Sales growth and expansion for Navamedic
Navamedic ASA (OSE: NAVA) today announced the Company's third quarter 2015 financial results. Navamedic's Pharma and Healthcare business saw sales growth and improved profitability. The Company acquired Observe Medical International AB (OM) in the quarter, forming a Medtech business unit engaged in launching Sippi® - an innovative automated digital urine measurement device with global sales potential.
Navamedic grew total sales by 4% in the quarter, to NOK 61.5 million (NOK 58.8 million). The Company's Pharma and Healthcare Business grew EBITDA in the quarter to NOK 5.1 million (NOK 4.6 million), while the consolidated Group EBITDA for the quarter was NOK 1.5 million (NOK 4.6 million). The Group EBITDA was affected by one-off acquisition related costs and operational costs in the Medtech business, costs totaling NOK 3.6 million in the quarter. The Group earnings before taxes for the third quarter 2015 ended at NOK -2.3 million (NOK 1.9 million).
For the first nine months of 2015, sales grew by 13% to NOK 183.0 million (NOK 161.1 million). EBITDA for the first nine months was NOK 8.9 million (NOK 10.5 million). Earnings before taxes for the first nine months came in at NOK 0.3 million (NOK 2.3 million).
"We are pleased to see our business return to revenue growth and improving margins in our Pharma and Healthcare business in Q3. With the acquisition of OM we are executing on our strategy of portfolio-expansion. Our quarter three Group margins were as expected affected by acquisition costs and the operational costs in the Medtech business, but we have the financial strength to execute on the Sippi® launch and drive the development in our Pharma and Healthcare business simultaneously" said Navamedic CEO Tom Rönnlund
The digital Sippi® system has the potential to replace traditional manual urine measurement systems in a global NOK 2 billion market. Sippi® has clinically proven advantages over existing manual systems in time saving potential for the healthcare personnel, improving accuracy of readings and patient safety benefits. A comprehensive development program in clinical and product development was initiated in the quarter and Navamedic is planning to launch the product in additional markets throughout 2016. Navamedic targets a positive cash flow in its Medtech business in 2017.
"Following the acquisition of Observe Medical in August, we are successfully executing on the launch plan which is progressing in line with our expectations. We are getting positive user experiences and are focusing our efforts in securing additional distributors in European countries to offer this innovation to additional markets." Tom Rönnlund continued.
For further information, please contact CEO Tom Rönnlund, telephone +46 727 320 321 or CFO Bjørn Lindholt, telephone +47 9300 6601.
Navamedic ASA is a Norwegian medtech and pharmaceutical products company, delivering products to patients, hospitals and pharmacies in the Nordic and Benelux markets. The Group's Medtech business has developed and is currently introducing the next generation digital urine meter Sippi ®. Navamedic's Pharma and Healthcare business is a distributor of products supplied by a number of pharmaceutical manufacturers. Navamedic is listed on the Oslo Stock Exchange (ticker: NAVA).