increase of 292% (121) compared to the corresponding period previous year. Organic growth amounted to 59% (49). Adjusted for sales of non-recurring pandemic-related hygiene products the previous year, the quarter’s organic growth was 80%.

• EBITDA amounted to MSEK -33.8 (-5.6), corresponding to a margin of -10.7% (-6.9). The operating profit during the quarter was affected by acquisition costs totalling MSEK 4.7 (9.8). Other costs affecting comparability include implementation costs for ERP of MSEK 2.7 and costs for name change and rebranding of MSEK 2.5.

• Net profit/loss for the period amounted to MSEK -105.0 (-12.2), corresponding to earnings per share before and after dilution of SEK -1.81 (-0.26).

• The gross margin amounted to 73.1% (66.2). In the quarter, the company was positively affected by the product mix, partly due to the recent acquisitions, compared with the second quarter of 2021. In the comparison quarter, the Group was negatively affected by currency fluctuations and the sale of hygiene products that took place at a lower gross margin.

• Net sales from consumables amounted to MSEK 63.1 (16.4), an increase of 286%. The share of total product sales was 23.0%, which corresponded to an increase of 1.3 percentage points (21.7% in the comparison period).

• During the quarter, Advanced BioMatrix was acquired for a total purchase price of MSEK 156.9.

First nine months 2021: January-September 2021

• Net sales amounted to MSEK 738.2 (158.8), which corresponds to an increase of 365% (75) compared to the corresponding period previous year. Organic growth amounted to 69% (29). Adjusted for sales of non-recurring pandemic-related hygiene products the previous year, organic growth was 86%.

• EBITDA amounted to MSEK -58.1 (-27.3), corresponding to a margin of -7.9% (-17.2). The operating profit during the first nine months was affected by acquisition costs totalling MSEK 34.3 (9.8). Other costs affecting comparability include implementation costs for ERP of MSEK 2.7 and costs for name change and rebranding of MSEK 6.5.
   
• Net profit/loss for the period amounted to MSEK -203.3 (-50.5), corresponding to earnings per share before and after dilution of SEK -3.62 (-1.15).
   
• The gross margin amounted to 72.2% (69.3). The gross margin structure in acquired companies varies depending on the product mix. A larger share of service revenues than in the previous year, for instance through the acquisitions of MatTek and Visikol, makes a positive contribution, while Ginolis in particular operates with a lower gross margin than other companies in the Group.
   
• Net sales from consumables amounted to MSEK 140.6 (29.4), an increase of 378%. The share of total product sales was 21.9%, which corresponded to an increase of 2.4 percentage points (19.5% in the comparison period).

“BICO is showing a strong quarter with sales development of 292 percent driven by M&A and 59 percent organic growth. We saw a strong demand in the Group for our instruments and reagents and also an increased share of revenue from consumables and new product launches. We succeeded with this, despite that three of the Group's companies had challenges in their global supply chain in combination with under capacity in their production. We have addressed the challenges and our assessment is that the measures taken will gradually have an effect from the fourth quarter of 2021. As a result, the order intake during the quarter was higher than sales, which generated a significant increase in the Group’s order backlog”, says Erik Gatenholm, CEO and President, BICO.

“Our mission is to continue to develop the Group’s agenda for Bio Convergence through product development and innovation which will result in customer solutions that address the health challenges we are facing and that contributes to the future of health. We are continuing to build our organization in order to deliver on our long-term growth strategy through, new recruitments across all functions, larger facilities, and investments in R&D. During the final months of the year, we will focus on ensuring that the measures implemented to address the challenges we have with the companies’ supply chains gives result”, says Erik Gatenholm, CEO and President, BICO.

Earnings call November 10, 2021 
The presentation will be held in English. Presentation will be available at www.bico.com/investors

Date: Wednesday, November 10, 2021. 14:00-15:00 (CET)
For audio: +46 8 502 439 36 Conference-ID: 733 136 669#
For video: Video link to the presentation
Speakers: Erik Gatenholm, CEO, Gusten Danielsson, CFO and Jonas Schöndube, Business Area Director Biosciences

Annex: Interim report January-September 2021   

For more information please contact:

Gusten Danielsson, CFO
Phone (Sweden): +46 70 991 86 04   
Phone (US):  +1 (857) 332 2138
Email: gd@bico.com

Isabelle Ljunggren, Head of Communications
Phone: +46 70 830 08 90
Email: il@bico.com    

This information is such that BICO Group AB (publ) is required to publish in accordance with the EU Market Abuse Regulation. The information was submitted for publication, through the agency by the contact persons set out below on November 10, 2021, at 08.00 (CET).

About BICO

Founded in 2016, BICO (formerly CELLINK) is the leading bio convergence company in the world. By combining different technologies, such as robotics, artificial intelligence, computer science, and 3D bioprinting with biology, we enable our customers to improve people's health and lives for the better. 

With a focus on the application areas of bioprinting, multiomics, cell line development, and diagnostics, the company develops and markets innovative technologies that enable researchers in the life sciences to culture cells in 3D, perform high-throughput drug screening and print human tissues and organs for the medical, pharmaceutical, and cosmetic industries. We create the future of health. 

The Group’s instruments in the field amounts to 25,000, including all the top 20 pharmaceutical companies, are being used in more than 65 countries, and have been cited in more than 9,500 publications. BICO is listed on Nasdaq Stockholm under BICO. www.bico.com