Interim Report January – March 2022

• Net sales totaled SEK 32,574 (15,723) thousand, with a growth rate of 107%. About SEK 10 million relates to the license agreement in 2021 with Selecta Biosciences. Growth is 91%, adjusted for currency effects.
• Gross profit rose by 96% to SEK 29,419 (15,017) thousand.
• Operating profit before depreciation and amortization (EBITDA) totaled SEK 11,717 (1,958) thousand.
• Operating profit jumped SEK 9,554 thousand and totaled SEK 10,105 (551) thousand.
• Comprehensive income for the period improved by SEK 11,476 thousand and totaled SEK 13,083 (1,607) thousand.
• Comprehensive income per share totaled SEK 0.20 (0.02).
• Cash flow from operating activities was SEK -1,622 (3,512) thousand.
• Cash and cash equivalents at the end of the period totaled SEK 78,119 (45,929) thousand.

Comments from Fredrik Olsson, Chief Executive Officer

The year got off to a strong start and our sales totaled about SEK 33 million, which is an increase of 107% compared with the corresponding period last year. Growth is driven by revenue from the agreement in gene therapy and strong growth in the enzyme business, where sales increased by 37%. The enzyme business grew in all major geographic markets. It is particularly gratifying to note that the locations which we have now strengthened by adding local product specialists are off to a good start with strong growth. In the antibody business, we again see growth compared with the previous quarter, and the sales trend for the antibody products that were developed for synergies with the enzyme business continues to be strong.

It is particularly satisfying to note that our antibody labeling technologies continue to show strong growth and now represent an increasing share of our total revenue streams, which strengthens us in our ambitions in enzyme-driven workflows for antibody labeling.

During the first quarter, we were able to act on several of our strategic goals, which affected costs compared with the first quarter of 2021. This is fully in line with our plan and related to the expansion we are currently implementing in our commercial organization with local representation in Shanghai and the UK. At the beginning of the second quarter, we also recruited staff to serve as local representatives in Germany and Switzerland. It is also gratifying that at the beginning of the year, we were able to invest and participate in several physical conferences and fairs compared with the previous year. In addition to the above, the total cost base has also been affected by higher raw material prices and costs related to the licensing deal with Selecta Biosciences.   

World events, with the continued effects of Covid-19 on logistics, along with the war in Ukraine, have had a limited impact on our business to date. We have seen some cost increases in raw materials and supplies, but the effects moving forward are currently difficult to assess. The logistics chain is still under pressure, with delivery delays and higher prices. Many of our suppliers are still able to deliver and our exposure to Russia is deemed to be very limited. Similarly, an assessment of our markets and revenue streams also shows limited impact at this time. We work actively to make sure our products are not sold or distributed in the Russian market. Our thoughts and sympathies lies firmly with the Ukrainian people and all pepole suffering from the unjustifiable attack on democratic and human values.

Although the impact of external factors is currently difficult to assess in the short term, I maintain my positive basic view of Genovis' future growth opportunities and the resources provided to enable us to continue to invest for further expansion.

I am pleased to welcome several new teammates to Genovis now at the beginning of the year and would also like to thank the entire team for their efforts and a good start to 2022.

Published reports can be downloaded from the Genovis website: https://investor.genovis.com/en/financial-reports/

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 27-04-2022 08:00 CET.