Good growth in Q2, driven mainly by strong sales in Sweden
Q2
- Net sales reached SEK 6.4 (5.3) million.
- Result after tax came in at SEK -15.7 (-15.5) million.
- Earnings per share, basic and diluted, were SEK -0.11 (-0.17).
- Cash and cash equivalents were SEK 40.8 (3.2) million
Significant events in Q2
- Enzymatica signed agreement with German Maren for delivery of enzyme formulation for skin care products. The agreement is worth SEK 120 million over three years.
- Enzymatica completed recruitment of patients to a double-blind, placebo-controlled multicenter study in Germany to evaluate the effects of ColdZyme on the common cold. A total of 700 patients were enrolled, of which more than 400 developed colds. At the end of the quarter the last patients had been treated. The results are expected to be ready in the late autumn of 2019.
H1
- Net sales reached SEK 19.7 (20.4) million.
- Result after tax came in at SEK -27.9 (-25.7) million.
- Earnings per share, basic and diluted, were SEK -0.20 (-0.28).
| Financial ratios | |||||
| (SEK THOUSAND) | Q2 2019 | Q2 2018 | H1 2019 | H1 2018 | Full year 2018 |
| Net sales | 6.4 | 5.3 | 19.7 | 20.4 | 52.6 |
| Gross margin, % | 63 | 51 | 70 | 66 | 70 |
| Operating profit/loss | -15.6 | -15.0 | -27.5 | -24.6 | -40.6 |
| Cash flow from operating activities | -12.3 | -16.9 | -27.8 | -18.4 | -28.8 |
| Average number of employees | 20 | 21 | 20 | 21 | 21 |
CEO statement: The agreement with Maren provides us with greater opportunities to continue to develop cold products
Sales in the second quarter of 2019 totaled SEK 6.4 million, an increase of more than 20% year-on-year. Sales on the Swedish market continued to demonstrate strong growth. Sales of ColdZyme from pharmacies to consumers rose by more than 38% during the second quarter, corresponding to a market share of 6,1% based on MAT – Moving Annual Total. Digital marketing, social media and influencer marketing contributed to the strong increase. Earlier studies have also documented a high re-purchase rate of ColdZyme.
At the end of the quarter Enzymatica entered into an agreement with the German cosmetics company Maren for delivery of an enzyme formulation for their skin care products. The value of the agreement is SEK 120 for the coming three-year period. For the first 12 months the value of the order is SEK 15 million, with SEK 3.5–5 million expected in 2019. The agreement with Maren demon-strates the potential of our barrier technology, even for cosmetic applications. The agreement will increase revenue streams and provide us with increased opportunities to develop products for colds and upper respiratory tract infections, which will continue to be our business focus.
The activity level within the company is high, with a strong focus on new distributor agreements, clinical studies to strengthen documentation for ColdZyme and marketing initiatives for increased sales of our cold spray. I have every reason to view the future with confidence as the cold season begins in the third quarter.
Fredrik Lindberg, CEO
For questions about this report, please contact:
Fredrik Lindberg, CEO, Enzymatica AB
Tel: +46 (0)708-86 53 70 | Email: fredrik.lindberg@enzymatica.com
Therese Filmersson, CFO, Enzymatica AB
Tel: +46 (0)708-40 72 24 | Email: therese.filmersson@enzymatica.com
Publication
This information is information that Enzymatica is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 8:30 a.m. CET on Wednesday, July 17, 2019.