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Bactiguard Holding

Annual Report Feb 6, 2025

3004_10-k_2025-02-06_ed39aec6-ac1e-46dd-8beb-23c54f06f452.pdf

Annual Report

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YEAR-END REPORT 2024

License focused strategy delivered increased revenues and profitability

Fourth quarter 2024 (October – December)

  • Total revenue amounted to SEK 68.3 (61.3) million, an increase of SEK 6.9 million corresponding to 11.3%.
  • Net sales amounted to SEK 63.1 (56.3) million, an increase of SEK 6.8 million corresponding to 12.1%. Adjusted for currency effects of SEK -0.2 million, net sales increased by 12.4%.
  • Operating loss amounted to SEK 3.2 (23.8) million.
  • EBITDA amounted to SEK 8.4 (-4.2) million.
  • Net loss for the period amounted to SEK 0.9 (27.2) million.
  • Loss per share, before and after dilution, amounted to SEK 0.03 (0.78).
  • Cash flow from operating activities amounted to SEK 18.9 (10.1) million corresponding to SEK 0.54 (0.29) per share.

The period January – December 2024

  • Total revenue amounted to SEK 261.9 (223.2) million, an increase of SEK 38.7 million corresponding to 17.3%.
  • Net sales amounted to SEK 241.7 (201.5) million, an increase of SEK 40.1 million corresponding to 19.9%. Adjusted for currency effects of SEK -1.1 million, net sales increased by 20.5%.
  • Operating loss amounted to SEK 28.9 (131.9) million.*
  • EBITDA amounted to SEK 18.0 (-76.1) million.*
  • Net loss for the period amounted to SEK 29.8 (138.4) million.*
  • Loss per share, before and after dilution, amounted to SEK 0.85 (3.95).
  • Cash flow from operating activities amounted to SEK 25.0 (-52.3) million corresponding to SEK 0.71 (-1.49) per share.

* The difference mainly pertained to the SEK 42 million provision for inventory, accounts receivables, and project related items, made in the second quarter 2023.

Key figures Oct-Dec Jan-Dec
2024 2023 2024 2023
Total revenue¹,MSEK 68.3 61.3 261.9 223.2
Operating profit/loss¹,MSEK -3.2 -23.8 -28.9 -131.9
EBITDA²,MSEK 8.4 -4.2 18.0 -76.1
EBITDA margin²,% 12.4 -6.9 6.9 -34.1
Net profit/loss for the period¹,MSEK -0.9 -27.2 -29.8 -138.4
Earnings per share¹,SEK -0.03 -0.78 -0.85 -3.95
Cash flow from operating activities ¹,MSEK 18.9 10.1 25.0 -52.3
Cash flow from operating activities, per share²,SEK 0.54 0.29 0.71 -1.49
Equity ratio²,% 50.1 53.3 50.1 53.3
Net debt²,MSEK 111.0 109.9 111.0 109.9

1 Defined according to IFRS.

2 Alternative performance measure. For definition and reconciliation, see pages 16-17.

CEO statement

License focused strategy delivered increased revenues and profitability

Total revenue for Q4 amounted to SEK 68.3 million (Q4 2023: SEK 61.3 million), including net sales of SEK 63.1 million (Q4 2023: SEK 56.3 million). For 2024 total revenue increased by 17.3 percent and came in at SEK 261.9 million (2023: SEK 223.2 million) with net sales of SEK 241.7 million (2023: SEK 201.5 million). The Q4 EBITDA amounted to SEK 8.4 million (Q4 2023: SEK -4.2 million) and for 2024, SEK 18 million (2023: SEK -76 million). OPEX totaled SEK 54.4 million for Q4 (Q4 2023: SEK 50.1 million) and for 2024 SEK 207.9 million (2023: SEK 235.2 million). Total cash flow for the quarter amounted to SEK 9.5 million (Q4 2023: SEK 0.2 million) and for 2024 SEK -10.9 million.

Executed on strategy shift and delivered profitability

Q4 was another profitable quarter and for the full year we delivered an EBITDA of SEK 18 million. During 2024 we executed on the strategic shift announced in October 2023. We have strengthened the organization and ways of working to embrace the opportunities within the license business, as well as discontinued own sales of the BIP portfolio of medical devices and the transition of Bactiguard's BIP Foley catheter markets to BD (Becton, Dickinson & Company) continues. We have a pipeline of early-stage projects for potential partners with feasibility studies ongoing across multiple therapeutic areas and the Wound Management product portfolio has stable growth.

