Interim Report January – September 2018
July – September in summary
- Net sales rose by about 74 percent to SEK 9,206k (5,286k).
- Operating profit before depreciation and amortization (EBITDA)* totaled SEK 1,747k (loss: 1,299k).
- Comprehensive income for the period improved by SEK 1,983k to a profit of SEK 342k (loss: 1,641k).
- Comprehensive income per share, basic and diluted, improved by SEK 0.04 to SEK 0.01 (-0.03).
- Genovis expanded its sales and marketing organization at its Lund headquarters and hired Rob Horsefield as Sales & Business Development Manager.
- Genovis launched FabRICATOR®-HPLC for quality analysis of antibodies in automated analysis systems. The product is based on Genovis’ FabRICATOR technology and can be used in current analysis systems for rapid analysis without manual sample handling.
January – September in brief
- Net sales rose by about 51 percent to SEK 24,031k (15,893k).
- Comprehensive income for the period improved by SEK 7,959k to SEK 22,858k (14,899k).
- Operating profit/loss improved by SEK 3,816k to a loss of SEK 2,874 (loss: 6,690k).
- Comprehensive income for the period improved by SEK 4,010k to a loss of SEK 2,846k (loss: 6,856k).
- Comprehensive income per share, basic and diluted, improved by SEK 0.07 to SEK -0.05 (-0.12).
Events after the end of the period
Genovis became certified to ISO 9001:2015 Quality certification means that the management system meets the requirements imposed by International Standard ISO 9001:2015. The certification covers product development, production and sales.
By designing a quality management system with a strong customer focus in which all processes and procedures are meticulously formulated and quality-tested in compliance with the international standard, Genovis ensures that it continues to deliver products and provide services that meet market demands.
* Genovis has chosen to apply IFRS 16 in advance, as well as the simplification rule regarding short-term leases. Consequently, this will not have any effect on the figures reported for 2017. Costs for rent and leases are therefore recognized under depreciation and amortization and beginning in 2018 will not affect EBITDA for the Group
Comments from Fredrik Olsson, Chief Executive Officer
Continued strong sales growth in the third quarter
Sales growth in the third quarter was strong, 74 percent, and was positively impacted by currency effects. Currency adjusted organic growth was approximately 60 percent.
In the third quarter we reached a milestone in our growth journey – for the first time, we can report a profit and positive cash flow from operating activities in a single quarter. For the nine-month period we see growth throughout the product portfolio and in all geographic markets – North America, Europe and Asia. Our goal of having partners in key markets in Asia in the near future remains unchanged.
Sales growth of products launched over the past two years continues to be strong, both for Biopharma, our main market, and the early research applications in industry and academia. Our customers have appreciated our strategy of offering new products that improve and simplify analytical methods for O-glycans, which is reflected in the growth of this product segment.
During the quarter we launched FabRICATOR-HPLC as a “value-added” product intended to establish a stronger link between our FabRICATOR enzyme and automated analyses for process development and production of antibody-based drugs. Sales began at the time of the launch and I believe that revenue, as with any new product, will be limited during the introductory phase, but will gain momentum over time as the product is validated and evaluated by the market.
Growth and earnings in the third quarter are of course encouraging and an acknowledgement that our strategy is working well. At the same time, it is important that we continue to focus on the top half of the income statement. Genovis is a growth company with good momentum and this positive trend will pave the way for new opportunities.
We see continuation of a favorable growth trend at the beginning of the fourth quarter. The continued underlying demand for enzymes and new analytical tools in our main markets of biopharmaceuticals and protein analysis provide a firm footing from which to view future developments at Genovis with great confidence.
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. 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 November 27, 2018.
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.