Hofseth BioCare (HBC) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 36% year-over-year to NOK 67.9m, with strong B2B and pet segment demand, but gross margin compressed due to non-recurring production issues now resolved.

• R&D advanced with new clinical data on OmeGo® and ProGo®, and HBC Immunology JV made progress in asthma and prostate cancer drug candidates.

• Ambitious 2024 financial targets remain a stretch, but improved capacity utilization and B2B pipeline support a stronger 2025 outlook.

Financial highlights

• Gross operating revenue: NOK 67.9m in Q3 2024 (NOK 49.9m Q3 2023); NOK 200.6m for 9M 2024 (NOK 171.1m 9M 2023).

• EBITDA: NOK -21.0m in Q3 2024 (NOK -16.2m Q3 2023); EBIT: NOK -30.5m (NOK -25.2m Q3 2023).

• Net loss: NOK -35.0m in Q3 2024 (NOK -22.7m Q3 2023); EPS: NOK -0.09 (NOK -0.06 Q3 2023).

• Cash and cash equivalents: NOK 23.4m at quarter end; free liquidity including credit lines at NOK 31.3m.

• Equity ratio improved to 28.2% from 23.4% year-over-year.

Outlook and guidance

• 2024 financial targets remain challenging, but sales trajectory and operational improvements support a stronger 2025 outlook.

• B2C sales expected to accelerate in Q4 2024 (+20%) and through 2025 (+30%) due to improved supply chain and new retail listings.

• Ongoing expansion of raw material storage to be completed by Q1 2025, enabling higher capacity utilization.