CS MEDICA: Q4 Interim report, July – September 2024

CS MEDICA today released its financial results for the fourth quarter of 2024, demonstrating revenue growth and enhanced operational efficiency despite challenging market conditions and financial constraints. A last-minute postponement of a merger and acquisition initiative impacted the annual results, leading to a 46% deviation from projected revenue.

CS MEDICA A/S (CSMED), a Danish MedTech company specializing in CBD-infused medical devices, concluded the fiscal year 2023/2024 with a transformative fourth quarter, marked by progress and positive revenue growth. However, the quarter was also characterized by financial constraints to scale and a last-minute postponement of a M&A initiative impacted the annual revenue, leading to a 46% deviation from projected outcomes, shifting to expected completion in the next fiscal year.

Fourth Quarter Financial Performance Highlights:

• Net Sales: Achieved mDKK 3.9, a substantial increase from mDKK 0.073 in Q4 of the previous year.
• Gross Profit: Rose to mDKK 1.44 from mDKK 0.047.
• Operating Profit: Improved to mDKK -2.8 from mDKK -4.6.
• Net Profit: Improved to mDKK -1.1 from mDKK -3.7.

Annual Financial Overview:

• Annual Net Sales: Reached mDKK 8.5, compared to mDKK 1.1 in the previous year, despite a 46% shortfall from the anticipated mDKK 15 due to a postponed merger and acquisition initiative.
• Annual Gross and Operating Profit: Showed marked improvements with gross profit at mDKK 3.2 and operating loss reduced to mDKK -12.5 from mDKK -17.9.
• Net Profit for the Year: Improved to mDKK -9.7 from mDKK -14.5.
• Liquidity and Equity: Cash and equivalents ended at mDKK -0.8, with equity at mDKK 6, showing a ratio of 17%, adjusted from 40%.

Significant Post-Quarter Events:

Following the close of the quarter, an Extraordinary General Meeting (EGM) on November 12, 2024, approved the conversion of founders' and family debt into equity to strengthen financial stability.

CEO’s Comments:

Our performance this quarter highlights CS MEDICA’s resilience and ability to execute our strategic initiatives effectively. The planned CANNORDIC IPO is set to provide capital to enhance our liquidity and scale operations. This quarter also saw significant strategic advancements, including a pivotal partnership with Nimbus Health, part of Dr. Reddy's Laboratories, to expand our footprint in the German market—our most mature market in Europe. Additionally, our compliance journey saw us successfully pass the second audit from our notified body as part of the MDR transition, further enabling us to convert more of our pipeline into active sales.

Looking Forward to 2025:

With a lean business model, robust strategies in place and expected financial reinforcement, CS MEDICA is optimistically positioned for a transformative year in 2025. The company remains dedicated to continuing its path of innovation, expanding market sales, and enhancing shareholder value.