Hofseth Biocare ASA: FIRST QUARTER 2024 FINANCIAL REPORT
The first quarter of 2024 continued on the positive trend for HBC. Sales revenues came in at NOK 52m vs NOK 44m last year, a growth of 17 % YoY. The underlying growth we are seeing is coming from both the ingredients business and finished products channels.
The ingredients business continues to have solid demand growth especially for our core petfood products, and we have seen increased demand for our premium pure SPH product within this segment. We are also excited to have launched two new products in our Brilliant Petcare portfolio.
Our R&D team continue to deliver good results. We have successfully completed various analyses, including the bioavailability assessment of marine collagen in joint health and the characterization of the anti-diabetic effects of our bioactive peptides. These findings not only validate the efficacy of our products but also secure our R&D innovations and future market expansion.
HBC had gross operating revenues of NOK 52.4m (44.8m) in the first quarter and EBITDA at NOK -16.2m (-28.5m). Cash flow from operations during the first quarter was NOK -19.5m, compared to NOK 0.1m in first quarter last year. This change is due to payments now made to our main raw material supplier, rather than build-up of payables. Cash and cash equivalents, after investment and financing activities, were stable compared to the same period last year, leaving total cash balance at NOK 22.1m at the end of the period. Total equity amounted to NOK 155.7m (112.7m) corresponding to an equity ratio of 39.8 % (28.8 %) for the Group.
Highlights in the first quarter
- In Q1 2024, we continued on our positive growth trend, with sales revenues of 52 million NOK, up 17 percent from the first quarter last year. This growth is despite a general downturn in the salmon oil market, as we have seen high interest on our human grade salmon oil as well as our protein offering. Gross margin was at 48 percent in the quarter.
- The Finished Goods business demonstrated a positive performance and two new products in the Brilliant Petcare portfolio were launched.
- Our research and development efforts continue, showing encouraging results for research on all of our ingredients.
- The transaction converting accounts payables to new issued preference B-shares was concluded first week of January 2024
Please find the HBC Q1 2024 Financial report attached.
For further information, please contact:
Christel Kanli, CFO Hofseth BioCare ASA
Phone: +47 416 23 188
E-mail: ck@hofsethbiocare.no
About Hofseth BioCare ASA:
HBC is a Norwegian consumer and pet health ingredient supplier and an incubator for new pharmaceutical drug leads. Research is ongoing to identify the individual elements within its ingredients that modulate inflammation and the immune response with pre-clinical studies ongoing in multiple clinics and university research labs. Lead clinical and pre-clinical candidates are focused on developing an oral treatment for inflammatory disease driven by eosinophils (a type of white blood cell). Clinical trial work with the oil is ongoing to ameliorate lung inflammation in eosinophilic asthma and COPD ("smokers lung").
Other leads are focused on using the Company's bioactive peptides as a Medical Food for the protection of the Gastro- Intestinal (GI) system against inflammation (including ulcerative colitis and the orphan condition necrotizing enterocolitis). The Company is founded on the core values of sustainability, optimal utilization of natural resources and full traceability. Through innovative and patent protected hydrolysis technology, HBC can preserve the quality of the lipids, proteins and calcium from fresh salmon off-cuts.
HBC's headquarters are in Ålesund, Norway with offices in Oslo, London, Zürich, New Jersey and Palo Alto, CA.
HBC is listed on Oslo Børs with ticker "HBC". More information about HBC at hofsethbiocare.com
This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act
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