YEAR-END AND Q4 REPORT 2008 FROM SCN
(NGM:SCN)
Scandinavian Clinical Nutrition, listed on NGM Equity and Oslo Axess, today releases the year-end and Q4 interim report for 2008. The entire report can be found in the attached pdf file, and on the company’s website www.scnutrition.com.
October-December 2008 in brief for the SCN group
• Net sales for the period amounted to MSEK 4.1 (10.3)
• EBIT amounted to MSEK -53.7* (-30.8)
• Loss for the period amounted to MSEK 66.4** (-32.8)
• Earnings per share, basic and diluted, amounted to SEK -4.12** (-2.39)
2008 in brief for the SCN group
• Net sales for the period amounted to MSEK 46.6 (16.2)
• EBIT amounted to MSEK -80.7* (-61.3)
• Loss for the full year amounted to MSEK -73.0* (-63.5)
• Cash flow for the period amounted to MSEK -22.5 (9.8)
• Earnings per share, basic and diluted, amounted to SEK -4.54* (-6.05)
*EBIT and the result for current quarter includes and write-down of MSEK 8.2 in the value of goodwill.
*The reversal of previously capitalized deferred tax asset of MSEK 10.2 has been charged to the fourth quarter.
Highlights 2008
In the Q3 report, SCN showed improved results and optimism for future development due to lower overhead costs and positive signs from the market. During Q4, the financial crisis has deepened, also affecting SCN and its partners. Sales during 2008 have not reached SCN’s expectations, and to counter the crisis and prepare for future challenges, SCN now intensifies its efforts to optimize organization and cost structure, and will focus on two strategic goals: to increase the value of the product portfolio by taking selected products to OTC status, and increasing sales in both existing and new channels. Through these measures, the company hopes to increase both revenue and market value during 2009, in spite of the crisis, and hence remains optimistic.
On a positive note, 2008 has been a year when the heavy investments made have started to generate results. Significant R&D progress has been made, for example, the company’s partners have achieved promising results on both Immulina and NGNA, and in early Q1, 2009, Scandivir AB reported that a test for infection with the obesity virus Ad-36 is within reach. On the sales side, Coldizin has been launched in the New York region as the company’s second product in USA, and the company’s US Immulina partner has paid an upfront consideration in shares worth MSEK 7.8 to extend their option to buy the product for MUSD 13 until March 31, 2009. In connection with this, deliveries worth MSEK 5.2 were moved from 2008 to Q1, 2009. The company has also attracted interest from investors in a capitalization process which rendered MSEK 30 (net) in May/June. Scandivir has also attracted interest, and during Q4, the sale of 13.5% of SCN’s shareholding in Scandivir was approved by a General Meeting. (This transaction was erroneously reported as carried out during Q3 in the Q3 report.)
On a more negative note, as previously mentioned, sales have not reached expectations, partly due to CUUR in USA but also that launches on important European markets have been delayed since partners have been affected by the financial crisis. This has of course affected both result and liquidity, and therefore, active measures are now being taken to sharpen the company’s focus and streamline the organization and costs even more.
Furthermore, the company intends to maximize the potential of the distribution partnerships already in place during the year, by supporting distributors with testimonials, celebrity cases, marketing concepts and other non-financial measures important for their success. In addition, the vast network of the senior management is expected to continue to contribute to new products, new partnerships, new industrial investors and other positive developments in the near future.
The report in its entirety can be found in the attached pdf file, as well as on the company’s website, www.scnutrition.com.
For more information, please contact:
Ulf Söderberg, CEO, us@scnutrition.com, +46 708 13 22 81
Jörn Erik Aas, Chairman of the Board, jea@scnutrition.com, +47 924 99 360
Scandinavian Clinical Nutrition AB (publ) works in R&D and distribution of clinically tested, scientifically documented products within the field of nutrition (nutraceuticals). Established in 2006, SCN maintains a product portfolio with established trademarks, such as CUUR, Coldizin, Immulina, Membra7 and Ledactin. Core competence and strategic alliances, within both R&D and sales, in combination with innovative and clinically proven products, create good conditions for profitable growth both in Sweden and internationally. The shares of SCN are traded under the ticker “SCN” on Oslo Axess (www.osloaxess.no) and NGM Equity (www.ngm.se).For more information, please visit www.scnutrition.com.
(For full report see attached file.)