Interim Report January–September 2019
Interim Report January–September 2019
July – September in summary
- Net sales rose by 164 percent to SEK 24,279 (9,206) thousand.
- Operating profit before depreciation and amortization (EBITDA) totaled SEK 7,987 (1,747) thousand.
- Comprehensive income for the period improved by SEK 7,131 thousand to SEK 7,473 (342) thousand.
- Comprehensive income per share, basic and diluted, improved by SEK 0.11 to SEK 0.12 (0.01).
- Genovis delivered an order worth 13,5MSEK of SmartEnzymesTM for use in the manufacturing process for a biological drug. This is a new application for the company’s products. The customer intends to use Genovis’ enzyme for production of a drug candidate for a phase 1 clinical study.
January – September in brief
- Net sales rose by 99 percent to SEK 47,719 (24,031) thousand.
- Gross profit improved by SEK 21,265 thousand to SEK 44,123 (22,858) thousand.
- Operating result improved by SEK 13,463 thousand to SEK 10,589 (loss: 2,874) thousand.
- Comprehensive income for the period improved by SKE 13,290 thousand to 10,444 (loss: 2,846) thousand.
- Comprehensive income per share basic and diluted improved by SEK 0.22 to SEK 0.17 (-0.05).
Comments from Fredrik Olsson, Chief Executive Officer
The third quarter was our best quarter ever, in terms of both sales and earnings. Sales rose by 164 percent and adjusted for currency effects, growth was 147 percent. This strong growth was mainly driven by our single largest order for a bioprocess application and accounted for SEK 13.5 million of our sales. Adjusted for this order our growth in the third quarter was 17 percent and for the period it was 34 percent.
The quarter was characterized by intensive efforts to produce and deliver the large order of enzymes that will be used in the manufacturing process of a biological drug for a phase 1 study. I am both pleased and proud that as a result of the hard work of my colleagues we have successfully met challenging demands for both volume and quality standards, and that the order was delivered in its entirety, as requested, during the third quarter. The order has temporarily required redistribution of lab resources for production, but we have now resumed operations in our development projects. The same applies to implementation of our plans for long-term investments in increased capacity for production of enzymes for analysis. These investments will be fully implemented during the fourth quarter and are expected to total approximately SEK 2 million, which is according to plan.
Operating profit totaled SEK 7.0 million and was adversely affected by an impairment loss of SEK 3.5 million. The impairment loss relates to a claim on our insurance company in conjunction with a legal dispute in 2016. However, we will continue to pursue the claim for compensation.
Expenses for the quarter rose compared with the previous year, mainly because of increased costs for raw materials and personnel costs related to the bioprocess order. We also expanded our premises during the quarter to permit continued growth, as we welcomed two more employees to our growing team.
We are entering the fourth quarter with a strong cash flow from the previous quarter and stronger liquidity. We are now generating a surplus, which we plan to initially invest in product development projects in order to increase the launch rate of new products in 2020.
I would like to conclude by sending a huge thank you to my co-workers, who did an amazing job of completing one of our most challenging projects during the quarter! This valuable experience has given us confidence that will contribute to our continued growth and expansion at Genovis.
For more information, please contact: Fredrik Olsson, CEO, Genovis AB Tel: 0046 (0)46 -101233 fredrik.olsson@genovis.com
ABOUT GENOVIS
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, certifiedadviser@penser.se, T: +46 (0)8-463 83 00.
Published reports can be downloaded from the Genovis website:
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 21, 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.