Navamedic Q1 2024: Successful product launch and steady operational progress

 

Oslo, 30 April 2024 – In the first quarter 2024, Navamedic ASA (OSE: NAVA), a Nordic pharma company and reliable provider of high-quality products to hospitals and pharmacies, had revenues of NOK 121 million and an adjusted EBITDA of NOK 8.5 million. Revenues were at the same level as last year. Adjusted EBITDA was in line with the previous quarter, but below last year.

 

The company had steady operational progress and rolling 12 months revenues increased 15 percent year-over-year. The first three months of 2024 were marked by normal fluctuation in revenue between quarters, due to seasonality and stock build up at pharmacies towards the end of 2023, and some products being out-of-stock.

 

The company’s gross margin in the first quarter of 2024 was 38.7 per cent, down from 41.3 per cent in the prior year. Operating results (EBIT) amounted to NOK 4.9 million, compared to NOK 14.0 million in 2023. Operating costs were higher than last year, mostly due to continued investments in future growth initiatives, and including Sensidose operating expenses. Net financial items was negative NOK 5.7 million and profit before tax was negative NOK 0.8 million.

 

“The successful launch in Norway of Eroxon® in February was an important and significant event. After only two weeks in the market, this clinically proven local treatment of erectile dysfunction was the bestseller at an online pharmacy. Strong sales in the rest of the first quarter, resulted in Eroxon® ranking third on Navamedic’s most sold products in the Consumer Health segment. Eroxon® will be launched in Sweden in May, and in Finland later this year,” said Kathrine Gamborg, CEO of Navamedic ASA.

 

Category update

 

In the Consumer Health category, Modifast continues to enjoy a strong position in Sweden, where sales have rebounded after two slightly weaker quarters. Sales of ThermaCare® and Aftamed® increased sharply, and as mentioned, Eroxon® was successfully launched in Norway in February. Consumer Health sales increased 21 percent year over year.

 

The Hospital category also saw double-digit growth year-over-year for the segment as a whole, steady growth for medical nutrition and double-digit growth for antibiotics. Winning new antibiotic tenders is core in the growth strategy. A decision is imminent for renewal of the tenders for antibiotics to hospitals in Norway.

 

In the Prescription Drugs category, retail sales volumes for Mysimba® were lower than last year in Norway due to inventory build-up in wholesalers in Q4, however, sales in Finland is increasing. Sales of Forlax has grown each quarter and was up 75 percent year-on-year. Imdur was out of stock in most markets in Q1 and is expected back in stock during Q2.

 

Outlook

 

Navamedic sees continued strong growth and new expansion opportunities and reiterates its mid-term ambition of building a NOK 1 billion revenue company with a 15 per cent EBITDA margin.

 

“We are building on a solid foundation. We will continue to strengthen our existing business by leveraging our highly scalable market access platform. We will explore opportunities for market expansion with own products and increase company value by acquiring and strengthening own products and brands while increasing profit margins through careful management of our product portfolio,” Andreassen concluded.

 

 

Presentation

 

Navamedic will present the results for the first quarter 2024 at 08.30 today. CEO Kathrine Gamborg Andreassen and CFO Lars Hjarrand will host the presentation, which will take place at Haakon VIIs gate 2 in Oslo. It will be webcast at the following link:

https://navamedic.com/investors/financial-results/

Note: EBITDA and other alternative performance measures (APMs) are defined and reconciled to the IFRS financial statements as a part of the APM section in the attached presentation.

 

 

For further information, please contact:

 

Kathrine Gamborg Andreassen, CEO, Navamedic

Mobile: +47 951 78 680

E-mail: [email protected]

 

Lars Hjarrand, CFO, Navamedic

Mobile: +47 917 62 842

E-mail: [email protected]

 

 

About Navamedic

Navamedic ASA is a full-service provider of high-quality healthcare products to hospitals and pharmacies. Navamedic meets the specific medical needs of patients and consumers by leveraging its highly scalable market access platform, leading category competence and local knowledge. Navamedic is present in all the Nordic countries, the Baltics and Benelux, with sales representation in the UK and Greece. Navamedic is headquartered in Oslo, Norway, and listed on the Oslo Stock Exchange (ticker: NAVA). For more information, please visit Navamedic.com.

 

This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.