Genovis Release: Year-End Report January-December 2015
Summary: fourth quarter 2015
• Net sales rose by about 67 percent to SEK 3,499k (2,099k).
• Gross profit/loss improved by SEK 1,959 to SEK –137k (loss: 2,096k).
• Gross margin improved, 74 percent in 2015, compared with 63 percent in 2014.
• Profit/loss after tax improved by SEK 4,799k to SEK -3,062k (loss: 7,861).
• Comprehensive income improved by SEK 4,757 to SEK -3,104k (loss: 7,861k).
• Comprehensive income per share totaled SEK -0.08 (-0.36).
• Cash flow from operating activities was SEK -3,940k (-5,676k).
• GingisKHAN™Fab kit, Genovis launched a further development of the product GingisKHAN™ that will be marketed under the name GingisKHAN™Fab kit.
Summary: full-year 2015
• Net sales improved by about 61% to SEK 13,268k (8,252k).
• Gross profit/loss improved by SEK 4,550k to SEK -1,429k (loss: 5,979k).
• Gross margin improved, 82 percent in 2015, compared with 58 percent in 2014.
• Profit/loss after tax improved by SEK 2,143k to SEK -19,906 (loss: 22,049). Non-recurring expenses had a negative impact on earnings of SEK 6,071k.
• Comprehensive income improved by SEK 2,121k to SEK -19,928k (loss: 22,049).
• Comprehensive income per share totaled SEK -0.66 (-1.02).
• Cash flow from operating activities was SEK -16,117k (-22,193).
• Genovis reorganized, discontinued operations in the subsidiary GeccoDots and sold the intellectual property rights behind the Nanomotus project to the inventors against future royalties.
COMMENTS FROM FREDRIK OLSSON, CEO
In early 2014 we decided to change our marketing and sales strategy and shift completely to direct sales with our own organization in the most important markets. In 2015 we were able to fully implement this decision. The effect is clear: we increased sales for the full year by more than 60 percent to SEK 13.3 million. Direct contact with the end customer is a strong contributing factor for growth in each quarter of 2015 compared with 2014.
We streamlined operations during the year to focus on products based on our unique enzymes, which are principally used in the biopharma industry. The restructuring process had a negative impact on twelve-month earnings of about SEK 6 million, attributable to impairment losses and personnel costs. We are now entering 2016 with a cost-effective organization that is adapted for growth.
Our gross margin improved significantly during the year: 82 percent in 2015, compared with 58 percent in 2014. Our production is now efficient and scalable to be able to meet increased demand.
In the fourth quarter of 2015 our sales surged by 67 percent compared with the corresponding period in 2014. Exchange rate effects in this context are marginal (approximately 7 percent), which means we are growing organically – and this is important for Genovis’ employees, as well as for our shareholders. This achievement reaffirms our conviction to follow and further strengthen our sales strategy in 2016.
Genovis develops and sells products that meet the current and future needs of our customers. In order to continue doing what is necessary, we need not only innovative and talented employees, but also the resources to further strengthen the marketing organization. We intend to further expand our marketing campaigns in 2016 by strengthening existing markets with more resources to drive sales even stronger. We will also seek a local presence in markets where we see significant potential, especially in Asia. We also plan to launch products for new markets and applications to drive growth further during the year. My assessment is that these initiatives will double sales within 18 months and create an organization that can handle continued rapid growth.
Genovis has always had a clear strategy in which interaction with customers guides how we conduct business – every day! This strategy applies to our products, customer care, support and delivery, as well as the simplicity of ordering our products. Our main focus is to solve challenges for our customers in a better way than our competitors do and I am convinced that we have the right strategy to optimally increase value for Genovis shareholders moving forward. For more information, please contact: Fredrik Olsson, CEO, Genovis AB Tel: 0046 (0)46 -101233 fredrik.olsson@genovis.com
ABOUT GENOVIS
Genovis’ business concept is to offer customers in the pharmaceutical and medical device industries tools that facilitate and save time in the development of new treatment methods and diagnostics. Today Genovis sells several enzyme products known as SmartEnzymes all over the world in innovative product formats that facilitate development and quality control of biological drugs.
The Group consists of Genovis AB and the wholly owned subsidiary Genovis Inc. (USA).
