Level Bio (LEVBIO) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 increased by 10% year-over-year to 5,721 KSEK, with a gross margin of 51%.

• H1 2024 net sales decreased by 17% year-over-year to 11,225 KSEK, but management notes signs of recovery in Q2.

• Result after tax for Q2 was -3,162 KSEK, and for H1 was -5,617 KSEK, reflecting continued investments and restructuring.

• Strategic focus on product innovation and digital platforms is expected to drive growth in H2 2024.

• A directed share issue of approximately 1.75 MSEK was approved post-period to strengthen liquidity.

Financial highlights

• Q2 2024 net sales: 5,721 KSEK (up 10% year-over-year); H1 2024: 11,225 KSEK (down 17% year-over-year).

• Q2 gross margin: 51% (50% last year); H1 gross margin: 52% (49% last year).

• Q2 result after tax: -3,162 KSEK; H1: -5,617 KSEK; EPS for H1: -0.09 SEK.

• Cash flow for Q2: -1,458 KSEK; H1: -1,666 KSEK; cash at period end: 1,963 KSEK.

• Operating result impacted by 1,056 KSEK in goodwill and amortization from Cybergene acquisition.

Outlook and guidance

• Management expects new products and digital initiatives to support growth in H2 2024.

• Nordic operations showed a turnaround to growth in Q2, with international sales stable but affected by customer study participation.

• Market demand for diagnostic solutions in fertility and prenatal testing expected to increase, especially outside the EU.