HALF-YEAR REPORT Period from January 2021 to June 2021
Lune Group OY incl subsidiary is consolidated in the group from 2020-06-03
Peptonic Medical AB (publ) org nr 556776-3064(www.aktietorget.se ticker: PMED)
Group, Lune Group OY incl subsidiary is included from 2020-06-03
2021 SECOND QUARTER (Apr-Jun)
- Net sales of products KSEK 7 356 (3 572)
- Gross profit KSEK 4 863 (2 417), Gross margin 66% (68%)
- Operating loss KSEK -12 271 (-7 166)
- Loss per share SEK -0.06 (-0.05)
2021 FIRST HALF YEAR (Jan-Jun)
- Net sales of products KSEK 18 747 (5 353)
- Gross profit KSEK 11 439 (3 402), Gross margin 61% (64%)
- Operating loss KSEK -18 851 (-12 973)
- Loss per share SEK -0.08 (-0.08)
From the CEO
The second quarter has been a tough quarter with rather high expenses and not as high sales, but there has also been positive development worth noting and parts of the costs have been extraordinary for the period.
The extraordinary and increased costs, which are seen as future investments, are primarily in infrastructure improvements to accelerate digital business even faster, consulting, new websites, improved SEO (search engine optimization) and marketing creative. Furthermore, there are continued preparations for the launch of VagiVital in the USA, legal advice and marketing costs. The result for the quarter is negatively charged with SEK -1.4 million as a result of the recently announced termination of Yuanjia Biotechnology Co., Ltd. for the Chinese market. The cost base includes restructuring costs corresponding to SEK -0.5 million.
We had expected the sales development to be more favorable, but signing agreements with international distributors has taken longer than planned, partly due to Covid 19.
There is also important positive development that has taken place during the quarter. The rapid sales development of VagiVital in its own online stores has accelerated further, the annual rate in the first half of 2021 compared with 2020 corresponds to a sales increase of + 103%, which we see as a positive effect of our digital strategy. This is still from relatively low figures. During the period, Lunette had its first quarter with growth compared with the corresponding period last year since Q2 2019, + 11%. The goal of showing sales growth for the Lunette business area for the full year 2021 remains.
During the period, VagiVital Moisturizing V Cleanser was added to the range in its own online store in Sweden, in 236 of Kronan's pharmacy's physical stores and Kronan's online store. The fact that the product in these channels already constitutes approximately 15% of the VagiVital brand's total sales reflects the importance and value of portfolio broadening under the brand.
The domestic markets Sweden and Finland continue to develop positively, which is valuable for reference creation and a confirmation that market and channel strategies work.
Preparations for the launch of VagiVital in the US are still ongoing. It is the company's intention to launch VagiVital in its own online store and take advantage of the lessons learned in other markets as well as find channel-specific distribution partners and listing in selected retailers. As Lunette menstrual cups are a rare purchase product, it is very important that the portfolio and offer is broadened with consumer products. During the current quarter, an intimate cleaning is launched under the Lunette brand as well as intimate wet wipes that moisturize and clean. Continued portfolio development is taking place.
An expanded product portfolio is also important to increase the attractiveness of Peptonic's offering at international distributors. The work with portfolio broadening is a combination of in-house development and in-licensing.
In addition to portfolio broadening, work is being done to better clarify the positive development in the company's home markets, also as part of better attracting potential international partners.
A cost saving program has been initiated in the company. The intention is to reduce costs and at the same time improve output in the organization through an improved organizational structure. The savings do not apply to the investment in the USA, which is given high priority.
A number of companies have shown strong interest in distributing VagiVital in China. Discussions are ongoing and we will evaluate these opportunities in the near future and then decide on the next step.
For the sake of order, the company would like to inform that the preliminary investigation initiated by the Swedish Environmental Crime Agency regarding serious insider crime is still ongoing. The company and its representatives also intend to continue to cooperate with the authority in the matter.
Bromma, August 18th, 2021
Erik Sundquist, VD
|
KEY FIGURES |
3 mon | 3 mon | 12 mon | 12 mon | |
| Peptonic Group | jan-mar | jan-mar | jan-dec | jan-dec | |
| 2021 | 2020 | 2020 | 2019 | ||
| Sales goods, KSEK | 18 747 | 5 353 | 21 283 | 4 408 | |
| Gross profit sales goods, KSEK | 11 439 | 3 402 | 13 089 | 2 583 | |
| Gross margin, % | 61% | 64% | 61% | 59% | |
| Operating profit, KSEK | -18 851 | -12 973 | -31 053 | -23 992 | |
| Return on equity,% | -44 | -32 | -31 | -35 | |
| Equity ratio,% | 89 | 90 | 88 | 93 | |
| Earnings per share, SEK | -0.06 | -0.05 | -0.19 | -0.18 | |
| Liquidity per share, SEK | 0.11 | 0.25 | 0.24 | 0.26 | |
| Equity per share, SEK | 0.56 | 0.65 | 0.72 | 0.62 | |
| Share price per closing, SEK | 1.30 | 1.16 | 1.73 | 1.89 | |
| Share price/Equity per share, SEK | 2.34 | 1.79 | 2.39 | 3.05 | |
| Total shares | 191 639 642 | 138 128 306 | 162 911 613 | 138 128 306 |
FINANCIAL INFORMATION
The acquisition of Lune Group OY was completed on 2020-06-03, this report includes their results from and on 2020-06-03 in the consolidated accounts.
Revenue - Sales of goods during the second quarter amounted to SEK 7,356 (3,572) thousand. Other operating income for the quarter was SEK 14 (17) thousand. During the first half of the year, sales of goods amounted to SEK 18,747 (5,353) thousand. Other operating income for the half year was SEK 4 (28) thousand.
Costs - Costs for the second quarter amounted to SEK -19,641 (-10,755) thousand. Costs for the first half year amounted to SEK -37,602 (-18,354) thousand. During the half year the costs for products have been SEK -7,308 (-1,951) thousand and marketing costs have amounted to approximately SEK -20,000 (-8,571) thousand. During the second quarter a reservation for estimated negative profit recognition for business in China has affected other costs with the amount of SEK 1,400 thousand. A re-structuring cost of SEK 500 thousand has also been added to the costs; total SEK 1,900 thousand has affected the outcome for the second quarter and first half year.
Profit - The company's profit after net financial items for the second quarter amounted to SEK -12,280 (-7,189) thousand. For the first half year the corresponding amount is SEK -18,918 (-12,996) thousand.
Financial position and liquidity - Cash and bank amounted to SEK 21,140 (34,000) thousand as of June 30th, 2021. During the half year, the group received a net of SEK 7,500 thousand that were converted to shares through a directed set-off issue to Vidar Foundation.
Shareholders 'equity - The group's shareholders' equity as of June 30, 2021, amounted to SEK 89,098 (77,962) thousand, which gives an equity / assets ratio of 89 (94) percent. Equity increased net by SEK 7,500 thousand through the conversion to shares through a directed set-off issue to Vidar Foundation.
Liabilities - The group's liabilities, as of June 30, 2021, amounted to SEK 13,087 (10,445) thousand.
Organization - During the period, the average number of employees was 18 (5). At the end of the period, the number of employees was 18 (16). In addition to this the group had 4 people on the market organization and a quality manager hired as consultants, and the accounts are outsourced to an accounting firm. Employees at Lune Group OY, including subsidiaries, refer to a total of 15 employees.
Share - The total number of shares as of June 30, 2021 was 191,639,642 (155,143,476).
