Genovis (GENO) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 were SEK 29.5 million, flat year-over-year; H1 2024 sales declined 31% to SEK 69.5 million, mainly due to lower license revenue.

• EBITDA for Q2 was SEK 5.3 million (down from SEK 7.7 million); H1 EBITDA was SEK 23.8 million, or SEK 13.7 million adjusted for license revenue.

• Profit for Q2 was SEK 1.8 million (down from SEK 15.2 million); H1 profit was SEK 14.5 million (down from SEK 58.8 million).

• Cash and cash equivalents at period end were SEK 135.8 million, up from SEK 114.2 million a year earlier.

• Strategic divestment of the antibody business and a 25% investment in SEQURNA to expand product offerings and market reach.

Financial highlights

• Q2 gross margin was 83.0% (down from 88.7%); H1 gross margin was 87.5% (down from 91.5%).

• Q2 EBIT was SEK 2.5 million (down from SEK 6.0 million); H1 EBIT was SEK 18.4 million, or SEK 8.2 million adjusted for license revenue.

• Q2 profit margin was 6.1% (down from 51.7%); H1 profit margin was 20.9% (down from 58.4%).

• Q2 EPS was SEK 0.03 (down from SEK 0.23); H1 EPS was SEK 0.22 (down from SEK 0.90).

• Cash flow from operating activities in Q2 was SEK -0.3 million; H1 cash flow was SEK 17.8 million.

Outlook and guidance

• Management expects continued advances in new products and sales in 2024, despite ongoing macroeconomic and geopolitical uncertainties.

• Business opportunities and operational capacity are assessed as good, with a focus on innovation and expansion in core areas.