Arctic Bioscience (ABS) Q4 2024 TU earnings summary

Executive summary

• Achieved record-high Q4 2024 sales, driving 29% year-over-year revenue growth and improving gross margin to 32.7% from 29.0% in 2023.

• Secured NOK 30 million in new funding in January 2025 to support operations, liquidity, and future growth.

• Advanced HRO350 phase IIb clinical trial, with 12-month readout expected by end of Q1 2025.

• Established a joint venture with Kotler Marketing Group to expand in China and Southeast Asia.

• Implemented cost reduction initiatives in late 2024 to improve operational efficiency.

Financial highlights

• 2024 sales revenue reached NOK 43.5 million, up 29% year-over-year.

• Gross margin improved to 32.7% in 2024, up from 29.0% in 2023.

• Adjusted EBITDA was NOK -36.8 million in 2024, compared to NOK -38.6 million in 2023.

• Available liquidity at year-end 2024 was NOK 7 million, with new financing secured in January 2025.

• Net cash outflow from operations was NOK -39.3 million in 2024.

Outlook and guidance

• 12-month HRO350/HeROPA trial data expected by end of Q1 2025; full dataset available by mid-2025.

• New funding expected to support transition to positive cash flow in 2026.

• Further HRO350 development beyond phase IIb to be funded via partnerships or project-specific funding.

• Continued focus on product innovation, market expansion, and operational improvements in 2025.