Nosa Plugs (NOSA) Q2 2024 earnings summary

Executive summary

• Achieved record quarterly revenue of 4,179 TSEK in Q2 2024, up 53% year-over-year, driven by strong demand from healthcare customers in Europe, Australia, and New Zealand, and the rollout of NOSA Smell Training.

• Gross margin reached an all-time high of 71% in Q2, attributed to production efficiency improvements.

• Largest order ever secured through an exclusive distribution agreement in Australia and New Zealand; NHS listing in the UK completed, enabling access to over 4 million NHS staff.

• Smell Training product saw rapid demand growth, especially in Sweden, with plans to expand into German-speaking markets.

Financial highlights

• Q2 2024 net sales: 4,179 TSEK (up 53% vs. Q2 2023); H1 2024 net sales: 7,000 TSEK (up 45% vs. H1 2023).

• Q2 operating result: -2,367 TSEK (improved from -3,296 TSEK in Q2 2023); H1 operating result: -5,796 TSEK (improved from -37,606 TSEK, which included a 32,404 TSEK one-time listing item in 2023).

• Adjusted H1 EBITDA: -4,961 TSEK (vs. -4,500 TSEK in H1 2023, excluding one-time items).

• Q2 cash flow from operations: -2,744 TSEK (vs. -5,789 TSEK in Q2 2023); cash at period end: 11,462 TSEK.

• Equity at period end: 20,918 TSEK (vs. 14,616 TSEK in Q2 2023); EPS Q2: -0.01 SEK (vs. -0.02 SEK); H1: -0.03 SEK (vs. -0.28 SEK).

Outlook and guidance

• Management expects continued strong demand for Smell Training, with the winter season anticipated to be the strongest.

• New production line to be operational by October, with potential delivery bottlenecks in September-October but expected recovery by November.

• Drug Delivery product line in development, with validation and patent application planned for Q3-Q4 2024.