Microbix Biosystems (MBX) Q3 2024 earnings summary

Executive summary

• Q3 revenue reached CAD 5.1 million, with net income of $0.25 million, driven by strong growth in recurring product sales and diagnostic test ingredients.

• Year-to-date revenue was CAD 19.1 million, up 56% year-over-year, with recurring product sales at CAD 15 million and net income of $3.08 million.

• Gross margin improved to 54% in Q3 (vs. 42% prior year) and 63% year-to-date (vs. 49%), reflecting production efficiency and product mix.

• Net margin for Q3 was 5%, with SG&A and operating expenses tightly controlled and stable year-over-year.

Financial highlights

• Q3 revenue: CAD 5.1 million (CAD 3.3M antigens, CAD 1.7M QAPs, CAD 0.1M royalties); Antigen and QAPs sales grew 26% and 15% respectively.

• Prior year Q3 included a CAD 1.4M one-time Kinlytic milestone; recurring sales up 20% year-over-year.

• Year-to-date revenue: CAD 19.1 million, with recurring product sales at CAD 15 million (up from CAD 10.9M prior year); Kinlytic licensing milestone payments contributed $4.1 million YTD.

• Gross margin: 54% in Q3, 63% year-to-date.

• Cash flow from operations: CAD 1.4 million for nine months; CAD 1M used in CapEx, CAD 0.5M in debt repayment and share buybacks.

Outlook and guidance

• Q4 expected to deliver over 20% year-over-year sales growth; 2025 sales growth targeted in the 20%-40% range, based on detailed customer and SKU-level forecasting.

• Management expects continued year-over-year growth in revenue and net earnings for full-year fiscal 2024.

• Focus remains on driving sales growth across all business lines and improving gross margins.

• Strong order book for antigens, with visibility into the first half of fiscal 2025.