Delivering sustainable profitability is not only a key milestone for Bactiguard, it will also empower us to develop our business and infection prevention technology further. Importantly, it is a validation of the effectiveness of our business model and license-focused strategy.

Navigating opportunities and challenges within the license business

Total license revenues for Q4 amounted to SEK 44.2 million (Q4 2023: SEK 32.2 million) and for 2024 SEK 164.7 million (2023: SEK 117.2 million). Revenues from BD were SEK 35.8 million for Q4 and SEK 124.7 million for the full year, an increase of 33.9 percent compared to the full year 2023. We continue to collaborate on the market registrations for BD, which are required to enable their launches in former BIP Foleys markets. We are pleased with our enhanced partnership with BD which is reflected in the financial results from this partnership.

The wound-down BIP portfolio had revenues in Q4 of SEK 3.2 million (Q4 2023: SEK 10.2 million) and for 2024 SEK 16.0 million (2023: SEK 30.5 million). The anticipated SEK 25 million in cost savings associated with the strategic shift has been delivered in 2024 and we do not expect any additional BIP revenues in 2025.

Revenues from Zimmer Biomet for Q4 amounted to SEK 3.6 million (Q4 2023: SEK 3.1 million) and full-year revenues were SEK 27.7 million (2023: SEK 21.5 million). Revenues were mainly related to the final payments under the terminated multiple orthopedic products agreement. While the termination was a disappointment, the work in the partnership gave us a deeper understanding of US approval requirements within these segments. We are currently defining Bactiguard's US regulatory strategy to ensure we can better work with partners to capitalize on the opportunities of our infection prevention technology. Notably, Bactiguard owns the commercial rights to all coated orthopedic medical devices outside of trauma, and we are actively seeking new license partners in this therapeutic area. Within the trauma segment our agreement with Zimmer Biomet remains in force and they are committed to the commercialization of the Bactiguard-coated orthopedic trauma implants, ZNN Bactiguard.

Stable growth in Wound Management portfolio

The Wound Management portfolio continued its growth in Q4 with revenues of SEK 15.6 million (Q4 2023: SEK 13.9 million). For the full-year, Wound Management grew by 13.2 percent and amounted to SEK 60.9 million, boosted by the regulatory approval of Hydrocyn aqua in India. The strategy for Wound Management remains focused on profitable growth and expansion into new markets, primarily in Asia.

Outlook – strengthened organization in multiple knowledge areas

As announced in Q3 2024, we are conducting a review of the financial targets. This work encompasses a comprehensive analysis of the market potential and partnership opportunities for our technology, involving an indepth evaluation of key strategic therapeutic areas including targeted application areas, associated infection rates, regulatory approval timelines, and commercial scale up through licensing partners. All these aspects must be balanced with the operational leverage of our business model. We will revert no later than the end of Q1 2025.

During the year, we have strengthened our capabilities throughout the organization. In January 2025, Kajsa Björklund joined as new Executive VP of R&D. Kajsa is an experienced life science executive with a PhD in Organic Chemistry. She brings a wealth of leadership competence in R&D and innovation and will be part of the Executive Management Team. We have also retained our interim Head of R&D Nathaniel Bachrach who will transition into a new role as Chief Scientific Officer. He remains a member of the Executive Management Team and will work on new license business development with a primary focus on the US.

Looking ahead, we are working to deepen existing licensing partnerships, while leveraging our R&D capabilities and unique infection prevention technology to deliver new partnerships. Our goal is to transform promising earlystage projects into exclusive license agreements with leading MedTech companies. This is a journey that requires both time and commitment, but the potential for our technology across multiple therapeutic areas is high. The interest from potential partners is strong and reflects the growing recognition of infection prevention as a critical global medical need.

Christine Lind, CEO

Business model

Bactiguard is a global MedTech company developing safe and biocompatible technology to prevent medical device related infections. The company's unique technology is based on an ultra-thin noble metal coating that prevents bacterial adhesion and biofilm formation on medical devices.

Bactiguard's infection prevention solutions decrease patient suffering, save lives, and unburden healthcare resources while also fighting against antimicrobial resistance, one of the most serious threats to global health and modern medicine.

Bactiguard operates through license partnerships with leading global MedTech companies that apply the technology to their medical devices and sell them under their own brand or co-branded with Bactiguard. The company also has a portfolio of wound management products.

