CS Medica (CSMED) Q3 2024 earnings summary

Executive summary

• Q3 2023/2024 net sales reached DKK 0.5m, below the projected DKK 2m due to production delays; DKK 1.5m in sales shifted to Q4.

• Year-to-date revenue rose to DKK 4.6m from DKK 0.99m year-over-year, with a strong order intake backlog of DKK 32.9m in Q3 and DKK 49.3m YTD.

• Strategic partnerships and a DKK 2m loan improved financial stability; CANNORDIC spin-off and German listing approved to secure growth capital.

• Expanded into nine new markets with three new partners, now covering 37 markets and 27 customers.

• Regulatory milestones include product registrations in Israel and Malaysia, and successful clinical trials for several products.

Financial highlights

• Q3 net sales: DKK 453k (vs. DKK 673k prior year); YTD revenue: DKK 4.6m (vs. DKK 0.99m prior year).

• Gross profit for Q3: DKK 46k (down from DKK 413k); gross margin 10% for Q3, 38% YTD.

• Operating loss Q3: DKK -3.6m (improved from -4.7m); net loss Q3: DKK -3.1m (improved from -3.9m).

• Equity ratio fell to 5% (from 55% prior year); cash and equivalents at DKK -1.0m.

• Sales and distribution costs down 68% in Q3; staff costs down 17%.

Outlook and guidance

• Q4 expected to recognize DKK 1.5m in delayed sales; full-year net sales target DKK 15m.

• Gross margin guidance reduced from 60% to 40% due to delayed India production shift.

• Order pipeline target raised to DKK 53m, with 71% conversion rate into revenue.

• Focus on short-term funding, operational efficiency, and activating order pipeline in EU and new markets.

• Clinical trials for CBD Patch, Anti-hair Loss Shampoo, and Mask finalized; Wound Gel trial postponed.