Nosa Plugs (NOSA) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 increased 124% year-over-year to 4,321 TSEK, driven by new and existing healthcare customers in Europe and the US, and the launch of Smell training.

• Gross margin remained strong at 68% for the quarter, supported by production efficiency improvements.

• Operating loss narrowed to -2,186 TSEK in Q3 2024 from -3,915 TSEK in Q3 2023, reflecting higher sales and a stable cost base.

• The company aims to achieve positive cash flow by the end of Q1 2025, with investments ongoing in a new automated production line.

• Smell training product launched in Sweden and Germany, with further expansion planned; strong reception and growth in both markets.

Financial highlights

• Q3 2024 net sales: 4,321 TSEK (1,927 TSEK in Q3 2023), organic sales growth 124%.

• Q3 2024 operating result: -2,186 TSEK (-3,915 TSEK in Q3 2023); EBITDA: -1,629 TSEK (-3,553 TSEK in Q3 2023).

• 9M 2024 net sales: 11,321 TSEK (6,759 TSEK in 9M 2023), organic sales growth 67%.

• 9M 2024 operating result: -7,982 TSEK (-41,521 TSEK in 9M 2023, which included a one-time listing cost of 32,404 TSEK). Adjusted operating result: -7,982 TSEK (-9,117 TSEK excluding the one-time item).

• Cash flow from operations Q3 2024: -1,129 TSEK (-4,315 TSEK in Q3 2023); cash and cash equivalents at period end: 10,023 TSEK (1,185 TSEK at 2023 year-end).

Outlook and guidance

• Targeting positive operating cash flow by end of Q1 2025.

• Continued investments in production automation and market expansion for Smell training.

• Drug Delivery product development ongoing, with patent application expected by year-end and potential revenue contribution in future periods.