Three partnership phases

Bactiguard's revenues have two main components: firstly, charging license partners for the right to use our coating technology on their medical devices within a specific application and geographical area, and secondly, royalties; a variable remuneration once the license partners' products reach the market. Bactiguard's business model is scalable and has a high-margin potential. The revenues are generated across three phases of partnerships: application development partners, exclusivity partners and license partners.

An application development partner participates in a development project where we test the coating technology to different medical devices, surfaces, and materials. Bactiguard's coating development team works in close collaboration with the partner. Some application development projects will not materialize, and this is a natural part of our business.

An exclusivity partner gets an exclusive right to apply our coating technology to a certain medical device but has no products in the market yet, for instance due to pending regulatory approvals.

A license partner has the right to market and sell medical devices with Bactiguard's coating technology, in a certain region or globally. Most of our revenues are generated through partnerships at this phase. BD and Zimmer Biomet (their trauma implant ZNN Bactiguard) are examples of license partners.

Not all partnerships will follow all three phases. An agreement with a partner can generate revenues from different phases and streams simultaneously.

Partnerships Application area Market*
Becton Dickinson & Company (BD) Urinary catheters (Foley) Global excl. China
Zimmer Biomet Trauma implants Global excl. Southeast Asia, China,
India, and South Korea
Zimmer Biomet** Orthopedic implants Global excl. Southeast Asia, China,
India, and South Korea.
Well Lead Medical Urinary catheters China

*Black: With approved products on these markets, Green = rights.

** Zimmer Biomet informed Bactiguard in October 2024 that they terminate the agreement for multiple orthopedic product segments.

Development in the fourth quarter

Revenue

Oct-Dec
MSEK 2024 2023
Total license revenue 44.2 32.2
License partners 41.2 29.5
Exclusivity partners 2.5 2.6
Application development partners 0.6 -
Wound Management portfolio 15.6 13.9
BIP portfolio 3.2 10.2
Net sales 63.1 56.3
Other operating revenues 5.2 5.1
Total revenue 68.3 61.3

Total revenue for the fourth quarter amounted to SEK 68.3 (61.3) million, an increase of SEK 6.9 million, corresponding to 11.3 percent. Adjusted for currency effects of SEK 2.0 million, revenue increased by 7.9 percent.

Net sales amounted to SEK 63.1 (56.3) million, an increase of SEK 6.8 million, corresponding to 12.1 percent. Adjusted for currency effects of SEK -0.2 million, net sales increased by 12.4 percent.

Total license revenue amounted to SEK 44.2 (32.2) million, an increase of SEK 12.1 million, corresponding to 37.4 percent. Adjusted for currency effects of SEK -0.2 million, license revenues increased by 38.0 percent. Revenues from Becton Dickinson & Company (BD) amounted to SEK 35.8 (29.1) million, an increase of SEK 6.7 million, corresponding to 23.0 percent. Adjusted for currency effects of SEK -0.3 million, revenues from BD increased by 23.9 percent. Revenues from Zimmer Biomet amounted to SEK 3.6 (3.1) million, an increase of SEK 0.5 million, corresponding to 16.1 percent. Adjusted for currency effects of SEK 0.1 million, revenues from Zimmer Biomet increased by 16.0 percent. These revenues pertain mainly to exclusivity revenues from the multiple orthopedic products agreement, as well as license revenues from the Trauma product segment agreement.

Revenues from license partners amounted to SEK 41.2 (29.5) million, an increase of SEK 11.7 million, corresponding to 39.5 percent. Adjusted for currency effects of SEK -0.3 million, revenues from license partners increased by 40.4 percent.

Revenues from exclusivity partners amounted to SEK 2.5 (2.6) million, a decrease of SEK 0.2 million.

Revenues from application development partners amounted to SEK 0.6 (0.0) million, an increase of SEK 0.6 million.

Revenues from Wound Management portfolio amounted to SEK 15.6 (13.9) million, an increase of SEK 1.7 million, corresponding to 12.3 percent with and without currency effects.

Revenues from the BIP portfolio amounted to SEK 3.2 (10.2) million, a decrease of SEK 6.9 million, corresponding to 68.4 percent with and without currency effects. We do not expect any additional BIP revenues in 2025.

Other revenues amounted to SEK 5.2 (5.1) million, an increase of SEK 0.1 million, corresponding to 1.9 percent. Currency effects amounted to SEK 2.2 (2.8) million and the remaining revenue primarily relates to rent income.

