Interim Report January-March 2008 (Q1) from SCN
Scandinavian Clinical Nutrition AB, listed on NGM Equity and Oslo Axess, today releases the interim report for the first quarter of 2008 (Q1). The entire report can be found in the attached pdf file, and on the company’s website www.scnutrition.com.
Q1 2008 in brief (Group)
• Revenues for the period amounted to MSEK 16.3 (1.9)
• Operating result amounted to MSEK -4.9 (-9.3)
• Profit for the period amounted to MSEK -6.6 (-7.8)
• Earnings per share, basic and diluted, amounted to SEK -0.45 (-0.84)
• CUUR was launched on the US mass market
• Coldizin was launched in Spain and Poland and is now sold in 9 countries
• Immulina was launched in Sweden and Norway and is now sold in 7 countries
• Negotiations about launching Coldizin in USA
Q1 highlights
The market for SCN’s products is characterized by strong seasonal variations. Depending on the indication, the products have different sales peaks during the year, which creates significant variations between different quarters. For example, a diet product like CUUR peaks in January (New Year’s resolutions) and in June (before “beach season”), while a cold product like Coldizin has its peak during late autumn and early winter. This makes it difficult to make any predictions for the full year based on a quarterly report.
During Q1, SCN and the company’s American partner Inverness Medical Innovations, Inc. started the launch of CUUR on the US mass market. The product is now available in major retail and pharmacy chains nationwide and thereby positioned for one of the “slimming seasons” in late spring.
In addition to the mass market channel, CUUR has also been launched in the direct sales channel during Q1 by Amway. As previously communicated, SCN has entered into an agreement with Amway regarding sales of CUUR as a white label product for the US and twelve other countries. Launches in the other countries will follow in the coming years.
During Q1, Coldizin was launched in Poland and Spain, and is now sold on nine markets world-wide. Immulina was launched in Sweden and Norway, and is now sold on seven markets world-wide. Negotiations are ongoing with distributors on other markets for both Coldizin and Immulina. Ledactin was launched in Sweden during Q4, 2007, and met with a positive response, but the market has shown to be more difficult to penetrate than the company had expected. SCN will increase its effort on improving sales of Ledactin during 2008. The company has also started preparing for the launch of Membra7.
During Q1, SCN has had ongoing negotiations with the company’s US mass market partner Inverness Medical Innovations, Inc. regarding launching Coldizin in USA (see also Events after the balance sheet date below).