Arctic Bioscience (ABS) Q1 2025 TU earnings summary

Executive summary

• Encouraging top-line results from the HeROPA clinical study after 52 weeks, with HRO350 showing higher efficacy than placebo and no new safety concerns.

• New long-term funding of NOK 30 million secured in January 2025, supporting financial stability and future development.

• Nutraceutical sales met budget expectations in Q1 2025, with a positive outlook for the remainder of the year.

• Cost-reduction initiatives implemented at the end of 2024 are now reflected in improved cost results.

Financial highlights

• Q1 2025 sales revenue reached NOK 6.7 million, up NOK 0.6 million year-over-year.

• Other income was NOK 0.9 million, mainly from public grants related to Arctic Algae activities.

• Gross profit was NOK 1.8 million; adjusted gross profit was NOK 2.5 million, up from NOK 1.7 million in Q1 2024.

• Gross margin was 27.0%, impacted by a NOK 0.7 million recall provision; adjusted gross margin was 37.5%.

• Adjusted EBITDA improved to NOK -9.1 million from NOK -12.7 million year-over-year.

• Available liquidity at period end was NOK 21.7 million, including unused credit facility.

Outlook and guidance

• Full statistical analysis of the HeROPA study to be presented in June 2025; further HRO350 development to be evaluated post-analysis.

• Nutraceutical business forecasts solid sales growth in 2025 and coming years, with break-even targeted for 2026.

• Plans to launch a new consumer product in Norway, Sweden, and China in Q2 2025, with further geographic expansion expected.

• Joint venture with Kotler Investment Ltd. to develop Chinese and South Asiatic markets is ongoing.