Result

Costs for raw materials and consumables for the fourth quarter amounted to SEK -5.9 (-15.7) million, a decrease of SEK 9.8 million, corresponding to 62.5 percent. Other external costs amounted to SEK -21.7 (-22.0) million, a decrease of SEK 0.3 million, corresponding to 1.1 percent. Personnel costs amounted to SEK -30.0 (-25.0) million, an increase of SEK 4.9 million, corresponding to 19.7 percent. Other operating expenses are related to currency exchange losses/gains, which amounted to SEK -2.7 (-3.1) million. Total operating expenses (OPEX) amounted to SEK -54.4 (-50.1) million, an increase of SEK 4.2 million, corresponding to 8.5 percent.

The operating loss amounted to SEK 3.2 (23.8) million, a decrease of SEK 20.6 million, corresponding to 86.5 percent. The improved operating result mainly pertained to the increase in total license revenues while keeping costs under control.

EBITDA for the fourth quarter amounted to SEK 8.4 (-4.2) million, an increase of SEK 12.7 million. The EBITDA margin was 12.4 (-6.9) percent.

Depreciation and amortisation amounted to SEK -11.6 (-19.5) million, a decrease of SEK 7.9 million, corresponding to 40.5 percent. Amortization of intangible assets amounted to SEK -7.4 (-14.7) million, attributable primarily to amortization of SEK -6.4 (-6.4) million related to Bactiguard's technology. Depreciation of tangible assets amounted to SEK -4.2 (-4.9) million, primarily attributable to depreciation on leasing of SEK -3.7 (-2.8) million.

Financial items amounted to SEK 0.8 (-7.2) million. Financial income amounted to SEK 4.1 (3.5) million which pertained mainly to exchange rate effects. Financial expenses amounted to SEK -3.3 (-10.7) million which mainly pertained to interest expenses of SEK -3.2 (-3.6) million.

Tax for the period amounted to SEK 1.4 (3.8) million. Change in deferred tax amounted to SEK 1.4 (4.1) million attributable to the intangible assets and leases, which is calculated at the Swedish tax rate of 20.6 percent. Income tax in foreign subsidiaries is calculated on the basis of a tax rate of 24.0 percent.

Net loss for the fourth quarter of 2024 amounted to SEK 0.9 (27.2) million.

Development during the period January - December

Revenue

Jan-Dec
MSEK 2024 2023
Total license revenue 164.7 117.2
License partners 155.4 104.3
Exclusivity partners 7.7 9.7
Application development partners 1.5 3.2
Wound Management portfolio 60.9 53.8
BIP portfolio 16.0 30.5
Net sales 241.7 201.5
Other operating revenues 20.2 21.6
Total revenue 261.9 223.2

Total revenue for the period January to December amounted to SEK 261.9 (223.2) million, an increase of SEK 38.7 million, corresponding to 17.3 percent. Adjusted for currency effects of SEK 10.0 million, revenue increased by 12.9 percent.

Net sales amounted to SEK 241.7 (201.5) million, an increase of SEK 40.1 million, corresponding to 19.9 percent. Adjusted for currency effects of SEK -1.1 million, net sales increased by 20.5 percent.

Total license revenue amounted to SEK 164.7 (117.2) million, an increase of SEK 47.5 million, corresponding to 40.5 percent. Adjusted for currency effects of SEK -1.0 million, license revenue increased by 41.4 percent. Revenues from Becton Dickinson & Company (BD) amounted to SEK 124.7 (93.1) million, an increase of SEK 31.6 million, corresponding to 33.9 percent. Adjusted for currency effects of SEK -0.7 million, revenues from BD increased by 34.7 percent. Revenues from Zimmer Biomet amounted to SEK 27.7 (21.5) million, an increase of SEK 6.2 million, corresponding to 29.0 percent. Adjusted for currency effects of SEK -0.3 million, revenues from Zimmer Biomet increased by 30.7 percent. These revenues consist of license revenues from royalties, exclusivity revenues and application development revenues.

Revenues from license partners amounted to SEK 155.4 (104.3) million, an increase of SEK 51.1 million, corresponding to 49.0 percent with and without currency effects.

Revenues from exclusivity partners amounted to SEK 7.7 (9.7) million, a decrease of SEK 2.0 million, corresponding to 20.2 percent with and without currency effects.

Revenues from application development partners amounted to SEK 1.5 (3.2) million, a decrease of SEK 1.6 million, corresponding to 51.1 percent with and without currency effects.

Revenues from Wound Management portfolio amounted to SEK 60.9 (53.8) million, an increase of SEK 7.1 million, corresponding to 13.2 percent with and without currency effects.

