CS MEDICA Q3 2023/2024 Results: Strong Revenue Growth of 400% Despite Production Delays

Revenue Grew Over 400% Year-to-Date, and Order Intake Hit mDKK 49.3, Fueled by Strategic Partnerships and Expansion

CS MEDICA, a Danish MedTech leader specializing in pain management, autoimmune diseases, and stress-related disorders, reports its financial performance for the third quarter of 2023/2024 (April–June 2024). In a display of resilience and strategic insight, CS MEDICA met its Q3 revenue target despite facing production delays that necessitated carrying over mDKK 1.5 million to the next quarter. The company delivered mDKK 0.5 in net sales this quarter, achieving a robust year-to-date revenue growth of mDKK 4.6, a more than fourfold increase from mDKK 0.99 in the previous year.

With a year-to-date revenue comprising 66% from recurring business and 34% from new sales, CS MEDICA's effective go-to-market strategies and compliance measures have ensured a conversion success rate of 71% from order pipeline to actual revenue. The Q3 order intake backlog stands robust at mDKK 32.9, with an accumulated order intake of mDKK 49.3 for the year, signaling strong future performance and ongoing market trust.

Adding three new partners this third quarter propelled the company into nine new regions, with significant contributions from Azerbaijan, Georgia, and Austria. Sales dynamics for the quarter show that new sales made up 97% of the total, highlighting the successful introduction of new products and market penetration.

Strategic Partnerships and Financial Stability:
This quarter, our efforts to control and decrease costs have further supported our financial situation and operational efficacy. The recent loan agreement securing 2 million DKK from ProArk Ejendomsinvest has improved our financial position. Moreover, the decision to stock spin-off and list CANNORDIC A/S on the German Stock Market, with a preliminary valuation of MDKK 224, is set to enhance our market presence and secure essential growth capital.

Strategic Reflections and Future Plans:
CS MEDICA has streamlined its group structure to enhance operational efficiency and align with EU Medical Device Regulation requirements. Strategic investments in compliance, unique CBD technology, and bioactive compounds have begun to yield returns, strongly positioning the company in both the pharmaceutical and European CBD markets.

Financial highlights for Q3 2023/2024 (October 2023 – June 2024)

• In the third quarter of 2023/2024 (April– June 2024), CS MEDICA sustained its growth trajectory reaching the overall revenue target, however, due to production delays, mDKK 1.5 of the expected sales will be recognized in the fourth quarter. As a result, Q3 net sales amounted to mDKK 0.5, compared to a projected mDKK 2 million. The year-to-date revenue grew to mDKK 4.6, a significant increase from mDKK 0.99 in the prior year, and an order intake backlog of mDKK 32,9 in this quarter accumulating to mDKK 49,3 the first three quarters of the year.
• Gross Profit is affected by stock write-downs with a total of mDKK 0,2.
• Operating loss in the third quarter was reduced by 22%, from mDKK 4,66 last year to mDKK 3,61 in the third quarter, a cumulative reduction of 27% for the first 3 quarters of 2023/2024.
• Credit bank/Cash and cash equivalents at the end of Q3 stood at mDKK -1,0 (-0.4). To improve liquidity, we are focusing on securing upfront payments, and short-term sales, while leveraging our factoring agreement with Svea. Additionally, we are exploring alternative funding solutions in collaboration with our investor, RongShi, GP Europe Holding B.V. while consulting with financial advisors across Germany, Sweden, and Denmark to enhance financial stability.
• At the end of the Q3 period, CS MEDICA’s equity/asset ratio was 5% (55%).
   

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/S, 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.
 

CANNORDIC A/S, a subsidiary of CS MEDICA Group, is a pioneering MedTech company specializing in innovative substance-based medical devices containing bioactive CBD. Our dedication to enhancing lives by integrating innovation, science, technology, and natural cannabis compounds positions it as a pioneer in the medical technology industry. The company ensures robust research, development, manufacturing, compliance, data insights, and commercialization processes. 

Tags: