Interim Report January – March 2022

SUMMARY OF THE INTERIM REPORT

During the first quarter, sales in regular wound healing products amounted to MSEK till 1.7 (0.7), and increased by 154% compared with the previous year . The Group's net turnover during the quarter amounted to MSEK 1.8 (3.2). The change in the Group's total sales compared with the previous year is attributable to COVID-19 related sales during Q1 2021.

DEVELOPMENT WITHIN THE GROUP, JANUARY - MARCH 2022

• Net turnover within the Company's regular wound healing products amounted to MSEK 1.7 (0.7).
• Total net turnover amounted to MSEK 1.8 (3.2)
• Operating result amounted to MSEK -7.5 (-4.5)
• Result for the period amounted to MSEK -7.8 (-4.5)
• Earnings per share amounted to SEK -0.52 (-0.30)

FINANCIAL OVERVIEW

Figures in parentheses below indicate information for the corresponding period during the previous financial year.

TURNOVER AND RESULT FOR THE GROUP

Net turnover for the first quarter amounted to MSEK 1.8 (3.2). The change compared with previous years is attributable to the sales of medical consumables intended to counteract the spread of COVID-19 that took place in the first quarter of 2021. Sales in regular wound healing products amounted to MSEK 1.7 (0.7), corresponding to an increase of 154% compared with the previous year.

Expenses have increased compared with the previous year, attributable to increased external costs as a result of increased consulting fees, and increased marketing costs during the quarter when S2Medical AB participated in several major trade fairs. Personnel costs are higher due to an increased workforce, as well as a negative currency effect from the Company's branch in the United Arab Emirates.

The result for the first quarter amounted to MSEK -7.5 (-4,.5) and, in addition to the increased other external costs mentioned above, is also negatively affected, compared with the previous year, by increased interest expenses as a result of the loan financing S2Medical AB raised during the fourth quarter of 2021.

FINANCIAL POSITION

Cash and cash equivalents as of the balance sheet date amounted to MSEK 2.1, compared with MSEK 9.5 at the beginning of the period. Cash flow for the quarter amounted to MSEK -7.4 (-8 6). Cash flow in the previous year was affected by issue-related costs.

The equity/assets ratio at the end of the period was 30%.
 

SIGNIFICANT EVENTS DURING THE PERIOD 1 JANUARY - 31 MARCH 2022

On 16 February, S2Medical AB received confirmation from the Saudi authorities that the products in the new Epiprotect series are registered and approved for sale as Class IIb in the country. Shortly afterwards, on February 24, the first order for Epiprotect® from the Saudi distributor Arabian Trade House was placed. The order marks the start of the venture initiated in Saudi Arabia in 2022.

On March 4, S2Medical AB received its largest order to date for the Swedish market. The order amounted to approximately MSEK 0.5, and was a call-off from the procurement within Region Femklövern that came into force on March 1, 2022.

On March 15, S2Medical AB decided on a preferential rights issue of units of approximately MSEK 30.1, which was secured up to 70% through subscription commitments and guarantee obligations. The preferential rights issue takes place via the issuance of unit rights, which will strengthen S2Medical's financial situation and enable continued focus on sales growth within the regular wound healing portfolio, and continued development of the product portfolio.

SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD

As of April 13, S2Medical AB has been provided with an order code (Oracle code) for the products in the Epiprotect series within Mediclinic in the United Arab Emirates. Mediclinic is one of the largest private care providers in the country, with seven hospitals and over 20 clinics with a total of over 900 beds. The order code allows for orders of the coded product on a regular basis, and as such has opened up for further growth in the Company's branch in Dubai.

On April 28, it was announced that S2Medical AB, through Mediq AB, had won a procurement for wound healing articles in the Jönköping Region. The products referred to in the procurement are Ynolen's perfume-free odor remover and a wound scraper, both of which are manufactured by subcontractors to the Company. The procurement runs over four years and is estimated to be worth a total of approximately MSEK 4.5.

This disclosure contains information that S2Medical 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 17-05-2022 09:00 CET.

Contact Details
Petter Sivlér – CEO, S2Medical AB (publ)
Telephone: +46 (0)8-70 000 50
E-mail: petter.sivler@s2m.se

Certified Adviser
Vator Securities AB
Telephone +46 (0)8-580 065 99
Website: www.vatorsec.se 
E-mail: ca@vatorsec.se

About S2Medical 

S2Medical AB (publ) is a medical technology company that develops and sells innovative wound healing products for the entire wound healing process, with a focus on burns and chronic wounds. The company has developed eiratex®, a new cellulose-based material for healing severe burns and chronic wounds. The material heals wounds effectively and thereby reduces both suffering for patients and costs for health care.

Share's ticker: S2M

Share's ISIN-code: SE0011725084