Year-end Report 2013
JANUARY – DECEMBER 2013
- Net sales amounted to SEK 175.5 million (162.3)
- EBITDA was SEK -31.4 million (-52.7)
- Earnings per share totaled SEK -0.90 (-1.50) before dilution
OCTOBER – DECEMBER 2013
- Net sales amounted to SEK 43.6 million (36.9)
- EBITDA was SEK -14.3 million (-25.5)
- Earnings per share totaled SEK -0.35 (-0.53) before dilution
HIGHLIGHTS
Increase in net sales and significant improvement in gross margin
- Net sales during 2013 increased by 8% to SEK 175.5 million
- Gross profit increased by 73% to SEK 57.4 million
Great operational efficiencies achieved during the year
- Inventory reduced by 21% to SEK 78.4 million
- Operating cash flow amounted to SEK 29.0 million (-39.8)
Outlook 2014
- Return to double-digit growth in net sales
- Improvement in EBITDA profitability
BUSINESS UPDATE
When reviewing the past year, the company has accomplished to meet the key targets communicated in our outlook for 2013 at the beginning of the year. Prioritizing profitability over growth, one of the most important goals was to increase the gross margin. With a gross margin improvement of 12.2 percentage points, this has been reached, resulting in a considerable increase in gross profit. As we believed this could be achieved within the existing organization, operating costs were expected to increase only moderately. Indeed, operating costs increased by a modest 3% during 2013. Finally, inventory continued to decline, with an improved inventory turnover and a positive impact on working capital as a result.
During 2013, Bluefish initiated a number of activities to increase revenues in the short- to mid-term, both in existing markets but also in markets outside Europe. By entering into partnerships with local companies that also assume the inventory risk, Bluefish creates opportunities for continued growth with limited effects on cash flow. A few agreements have already been entered into, with the aim of delivering results already during 2014.
In November, Bluefish was selected as the exclusive provider of four products within the oncology area in a two-year contract for the Andalusia region in Spain. The new contract will have an impact on net sales from January 2014 with incremental annual net sales estimated to approximately SEK 15 million. In addition, net sales in several other European markets are expected to grow during 2014. Further, we also see an upside from RoW markets, including the regions of Middle East, Africa and Latin America.
During 2013, the company’s own niche product formulation pipeline has matured and entered more advanced stages of development. In October, a critical milestone was reached when positive results were presented from the bioequivalence study for one of the company’s own formulation projects. Several of the products are expected to be submitted for registration during the last six months of 2014. These products in turn present new opportunities for growth outside our existing territory. Identification of potential partners for these products in RoW markets are ongoing with the ambition of also submitting the registration dossiers in markets also outside the EU.
OUTLOOK
The company expects a return to double-digit growth in net sales during 2014. With a gross margin maintained at a similar level to that of 2013, we expect an improvement in EBITDA profitability. As we anticipate an increase in volumes, inventory levels will grow, however, at a moderate pace with the aim of keeping inventory number of days of sales at a continued efficient level.
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 80 products and is growing.
www.bluefishpharma.com