Hofseth BioCare (HBC) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 15% year-over-year to NOK 60.9 million, driven by expansion in higher-margin human and pet health segments despite raw material constraints and commodity oil price pressure.

• Human B2B segment revenue surged 66% year-over-year, led by strong demand in Europe and Asia for science-backed marine ingredients, with new launches and increased presence at international exhibitions.

• B2C growth was flat overall, but organic sales improved in core geographies and product lines, with new retail and e-commerce channels including Amazon.de and Walmart.com.

• Operational achievements included record production output at the Midsund facility, running 15-20% above previous capacity while maintaining quality and yield.

• R&D milestones included clinical validation of OmeGo® for pollution-related health benefits, NT-II™ for joint health, and further progress in pharmaceutical programs for prostate cancer and asthma.

Financial highlights

• Total operating revenue: NOK 60.9 million in Q1 2025 (NOK 52.4 million in Q1 2024), a 15% increase year-over-year.

• EBITDA: NOK -19.9 million (Q1 2024: NOK -16.2 million); Operational EBITDA (excluding non-recurring items): NOK -8.3 million (Q1 2024: NOK -7.9 million).

• EBIT: NOK -29.5 million (Q1 2024: NOK -26.2 million).

• Net loss: NOK -33.1 million (Q1 2024: NOK -29.0 million).

• Cash flow from operations: NOK -13.2 million, improved from NOK -19.5 million in Q1 2024; cash and cash equivalents at period end: NOK 71.9 million (Q1 2024: NOK 22.2 million).

• Equity ratio: 6.9% (Q1 2024: 39.8%); Covenant Equity Ratio at parent level: 34.8%.

Outlook and guidance

• Management expects continued growth in higher-value segments, with further launches in China and a major global brand launch at Vitafoods in Q2.

• B2C segment targets positive EBITDA for 2025, with new product launches and expanded retail presence anticipated to drive growth.

• Berkåk facility expansion to triple production capacity is on track, with production start planned for August 2027.