Interim Report January–September 2023

ChromoGenics increases order intake and continues to lower costs

Q3 2023 (July–September)

• Net sales amounted to SEK 1.6 (3.5) million, a decrease of SEK 1.9 million compared to the corresponding quarter in 2022.
• Operating costs excluding depreciation and amortization and financial expenses amount to SEK 12.2 (22.0) million in Q3 2023 and correspond to a decrease in costs of SEK 9.7 million or 44 percent.
• Earnings before tax, depreciation/amortization and financial items (EBITDA) improved in the quarter by SEK 2.5 million and amount to SEK -9.2 (-11.7) million.
• Cash flow from operating activities before changes in working capital amounted to SEK -7.8 (-10.5) million, an improvement of SEK 2.6 million compared to Q3 2022 and is driven primarily by an improved operating profit.
• ChromoGenics’ operating profit before financial items in the third quarter of the year amounts to SEK -10 (-12.8) million, which is an improvement of SEK 2.8 million compared to the corresponding period in 2022 despite total revenue decreasing by SEK 7.2 million.
• Earnings per share (basic) amounted to SEK -3.3 (-32.0)

Significant events during the quarter

On July 14, ChromoGenics announced the outcome of the rights issue that concluded on July 12, 2023. The outcome showed that the rights issue was subscribed to approximately 56.0 percent with and without the support of unit rights.

On August 25, the company published its second interim report, which covers the period January–June 2023.

On September 4, the company announced the reverse share split of the company’s shares, as resolved by the Annual General Meeting, whereby one hundred (100) existing shares are consolidated into one (1) share (consolidation 1:100), and that the Board of Directors had decided to set the record date for the consolidation for September 12, 2023

On October 18, ChromoGenics announced order intake for Q3 2023 of SEK 8.3 million, which is a significantly higher level than in previous quarters.

On October 19, ChromoGenics announced the launch of a brand-new website for its leading innovation, ConverLight® Dynamic.

ChromoGenics announced the outcome of exercised warrants of series TO 6 on November 22. Warrants for series TO 6 were subscribed to approximately 0.25 percent. ChromoGenics will receive approximately SEK 51 thousand before issue expenses.

Interim period 2023 (January–September)

• Net sales during the period amounted to SEK 11.2 (14.8) million, a decrease of SEK 3.6 million compared to the corresponding period the previous year. This change derives primarily from a drop in export sales of approximately SEK 9.6 million that was to some extent offset by an increase in domestic sales.
• Despite high inflation and a negative exchange rate development, total operating expenses excluding financial items amounted to SEK -46.5 (-63.9) million, a decrease of SEK 17.4 million corresponding to 27 percent. This decrease is primarily due to enhanced cost efficiency in the form of lower costs in general, which in part benefited from positive effects of the in-house production of sputtered film.
• EBITDA amounted to -30.3 (-41), an improvement of 26 percent.
• Cash flow amounted to SEK 14.7 (-14.3) million compared to the same period in 2022.
• Profit/loss for the period amounts to SEK -35.9 (-44.6) million, an improvement of SEK 8.3 million compared to the corresponding period in 2022. The improvement derives largely from lower costs.
• Earnings per share (basic) amount to SEK -16.7 compared to SEK -151.6 the previous year.

Comments from the CEO

During the quarter, we continued to see a slow-down in the market and longer sales cycles. We are handling the headwind in the market by continuing to broaden our marketing initiatives and include new geographic markets and other property types. The good news is that during the quarter we enhanced order intake significantly. SEK 8.3 million in order intake is one of the best quarters in the company's history.

To accelerate our own digital marketing and create a platform for our partners, we launched a brand-new website for ConverLight®Dynamic: converlight.com. The site focuses on the values ConverLight creates in real estate and for people and highlights our unique technology and sustainability profile. The site creates good opportunities for our partners to market ConverLight as part of their own offer and in their own channels.

To be able to design glass solutions with ConverLight, we must be part of the industry’s calculation tools. GlassAdvisor is a modern and independent tool where users are now able to choose ConverLight in their glass solutions.

The requirements on sustainability in new real estate projects continue to increase, both in Sweden and abroad. A good example is the new project we will deliver in Sweden during the first half of 2024, which has a total order value of approximately SEK 5 million. This is a very exciting project that will be certified in accordance with NollC02, Well Platinum, Breeam Outstanding and Energy Class A.

Before the summer, our glass was installed in Nicaia Hospital, a children’s hospital in Greece. The installation is part of the EU project Switch2Save and has therefore been documented very carefully by participating universities.

Our glass has truly delivered value this summer for the children at the hospital. An indoor temperature that is up to 8 degrees lower and a 28 percent lower need for cooling in comparable weather were significantly better results than anyone would have dared to hope for.

Despite high inflation, we continued to lower our fixed costs somewhat and production continues to be stable. Due to the weak sales during the quarter, we focused on keeping costs down. Operating profit and cash flow therefore improved, despite weak sales. We continue to be focused on improving the gross margin and taking steps in this direction.

Our solutions contribute to solving some of the greatest challenges facing the world right now. We saw evidence of this on several occasions this quarter. With significantly improved order intake and lowered costs, we are in a good position to grow and improve our earnings.

Fredrik Fränding, CEO
Uppsala 11/30/2023

This report is available for download at https://chromogenics.com/sv/pressmeddelanden/

For more information, please contact

For more information, please contact:

Fredrik Fränding, CEO: +46 72 249 24 62
Anne-Marie Gullman, CFO & Head of Investor Relations: +46 76 136 01 15

This information constitutes such information that ChromoGenics AB is obligated to disclose in accordance with the EU Market Abuse Regulation. The information was submitted by the above-mentioned contact persons for publication on November 30, 2023, at 8:30 AM CET.