PEPTONIC Medical AB (publ), QUARTERLY REPORT Period January – September 2023
GROUP
2023 THIRD QUARTER (Jul-Sep)
- Net sales of products SEK 9 525 (12 180) thousand
- Gross profit SEK 4 517 (7 137) thousand, 47% (59%)
- Operating loss SEK -7 557 (-7 786) thousand
- Loss per share SEK -0,01 (-0,04)
2023 FIRST NINE MONTHS (Jan-Sep)
- Net sales of products SEK 30 330 (33 442) thousand
- Gross profit SEK 15 603 (19 002) thousand, 51% (57%)
- Operating loss SEK -21 586 (-26 807) thousand
- Loss per share -0,02 (-0,12) SEK
Message from our CEO
Sales in Sweden doubled
During the third quarter, sales in the important reference market Sweden doubled compared to the same period last year. This is the third consecutive quarter that we have reached new highs. The rapid growth is due in part to a very successful summer campaign where we once again stuck our neck out, dared a little more and received a very positive response, as well as an increasing number of repeat purchases. Accumulated growth so far this year is +53% compared to the last year, while the market as a whole is growing at around 10% year-on-year. The market share of VagiVital AktivGel is now up to 10%.
Increased business flow and new partners
During the third quarter, we continued to make significant progress in our ambition to become a major player in the area of intimate women's health. In August, the merger with Pharmiva was given the green light and now a number of formal steps remain for the merger to be completed. The merger is expected to generate revenue and cost synergies, optimise the product portfolio and strengthen the organization.
At the same time, we see an upcoming flow of business from our international partners. We have successfully signed a distribution agreement regarding our bacterial vaginosis self-test with Walmart in the US. Walmart is the largest retail chain in the US. In October, Windsor Pharma placed its first order, as did Savyon Diagnostics, with whom we recently signed a distribution agreement for the Israeli market. The orders from Windsor Pharma and Savyon Diagnostics will be delivered in the fourth quarter.
Strong pipeline of new products
During the year, we have focused on developing and in-licensing new products within the framework of our concept Diagnose, Treat, Prevent. The merger with Pharmiva adds a unique and patented treatment for bacterial vaginosis to the portfolio. In addition, we have added a urinary tract infection test and a menopause test to our offering. Next year, we expect to launch a patented product for the treatment of vestibulitis, which is the result of our own research and development. A proprietary product that prevents urinary tract infections is also in the pipeline. In total, we intend to launch ten new products in 2024 as part of our strategy to build a more complete product portfolio.
Shipping delays to Israel affect the third quarter
During the third quarter, sales declined as a result of delivery delays to our production unit in Israel and expected lower sales in the business area Lifestyle Consumer. As a result of the delivery delays, sales of approximately SEK 1.7 million have been postponed to the fourth quarter. Sales in the core business area Medical Consumer continue to grow and the gross margin is expected to increase in 2024 as a result of higher production in Israel following new partner agreements. The ongoing severe conflict in Israel has not affected our manufacturing unit in Caesarea as it is not located in the immediate vicinity of the affected areas. Both production and deliveries continue to operate normally.
Clear plan going forward for increased sales and profitability
In summary, we expect to see significant improvements from the turn of the year, when the merger with Pharmiva is completed and the business is integrated. Together with our strong portfolio of new products, the success in Sweden, the new agreements signed with our international partners, and the strengthening of the organization, we are well equipped for rapid sales growth in 2024 and the goal of reaching profitability in 2025.
