Braincool (BRAIN) Q2 2024 earnings summary

Executive summary

• Achieved 42% sales growth in Q2 2024 compared to the same quarter last year, driven by deliveries of 30 BrainCool™ Systems and consumables, totaling SEK 10.45 million in sales.

• Expanded ZOLL® partnership with a new Japanese distribution agreement and a SEK 20 million order, pending regulatory approval.

• Rights issue in May was oversubscribed by over 170%, raising SEK 86 million before costs and significantly strengthening cash position.

• First patients enrolled in pivotal COTTIS 2 and PRINCESS 2 clinical studies, marking key milestones for product validation.

Financial highlights

• Q2 2024 net sales: SEK 10,453k (up from SEK 7,366k in Q2 2023); H1 2024 net sales: SEK 19,041k (up from SEK 10,034k in H1 2023).

• Gross profit for Q2 2024: SEK 3,381k (down from SEK 5,236k in Q2 2023); gross margin on net sales at 22%.

• EBITDA for Q2 2024: SEK -10,794k (improved from SEK -11,001k in Q2 2023); EBIT: SEK -11,271k (improved from SEK -12,183k).

• Result after tax for Q2 2024: SEK -12,835k (slightly worse than SEK -12,715k in Q2 2023).

• Cash at end of period: SEK 58,607k (up from SEK 886k in Q2 2023), reflecting proceeds from the rights issue.

Outlook and guidance

• Automation of consumables production is halfway complete, expected to be fully implemented by year-end, with significant cost reductions anticipated in 2025.

• Ongoing cost reduction program, including US organization downsizing, expected to save SEK 4 million annually.

• Board sees favorable conditions for future financing but acknowledges ongoing uncertainty regarding future operations.