Genovis Half-Yearly Report January – June 2018

April–June in brief

  • Net sales rose by about 48 percent to SEK 8,578k (5,812k).
  • Operating result before depreciation and amortization (EBITDA)* totaled SEK -596k (-1,624).
  • Comprehensive income for the period improved by SEK 352k to a loss of SEK 1,793 (loss: 2,145k).
  • Comprehensive income per share, basic and diluted, improved by SEK 0.01 to SEK -0.03 (-0.04).
  • Genovis signed distribution agreement for the South Korean market
  • Strengthened marketing organization in the US and Kevin Cook hired as Senior Application & Market Area Manager for the subsidiary Genovis Inc.  
  • Expanded product portfolio and launched GlycOCATCH™, the first product in the company’s new protein purification product category.
  • Carried out a directed share issue that raised SEK 10.1 million for the company before transaction costs.

* Genovis has chosen to apply IFRS 16 in advance, as well as the simplification rule regarding short-term leases. Consequently, this will not have any effect on the figures reported for 2017. Costs for rent and leases are therefore recognized under depreciation and amortization and beginning in 2018 will not affect EBITDA for the Group. 

Half year in brief

  • Net sales rose by about 40 percent to SEK 14,825k (10,607k).
  • Gross profit improved by SEK 4,045k and totaled SEK 14,062k (10,017k).
  • Operating result improved by SEK 1,745k and totaled -3,292k (-5,037k).
  • Comprehensive income for the period improved by SEK 2,026 to a loss of SEK 3,189 (loss: 5,215k).
  • Comprehensive income per share, basic and diluted, improved by SEK 0.04 to SEK -0.05 (-0.09).

Events after the end of the period

Genovis expanded its sales and marketing organization at its Lund headquarters and hired Rob Horsefield as Sales & Business Development Manager. Rob has several years of experience in the industry from sales in analytical chemistry, pharmaceutical development and protein chemistry. 

Comments from Fredrik Olsson, Chief Executive Officer  

Extremely strong sales growth in Q2

The extremely strong growth at the beginning of the year continued during the second quarter: sales surged 48 percent compared with the previous year and totaled SEK 8.6 million (5.8). This is the single best sales quarter in the history of Genovis. Thus we have now had 15 quarters with sales growth (YoY). For the half year, sales totaled approximately SEK 14.8 million, which represents sales growth of about 40 percent for the first six months of the year. The strong sales with a continued high gross margin creates a good platform for long-term sustainable growth and profitability. 

Our sales grew on all markets during the quarter. Our strategy is still to have a presence in all key markets and right now Asia is our priority, with the goal of signing contracts during the year for Japan, Singapore and Taiwan. The increase in sales is driven by increased demand, both for our more mature products that have been on the market for a few years and because our recently launched products have rapidly been accepted on the market. This is a clear confirmation that our strategy and business model with customer-focused innovation creates value and growth opportunities for Genovis. In particular, our product portfolio in the glycomics area has achieved faster sales growth. We realized there was a pronounced need in the market for new analytical tools in the field of glycomics, but the response has been both larger and faster than we had initially expected. During the quarter we expanded our portfolio with yet another product in glycomics, GlycOCATCH™, which is our first product for protein purification. Two important scientific articles from the US Food and Drug Administration (FDA) and Johns Hopkins University School of Medicine were published during the summer. Both of these articles demonstrate new and different applications for our glycomics portfolio, which in the long term will open completely new business opportunities for Genovis. 

Genovis is in a growth phase and against this background we carried out a rights issue during the quarter with the goal of continuing to strengthen and grow our sales and marketing organization. In addition to the previously announced recruitment of Kevin Cook to our US organization, Rob Horsefield is now joining the Genovis team in Lund. Rob Horsefield brings valuable industry experience and will initially promote our expansion in the Asian markets and develop our business in relation to partners and potential wholesalers, as well as support our continued growth in Europe.  

With more than half of 2018 behind us, the beginning of the third quarter clearly indicates continued sales growth. The investments that we have made during the quarter to strengthen our marketing organization and to secure the right patent protection are crucial for us to be able to maintain the high pace of our development portfolio and sales moving forward.  

I confidently look forward, along with our expanding team, to accompanying Genovis on its continued journey of growth. 

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 apply its knowledge and imagination to design and provide innovative tools for the development of the drugs of the future. 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). Genovis shares are listed on Nasdaq First North Stockholm and Erik Penser Bank is the Company’s Certified Adviser. T: +46 (0)8-463 83 00.

This information is information that Genovis AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, by the contact person set out above, on August 28, 2018.

This press release is a translation of the Swedish original. In the event of any discrepancy between this translation and the Swedish original, the Swedish version shall prevail.

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