Hofseth Biocare ASA: SECOND QUARTER AND HALF YEAR 2024 FINANCIAL REPORT
HBC had gross operating revenues of NOK 80.4m (76.4m) in the second quarter and NOK 132.8m (121.2m) for the half year. Adjusted for the sale of assets in the second quarter, sales revenues were NOK 72.2m (50.7m) for the quarter, representing an increase compared to the same quarter in 2023 of 42 percent.
Cash and cash equivalents increased by NOK 3.1m during the quarter, leaving total holding at NOK 25.3m at the end of June, compared to NOK 22.4m at the end of March. Including credit facilities, HBC had NOK 26.7m in free liquidity as of the end of June.
Jon Olav Ødegård, CEO of HBC says: “I am pleased to see the significant sales growth in the second quarter truly showing the increasing value that our customers see in our premium products. HBC continues on its mission of science-led marine nutrition by a notable transfer of another pharmaceutical lead candidate to our daughter company in the US. In summary, as set at the start of 2024, HBC is still targeting c. 50 % growth in sales, a higher capacity utilization and positive EBITDA at the end of the year.”
Highlights in the second quarter
- HBC had new record quarterly sales revenues in the second quarter of NOK 72.2m up 42 percent from NOK 50.7 m in the second quarter 2023, excluding sale of assets in both quarters. Sales revenues were up 39 percent compared to first quarter in 2024. The increase is testament to gaining traction in major markets and our ability to turn the raw material into products that are valued by our customers. Worth mentioning is the growing interest in our premium pet products, both the functional ingredients and palatability enhancers.
- Production volumes were also high in the quarter, up 9 percent from Q1 to Q2 and 31 percent higher than Q2 last year. During the quarter, HBC has received deliveries from new raw material suppliers.
- Gross margin in second quarter was 34 percent, which is lower than first quarter and is accountable to change in product mix sold. Cash flow from operating activities came in on the positive side.
- In April, our laboratory in Midsund was accredited according to ISO 17025, enabling HBC in doing most of its microbiological analyses in-house.
- In June, the company recognised NOK 8.2m in profit from its second sale of assets, patents, to its associated company, HBC Immunology Llc. (HBCI), registered in USA. The latest spin-off relates to eosinophil-targeting drug candidate MA-022a. Eosinophils are immune cells that become overactive in allergic and hypersensitivity conditions including allergic asthma. HBC holds a 72 % shareholding in HBCI.
There have not been any significant events after the quarter.
Please find the HBC Q2 & Half year 2024 Financial report attached.
For further information, please contact:
Christel Elise Kanli, CFO of Hofseth BioCare ASA
Phone: +47 41623188
E-mail: ck@hofsethbiocare.no
About Hofseth BioCare ASA:
HBC is a Norwegian consumer and pet health ingredient supplier and an incubator for new pharmaceutical drug leads. Research is ongoing to identify the individual elements within its ingredients that modulate inflammation and the immune response with pre-clinical studies ongoing in multiple clinics and university research labs. Lead clinical and pre-clinical candidates are focused on developing an oral treatment for inflammatory disease driven by eosinophils (a type of white blood cell). Clinical trial work with the oil is ongoing to ameliorate lung inflammation in eosinophilic asthma and COPD ("smokers lung").
Other leads are focused on using the Company's bioactive peptides as a Medical Food for the protection of the Gastro- Intestinal (GI) system against inflammation (including ulcerative colitis and the orphan condition necrotizing enterocolitis). The Company is founded on the core values of sustainability, optimal utilization of natural resources and full traceability. Through innovative and patent protected hydrolysis technology, HBC can preserve the quality of the lipids, proteins and calcium from fresh salmon off-cuts.
HBC's headquarters are in Ålesund, Norway with offices in Oslo, London, Zürich, New Jersey and Palo Alto, CA.
This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act
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