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Interim Report April - December 2021

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A historically strong quarter driven by sales of home tests

October - December

  • Consolidated sales during the third quarter, October to December amounted to SEK 117.6 (29.6) million. Adjusted for non-recurring sales the revenue amounted to 33.1 (23.4) MSEK, an increase of 41.4%.
  • Gross profit amounted to SEK 32.5 (10.5) million for the quarter, an increase of 209.2%.
  • EBIT for the quarter was SEK 18.0 (2.4) million.
  • Earnings per share were SEK 0:59 (0:07) for the quarter.
  • Cash flow from operating activities amounted to SEK 12.4 (-5.7) million for the quarter.
  • Cash and cash equivalents were SEK 20.5 (14.0) million at the end of the quarter.

April - December

  • Consolidated sales during the period April-December amounted to SEK 209.7 (153.3) million. Adjusted for non-recurring sales the revenue amounted to 99.2 (70.0) MSEK, an increase of 41.7%.
  • Gross profit for the same period amounted to SEK 64.2 (43.3) million, an increase of 48.2%.
  • EBIT for April-December amounted to SEK 27.0 (17.4) million.
  • Earnings per share were SEK 0:86 (0:57) for the period.
  • Cash flow from operating activities amounted to SEK -6.1 (3.7) million during April-September.
  • Cash and cash equivalents were SEK 20.5 (14.0) million at the end of December.

CEO’s comments

The third quarter of 2021/22 was a historically strong quarter driven by the company's home tests for Covid-19. During the last two weeks of December, home tests were sold for close to SEK 40 million, and when the work of closing the quarter began in the second week of January, it was clear that sales had become very high. As a result, after the seventh business day of the new year, the company issued a reverse profit warning. Sales landed at SEK 117.6 (29.6) million and profit to SEK 18.0 (2.4) million. Sales, adjusted for non-recurring sales, were SEK 33.1 (23.4) million, an increase of 41%.

The continued spread of the omicron variant of the SARS-CoV-2 virus during January has led to continued extensive sales of home tests during the fourth quarter. As part of the reverse profit warning, the company writes that total sales during the fourth quarter are estimated to be greater than SEK 175 million.

On the pharma front, the company has been very active during the quarter, in discussions with licensees in Europe for several products and markets where we do not intend to launch on our own.

Furthermore, during the quarter, the drug Latanoprost EQL Pharma eye drops 50 micrograms / ml has been approved for sale in Sweden, Denmark and Norway.

Finally, product development for our drugs is still in an intensive phase and we hope to launch 9 products during the next financial year.

During the third quarter, I informed the Board that I intend to step down as CEO at the Annual General Sharholder Meeting. My plan is to remain a main owner of EQL Pharma for the foreseeable future, and to be active from a board horizon and as an investor. The board has appointed Axel Schörling, COO and EVP of the company, as successor, and I feel confident and convinced that this means that we have a continued long and profitable growth journey ahead of us.

During the quarter, the organization was strengthened in several places, which is necessary to cope with the rapid growth we are experiencing in a sustainable way.

For further information, please contact:
Christer Fåhraeus
CEO, EQL Pharma AB (publ)

Phone: +46 (0) 705 – 60 90 00
E-mail: christer.fahraeus@eqlpharma.com
Website: www.eqlpharma.com

Eql Pharma AB (Publ) briefly
EQL Pharma AB specializes in developing and selling generics, ie pharmaceuticals that are medically equivalent to reference pharmaceuticals. The company currently has upwards of 20 niche generics (ie generics with limited competition apart from the reference pharmaceutical) approved in the Nordic markets. In addition to these, there is a significant pipeline of additional niche generics for launch in 2021 and beyond. The business is currently entirely focused on prescription pharmaceuticals, including hospital products, in the Nordic region and in selected European markets. EQL Pharma AB conducts its operations in Lund and is listed on the Spotlight Stock Market. EQL Pharma AB conducts extensive development work in collaboration with leading contract manufacturers and pharmaceutical companies in the EU and Asia, among others.

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