HALF-YEAR REPORT FOR THE FIRST HALF OF 2021

Second quarter 2021    

• Net sales rose by 26% to SEK 19,535 (15,490) thousand. Growth is 37%, adjusted for currency effects.
• Gross profit rose by 32% to SEK 17,365 (13,146) thousand.
• Operating profit before depreciation and amortization (EBITDA) totaled SEK 2,793 (loss: 38) thousand.
• Operating profit improved by SEK 2,641 thousand and totaled SEK 1,350 (loss: 1,291) thousand.
• Comprehensive income for the period improved by SEK 4,156 thousand and totaled SEK 1,033 (loss: 3,123) thousand.
• Comprehensive income per share, basic and diluted, totaled SEK 0.01 (-0.02).
• Cash flow from operating activities was SEK -1,747 (-123) thousand.
• Cash and cash equivalents at theend of the period totaled SEK 41,730 (46,554) thousand.

First half 2021

• Net sales rose by 31% to SEK 35,258 (26,965) thousand. Growth is 45%, adjusted for currency effects.
• Gross profit rose by 34% to SEK 32,382 (24,123) thousand.
• Operating profit before depreciation and amortization (EBITDA) totaled SEK 4,751 (-885) thousand.
• Operating profit improved by SEK 5,081 thousand and totaled SEK 1,901 (loss: 3,180) thousand.
• Comprehensive income for the period improved by SEK 7,678 thousand and totaled SEK 2,640 (loss: 5,038) thousand.
• Comprehensive income per share, basic and diluted, totaled SEK 0.02 (-0.05).
• Cash flow from operating activities was SEK 1,765 (-1,629) thousand.

Comments from Fredrik Olsson, Chief Executive Officer

We continue to show good growth for the second quarter of 2021. Our currency-adjusted growth totaled 37% compared with the corresponding quarter the previous year and we posted increased sales in both the enzyme and the antibody business. Currency-adjusted growth totaled 41% for the enzyme business and 4% for the antibody business. 

We continue to be affected by subdued customer activity for enzymes in our Analytics segment due to Covid-19, as reflected by delayed customer projects and changed priorities in research where our products are used. The pandemic has also impacted access to other products that are included in our customers’ analysis flow, which has affected their productivity. We were also subjected to disruptions in global logistics chains during the quarter, while restrictions and delays in customer projects had a dampening effect on the antibody business. 

Despite these challenges, we delivered strong growth, driven by both organic growth among existing customers and new applications for our products, thereby demonstrating the power of our innovative customer-focused business model and organization. 

Antibody labeling is an exciting field in which we have expanded our customer offering over time. We have now taken yet another step in the field through our license agreement with GlycoT Therapeutics At the end of the second quarter we launched the first products based on a combination of our enzyme technologies, which offer a completely new approach to designing antibodies with a defined glycan structure. The technology platform opens up several potential new markets and areas of application for us, including research, diagnostics and antibody drug conjugates (ADCs), and we intend to broaden our offering further in the future. 

We continue to follow our product development strategy through the additional launches of two new products. In the most recent quarter, in addition to TransGLYCIT as described above, we launched antibody products developed in our subsidiary as a complement to our enzyme business. Several projects are underway in the antibodies business where we are leveraging synergies from our acquisition last year. Our ability to develop new enzymes over time is further strengthened by the initiation of our novel enzyme screening project at the end of the quarter, for which we have received financial support from Vinnova. With continued good momentum in our product development activities, I look forward to more product launches in the second half of the year. 

As part of our previously announced collaboration with Waters, we initiated and conducted several joint projects to develop and market new automated protein analysis workflows for our customers. Some of the new methods have already been presented at virtual conferences together with Waters and our joint activities will continue during the second half of the year. Industrial partnerships will continue to be a priority to strengthen our offering of simplified and automated analysis. 

Although we are still experiencing delays and subdued customer activity due to the pandemic, we continue to deliver growth, which is highly satisfying. While the Covid-19 pandemic will likely continue to impact market conditions in the second half of the year, I am optimistic about Genovis’ growth potential over time. 

Finally, I would like to thank all my colleagues at Genovis who are doing a fantastic job by helping our customers on a daily basis to access innovative products to develop the medicines of the future, which will result in continued growth.

This disclosure contains information that Genovis 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 12-08-2021 08:05 CET.