OssDsign AB (publ) publishes year-end report 2023

Exceptional sales growth for OssDsign Catalyst confirms the value of our strategy shift

OssDsign AB (publ) announces that the interim report for Q4 2023 is now available as a PDF on the company’s website www.ossdsign.com/reports. A PDF version is also attached to this press release.

The Q4 2023 results will also be presented at an investor webcast today February 6th at 10:00 CET. The webcast can be accessed via the following link: https://www.finwire.tv/webcast/ossdsign/ossdsign-year-end-report-2023/ or via the OssDsign website.  

The fourth quarter in figures

• Net sales amounted to TSEK 34,997 (19,929), of which OssDsign Catalyst represented TSEK 26,827 (7,534). That corresponds to an extraordinary Catalyst growth of 256%.
• The U.S. business also delivered a strong result, demonstrating 158% growth, despite declining Cranial PSI sales in the second half of the quarter due to the discontinuation. This continued very strong growth, quarter on quarter, means the U.S. has now demonstrated 7 consecutive quarters of triple digit growth.
• Gross margin of 73% (64%) was significantly affected by Cranial PSI discontinuation related expenses, as well as Catalyst production process testing activities, resulting in further one-off costs in the fourth quarter. Adjusting for such one-off costs, the gross margin would increase considerably to 83%. Going into 2024 we still expect to operate at 90% or above across the year.
• Operating loss of TSEK 29,101 (20,790) was distorted by the Cranial PSI discontinuation, unusually high sales bonus accruals and revaluations related to conditional variable consideration. Adjusting for the revaluation effects alone would give an EBIT improvement of MSEK +9.7 compared to the previous year and considering the temporary cogs increases in full, resulting from under utilization of capacity as sales tailed off, the underlying trend continues to demonstrate improved operating leverage in the business.
• Non-recurring costs of TSEK 20,475 in the quarter related to the Cranial PSI business line discontinuation.
• Loss after taxes amounted to TSEK 53,841 (31,947), with the loss increase driven by non-recurring costs.
• Earnings per share were SEK -0.6 (-0.5).
• Cash flow from current operations was TSEK -25,605 (-25,013), enabled by the positive working capital development, despite the negative effects from non-recurring items. The underlying net cash flow trend continues to be positive and shows an improvement of MSEK +2.0 over the previous quarter.

The full year in figures

• Net sales amounted to TSEK 112,157 (56,985), of which OssDsign Catalyst represented TSEK 64,610 (17,041). That corresponds to a Catalyst growth of 279%, or 260% at constant exchange rates.
• The U.S. business demonstrated 168% growth, despite declining Cranial PSI sales in the fourth quarter, in what appears to be a sustainable growth pattern with 7 consecutive triple digit growth quarters.
• Gross margin developed favorably during the year to reach 75% (61%), despite the negative fourth quarter effects.
• Operating loss of TSEK 91,956 (96,938) was an improvement over previous year, despite continued strategic investments in clinical programs and revaluation effects. Adjusting for the revaluation effects alone would increase that improvement further, hence demonstrating continued improved operating leverage.
• Non-recurring costs of TSEK 35,673 include all costs related to the discontinuation of the Cranial PSI business line, including the fixed asset write-downs from Q3.
• Loss after taxes amounted to TSEK 130,493 (99,388), with the loss increase driven by non-recurring costs.
• Earnings per share were SEK -1.6 (-1.7).
• Cash flow from current operations was TSEK -93,958 (-86,164). With a positive working capital development, the difference is driven by non-recurring costs.

Important events during the fourth quarter

• OssDsign Catalyst is now universally available to all Military Treatment Facilities in the U.S. via ECAT.
• Extraordinary General Meeting held in OssDsign AB, approving the board of directors’ resolution on a directed share issue.
• OssDsign changes Certified Adviser to Carnegie Investment Bank AB.
• SEB Venture Capital sold its holding in OssDsign.
• OssDsign issues positive market warning of materially better sales than market consensus.

Important events after the end of the fourth quarter

• OssDsign reports exceptional data from the clinical study
  TOP FUSION.
• 12-month data from the clinical study of OssDsign Catalyst™ published in Biomedical Journal of Scientific & Technical Research.

For further information, please contact:
Morten Henneveld, CEO, OssDsign AB
Tel: +46 73 382 43 90, email: morten.henneveld@ossdsign.com
 
Certified Adviser
The Company’s Certified Adviser is Carnegie Investment Bank AB (publ)
 
About OssDsign
OssDsign is a developer and global provider of next generation orthobiologics products. Based on cutting edge material science, the company develops and markets products that support the body's own healing capabilities, giving patients back the life they deserve. The company has a strong presence in the U.S. market. OssDsign's share is traded on Nasdaq First North Growth Market in Stockholm, Sweden.

This disclosure contains information that OssDsign AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 06-02-2024 07:00 CET.

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