Revenues from the BIP portfolio amounted to SEK 16.0 (30.5) million, a decrease of SEK 14.5 million, corresponding to 47.5 percent with and without currency effect. We do not expect any additional BIP revenues in 2025.

Other revenues amounted to SEK 20.2 (21.6) million, a decrease of SEK 1.4 million, corresponding to 6.6 percent. Currency effects amounted to SEK 11.1 (12.4) million and the remaining revenue primarily relates to rent income.

Result

Costs for raw materials and consumables for the period January to December amounted to SEK -36.1 (-65.6) million, a decrease of SEK 29.5 million, corresponding to 44.9 percent. Other external costs amounted to SEK -87.6 (-97.9) million, a decrease of SEK 10,3 million, corresponding to 10,5 percent. Personnel costs amounted to SEK -111.5 (-123.5) million, a decrease of SEK 12.0 million, corresponding to 9.7 percent. Other operating expenses are related to currency exchange losses/gains, which amounted to SEK -8.9 (-13.9) million. In total operating expenses (OPEX) amounted to SEK -207.9 (-235.2) million, a decrease of SEK 27.3 million, corresponding to 11.6 percent.

The operating loss amounted to SEK 28.9 (131.9) million, a decrease of SEK 103.1 million, corresponding to 78.1 percent. The decrease mainly pertained to the SEK 42 million provision made in the second quarter 2023, and the increase in total license revenues, as well as decrease in total operating expenses (OPEX).

EBITDA for the period January to December amounted to SEK 18.0 (-76.1) million, an increase of SEK 94.1 million. EBITDA margin was 6.9 (-34.1) percent.

Depreciation and amortisation amounted to SEK -46.9 (-55.9) million, a decrease of SEK 9.0 million, corresponding to 16.1 percent. Amortization of intangible assets amounted to SEK -28.7 (-39.6) million, attributable primarily to amortization of SEK -25.4 (-25.4) million related to Bactiguard's technology. Depreciation of fixed assets amounted to SEK -18.2 (-16.3) million, primarily attributable to depreciation on leasing of SEK - 14.6 (-11.3) million.

Financial items amounted to SEK -7.7 (-15.2) million. Financial income amounted to SEK 7.8 (13.4) million which pertained mainly to exchange rate effects. Financial expenses amounted to SEK -15.6 (-28.6) million which mainly pertained to interest expenses of SEK -14.0 (-13.5) million.

Tax for the period amounted to SEK 6.8 (8.8) million. Change in deferred tax amounted to SEK 6.8 (8.9) million attributable to the intangible assets and leases, which is calculated at the Swedish tax rate of 20.6 percent. Income tax in foreign subsidiaries is calculated on the basis of a tax rate of 24.0 percent.

Net loss for the period January to December 2024 amounted to SEK 29.8 (138.4) million.

Cash flow

Cash flow from operating activities for the quarter amounted to SEK 18.9 (10.1) million and for the period January to December to SEK 25.0 (-52.3) million. Change in working capital for the quarter amounted to SEK 11.7 (8.4) million and for the period January to December to SEK 16.5 (13.8) million.

Cash flow from investing activities for the quarter amounted to SEK -1.7 (-6.0) million and for the period January to December to SEK -14.8 (-8.6) million.

Cash flow from financing activities for the quarter amounted to SEK -7.6 (-3.8) million and for the period January to December to -21.2 (-11.8).

Cash flow for the quarter amounted to SEK 9.5 (0.2) million and for the period January to December to SEK -11.0 (-72.8) million. Cash and cash equivalents at the end of the period of 31 December 2024 amounted to SEK 116.7 (123.2) million.

Financial position

Equity on 31 December 2024 amounted to SEK 328 (353) million and net debt to SEK 111 (110) million. Total assets on 31 December 2024 amounted to SEK 656 (662) million.

As of 31 December 2024, the parent company's liabilities with SEB amounted to SEK 171 (171) million. As of 31 December 2024, the approved overdraft facility from SEB of SEK 30 million was not utilized. As of 31 December 2024, foreign subsidiaries had credit facilities amounting to SEK 3.6 (3.3) million.

At the end of the year Bactiguard Holding has a bank loan of SEK 171 million with a maturity according to agreement until May 2025 and which are reported as current liabilities to credit institution. At the beginning of February 2025, a new loan was agreed amounting to SEK 120 million, which replaces the previous loan at maturity, the loan runs for two years and with an option to extend for another year. The Board of Directors assesses that there is no material risk of a liquidity shortage for the next 12-month period.

