Year-end Report January - December 2019
Period October - December
Period January - December
October – December in brief
- Net sales rose by 22 percent to SEK 12,830 (10,537) thousand.
- Gross profit improved by 1,109 thousand to SEK 12,065 (10,956) thousand.
- Operating profit before depreciation and amortization (EBITDA) totaled SEK 492 (2,954) thousand.
- Operating earnings fell SEK 2,434 to a loss of SEK 522 (profit: 1,912) thousand.
- Comprehensive income for the period declined by SEK 2,180 thousand to a loss of SEK 895 (profit: 1,285) thousand.
- Comprehensive income per share, basic and diluted, totaled SEK -0.01 (0.02).
- Cash flow from operating activities rose by SEK 3,059 thousand and totaled SEK 2,824 (-235) thousand.
- Genovis launched Immobilized SialEXO for more effective sample handling of biologicals. SialEXO is used in spectrometry, but is also adapted for analysis using capillary electrophoresis.
- At the Extraordinary General Meeting, held on December 20, 2019, Sarah Fredriksson was elected to serve as a new director and as Board Chair since Mårten Winge left the Board at his own request for personal reasons.
The full year in summary
- Net sales rose 75 percent, or SEK 25,981 thousand, to SEK 60,549 (34,568) thousand.
- Gross profit improved by SEK 23,371 thousand to SEK 56,187 (33,816) thousand.
- Operating profit before depreciation and amortization (EBITDA) totaled SEK 13,563 (4,091) thousand.
- Operating profit/loss improved by SEK 11,026 thousand to SEK 10,066 (loss: 960) thousand.
- Comprehensive income for the full year improved by SEK 11,109 thousand to SEK 9,549 (loss: 1,560) thousand.
- Comprehensive income per share, basic and diluted, improved by SEK 0.18 to SEK 0.15 (-0.03).
- Cash flow from operating activities was SEK 13,125 (loss: 1,250) thousand.
Events after the end of the year
The Board decided to advance the publication of all reports in 2020 due to more efficient financial routines.
2019 - A milestone in Genovis’ growth journey
We ended an extremely successful 2019 with our best sales quarter ever, excluding the bioprocess deal. Sales reached almost SEK 13 million, which represents growth of about 22 percent compared with the corresponding quarter in 2018. Growth was 75% for the full year, driven by the new bioprocess business area, as well as strong growth in the underlying core business.
Operating earnings for the financial year improved significantly compared with 2018 and it is with great pleasure that for the first time my colleagues and I can report a net profit for an individual financial year.
During the fourth quarter we completed the planned investments in the production plant for enzymes used in biochemical analysis of biological drugs. The facility is designed to be able to handle the production needs of the core business area Analysis for many years to come and substantially strengthens our internal production capacity. In conjunction with the investment in the production plant we have also hired additional staff for the production team.
We are therefore well equipped to continue to expand our product portfolio at a rapid pace this year. In the fourth quarter we initiated several new projects from our pipeline that we will launch in 2020. Our collaborative effort with Thermo Fisher has made good progress during the fourth quarter and prospects are good that the collaboration will culminate in a product launch in 2020.
Our marketing activities at conferences and through customer visits intensified in the fourth quarter and our sales and marketing organization have welcomed additional employees.
Because of these bold initiatives, our expenses increased during the fourth quarter, which is in line with our strategy of reinvesting our accumulated cash in future growth.
In 2020, our main focus will be on expanding the product portfolio and continuing to grow our revenues through investments and initiatives to strengthen Genovis for the future. Our strong performance in 2019 has enabled us to reinvest our generated surplus in an aggressive strategy for continued long-term growth.
To ensure that more of our product development projects reach the market in 2020, we will hire new employees to strengthen our product development organization at the beginning of the year. To keep pace with the development of the product portfolio, we will also continue to expand our marketing organization.
As we now leave 2019 behind us and look ahead, I would like to extend a special thank you to our owners who have demonstrated their confidence in our ability to develop Genovis for many years. In closing, I would like to extend a warm thank you to my colleagues for their outstanding efforts in 2019 – a milestone in Genovis’ growth journey.
Fredrik Olsson, Chief Executive Officer
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.
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 February 5, 2020.
Published reports can be downloaded from the Genovis website:
https://investor.genovis.com/en/financial-reports/
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.