CS MEDICA A/S announces financial results for the first half of the financial year 2023/24
CS MEDICA ("CS MEDICA" or the "Company") publishes its H1 report for the period January – March 2024. Highlights of the second quarter and first half year will be presented at a live-streamed conference on Thursday, May 23, at 15:00 CET. The H1 report is available as an attached document to this press release and on the Company's website (www.cs-medica.com). Below is a summary of the report.
PERFORMANCE HIGHLIGHTS
Following growth in Q1, we see continued development in Q2 2023/2024, delivering 76,000 units to new and existing customers. All sales were within the EU, with a new market launch in Switzerland, strengthening our presence in the DACH region.
With existing customers built over the last two years, recurring sales were driven by Italy, Spain, Sweden, Germany, and Slovenia. Sales exceeded targets by 18%, reaching mDKK 2.45, marking our best result in five quarters. Notably, 82% of sales were recurring, demonstrating our improved market position through our partners and their sales channels. Own-label products accounted for 86% of sales, improving cash flow and volume.
Order intake is mainly from the EU, MENA, and APAC regions. Own-label products cover 11% of the order intake, with the majority for the CANNASEN® brand.
Reducing Delays in Revenue Breakthrough
We continue to face delays due to limited financial capacity, a challenge expected to persist into 2nd half of 2023/2024. Our supply chain needs further optimization, and we are streamlining our primary and secondary packaging to improve efficiency and control extended lead times. Enhancing our financial capacity is critical to reducing these delays and speeding up deliveries in the upcoming quarters.
Financial highlights for Q2 2023/2024 (October 2023 – March 2024)
- In the second quarter of 2023/2024 (January– March 2024), CS MEDICA sustained its growth trajectory and exceeded the Net Sales targets by 18%, reaching a net sales of mDKK 2.45 (251). This accumulated to a revenue of mDKK 4.13 in the first half of 2023/2024 (Oct-Mar), and an order intake backlog of mDKK 10.6 in the first half year.
- Operating loss in the second quarter was reduced by 47%, from mDKK 4.23 last year to mDKK 2.23 current quarter, surpassing the cumulative reduction of 30% for the first half of 2023/2024. This quarterly enhancement stems not only from increased net sales but also from a significant reduction in administration costs by 77% to mDKK 0.49 together with a 59% reduction in sales and distribution expenses.
- Credit bank/Cash and Cash equivalents at the end of the Q2 quarter closed at mDKK -2.04 (30), which subsequently has been reduced to mDKK 1,2 in alignment with the credit line at Danske Bank. To bolster CS MEDICA’s liquidity, the focus remains on upfront payments, short-term sales, and the factoring agreement with Svea. Simultaneously, we continue to explore various options for funding transfer in collaboration with our investor, RongShi. However, due to delays and our current going concern, we no longer solely depend on this funding. We now view the funding from RongShi as having long-term potential, hence, we intensely investigate alternative funding solutions to ensure financial stability.
- At the end of the Q2 period, CS MEDICA’s equity/asset ratio was 15% (70%).
Live streamed conference following the H1 2023/2024 Report
On Thursday 23 May 2023 at 15:00 CET, CS MEDICA will host a H1 2023/2024 web conference. The web conference will start with a presentation from the management team commenting on the H1 2023/2024 report, followed by a Q&A session where the management team will answer questions from investors. The Q&A is already open, meaning that you can now submit your questions and vote for the best questions submitted by other investors. You will afterward be able to find all answers in the uploaded recording and transcript. The web conference will be held in English.
Please register, submit questions now or during the live presentation and vote for the best questions at the following link >>.
Date and time
Thursday 25th of May, 2024, from 15:00 – 15:30 PM CET
Sign up for conference
Live conference sign-up link >>.
For more information about CS MEDICA, please contact:
Gitte Lund Henriksen, CFO
Phone: + (45) 2774 2280
Email: glh@cs-medica.com
Website: https://www.cs-medica.com/
CS MEDICA, a Danish MedTech pioneer, specializes in developing evidence-based, CBD-integrated treatments for pain management, autoimmune and stress-related disorders. With a focus on patient-centric care, our products range from innovative R&D to registered over-the-counter substance-based medical devices and dermaceuticals. Our flagship CANNASEN® brand, alongside our own-label solutions, exemplifies our dedication to safe, high-quality treatments for both human and veterinary health globally.
The company is listed on Spotlight Stock Market in Stockholm (symbol: “CSMED”). For more information, visit cs-medica.com and LinkedIn.
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