Interim Report January – March 2019
First quarter in brief
- Net sales rose by about 91 percent to SEK 11,931 (6,246) thousand.
- Operating profit/loss before depreciation and amortization (EBITDA) totaled SEK 2,695 (loss: 16) thousand.
- Operating profit/loss improved by SEK 3,310 thousand to SEK 1,942 (loss: 1,368) thousand.
- Comprehensive income for the quarter improved by SEK 2,987 thousand and totaled 1,591 (loss: 1,396) thousand.
- Comprehensive income per share, basic and diluted, improved by SEK 0.05 to SEK 0.03 (-0.02).
- Cash flow from operating activities was SEK 2,709 (loss: 2,024) thousand.
Significant events after the end of the quarter
Genovis signed a collaboration agreement with Thermo Fisher Scientific for the development of new methods for automatic sample handling and analysis of biopharmaceuticals based on chromatographic and mass spectrometric analytical methods (LC-MS). The purpose of the collaboration is to develop advanced work flows from start to finish for complex biological drug molecules in order to meet the growing need for effective, fast and simplified quality analyses.
Comments from Fredrik Olsson, Chief Executive Officer
We began 2019 with strong sales growth. Net sales surged in the first quarter by about 91 percent compared with the corresponding period in 2018. Currency effects had a favorable impact on growth for the quarter and corrected for this, organic growth is clearly robust at 73%. Our sales over a rolling 12-month period now passed SEK 40 million. Operating earnings continued to improve significantly compared with the same period the previous year and it is particularly satisfying that we have now achieved an operating profit for three consecutive quarters.
Growth during the first quarter was generated broadly across the product portfolio which, along with one large order of about SEK 2 million during the period, contributed to the accelerated growth. The area of application for this order is outside our current main market in quality analysis of biopharmaceuticals and relates to an evaluation study at a global biopharmaceutical company using one of our existing enzyme products.
During the quarter, we continued to work on product development with an extra emphasis on automated analysis strategies for the biopharma industry. Our efforts culminated in our first collaboration agreement with Thermo Fisher Scientific, which was announced at the beginning of the second quarter. With its substantial marketing capacity and hardware expertise, partnering with Thermo Fisher will enable us to develop new products and work flows to meet the growing demand for simpler, more efficient quality analysis of biopharmaceuticals. We will also look for opportunities to collaborate with selected key customers who have clear ambitions to automate their analytical workflows. Our aspiration is to further refine and adapt products for automated quality analysis, both from our current product portfolio and using newly developed enzyme solutions, in close cooperation with world-leading biopharma customers.
The period has also been characterized by intensive efforts to find new partners for sales in prioritized geographic markets in Asia. I can conclude that this effort has been successful and that we will likely soon be able to handle sales in additional markets.
We continued to invest in our production capacity during the period. This spring we will further intensify these efforts when we move to a modern production facility in newly renovated premises. Over the next few quarters, we will continue to invest in our production facility to meet an expected increase in demand for our current product portfolio, as well as to strengthen our capacity for future product launches. These investments are laying the foundation for scaling up and broadening our operation in the long term to meet market needs and to enable agile production at Genovis in the future.
In summary, 2019 is off to a great start throughout our operations and I look forward to continued growth and improvement in our business going forward. It is particularly gratifying that for the first time, we have now been operating at a profit over a twelve-month period. With our current initiatives based on reinvestment of our surplus in the business, I look forward to our continued growth journey at Genovis along with my colleagues, with a focus on building value for customers, employees and shareholders.
For more information, please contact: Fredrik Olsson, CEO, Genovis AB Tel: 0046 (0)46 -101233 email@example.com
Genovis’ business concept is to apply its knowledge and imagination to design and provide innovative tools for the development of the drugs of the future. Today Genovis sells several enzyme products known as SmartEnzymes all over the world in innovative product formats that facilitate development and quality control of biological drugs.
The Group consists of Genovis AB and the wholly owned subsidiary Genovis Inc. (USA). Genovis shares are listed on Nasdaq First North Stockholm and Erik Penser Bank is the Company’s Certified Adviser, firstname.lastname@example.org, T: +46 (0)8-463 83 00.
This information is information that Genovis AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, by the contact person set out above, on May 8, 2019.
This press release is a translation of the Swedish original. In the event of any discrepancy between this translation and the Swedish original, the Swedish version shall prevail.