Hofseth BioCare (HBC) Q4 2024 earnings summary

Executive summary

• Full-year sales revenue reached NOK 256.8 million, up 35% year-over-year, driven by strong demand in human and pet nutrition and a strategic shift to higher-margin segments, especially human B2B, which saw over 100% YoY growth in Q4.

• Operational efficiency improved through a Q4 restructuring program, incurring one-time costs but positioning the company for scalability in 2025.

• Gross margins improved across all segments, with B2B margins reaching 42% in Q4, supported by strong sales of CalGo® and OmeGo®.

• Long-term contracts secured in pet and feed segments, and renewed growth in consumer health, with significant expansion in the U.S. market and new retail partnerships.

• R&D advances included clinical validation of OmeGo® and ProGo® for immune, metabolic, and bone health, and promising oncology research with lead peptide FT-002a.

Financial highlights

• Q4 2024 gross operating revenue was NOK 64.9m (up 41% from NOK 45.9m in Q4 2023); full-year revenue was NOK 265.5m (up from NOK 218.5m in 2023).

• Adjusted full-year operating revenue (excluding asset sales) was NOK 257.4m, up from NOK 194.9m in 2023.

• EBITDA for Q4 was NOK -26.1m (improved from NOK -39.8m in Q4 2023); full-year EBITDA was NOK -65.3m (NOK -66.1m in 2023).

• Operating loss (EBIT) for Q4 was NOK -36.8m (NOK -49.3m in Q4 2023); full-year EBIT was NOK -105.1m (NOK -102.5m in 2023).

• Net cash flow for Q4 was NOK 2.2m; cash and cash equivalents at year-end were NOK 25.6m, with total available liquidity (including credit facilities) at NOK 44.8m.

• Equity ratio improved to 18.0% at year-end, up from 10.5% in 2023.

Outlook and guidance

• Focus for 2025 is on growing higher-margin human nutrition and B2C finished products, with continued investment in innovation and U.S. market expansion.

• Record-high long-term contracts in pet and feed segments and new product launches in China and the U.S. expected to drive further growth.

• Premium segment new product development planned for summer 2025, with a UK launch to reinforce market leadership.