Bio-Works Technologies (BIOWKS) Q3 2024 earnings summary

Executive summary

• Net sales in Q3 2024 rose 44% year-over-year to 9.8 MSEK, driven by strong Asian demand, especially in India, while North America underperformed expectations.

• Order intake in Q3 increased 63% to 3.1 MSEK, with a notable production order from a Swedish CDMO.

• Net profit for Q3 improved to -5.3 MSEK from -14.7 MSEK, attributed to cost reductions and better gross margins.

• Rights issue in Q3 was oversubscribed, raising 37.8 MSEK after costs, strengthening the cash position.

• Year-to-date net sales fell 21% to 22.8 MSEK, but order intake rose 23% to 21.4 MSEK, signaling market recovery.

Financial highlights

• Q3 net sales: 9.8 MSEK (up 44% YoY); YTD net sales: 22.8 MSEK (down 21% YoY).

• Q3 net profit: -5.3 MSEK (vs. -14.7 MSEK YoY); YTD net profit: -24.2 MSEK (vs. -43.5 MSEK YoY).

• Q3 EPS: -0.12 SEK (vs. -0.42 SEK YoY); YTD EPS: -0.60 SEK (vs. -1.23 SEK YoY).

• Cash and cash equivalents at period end: 47.9 MSEK (vs. 25.8 MSEK YoY).

• Cash flow from operating activities YTD: -29.3 MSEK (vs. -43.4 MSEK YoY); Q3: -6.6 MSEK.

Outlook and guidance

• Management expects continued growth in order intake and plans to increase sales activities into 2025.

• Financial position is considered strong, with operations financed for at least the next 12 months.