Boule Diagnostics Year-end report 2024
Continued improvement in profitability
Quarter October-December 2024
- Net sales amounted to SEK 143.2 million (148.1), corresponding to a decrease of 3.3 percent. Organic sales growth amounted to -1.8 percent, currency effects amounted to -1.5 percent.
- The number of instruments sold increased by 1.0 percent to 1,144 (1,133).
- Gross profit amounted to SEK 63.8 million (65.9), corresponding to a gross margin of 44.6 percent (44.5).
- Adjusted operating profit amounted to SEK 19.5 million (10.5), corresponding to an adjusted operating margin of 13.6 percent (7.1).
- Non-recurring expenses amounted to SEK 14.8 million, mainly attributable to restructuring of SEK 7.6 million and the impairment of the Group’s assets in Russia of SEK 7.2 million.
- Operating profit amounted to SEK 4.6 million (10.5), corresponding to an operating margin of 3.2 percent (7.1).
- Profit for the period amounted to SEK -2.3 million (8.4).
- Earnings per share before and after dilution amounted to SEK -0.06 (0.22).
- Cash flow from operating activities amounted to SEK 15.1 million (29.2).
- The Group’s available cash and cash equivalents, including unutilised overdraft facilities, amounted to SEK 57.5 million (95.7) as of 31 December.
Full-year January-December 2024
- Net sales amounted to SEK 558.5 million (571.3), corresponding to a decrease of 2.3 percent. Organic sales growth amounted to -0.6 percent, currency effects amounted to -1.6 percent.
- The number of instruments sold decreased by 2.0 percent to 4,119 (4,203).
- Gross profit amounted to SEK 252.2 million (249.7), corresponding to a gross margin of 45.2 percent (43.7).
- Adjusted operating profit amounted to SEK 63.8 million (39.3), corresponding to an adjusted operating margin of 11.4 percent (6.9).
- Non-recurring expenses amounted to SEK 321.3 million, mainly attributable to the impairment of intangible assets of SEK 265.0 million, the restructuring of SEK 23.0 million and the impairment of the Group’s assets in Russia of SEK 33.5 million.
- Operating profit amounted to SEK -257.4 million (39.3), corresponding to an operating margin of -46.1 percent (6.9).
- Profit for the period amounted to SEK -223.3 million (25.0).
- Earnings per share before and after dilution amounted to SEK -5.75 (0.64).
- Cash flow from operating activities amounted to SEK 46.6 million (51.4).
- The Board of Directors proposes that no dividend be paid for the 2024 financial year.
Comments by the CEO Torben Nielsen
A year of strategic progress and enhanced profitability
As we conclude the fourth quarter, I am pleased to report on our continued progress towards improved profitability and strategic growth. Despite a modest organic sales decline of 1.8%, further impacted by a 1.5% currency effect, our sales for Q4 reached SEK 143.2 million. This decline was partially attributable to our transition to a license model in India and the timing of orders.
Our OEM sales demonstrated good performance, exceeding last year’s figures by 8%. Total instrument unit sales also showed a slight increase, reflecting a continued shift in demand towards 5-part technology. Notably, Q4 marked the inaugural quarter of license instrument sales in India, representing a significant milestone.
Our adjusted gross margin improved to 45.9%, up from 44.5%. This improvement was driven by increased licensing fees from India, strong OEM sales, and enhanced production efficiencies. Additionally, our restructuring initiatives resulted in an 18% reduction in adjusted operating expenses. Consequently, our adjusted operating profitability increased by 85.7%, reaching SEK 19.5 million, with an operating margin of 13.6% – a result which I am very pleased with and a clear indication that our initiatives have paid off.
Strategic Execution
Our primary focus in 2024 has been on expanding our operating margins through structural cost reductions and fostering a culture of operational excellence. In Q4, we executed our third and most comprehensive restructuring round to date. This involved reorganizing our R&D team, streamlining operations, and reducing overhead costs, resulting in a significant reduction in headcounts and annualized savings in spend of approximately SEK 18 million.
We established a new Supply Chain function, integrating Purchasing, Planning, and Order Management to optimize our processes and enhance customer service. In R&D we implemented a new organization, while transferring product maintenance projects to a newly formed team in Operations.
Q4 marks the culmination of a year of significant transformation. We have successfully streamlined the organization and are now in a much better position to focus on our broader strategic priorities. While the continued work around improving our profitability remains a top priority for 2025, we will also be making steps towards accelerating organic growth and building a stronger, growth-oriented portfolio.
US Portfolio Expansion
On February 7, 2025, we issued a press release announcing that we have entered an exclusive distribution agreement with VitalScientific for their Clinical Chemistry portfolio in the US. Like Boule, VitalScientific develops and manufactures high-quality instrumentation for the decentralized segment. This agreement represents an important step towards building a more diversified and synergistic portfolio that meets our customers’ needs. We are excited about this future partnership and anticipate the commercialization of this agreement to commence in the first half of the year.
In conclusion, I would like to express my gratitude to the entire Boule team for their hard work and dedication during this transformational year. I also extend my thanks to our shareholders for their continued support and trust in our vision. Together, we will build a stronger and more profitable growth-oriented business.
Torben Nielsen,
President and CEO
THE INTERIM REPORT IS FOUND BELOW AS A PDF.
Presentation of the interim report
At 10.00 CEO Torben Nielsen and CFO Holger Lembrér will present and comment on the interim report. After the presentation there will be time for audience questions. The presentation will be held in English.
Enter the Teams live event and download presentation material at:
https://boule.com/investor-relations/
For more information, please contact:
Torben Nielsen, CEO and Group President, Boule Diagnostics AB, phone +46 (0)70-558 51 05 torben.nielsen@boule.com
Holger Lembrér, CFO, Boule Diagnostics AB, phone +46 (0)72 230 77 10 holger.lembrer@boule.com
About Boule Diagnostics AB (publ)
Boule Diagnostics AB (publ) is a global diagnostics company specializing in near-patient, decentralized blood diagnostics and one of the few companies in the global diagnostics market that conducts its own development, manufacturing and marketing of instruments and consumables for blood diagnostics. The Company primarily serves hospitals, clinics, laboratories and other diagnostics companies to which it offers complete systems for blood diagnostics (hematology) in both the human and veterinary areas. Boule has strong positions in important emerging markets such as in Asia and in recent years has improved its position in the fast-growing veterinary market. Operations are conducted through operating subsidiaries in Sweden, the United States, Mexico and Russia. The Group reported net sales of SEK 571 million in 2023 and has more than 200 employees. Sales are conducted globally, predominantly through the company’s 200 or so distributors in over 100 countries, supported by Boule’s own local sales and service personnel. Boule has been listed on Nasdaq Stockholm since 2011.http://www.boule.com
This information is information that Boule Diagnostics AB (publ) 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 08:00 CET on February 11, 2025.