Boule Diagnostics (publ) Year-end report January–December 2023

Solid organic growth and strong operational cash flow

Quarter October-December 2023

  • Net sales amounted to SEK 148.1 million (149.2), corresponding to a decrease of 0.7 percent. Adjusted for changes in exchange rates, an increase of 4.3 percent.
  • The number of instruments sold amounted to 1,133 (794), which is an increase of 42.7 percent.
  • The gross profit amounted to SEK 65.9 million (66.7), resulting in a gross margin of 44.5 percent (44.7).
  • The operating profit amounted to SEK 10.5 million (10.0), which corresponds to an operating margin of 7.1 percent (6.7).
  • The period’s result amounted to SEK 8.4 million (2.9).
  • Earnings per share before dilution amounted to SEK 0.22 (0.09) and after dilution to SEK 0.22 (0.09).*
  • Cash flow from operating activities amounted to SEK 29.2 million (13.3).
  • Net cash as of December 31 amounted to SEK 12.9 million (32.1).
  • Non-recurring write-downs of equipment affected the operating profit by SEK -4.6 million, without this write-down the operating profit would have been SEK 15.1 million.

Full year January-December 2023

  • The net sales amounted to SEK 571.3 million (548.1), representing an increase of 4.2 percent. Adjusted for changes in exchange rates, there was an increase of 0.8 percent.
  • The number of instruments sold amounted to 4,203 (3,990), which is an increase of 5.3 percent.
  • The gross profit amounted to SEK 249.7 million (227.9), which corresponds to a gross margin of 43.7 percent (41.6).
  • The operating profit amounted to SEK 39.3 million (29.0), with an operating margin of 6.9 percent (5.3).
  • The period’s result amounted to SEK 25.0 million (12.7).
  • Earnings per share before dilution amounted to SEK 0.64 (0.46) and after dilution to SEK 0.64 (0.45).*
  • The cash flow from operating activities amounted to SEK 51.4 million (-11.4).
  • The board proposes that no dividend be distributed for the fiscal year 2023.

*Fund issue elements from the new share issue in Q4 2022 has been taken into account in the calculation of earnings per share before and after dilution, which is why the comparative figures have been recalculated.

CEO Jesper Söderqvist
Growth driven by veterinary sales and instrument order in India

The geopolitical situation in the world continues to be challenging, and therefore I am particularly pleased that sales showed organic growth of 4.3 percent in the quarter. In organic terms, growth was driven by Asia and Western Europe, while growth in other regions was weaker.

The number of instruments sold increased by more than 40 percent. A significant portion of this consisted of partial deliveries of a major order totalling 1,200 instruments to India, with an estimated final delivery in the first half of 2024. This order is of strategic value but puts pressure on margins in the period. We, on the other hand, are growing the installed base and recurring sales of consumables with higher margins.

In Western Europe, this sales growth was driven by the veterinary segment, which more than doubled year-on-year thanks to the launch of a new veterinary instrument in the summer of 2023.

OEM sales of consumables fell in the quarter compared to the previous year. This is mainly due to a large delivery in the comparative quarter of 2022. For the full year, sales are at the same level as in 2022, and overall, this business continues to develop positively.

The gross margin is in line with the same period in 2022 but could have been even better. Increased production efficiency strengthened the gross margin, but was affected by a negative product mix, with high volumes of instruments and negative currency effects. The strategic deal in India reduced the gross margin by 4.4 percentage points.

For the full year 2023, the gross margin improved to 43.7 percent (41.6).

EBIT improved in the quarter to SEK 10.5 million (10.0), corresponding to a margin of 7.1 percent (6.7). Adjusted for non-recurring write-downs of equipment, EBIT was SEK 15.1 million, which corresponds to a margin of 10 percent.

The operational cash flow was strong in the quarter compared to the previous year, as a result of improved profitability and the release of working capital.

Our journey in 2024

The first products from our partner’s new reagent factory in India have now been delivered. This is an important milestone for the new future business model where a growing share of revenues will be licence sales. I am also pleased with the development of our newly launched project to establish outsourced instrument production in India. The project is complex, but we expect deliveries to start in 2025.

Given the decisions we have taken on local licence manufacturing that satisfy the Indian government’s “make in India” requirement, our distributors can continue to win public tenders in a market with increased competition, while we continue to supply Swedish-produced products to the private Indian market.

At the time of writing, we are preparing for Medlab Middle East, a fair with customers from all over the world, but especially from the Middle East, Africa and Asia. For the first time at the fair, we are showing our new 5-part instruments. It is inspiring that we have reached this milestone and can start launching what we have worked so hard to develop.

Evaluation of the technical and clinical performance of the new instrument has delivered excellent results, and we are in the final stages of preparing the external clinical validation studies. However, regulatory processes always involve some uncertainty in terms of time, and we are in discussions with the FDA to ensure that we design the clinical studies to achieve the widest possible “Intended Use”. Our aim is to submit the regulatory applications in the second half of 2024.

The investments in the product platform is expected to continue in 2024 at the level of 2023, and then decrease in 2025. The launch is underway, and the plan to start sales in the first half of 2025 remains unchanged.

Holger Lembrér assumes the role of new CFO, bringing relevant experience from various senior financial positions. We have also hired Simonetta Tumbiolo as our new head of marketing, a passionate leader with experience from both research and various global marketing roles. Holger and Simonetta are welcome additions to the management team.

Finally, I would like to thank our staff, partners, shareholders and, above all, our customers for a challenging 2023. Together, we look forward to an exciting 2024, where much of our focus will be on the launch of our new 5-part instruments and expansion of our OEM business.


Presentation of the year-end report
At 10.00 CEO Jesper Söderqvist and interim CFO Jan Benjaminson will present and comment on the year-end report. After the presentation there will be time for audience questions. The presentation will be held in English.

Please follow this link to attend!

For more information, please contact:
Jesper Söderqvist, CEO and Group President, Boule Diagnostics AB, phone +46 (0)70-689 05 90
Jan Benjaminson, interim CFO, Boule Diagnostics AB, phone +46 (0)70-666 93 88

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.

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 07:30 CET on February 6, 2024.

Year-end Report Q4 2023

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