Hofseth Biocare ASA: THIRD QUARTER 2024 FINANCIAL REPORT
HBC had gross operating revenues of NOK 67.9m (49.9m) in the third quarter and NOK 200.6m (171.1m) in the first nine months. The operating loss (EBITDA) for the quarter was NOK -21.0m (-16.2m) and NOK -39.2m (-26.3m) for the first nine months. Operating result (EBIT) amounted to NOK -30.5m (-25.2m) in the third quarter 2024. Cash and cash equivalents decreased by NOK 1.9m during the quarter, leaving a total holding at NOK 23.4m at the end of September, compared to NOK 25.3m at the end of the second quarter 2024. Including credit facilities, HBC had NOK 31.3m in free liquidity as of the end of September 2024.
Highlights in the third quarter
- Sales grew by 36% in Q3 2024, compared to Q3 2023 and B2B gross margin ended at 41.2%, compared to 33.9% in Q3 2023. A stronger gross margin in the B2B segment was driven by higher pricing of our ingredients and increased sales of CalGo®.
- In July, HBC announced the transfer of its eosinophil-targeting drug candidate MA-022a to HBC Immunology Inc. ("HBCI"). The patent underlying the project was valued at $4.5m and HBC received 956,813 common shares in HBCI for the transfer of the patent to HBCI.
- In August, HBC published a groundbreaking study of our full spectrum omegas oil OmeGo® to support COVID-19 recovery in the International Journal of Molecular Sciences. The research demonstrates that OmeGo® improved immune response and reduced inflammation in individuals with mild to moderate COVID-19 infection.
- For B2B sales in the human nutrition channel, the third quarter showed strong sales growth with revenue up 91%, compared to 2023. Growth was driven by continued strong demand in Europe for CalGo® and sales of ProGo® in Asia. During the quarter, HBC worked closely with our distributor network and undertook a series of key customer meetings across Asia.
Subsequent events
- In October, HBCI completed prostate cancer xenograft studies with its lead peptide FT-002a in combination with standard of care hormone-targeting therapy. The novel oral formulation of FT-002a (FT-002a-O) significantly augmented the anti-tumour activity of enzalutamide (Xtandi®), the market-leading androgen receptor inhibitor.
Please find the Q3 Financial report attached.
For further information, please contact:
Jon Olav Ødegård, CEO of Hofseth BioCare ASA
Phone: +47 93632966
E-mail: investor@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.
This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act
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