Devyser Diagnostics (DVYSR) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales reached SEK 48.7 million, up 4.4% year-over-year, with all growth organic and 7% growth in local currency; nine-month sales rose 23.3% to SEK 152.7 million, driven by direct and distributor sales.

• Operating loss deepened to SEK -23.7 million in Q3 and SEK -59.0 million for the nine months, reflecting increased investments in growth, R&D, and production capacity.

• Gross margin declined to 72% in Q3 (from 85% last year), mainly due to costs related to the move to a new facility and production curtailment.

• Strong performance in EMEA and Asia-Pacific, with double-digit growth, while Americas sales declined sharply; North America remains a key growth focus.

• Key milestones included regulatory approvals in China, expanded Thermo Fisher collaboration, and major tenders won in Italy.

Financial highlights

• Q3 net sales: SEK 48.7 million (+4.4%); nine-month net sales: SEK 152.7 million (+23.3%).

• Gross margin dropped to 72% in Q3 (down from 85%); would have been near 80% without dual facility costs.

• Q3 EBIT: SEK -23.7 million; nine-month EBIT: SEK -59.0 million.

• Cash and cash equivalents at quarter-end were SEK 171 million, with no interest-bearing debt except lease liabilities.

• Earnings per share (diluted): SEK -1.41 for Q3; SEK -3.56 for nine months.

Outlook and guidance

• Management expects the strong growth trend from 2023 and early 2024 to continue, with Q4 anticipated to be stronger than Q3.

• Financial goal remains an EBIT margin exceeding 20% in 2024-2026.

• Guidance for H2 growth acceleration versus H2 last year remains unchanged.

• Gross margin expected to return above 80% as one-time moving costs subside.

• Anticipates first CLIA lab reimbursements in H1 2025, supporting future revenue growth.