• Net sales rose by about 67 percent to SEK 3,499k (2,099k).
• Gross profit/loss improved by SEK 1,959 to SEK –137k (loss: 2,096k).
• Gross margin improved, 74 percent in 2015, compared with 63 percent in 2014.
• Profit/loss after tax improved by SEK 4,799k to SEK -3,062k (loss: 7,861).
• Comprehensive income improved by SEK 4,757 to SEK -3,104k (loss: 7,861k).
• Comprehensive income per share totaled SEK -0.08 (-0.36).
• Cash flow from operating activities was SEK -3,940k (-5,676k).
• GingisKHAN™Fab kit, Genovis launched a further development of the product GingisKHAN™ that will be marketed under the name GingisKHAN™Fab kit.
Summary: full-year 2015
• Net sales improved by about 61% to SEK 13,268k (8,252k).
• Gross profit/loss improved by SEK 4,550k to SEK -1,429k (loss: 5,979k).
• Gross margin improved, 82 percent in 2015, compared with 58 percent in 2014.
• Profit/loss after tax improved by SEK 2,143k to SEK -19,906 (loss: 22,049). Non-recurring expenses had a negative impact on earnings of SEK 6,071k.
• Comprehensive income improved by SEK 2,121k to SEK -19,928k (loss: 22,049).
• Comprehensive income per share totaled SEK -0.66 (-1.02).
• Cash flow from operating activities was SEK -16,117k (-22,193).
• Genovis reorganized, discontinued operations in the subsidiary GeccoDots and sold the intellectual property rights behind the Nanomotus project to the inventors against future royalties.
COMMENTS FROM FREDRIK OLSSON, CEO
In early 2014 we decided to change our marketing and sales strategy and shift completely to direct sales with our own organization in the most important markets. In 2015 we were able to fully implement this decision. The effect is clear: we increased sales for the full year by more than 60 percent to SEK 13.3 million. Direct contact with the end customer is a strong contributing factor for growth in each quarter of 2015 compared with 2014.
We streamlined operations during the year to focus on products based on our unique enzymes, which are principally used in the biopharma industry. The restructuring process had a negative impact on twelve-month earnings of about SEK 6 million, attributable to impairment losses and personnel costs. We are now entering 2016 with a cost-effective organization that is adapted for growth.
Our gross margin improved significantly during the year: 82 percent in 2015, compared with 58 percent in 2014. Our production is now efficient and scalable to be able to meet increased demand.
In the fourth quarter of 2015 our sales surged by 67 percent compared with the corresponding period in 2014. Exchange rate effects in this context are marginal (approximately 7 percent), which means we are growing organically – and this is important for Genovis’ employees, as well as for our shareholders. This achievement reaffirms our conviction to follow and further strengthen our sales strategy in 2016.
Genovis develops and sells products that meet the current and future needs of our customers. In order to continue doing what is necessary, we need not only innovative and talented employees, but also the resources to further strengthen the marketing organization. We intend to further expand our marketing campaigns in 2016 by strengthening existing markets with more resources to drive sales even stronger. We will also seek a local presence in markets where we see significant potential, especially in Asia. We also plan to launch products for new markets and applications to drive growth further during the year. My assessment is that these initiatives will double sales within 18 months and create an organization that can handle continued rapid growth.
Genovis has always had a clear strategy in which interaction with customers guides how we conduct business – every day! This strategy applies to our products, customer care, support and delivery, as well as the simplicity of ordering our products. Our main focus is to solve challenges for our customers in a better way than our competitors do and I am convinced that we have the right strategy to optimally increase value for Genovis shareholders moving forward. For more information, please contact: Fredrik Olsson, CEO, Genovis AB Tel: 0046 (0)46 -101233 fredrik.olsson@genovis.com
ABOUT GENOVIS
Genovis’ business concept is to offer customers in the pharmaceutical and medical device industries tools that facilitate and save time in the development of new treatment methods and diagnostics. Today Genovis sells several enzyme products known as SmartEnzymes all over the world in innovative product formats that facilitate development and quality control of biological drugs.
The Group consists of Genovis AB and the wholly owned subsidiary Genovis Inc. (USA).