Boule Diagnostics Interim Report Q2 2025

Strong instrument sales
 
Quarter April-June 2025

• Net sales amounted to SEK 129.3 million (137.0), corresponding to a decrease of 5.6 percent. Organic sales growth amounted to -3.3 percent, currency effects amounted to -2.3 percent.

• The number of instruments sold increased by 16.5 percent to 1,029 (883).

• Gross profit amounted to SEK 50.0 million (59.1), corresponding to a gross margin of 38.7 percent (43.1).

• Adjusted operating profit amounted to SEK 5.8 million (9.9), corresponding to an adjusted operating margin of 4.5 percent (7.2).

• Non-recurring expenses amounted to SEK 4.5 million (8.5), attributable to expenses related to the revaluation of the impairment of the Group’s assets in Russia.

• Operating profit amounted to SEK 1.3 million (1.4), corresponding to an operating margin of 1.0 percent (1.0).

• Profit for the period amounted to SEK -5.7 million (-1.6).

• Earnings per share before and after dilution amounted to SEK -0.15 (-0.04).

• Operating cash flow amounted to SEK 2.9 million (-4.4).

• The Group’s available cash and cash equivalents, including unutilized overdraft facilities, amounted to SEK 39.1 million (82.4) as of June 30.

Comments from the President and CEO

Strong instrument sales in continued challenging market conditions
The second quarter of the year saw the continued effects of the geopolitical instability with longer than usual supply chain lead times, delayed payments from key customers due to continuing bank restrictions and unfavorable currency development from a weakening US dollar.

From a sales perspective we delivered a stable quarter, reaching SEK 129 million which equated to an organic decline of -3.3%, largely driven by unfavorable mix, price pressure and a weakened US dollar resulting in a negative currency impact of -2.3%.

Instrument unit sales closed 17% above previous year’s quarter, however, at a lower average selling price because of our strategic focus on growing our installed base as a way of investing in future reagent growth. Our 5-part instrument sales more than doubled in both the quarter and year-to-date, reflecting the continued higher demand for 5-part technology in the market.

Consumables sales came in -12% below previous year’s quarter, largely due to delayed payments from some major customers, which halted deliveries. We did close the quarter with a larger than usual backlog, like what we experienced in first quarter. OEM sales were in line with our expectations and second quarter was on level with previous year´s sales, however, we expect continued good development in the second half of the year.

Reshaped cost structure and return to positive operating cash flow
Gross margin declined in the quarter to 38.7% (43.1) due to product mix. Our instrument sales grew, but at a lower average selling price which diluted the gross margin.

Cost control continued to be in focus and because of all implemented restructuring initiatives in the last 12 months we have lowered our operating expense spending by 47%. The operating margin declined to 4.5% compared with 7.2% in the previous year, as a direct result of lower sales and gross margin. Adjusted operating profit closed at SEK 5.8 million SEK (9.9), excluding capitalization of R&D the adjusted operating profit was SEK -13.6 million for the previous year’s quarter.

Despite a challenging quarter, we delivered a positive operating cash flow of SEK 2.9 million. This is a critical milestone and a result of our diligent efforts to balance the structural costs, working capital and position Boule to invest in the future.

Strengthening the leadership team
In May we welcomed Eva Sperling to our team as Chief of Staff. Eva brings significant Project Management and Lean experience from heading up the R&D Project Management Office at Cepheid, a world leader in molecular diagnostics.

In June we promoted Lucy Yehiayan to Chief Technology Officer to support our strategic focus on OEM and Blood Controls development. Lucy has a PhD in Analytical Chemistry and brings +15 years of industry experience as Research Scientist, Lab Manager and Head of R&D.

In the sales organization we took the first step in strengthening our market coverage by welcoming a new Regional Sales Manager for South-East Asia. We will continue to invest in better sales coverage in high growth regions in the coming quarters.

Executing on our strategy
In the first quarter we announced a strategic shift to better position ourselves for future growth.

Going forward, we will transition from primarily in-house development of hematology solutions to a model that emphasizes strategic partnerships with leading technology partners. This move allows us to accelerate access to cutting-edge technologies, and bring a broader and more competitive portfolio to market faster than before.

This quarter we successfully completed our validation and assessment of a new competitive hematology solution for the veterinary market which we intent to bring to the market shortly. This will be the first of many new products we intent to launch in the coming years.

The second quarter was also the quarter in which we commercialized our US distribution partnership for Clinical Chemistry with VitalScientific and we recognized our first revenue. In the third quarter we will take over the service part of the business which will add additional revenue to our US business and allow us to better leverage our service infrastructure.

We are sharpening our focus on the growing OEM reagent and blood controls markets. These sectors present significant opportunities for sustainable growth, and we are committed to be a trusted partner for diagnostic companies worldwide. By leveraging our deep expertise in quality control and reagent manufacturing, we aim to deliver differentiated, scalable solutions that meet the highest standards of performance.

This strategic pivot is not just about where we invest – it is about how we work. We are building a more agile, collaborative, and customer-centric organization. One that is ready to meet the demands of today’s diagnostics industry in an efficient way and although we still have a lot of work ahead of us, I am pleased with the progress we have made in the past five quarters.

Thank you for your continued trust and support as we embark on this journey together.
 
Torben Nielsen,
President and CEO