Boule Diagnostics Interim Report Q1 2026

Quarter January-March 2026
} Net sales amounted to SEK 101.6 million (112.9), corresponding to a decrease of 10.0 percent. Organic sales growth amounted to 3.0 percent, currency effects amounted to -13.0 percent.
} The number of instruments sold decreased by 9.6 percent to 491 (543).
} Gross profit amounted to SEK 42.2 million (53.5), corresponding to a gross margin of 41.6 percent (47.4).
} Adjusted operating profit¹⁾ amounted to SEK -1.4 million (17.0), corresponding to an adjusted operating margin of -1.3 percent (15.1).
} Non-recurring expenses amounted to SEK 8.1 million (23.5), attributable to the impairment of the Group’s assets in Russia.
} Operating profit amounted to SEK -9.5 million (-6.4), corresponding to an operating margin of -9.3 percent (-5.7).
} Profit for the period amounted to SEK -14.6 million (-10.3).
} Earnings per share before and after dilution amounted to SEK -0.38 (-0.27).
} Operating cash flow amounted to SEK 17.7 million (-9.8).
} The Group’s available cash and cash equivalents, including unutilised overdraft facilities, amounted to SEK 31.5 million (38.1) as of March 31.

Comments from the President and CEO
 
The first quarter of 2026 represents an important step forward for Boule. Despite continued external headwinds, we returned to organic growth, delivered our fourth consecutive quarter of positive operating cash flow, and completed several critical operational milestones. 
Operational and Market Performance 
During the quarter, we saw improved underlying demand across key parts of our portfolio. Organic growth reached 3%, marking a clear turnaround compared with prior periods. Our sales of our 5-part systems almost doubled year-on-year. 
OEM sales were impacted by changing customer order patterns, which significantly affected quarterly comparisons. The outlook for our OEM business remains strong, and we expect sales to pick up in the coming months. 
Financial Performance 
Group sales amounted to SEK 102 million, compared with SEK 113 million in the prior year. While reported sales declined by 10%, this was primarily driven by negative currency effects of -13%. The return to organic growth underlines the strengthening commercial momentum in the business. 
Gross profit amounted to SEK 42.2 million, corresponding to a gross margin of 41.6%, compared with 47.4% last year. The decline reflects significant currency headwinds, product mix, lower OEM volumes, and one-off costs. Adjusted for SEK 3 million in costs related to the site consolidation and relocation, gross profit would have amounted to SEK 45.2 million. 
Adjusted EBIT for the quarter was SEK -1.4 million, compared with SEK 15.1 million in the prior year. The result was impacted by the SEK 3 million one-off moving costs. Adjusted for these costs, EBIT would have amounted to approximately SEK 1.6 million, corresponding to an adjusted operating margin of 1.6%. While the reported EBIT outcome is not satisfactory, it reflects a transitional quarter rather than a deterioration in the underlying business. 
Operating cash flow amounted to SEK 17.7 million, compared with SEK -9.8 million in the prior year, marking the fourth consecutive quarter of positive operating cash flow. The positive development illustrates a clear structural turn-around and reflects stronger working capital management, and the benefits of structural cost actions implemented in the past years. Available liquidity at the end of the quarter amounted to SEK 32 million. 
 
Operational Excellence and Quality 
During the quarter, we successfully completed a site consolidation in Sweden, an important milestone in our margin improvement and efficiency program. While the consolidation resulted in temporary costs during the quarter, it establishes a leaner and more efficient operational footprint going forward. 
In addition, both BSI and FDA audits of our Swedish operations were completed during the quarter with no findings. These outcomes confirm the robustness of our quality management systems, regulatory compliance, and manufacturing controls. 
Strategic Priorities for 2026 
Our strategic priorities for 2026 are designed to transform Boule into a higher-growth and higher-margin company. 
Margin expansion remains a top priority. Key initiatives include automation of the reagent manufacturing line in Sweden to improve efficiency, quality consistency, and cost competitiveness. In parallel, we are digitizing RA/QA processes through the implementation of an eQMS as well as streamlining our global operations teams. Together, these actions are expected to deliver both immediate cost benefits and long-term operational robustness. 
Growth is driven through focused, organic investments aimed at delivering sustainable and profitable expansion. We are expanding our sales presence in Africa, ramping up digital marketing and lead generation globally, and taking actions to structurally improve the profitability of the global service business. These initiatives strengthen commercial execution while maintaining a clear focus on profitability and cash generation. 
Portfolio development is the third pillar of our strategy. We are launching a new VET hematology instrument globally, accelerating the development of generic blood controls, and commercializing OEM projects. These initiatives reinforce Boule’s competitive position, broaden our addressable markets, and support long-term value creation. 
Outlook 
While Q1 was impacted by temporary costs related to the site consolidation and continued external headwinds, the underlying direction of the business is positive.  
I would like to thank our employees for their commitment during a demanding quarter and our customers and partners for their continued trust in Boule Group. 
Torben Nielsen
Chief Executive Officer 
Boule Group