Boule Diagnostics interim report Q2 2024

Stable development and improved margins

Quarter April - June 2024

• Net sales amounted to SEK 137.0 million (140.5), corresponding to a decrease of 2.5 percent. Organic sales growth amounted to -3.6 percent, exchange rate effects amounted to 1.1 percent.
• The number of instruments sold decreased by 10.0 percent to 883 (981).
• Gross profit amounted to SEK 59.1 million (59.9), corresponding to a gross margin of 43.1 percent (42.7).
• Adjusted operating profit amounted to SEK 9.9 million (8.7), corresponding to an operating margin of 7.2 percent (6.2). Non-recurring expenses amounted to SEK 8.5 million, mainly attributable to restructuring and increased taxation of employer's contributions and tax surcharges.
• Operating profit amounted to SEK 1.4 million (8.7), corresponding to an operating margin of 1.0 percent (6.2).
• Profit for the period amounted to SEK -1.6 million (4.1).
• Earnings per share before and after dilution amounted to SEK -0.04 (0.11).
• Cash flow from operating activities amounted to SEK 13.8 million (3.4).
• The Group's available cash and cash equivalents, including unutilized overdraft facilities, amounted to SEK 82.4 million (105.1) as of June 30.

Comments by the CEO Torben Nielsen

Q2 focused on cost optimization

In line with our strategic priorities, we launched a restructuring program in Q2 with the aim of reducing both production cost and operating expense. We reduced with eight headcounts that results in an annual saving impact of 8 MSEK. We will continue our efforts to lower the structural cost going forward.

Sales in the second quarter declined organically by 3.6%, primarily driven by lower instrument sales in the US. Currency impacted sales with +1.1%. YTD 2024 we report an organic growth of 1%.

Gross margin improved to 43.1% in the quarter vs LY (42.7%) despite lower sales. Utilization of the manufacturing capacity in Q2 was lower than Q1 and effected the margin negatively because of lower instrument sales.

Adjusted for one-time costs, operating expenses in the quarter decreased 5% over LY with decreasing costs for all functions except R&D where we continue to invest.

Adjusted for the one-times costs reported in the quarter the operating margin improved to 7.2% (6.2). Cash flow from operating activities continued to improve to 14 MSEK (3) and liquidity remains solid with cash and available credit facilities at 82 MSEK.

First 100 days as CEO

Through the countless introductory meetings, I have had with team members across our organization I have learned that Boule is resting on a foundation of truly great people that are united by the desire to deliver quality diagnostics and great service to our customers.

Visiting our sites in Sweden, US, and our partner-site in India I have realized that Boule has some unique capabilities in our ability to develop and manufacture an entire hematology lifecycle from high quality, robust analyzers through proprietary reagents and controls to aftermarket service, support, and continuous education.

And speaking with partners, distributors, and customers I have learned that Boule, with its history of pioneering hematology, dating back to the 1950’s, has earned a strong brand recognition in the market and a very loyal following of both distributors and end-users.

From a strategic perspective however, I see a need for us to challenge the way we do things by creating a culture of continues improvement and further develop our ability to execute.

We operate in an attractive but highly competitive decentralized hematology market and therefore we need to improve our processes and operating efficiency across all functions to secure our profitability and position in the market.

With that understanding I have defined the following three focus areas:

• Expand operating margins through disciplined execution and reductions in structural cost
• Accelerate growth through strategic organic investments
• Building a better, stronger, growth-oriented portfolio

I would like to thank my team for all the hard work done in the last months, and I am thankful for the trust from our shareholders and customers.

THE INTERIM REPORT IS FOUND BELOW AS A PDF.

Presentation of the interim report
At 10.00 CEO Torben Nielsen and CFO Holger Lembrér will present and comment on the interim report. After the presentation there will be time for audience questions. The presentation will be held in English.

Enter the Teams live event and download presentation material at:

https://boule.com/investor-relations/

For more information, please contact:
Torben Nielsen, CEO and Group President, Boule Diagnostics AB, torben.nielsen@boule.com

Holger Lembrér, CFO, Boule Diagnostics AB, phone +46 (0)72 230 77 10, holger.lembrer@boule.com

About Boule Diagnostics AB (publ)

Boule Diagnostics AB (publ) is a global diagnostics company specializing in near-patient, decentralized blood diagnostics and one of the few companies in the global diagnostics market that conducts its own development, manufacturing and marketing of instruments and consumables for blood diagnostics. The Company primarily serves hospitals, clinics, laboratories and other diagnostics companies to which it offers complete systems for blood diagnostics (hematology) in both the human and veterinary areas. Boule has strong positions in important emerging markets such as in Asia and in recent years has improved its position in the fast-growing veterinary market. Operations are conducted through operating subsidiaries in Sweden, the United States, Mexico and Russia. The Group reported net sales of SEK 571 million in 2023 and has more than 200 employees. Sales are conducted globally, predominantly through the company’s 200 or so distributors in over 100 countries, supported by Boule’s own local sales and service personnel. Boule has been listed on Nasdaq Stockholm since 2011.http://www.boule.com

This information is information that Boule Diagnostics AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:30 CET on July 22, 2024.