| INCOME STATMENT | ||||||
| Peptonic Group | 3 mon | 3 mon | 6 mon | 6 mon | 12 mon | |
| apr-jun | apr-jun | jan-jun | jan-jun | jan-dec | ||
| KSEK | Note | 2021 | 2020 | 2021 | 2020 | 2020 |
| Operating income | ||||||
| Sales of products | 7 356 | 3 572 | 18 747 | 5 353 | 21 283 | |
| Other operating income | 14 | 17 | 4 | 28 | 1 151 | |
| Total operating income | 7 370 | 3 589 | 18 751 | 5 381 | 22 434 | |
| Operating expenses | ||||||
| Cost of goods | -2 493 | -1 155 | -7 308 | -1 951 | -8 194 | |
| Other external expenses | 1 | -11 874 | -6 360 | -20 906 | -11 127 | -29 515 |
| Personnel costs | -2 989 | -2 416 | -6 202 | -3 713 | -12 350 | |
| Depreciation | -877 | -770 | -1 754 | -1 465 | -3 285 | |
| Other operating costs | -1 408 | -54 | -1 432 | -98 | -143 | |
| Total operating expensses | -19 641 | -10 755 | -37 602 | -18 354 | -53 487 | |
| Operating loss | -12 271 | -7 166 | -18 851 | -12 973 | -31 053 | |
| Net financial income/expense | -9 | -23 | -67 | -23 | -280 | |
| Loss before taxes | -12 280 | -7 189 | -18 918 | -12 996 | -31 333 | |
| Taxes | -14 | 4 | -14 | 4 | 241 | |
| Adjustment for minority share of the result | 196 | |||||
| Net loss for the period | -12 294 | -6 989 | -18 932 | -12 992 | -31 092 |
|
BALANCE SHEET |
|||||||||
| Peptonic Group | 30-jun | 30-jun | 31-dec | ||||||
| KSEK | Note | 2021 | 2020 | 2020 | |||||
| Assets | |||||||||
| Non-Current assets | |||||||||
| Intangeble assets | 2 | 76 125 | 55 262 | 77 565 | |||||
| Tangeble assets | 3 | 1 300 | 1 842 | 1 485 | |||||
| Financial assets | 0 | 7 | 0 | ||||||
| Total non-current assets | 77 425 | 57 112 | 79 050 | ||||||
| Current assets | |||||||||
| Stock | 6 422 | 6 351 | 6 133 | ||||||
| On going fund raising | 0 | 0 | 2 752 | ||||||
| Other receivbles | 13 821 | 1 329 | 5 602 | ||||||
| Tax receivable | -2 | 0 | 0 | ||||||
| Prepaid expenses and accrued income | 807 | 750 | 1 589 | ||||||
| Liquid assets | 21 140 | 34 000 | 39 312 | ||||||
| Total current assets | 42 188 | 42 431 | 55 388 | ||||||
| Total assets | 119 613 | 99 542 | 134 438 | ||||||
| Equity and liabilites | |||||||||
| Equity | |||||||||
| Ristricted equity | |||||||||
| Share capital | 19 164 | 15 577 | 16 291 | ||||||
| Ongoing right issues | 0 | 0 | 2 327 | ||||||
| Development Cost Fund | 10 068 | 12 332 | 11 186 | ||||||
| Non- restrictes equity | 0 | 0 | 0 | ||||||
| Share premiun reserv non-restricted | 249 592 | 188 394 | 242 708 | ||||||
| Profit or loss brought forward | -127 087 | -113 222 | -123 600 | ||||||
| Net loss for the period | -45 211 | -13 984 | -31 092 | ||||||
| Total equity | 106 526 | 89 097 | 117 820 | ||||||
| Current liabilites | |||||||||
| Liabilities interest bearing | 8 387 | 6 606 | 3 784 | ||||||
| Trade payables | -94 | 0 | 7 506 | ||||||
| Other payables | 928 | 234 | 628 | ||||||
| Prepaid income and accrued expenses | 3 866 | 3 605 | 4 700 | ||||||
| Total current liabilities | 13 087 | 10 445 | 16 618 | ||||||
| Total equity and liabilities | 4 | 119 613 | 99 542 | 134 438 | |||||
|
STATMENT OF CASH FLOW |
|||||
| Peptonic Group | 12 mon | 12 mon | 12 mon | ||
| Jan-Dec | Jan-Dec | Jan-Dec | |||
| KSEK | Note | 2020 | 2019 | 2019 | |
| CASH FLOW FROM OPERATIONS BEFORE CHANGES IN WORKING CAPITAL | |||||
| Operating profit/loss | -18 918 | -12 996 | -31 333 | ||
| Non-cash flow items | 1 754 | -1 465 | -3 285 | ||
| Paid tax | -14 | 4 | 241 | ||
| NET CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGES IN WORKING CAPITAL | -17 178 | -14 457 | -34 377 | ||
| Increase (-) decrease (+) inventory | -289 | -5 757 | -5 539 | ||
| Increase (-) decrease (+) receivables | -4 684 | -959 | -8 822 | ||
| Increase (-) decrease (+) liabilities | -3 531 | 4 208 | 2 881 | ||
| NET CASH FLOW FROM OPERATING ACTIVITIES | -25 681 | -16 965 | -45 857 | ||
| CASH FLOW FROM INVESTING ACTIVITIES | |||||
