Devyser Diagnostics (DVYSR) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 sales of SEK 53.2 million, a 41% year-over-year increase, all organic, with H1 2024 sales up 34.6% to SEK 104.0 million.

• Expanded global partnership with Thermo Fisher, increasing the addressable market by 43% for kidney-related products and covering all territories for transplantation.

• Secured major tenders in Italy, totaling SEK 84 million in Q2, including a record contract in Tuscany.

• Thalassemia product sales grew nearly 60% in H1 2024, now representing about 10% of total sales.

• Gross margin declined to 77.7% in Q2 (from 83.4%), mainly due to relocation costs.

Financial highlights

• Q2 net sales: SEK 53.2 million (Q2 2023: SEK 37.7 million); H1 net sales: SEK 104.0 million (H1 2023: SEK 77.2 million).

• Q2 gross profit: SEK 41.4 million (Q2 2023: SEK 31.5 million); H1 gross profit: SEK 83.3 million (H1 2023: SEK 65.1 million).

• Q2 EBIT: SEK -23.1 million (Q2 2023: SEK -13.5 million); H1 EBIT: SEK -35.3 million (H1 2023: SEK -32.6 million), impacted by one-off costs for facility move and expansion.

• Cash and cash equivalents at June 30, 2024: SEK 201 million, with no interest-bearing debt except lease liabilities.

• Q2 EPS: SEK -1.41 (Q2 2023: SEK -0.90); H1 EPS: SEK -2.15 (H1 2023: SEK -2.14).

Outlook and guidance

• Confident in maintaining at least the same local currency growth rate in H2 2024 as in H1 (34%).

• Revenue from expanded Thermo Fisher territory and new Accept tests expected to ramp up primarily in 2025.

• North America identified as a top priority and expected to become the largest regional market within a few years.

• Gross margin expected to recover above 80% by end of 2024 as relocation costs subside.

• EBIT margin target exceeding 20% for 2024–2026 remains in place.