Hofseth Biocare ASA Reports Strong Growth in Q1 Financials
Hofseth Biocare ASA's Financial Performance in Q1 2025
Hofseth Biocare ASA (Oslo:HBC) has reported a notable growth in total operating revenues, achieving NOK 60.9 million in the first quarter of 2025. This marks a significant increase compared to NOK 52.4 million during the same timeframe last year. The company's net operating revenues for the period stood at NOK 60.7 million, reflecting a 15% increase from the previous year. This growth was primarily driven by strong demand in the high-margin human and pet health sectors, despite facing some early-quarter production challenges and ongoing volatility in the commodity oil market.
Cost Management and Operational Efficiency
The cost of goods sold (CoGS) increased to NOK 37.5 million, compared to NOK 27.3 million in Q1 2024. However, operating expenses were slightly reduced to NOK 23.1 million from NOK 23.9 million the previous year, highlighting HBC's commitment to managing costs effectively. Notably, the quarter included NOK 3.0 million in one-time restructuring costs associated with organizational changes aimed at enhancing operational efficiency.
Understanding EBITDA and Operational Metrics
EBITDA for the period was recorded at negative NOK 19.9 million, a slight deterioration from negative NOK 16.2 million in Q1 2024. Operational EBITDA, a key performance metric, was negative NOK 8.3 million after excluding costs associated with restructuring, clinical trials, and other non-recurring expenses. Adjusting for these costs provides a clearer view of the company’s core operational performance.
Quarterly Highlights and Strategic Developments
During the first quarter, HBC achieved several key milestones:
- Total revenues grew by 15% year-over-year to NOK 60.9 million, bolstered by strong sales despite reduced raw material volumes.
- The decision was made to expand the Berkåk facility, with ambitious plans to triple production capacity.
- HBC successfully launched an unsecured bond targeting investors in Switzerland, Lichtenstein, and Norway, closing the quarter with approximately CHF 3.5 million in subscriptions.
- Noteworthy growth in B2B sales by 66% year-over-year was driven particularly by the demand for innovative products like OmeGo®, ProGo®, and the introduction of NT-II™ for joint health.
- The participation at the Natural Products Expo West and Food Ingredients China allowed HBC to showcase its leadership in marine-based nutrition, with a strong presentation to more than 120 industry experts in Shanghai.
- Even though overall B2C growth remained stable, organic sales showed resilience in core product lines, aided by new listings on major platforms like Amazon.de and Walmart.com.
- Production at the Midsund facility surged, reporting a record three-week production run that exceeded rated capacity by 15-20%, maintaining high product quality and yield.
- Clinical progress was made with OmeGo®, where peer-reviewed studies confirmed its efficacy in reducing coughing and enhancing sleep amidst city pollution.
- Results from an NT-II™ pilot study showcased its potential to alleviate joint pain and stiffness, which were presented at the ICFSR 2025 conference.
- HBC made significant strides in pharmaceutical research initiatives, including developments in treatments for prostate cancer and asthma, and progressed preparations for a pediatric IBD clinical trial.
The financial report detailing HBC's Q1 2025 results is available for review.
For additional inquiries, please reach out to:
Jon Olav Ødegård, CEO of Hofseth BioCare ASA,
Phone: +47 936 32 966
E-mail: joo@hofsethbiocare.no
Frequently Asked Questions
What were Hofseth Biocare ASA's total operating revenues in Q1 2025?
The total operating revenues for Hofseth Biocare ASA in the first quarter of 2025 were NOK 60.9 million, an increase compared to the prior year.
What factors contributed to HBC's revenue growth?
The growth was largely attributed to strong demand in higher-margin human and pet health segments, as well as strategic expansions despite some supply challenges.
What are the key products driving HBC's sales increase?
Key products include OmeGo®, ProGo®, and NT-II™, which have seen substantial demand, particularly in B2B channels.
What challenges did HBC face in Q1 2025?
HBC faced production constraints early in the quarter and ongoing pressures in the commodity oil market, but successfully managed to achieve growth.
Who can be contacted for more information about HBC?
For more information, Jon Olav Ødegård, the CEO, is available via phone at +47 936 32 966 or email at joo@hofsethbiocare.no.
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