| Investment in immaterial assets, net | -176 | -2 400 | -2 822 | ||
| Investment in material assets, net | 185 | -1 917 | 0 | ||
| Acquisition of subsidiaries, net cash impact | 0 | 12 110 | 12 932 | ||
| Investment in financial assets, net | 0 | -7 | 0 | ||
| Divestment / reduction of financial assets | - | - | - | ||
| NET CASH FLOW FROM INVESTING ACTIVITIES | 9 | 7 785 | 10 110 | ||
| CASH FLOW FROM FINANCING ACTIVITIES | |||||
| Rights issue | 7 500 | 7 500 | 32 868 | ||
| Issue expenses | 0 | -305 | -1 293 | ||
| Bridgeloan | 0 | 0 | 7 500 | ||
| NET CASH FLOW FROM FINANCING ACTIVITIES | 7 500 | 7 195 | 39 075 | ||
| TOTAL CASH FLOW FOR THE YEAR | -18 172 | -1 985 | 3 328 | ||
| Cash and cash equivalents at beginning of period | 39 312 | 11 365 | 11 365 | ||
| CASH AND CASH EQUIVALENTS AT END OF THE YEAR | 21 140 | 9 380 | 14 693 |
This interim report has not been reviewed by the Company’s auditors.
The Board of Directors and the CEO certifies that the interim report gives a fair overview of the business, position and profit or loss of the Company.
FINANCIAL CALENDER
Quarterly report, 3 November 10th 2021
Year-end report, 2021 February 25th 2022
Stockholm, August 18th, 2021
Hans von Celsing, Chairmen of the Board Anna Tenstam, Board member
Marianne Östlund, Board member Leni Ekendahl, Board member
Erik Sundquist, CEO
Note: This document has been prepared in both Swedish and English. The Swedish version shall govern in case of differences between the two documents. The document contains certain statements about the Company’s operating environment and future performance. These statements should only be regarded as reflective of prevailing interpretations. No guarantees can be made that these statements are free from errors.
Erik Sundquist, CEO
Telefon: + 46 722 49 90 43
E-post: erik.sundquist@peptonicmedical.se
About VagiVital® AktivGel
VagiVital® AktivGel is a patent pending hormone free self-care product for the treatment of vaginal atrophy and vaginal dryness. The product has been tested in randomised clinical studies (vaginal atrophy) with very positive results both for objective (vaginal pH and proportion of superficial cells in the vaginal mucosa) and subjective (most bothersome symptoms, such as vaginal dryness, vaginal irritation/itching, dyspareunia and dysuria) parameters. The magnitude of symptom relief is on par with that demonstrated with e.g. prescription estrogen based products on the market today. It was very well tolerated and caused no serious adverse effects.
VagiVital® AktivGel was launched in Sweden as a non-prescription self-care product in July 2018. In April 2021 VagiVital® Moisturizing V Cleanser was added under the VagiVital® brand. (see www.vagivital.com).
About Peptonic Medical AB
Peptonic Medical AB (publ) is an innovative biomedical company that conducts research, develops and sells products in the field of women’s health. Our vision is to offer safe and effective treatments for women-specific diseases, medical conditions and well being. Peptonic Medical launched VagiVital® AktivGel in July 2018. This is a hormone-free product for the treatment of vaginal atrophy and vaginal dryness. The company’s development program also includes Vagitocin® – a product that contains oxytocin for the treatment of vaginal atrophy. The development of Vagitocin® has been put on hold.
The company was founded in 2009 and the share has been traded since 2014 on Spotlight (www.spotlightstockmarket.com, short code: PMED) in Stockholm.
Since August 2020, Lune Group Oy Ltd. is a wholly owned subsidiary of Peptonic Medical. The company’s business concept is to lead a menstrual revolution in a positive spirit. By focusing on sustainable development, environmental issues and the promotion of sexual health, the company is evolving taking the lead as a green intimate care company. For more information about Lunette®, visit www.lunette.com.