Bio-Works Technologies (BIOWKS) Q2 2024 earnings summary

Executive summary

• Net sales fell 41% to 13.0 MSEK for Jan–Jun 2024, mainly due to weak North American sales, while Europe performed better; order intake rose 16% to 18.3 MSEK, indicating improving customer sentiment.

• Net loss improved to -18.9 MSEK from -28.8 MSEK year-over-year, driven by cost reductions, improved gross margins, and lower OPEX.

• Cash flow from operating activities was -22.7 MSEK, with cash and bank balances at 16.7 MSEK at period end.

• Fully secured rights issue of approximately SEK 39 million announced, with intention to change listing venue to Spotlight Stock Market.

Financial highlights

• Net sales: 13.0 MSEK (down 41% year-over-year); order intake: 18.3 MSEK (up 16%).

• Operating loss: -19.2 MSEK (improved from -29.7 MSEK year-over-year).

• Net loss: -18.9 MSEK (improved from -28.8 MSEK year-over-year).

• Earnings per share: -0.49 SEK (vs. -0.81 SEK year-over-year).

• Cash flow from operating activities: -22.7 MSEK (vs. -26.4 MSEK year-over-year).

Outlook and guidance

• Order intake growth and large volume orders for ion exchange and affinity resins signal potential for stronger sales in the second half.

• Cost-saving program targeting 24 MSEK in annual reductions remains on track, with lower personnel costs expected in H2.

• Operations are financed for at least the next 12 months, supported by the fully guaranteed rights issue.