SciBase Reports Growth and Expands Operations in Q3 2024

Highlights of SciBase's Q3 2024 Performance

Pursuing excellence in dermatology, SciBase Holding AB has released its interim report covering the period from January 1 to September 30, 2024. The report emphasizes robust sales growth and strategic developments within the company.

Financial Overview

For the third quarter, net sales reached TSEK 8,408, showing a significant increase of 16% compared to the previous year when sales were TSEK 7,248. However, despite growing revenue, the company reported a loss after tax of TSEK 17,753, which is up from TSEK 12,786 during the same period last year.

Key Financial Metrics

The loss per share improved slightly to SEK 0.08 from SEK 0.11 last year. The cash flow from operations was negative at TSEK 16,745, a slight recovery from a cash flow of TSEK 17,827 for the previous year’s third quarter. Notably, the gross margin showed promising growth, reaching 75.7% from last year’s 68.2%.

Electrode Sales and Market Trends

During this quarter, the electrode sales volume saw a 2% increase, totaling 17,210 units. Though repeat sales to existing customers decreased by 7% due to prior stockpiling, overall sales in new markets painted a positive picture. Particularly, within the U.S. skin cancer market, sales skyrocketed by 187%

Year-to-Date Performance Analysis

When reflecting on the January to September 2024 period, net sales amounted to TSEK 21,107, an impressive surge of 21% from TSEK 17,481 last year. Despite increased sales, the loss after tax widened to TSEK 43,663 from TSEK 35,044. The loss per share again improved, standing at SEK 0.27, down from SEK 0.34.

Major Events and Strategic Developments

This quarter was not only about numbers. SciBase made several strategic moves that cater to its growth ambitions:

• Overall sales for the quarter increased by 16%, with notable sales trends in different markets. Sales in the skin cancer segment within Germany saw a decline of 8%, attributed to previous customer inventory buildup. Nonetheless, growth in the U.S. market signals strong demand for SciBase products, with a 187% increase in sales.
• SciBase achieved a significant milestone this quarter as the National Institutes of Health (NIH) acquired Nevisense for their skin barrier research. This landmark deal highlights the value and innovation behind the Nevisense technology.
• There has been continued expansion in the U.S., where SciBase added several new customers, indicating a strong market assertion.
• Important announcements included a change in Certifying Adviser from Vator Securities to Carnegie Investment Bank AB, a strategic move to improve company operations.

Future Strategic Initiatives

Looking ahead, SciBase is taking proactive steps to further establish its presence in international markets. Following the quarter, the company is set to initiate a sales collaboration in Italy and has appointed a Nomination Committee for its Annual General Meeting in 2025. Furthermore, the planned directed issue of approximately SEK 22.5 million alongside a rights issue of up to SEK 59.3 million aims to bolster the company's financial positioning for the future.

Conclusion

SciBase continues to focus on innovation and expansion, especially in the dermatological sector, where it leverages the cutting-edge AI-driven Nevisense technology for enhanced patient outcomes. Despite challenges in maintaining long-term profitability, the company’s strategic growth measures illustrate its commitment to becoming a global leader in skin health solutions.

Frequently Asked Questions

What were the key financial results for Q3 2024?

Net sales were TSEK 8,408, up 16% from the previous year, while the loss after tax was TSEK 17,753.

How did electrode sales perform?

Electrode sales volume increased by 2% with a total of 17,210 units sold.

What is the significance of the NIH acquiring Nevisense?

This acquisition reflects the product's value and the credibility of SciBase’s innovations in skin health research.

What future plans does SciBase have?

SciBase is focusing on expanding its presence in Italy and enhancing its U.S. market operations.

What was the loss per share in Q3 2024?

The loss per share improved to SEK 0.08, down from SEK 0.11 in Q3 2023.

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