Hofseth Biocare ASA Reports Strong Q2 and Half-Year Growth
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Hofseth Biocare ASA's Financial Highlights
Hofseth Biocare ASA (HBC) achieved remarkable gross operating revenues of NOK 80.4 million for the second quarter and NOK 132.8 million for the half year. Adjusted for asset sales, the sales revenues were NOK 72.2 million, reflecting a robust 42 percent increase compared to the same quarter in the previous year.
Strong Cash Flow and Liquidity Position
During the second quarter, HBC's cash and cash equivalents rose by NOK 3.1 million, resulting in a total of NOK 25.3 million at the end of June. Including credit facilities, the company maintained free liquidity of NOK 26.7 million, indicating a strong financial standing.
CEO's Insights on Growth
Jon Olav Ødegård, CEO of HBC, expressed his satisfaction with the significant sales growth, highlighting that the surge reflects the increasing value that customers place on their premium products. He reiterated the company's commitment to advancing science-led marine nutrition and mentioned the transfer of another pharmaceutical lead candidate to their U.S. subsidiary.
Quarterly Achievements and Market Position
HBC set new records with quarterly sales revenues hitting NOK 72.2 million, up 42 percent from NOK 50.7 million in the prior year. This growth showcases the company's ability to penetrate major markets and effectively convert raw materials into high-value products. Additionally, interest in HBC's premium pet products, including functional ingredients and palatability enhancers, is on the rise.
Production Volumes and Supply Chain Strength
The company also reported significant production volume increases, which were up 9 percent from Q1 to Q2 and 31 percent higher than the same quarter last year. The ability to secure deliveries from new raw material suppliers further strengthens HBC's operational capabilities.
Financial Metrics Overview
The gross margin for the second quarter stood at 34 percent, lower than the first quarter, primarily due to a modification in the product mix sold. Nevertheless, cash flow from operating activities remained positive, reinforcing the company’s financial health.
ISO Accreditation and R&D Developments
In April, HBC's laboratory in Midsund achieved ISO 17025 accreditation, empowering the company to conduct most microbiological analyses in-house which enhances efficiency and reliability in testing.
Strategic Partnerships and Developments
In June, HBC registered an impressive NOK 8.2 million profit from the sale of patents related to eosinophil-targeting drug candidate MA-022a to its associated company in the USA, HBC Immunology LLC. This drug candidate is focused on addressing conditions such as allergic asthma through modulation of immune responses.
Continued Innovation and Research
The company is actively involved in research to identify key elements within their ingredients that influence inflammation and immune response. Pre-clinical studies are being conducted in multiple research clinics and labs, targeted towards developing an oral treatment for inflammatory diseases driven by eosinophils.
About Hofseth Biocare ASA
HBC operates as a supplier of health ingredients for consumers and pets in Norway, simultaneously acting as an incubator for new pharmaceutical drug leads. Their research is centered on creating innovative treatments for inflammatory conditions and protecting the gastrointestinal system against inflammation.
Commitment to Sustainability
Founded on core values including sustainability and resource optimization, HBC leverages patented hydrolysis technology to maintain high-quality lipids, proteins, and calcium from fresh salmon offcuts. The company continues to expand its presence with headquarters situated in Ålesund, Norway, and offices across various locations.
Frequently Asked Questions
What are Hofseth Biocare ASA's recent financial highlights?
HBC reported gross operating revenues of NOK 80.4 million in Q2, showing a significant growth from the previous year.
How has HBC's liquidity improved?
By the end of June, HBC's total cash holdings reached NOK 25.3 million, with free liquidity at NOK 26.7 million, indicating a strong cash flow position.
What innovations is HBC focusing on?
HBC is enhancing its research into marine nutrition and developing pharmaceutical drug leads targeting inflammatory diseases, particularly eosinophil-related conditions.
When was HBC's laboratory accredited?
The HBC laboratory achieved ISO 17025 accreditation in April, providing it with the capability to perform in-house microbiological analyses.
Where does HBC operate from?
The company's headquarters are located in Ålesund, Norway, with additional offices in Oslo, London, Zürich, New Jersey, and Palo Alto, CA.
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