Boule Diagnostics AB (publ) interim report January-September 2016

Earnings more than doubled and continued sales success

Quarter July–September 2016

  • Net sales amounted to SEK 108.5 million (88.8), up 22.2 percent.
  • Cash flow from operating activities amounted to SEK  12.7 million (10.6).
  • Operating profit was SEK 24.8 million (8.9).
  • Net profit amounted to SEK 19.3 million (5.1).
  • Earnings per share before dilution amounted to SEK 4.11 (1.07), and after dilution to SEK 4.02 (1.07).

Interim period January–September 2016

  • Net sales amounted to SEK 294.9 million (243.0), up 21.4 percent.
  • Cash flow from operating activities amounted to SEK   8.0 million (9.9).
  • Operating profit was SEK 45.8 million (21.0).
  • Net profit amounted to SEK 34.6 million (14.1).
  • Earnings per share before dilution amounted to SEK 7.34 (2.99), and after dilution to SEK 7.19 (2.98).

Significant events during the quarter

Contract in USA

Boule has signed an agreement with Novant Health Systems (“NHS”) to be the main supplier of three-part hematology systems. NHS is a renowned not-for-profit network of doctors’ offices, outpatient clinics and hospitals. The network comprises a total of 15 hospitals and more than 530 doctors’ offices. The agreement includes the provision of a total of more than 40 hematology systems, including equipment, consumables, servicing and support. The instruments will start to be delivered at the end of the year.

Significant events after the quarter

Tender won in kenya

Boule won a tender in Kenya for the provision of a total of 70 hematology systems. They are being purchased by the Red Cross, and will be installed in 35 public hospitals throughout the country. The instruments are to be delivered during the fourth quarter of 2016.

Comments from CEO Ernst Westman

During the quarter, and since the beginning of the year, we have experienced good earnings and sales development. During the period January – September, sales increased by 21.4%, and by 22.2% during the third quarter.

Operating profit during the period January – September more than doubled compared with the same period last year, from SEK 21.0 million to SEK 45.8 million. Operating profit for the third quarter was SEK 24.8 million (8.9). This corresponds to an operating margin of 22.9% (10.0).

Work to improve profitability through our streamlining program, which consists of targeted projects in production, quality, and sales, is starting to show the promised results. This has been a strong contributing factor in gross profit increasing by 28%, from SEK 113 million to SEK 145 million.

Thanks to the winning of a number of major tenders, instrument sales increased significantly during the period. This has allowed the company to grow at a stable rate. For each instrument sold, sales of consumables increase in accordance with our business model as our instruments are locked to our own brand of consumables.

We are seeing demand within our market segment, decentralized patient care, continuing to increase throughout the world. More specifically, and pleasing for us is that the demand for high-quality hematology systems is increasing. During the period, we have won a number of contracts in which quality, rather than price, was the decisive factor.

Sales of the new system for clinical chemistry, EasyRA, which we have launched in the USA, have not yet taken off. EasyRA is a great complement to our other products. We believe that sales of this product constitute a first step to building a new business area that, in the long run, shall form an integral part of our total sales.

Our own products sold very well during the period and our sales strategy, using parallel distribution channels and a global presence to quickly meet demand, is working well. This, coupled with the increased demand for quality, makes us optimistic for future procurements.

For more information, please contact:
Ernst Westman, President and CEO, Boule Diagnostics AB, phone +46 708-60 88 63

About Boule Diagnostics AB (publ)
Boule Diagnostics AB is a rapidly growing diagnostics company that develops, manufactures and markets systems and consumables for hematology diagnostics. The company is primarily oriented to small and medium sized hospitals, clinics and laboratories and to diagnostics companies within both human and veterinary hematology. The company operates via subsidiary companies in Sweden, USA and China. Boule Diagnostics shares have been listed on the Nasdaq Stockholm Exchange since 2011. 

This information is information that Boule Diagnostics AB 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 08:30 am CET on November 9, 2016.


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