Boule Diagnostics AB (publ) Year-end report January – December 2017

Continued growth, increased profitability and strong cash flow 

Quarter October–December 2017

  •  Net sales amounted to SEK 107.2 million (104.6), up 2.5 percent. Adjusted for the change in exchange rates, this corresponds to an increase of 3.9 percent.
  •  Number of instruments sold in the quarter was 1,024 (1,060), a decrease of 3 percent.
  •  Cash flow from operating activities amounted to SEK 24.1 million (11.9).
  •  Operating profit was SEK 14.9 million (1.3) which corresponds to an operating margin of 13.9 percent (1.2).
  •  Net profit amounted to SEK 8.1 million (1.5).
  •  Earnings per share before dilution amounted to SEK 1.67 (0.31) and after dilution to SEK 1.67 (0.30).

Interim period January-December 2017

  • Net sales amounted to SEK 427.8 million (396.7), up 7.9 percent. The growth rate remains at 7.9 percent when adjusted for the change in the exchange rates.
  • Number of instruments sold in the period was 4,279 (3,821), an increase of 12 percent.
  • Cash flow from operating activities amounted to SEK 57.7 million (19.9).
  • Operating profit, was SEK 54.4 million (47.1) which corresponds to an operating margin of 12.7 percent (11.9).
  • Net profit amounted to SEK 37.2 million (36.0).
  • Earnings per share before dilution amounted to SEK 7.67 (7.65) and after dilution to SEK 7.67 (7.45).
  • The Board of Directors proposes a dividend of SEK 2.00 per share for 2017 (1.40).
  • The Board of Directors proposes to increase the number of Boule shares through a 4:1 stock split.

Significant events during the quarter

Strengthened distribution network

At year-end, Boule choose to terminate the distribution agreement the company had with the nationwide distributor of Swelab in India. The company will instead work directly with regional distributors to increase growth and margins and work closer to the local markets.

Boule continues to expand the company’s distribution network and has signed a distribution agreement with a new distributor for the Medonic brand in Brazil and eight other Latin American countries.

Significant events after the quarter

New director of Commercial Operations

Kiarash Farr has been appointed SVP of Commercial Operations. He succeeds Claes Blanche who has communicated that he wants to phase out of his current role and take a part time consultant role for Boule. Kiarash Farr will assume the position as of March 1, 2018.

Strengthened Executive Team

The executive team will be strengthened by two new members who represent Human Resources and US Sales & Marketing respectively.

Comments from CEO Fredrik Dalborg

”Looking back at my first year as CEO of Boule, I am pleased with what the team has achieved and the direction we have taken as a company. It has been a challenge to meet and exceed the strong performance of 2016, but through hard work and determination we have managed to increase sales, profitability and cash flow. In parallel we have developed, and begun the implementation of, several growth and efficiency initiatives.

Following the record growth of 2016, the company has delivered a revenue growth of 7.9 percent for the full year 2017. In a sometimes volatile market, driven by tenders and market specific variations, the five year average revenue growth for Boule is above 9 percent.

The operating profit has improved significantly in the second half of 2017, and for the full year 2017 operating margin improved to 12.7 percent compared to 11.9 percent in 2016. The operating profit in 2017 was burdened by MSEK 9.8 in non-recurring costs related to restructuring and efficiency improvement efforts, adjusting for these non-recurring costs the operating profit for the year was 15 percent.

In 2017, the Boule team conducted a comprehensive analysis and review of the company’s operations and strategy, which was concluded during the fourth quarter. The purpose of the new strategy is to develop the company to the next level. The main components of the new strategy are:

  •  Protect and grow our core business: Continued efficiency improvements and capacity expansion, developing and launching next generation product platforms.
  •  Grow in emerging markets: Evolving distributor relationships and strengthening local presence.
  •  Grow in new customer segments and markets: Resource, sales approaches and partnerships to enter new customer segments and geographical markets.
  •  Evolve OEM and CDS brand business: Selective initiatives in profitable growth segments.
  •  Broaden the product portfolio: Develop new product platforms and broaden the product portfolio through partnerships and acquisitions.

The year 2017 was concluded in a strong way and we are excited as we enter 2018.”

For further information, please contact:
Fredrik Dalborg, CEO and Group President, Boule Diagnostics AB, phone +46 705-58 51 05
Christina Rubenhag, CFO, Boule Diagnostics AB, phone +46 705-46 72 22

About Boule Diagnostics AB (publ)
Boule Diagnostics AB is a rapidly growing global diagnostics company that develops, manufactures and markets instruments and consumable products for blood diagnostics. The company serves hospitals, clinics, laboratories and companies within blood diagnostics, in both human and veterinary hematology. The company operates via subsidiaries in Sweden and the USA. The company products are sold globally primarily through distributors, supported by Boule’s own local sales and support personnel. The Boule shares are listed on Nasdaq Stockholm 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 14.30 CET on February 16, 2018.


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