Erik Sundquist
CEO
| KEY FIGURES | |||||
| Peptonic Group | |||||
| 9 mon | 9 mon | 12 mon | 12 mon | ||
| jan-sep | jan-sep | jan-dec | jan-dec | ||
| 2023 | 2022 | 2022 | 2021 | ||
| Sales goods, KSEK | 30 330 | 33 442 | 43 634 | 31 643 | |
| Gross profit sales goods, KSEK | 15 603 | 19 002 | 23 394 | 19 070 | |
| Gross margin, % | 51% | 57% | 54% | 60% | |
| Operating profit, KSEK | -21 586 | -26 807 | -33 606 | -73 718 | |
| Return on equity,% | Negativt | Negativt | Negativt | Negativt | |
| Equity ratio,% | 85 | 63 | 55 | 62 | |
| Earnings per share, SEK | -0.02 | -0.12 | -0.15 | -0.38 | |
| Liquidity per share, SEK | 0.01 | 0.01 | 0.01 | 0.05 | |
| Equity per share, SEK | 0.07 | 0.23 | 0.19 | 0.27 | |
| Share price per closing, SEK | 0.08 | 0.33 | 0.14 | 0.63 | |
| Share price/Equity per share, SEK | 1.23 | 1.42 | 0.72 | 2.30 | |
| Equity per share, SEK | 1 175 179 689 | 242 743 544 | 242 743 544 | 191 639 642 | |
FINANCIAL INFORMATION
Group
Revenue – Sales of goods during the third quarter amounted to SEK 9,525 (12,180) thousand, resulting in a decrease of SEK 2,655 thousand compared to the same period last year. This decrease is primarily due to a delivery delay with a value of SEK 1,700 thousand, which will be realized in the fourth quarter. Other operating income for the quarter was SEK 392 (187) thousand. In the first nine months, sales of goods amounted to SEK 30,330 (33,442) thousand, reflecting a decrease of SEK 3,112 thousand. Other operating income for the period was SEK 869 (1,037) thousand.
The Business Segment Lifestyle has experienced a persistent decline in sales over the past year, resulting in a decrease of SEK 2 million in the quarter compared to the same period last year. The refocus toward key markets and cost control continues and has resulted in an improved operating result despite lower sales.
Excluding the delivery delay, the key business area Medical Consumer is growing compared to the same period the previous year. Particularly, the important reference market of Sweden continues to grow very rapidly, and the quarter marks the third quarter in a row as the best sales quarter so far.
Costs – In the third quarter, costs amounted to SEK -17,474 (SEK -20,154) thousand. Costs of goods sold for this quarter were SEK -5,008 (-5,043) thousand, resulting in a gross profit of SEK 4,516 (7,137) thousand and a gross margin of 47% (59%). During Q3, the gross margin was calculated using a new model for our own production, resulting in a lower gross margin compared to 2022. According to the new model, the previous year's gross margin was 46%. Over the first nine months, product costs amounted to SEK -14,727 (-14,440) thousand, resulting in a gross profit of SEK 15,603 (19,002) thousand and a gross margin of 51% (57%). Successful cost management in this period has led to an improved operating result this quarter compared to the same period last year, despite lower revenues.
Profit – The group's result after net financial items for the third quarter amounted to SEK -7,482 (8,524) thousand, an improvement compared to the previous despite lower sales. For the first nine months, the corresponding result is SEK -22,943 thousand, reflecting an improvement from SEK
-28,825 thousand in the same period last year.
Financial position and liquidity – Cash and bank as of September 30, 2023, amounted to SEK 8,703 (3,015) thousand.
Shareholders equity – The group's equity as of September 30, 2023 amounted to SEK 76,487 (56,919) thousand, which gives an equity ratio of 85 (64) percent.
Liabilities – The group's short-term liabilities amounted, as of September 30, 2023, to SEK 13,325 (32,747) thousand. Of which SEK 4,800 thousand refers to interest-bearing deferrals with the Tax Agency.
Organization – During the period, the average number of employees was 31 (31). At the end of the period, the number of employees amounted to 32 (31).
| INCOME STATEMENT | ||||||||
| Peptonic Group | ||||||||
| 3 mon | 3 mon | 9 mon | 9 mon | 12 mon | ||||
| jul-sep | jul-sep | jan-sep | jan-sep | jan-dec | ||||
| KSEK | Note | 2023 | 2022 | 2023 | 2022 | 2022 | ||
| Operating income | ||||||||
| Sales of products | 9 525 | 12 180 | 30 330 | 33 442 | 43 634 | |||
| Other operating income | 392 | 187 | 869 | 1 037 | 2 770 | |||
| Total operating income | 9 917 | 12 368 | 31 199 | 34 479 | 46 404 | |||
| Operating expenses | ||||||||
| Cost of goods | -5 008 | -5 043 | -14 727 | -14 440 | -20 239 | |||
| Other external expenses | 1 | -6 942 | -7 536 | -21 186 | -26 780 | -34 186 | ||
| Personnel costs | -4 678 | -6 081 | -14 345 | -17 337 | -21 922 | |||
| Depreciation | -846 | -869 | -2 527 | -2 605 | -3 491 | |||
| Other operating costs | 0 | -625 | 0 | -123 | -172 | |||
| Total operating expensses | -17 474 | -20 154 | -52 786 | -61 286 | -80 010 | |||
| Operating loss | -7 557 | -7 786 | -21 586 | -26 807 | -33 606 | |||
| Net financial income | 146 | 0 | 506 | 0 | 0 | |||
| Net financial expense | -78 | -738 | -1 863 | -2 019 | -3 251 | |||
| Loss before taxes | -7 489 | -8 524 | -22 943 | -28 825 | -36 857 | |||
| Taxes | -4 | 0 | -26 | 0 | 0 | |||
| Net loss for the period | -7 492 | -8 524 | -22 969 | -28 825 | -36 857 |
| BALANCE SHEET | |||||||
| Peptonic Group | |||||||
| 30-sep | 30-sep | 31-dec | |||||
| KSEK | Note | 2023 | 2022 | 2022 | |||
| Assets | |||||||
| Non-Current assets | |||||||
| Intangeble assets | 2 | 48 556 | 50 447 | 50 098 | |||
| Tangeble assets | 4 494 | 4 321 | 4 299 | ||||
| Total non-current assets | 53 051 | 54 768 | 54 398 | ||||
| Current assets | |||||||
| Stock | 18 334 | 17 694 | 15 368 | ||||
| Other receivbles | 7 181 | 12 756 | 8 267 | ||||
| Tax receivable | 157 | 0 | 89 | ||||
| Prepaid expenses and accrued income | 2 386 | 1 432 | 4 064 | ||||
| Liquid assets | 8 703 | 3 015 | 3 566 | ||||
| Total current assets | 36 762 | 34 898 | 31 354 | ||||
| Total assets | 89 812 | 89 666 | 85 752 | ||||
| Equity and liabilites | |||||||
| Equity | |||||||
| Ristricted equity | |||||||
| Share capital | 29 379 | 24 274 | 24 274 | ||||
| Reserves | 7 392 | 11 186 | 7 392 | ||||
| Other contributed capital | 321 720 | 276 157 | 273 613 | ||||
| Profit or loss brought forward incl year result | -282 004 | -254 698 | -258 187 | ||||
| Total equity | 76 487 | 56 919 | 47 092 | ||||
| Current liabilites | |||||||
| Liabilities interest bearing | 4 311 | 9 615 | 4 180 | ||||
| Trade payables | 5 157 | 16 269 | 22 881 | ||||
| Other payables | 1 014 | 992 | 5 720 | ||||
| Prepaid income and accrued expenses | 2 843 | 5 872 | 5 879 | ||||
| Total current liabilities | 13 325 | 32 747 | 38 660 | ||||
| Total equity and liabilities | 89 812 | 89 666 | 85 752 | ||||
Audit
This quarter report has not been subject to be reviewed by the company's auditors.
Assurance
The board and the managing director assure that the year-end report provides a fair overview of the company's operations, position and results.
FINANSIELL KALENDER
Year-end report, 2023 2024-02-23
Stockholm on 24 of october, 2023
Anders Blom, Chairmen of the Board Daniel Rudeklint, Board member
Anna Stinger, Board member Anders Norling, Board member
Tarek Shoeb, Board member
Erik Sundquist, CEO
For more information please contact:
Erik Sundquist, CEO PEPTONIC Medical AB. Phone: +46 722 499 043
Note: This document has been prepared in both Swedish and English. The Swedish version shall govern in case of differences between the two documents. The document contains certain statements about the Company’s operating environment and future performance. These statements should only be regarded as reflective of prevailing interpretations. No guarantees can be made that these statements are free from errors.