Employees

Full-time equivalents in the Group during the period January to December averaged to 177 (217) of which 108 (133) are women. On 31 December 2024, the number of full-time equivalents was 160.

The share and share capital

Bactiguard's B share is listed on Nasdaq Stockholm with the short name "BACTI B". The closing price for the B share was SEK 35.3 (61.8) on 31 December 2024 and the market capitalization amounted to SEK 1,237 (2,166) million.

The share capital in Bactiguard on 31 December 2024 amounted to SEK 0.9 (0.9) million divided into 31,043,885 Class B shares with one vote each (31,043,885 votes) and 4,000,000 Class A shares with ten votes each (40,000,000 votes). The total number of shares and votes in Bactiguard on 31 December 2024 was 35,043,885 shares and 71,043,885 votes.

Ownership

Shareholders No. of A
shares
No. of B shares Total number % of capital % of votes
TomBact AB¹ 2,000,000 4,443,787 6,443,787 18.4 34.4
GIDL Invest AB² 2,000,000 4,179,326 6,179,326 17.6 34.0
Jan Ståhlberg 3,605,150 3,605,150 10.3 5.1
Nordea Funds 3,524,877 3,524,877 10.1 5.0
The Fourth Swedish National Pension Fund 3,475,992 3,475,992 9.9 4.9
Handelsbanken Fonder 2,080,726 2,080,726 5.9 2.9
TomEnterprise Public Capital AB¹ 1,885,384 1,885,384 5.4 2.7
AMF - försäkring och fonder 1,706,340 1,706,340 4.9 2.4
Insurance company Avanza Pension 1,246,737 1,246,737 3.6 1.8
Lancelot Asset Management AB 465,000 465,000 1.3 0.7
Total, major shareholders 4,000,000 26,613,319 30,613,319 87.4 93.7
Total, others 4,430,566 4,430,566 12.6 6.3
Total number of shares 4,000,000 31,043,885 35,043,885 100.0 100.0

1 Company controlled by Thomas von Koch.

2 Company controlled by Christian Kinch.

Per 31 December 2024 Bactiguard had 2,979 (3,441) shareholders.

Dividend

The Board of Directors will propose to the Annual General Meeting that no dividend is paid for 2024.

General meeting

The 2025 Annual General Meeting will take place on Thursday 15 May 2025, in Posthuset Vasagatan 7A at 09:00 am.

Key events

Key events during the quarter

Zimmer Biomet has informed Bactiguard that they terminate the license agreement signed in 2022 covering multiple orthopedic product segments. The reason stated is the more complex and lengthier path with the US Food and Drug Administration (FDA) than initially expected by Zimmer Biomet. The partnership with Zimmer Biomet within the trauma product segment, related to the agreement signed in 2019, remains in effect.

Key events after the end of the quarter

At the beginning of February 2025, a new loan was agreed amounting to SEK 120 million, which replaces the previous loan at maturity, the loan runs for two years and with an option to extend for another year.

Financial targets

The company's financial targets relate to growth and profitability and are expected to be delivered by year-end 2028. The financial and strategic targets should not be perceived as a forecast but rather reflect what Bactiguard's Board of Directors and Executive Management consider to be reasonable mid-term expectations given the sharpened license focused strategy.

Due to the termination of the multiple orthopedic agreement by Zimmer Biomet, we have decided to review our 2028 financial targets, set in October 2023, and the outcome of the review will be announced during Q1 2025.

Other information

Accounting and valuation principles

The consolidated financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS). The interim report has been prepared in accordance with IAS 34 Interim Reporting and the Annual Accounts Act. Disclosures in accordance with IAS 34 Interim Reporting are submitted both in notes and elsewhere in the interim report. The parent company's financial statements have been prepared in accordance with the Annual Accounts Act and the Financial Reporting Board's recommendation, RFR 2 Accounting for Legal Entities.

Accounting and valuation principles are stated in the annual report 2023. The accounting principles are unchanged from previous periods, except for a new assessment model of clients' risk classification, where more clients are assessed individually as a consequence of the change.

Segment reporting

An operating segment is a component of an entity that engages in business activities from which it may derive revenues and incur expenses, whose operating results are regularly reviewed by the chief operating decision maker and for which there is separate financial information. The company's reporting of operating segments is consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker is the function that assesses the operating segment performance and decides how to allocate resources. The company has determined that the Group's executive management constitutes of the chief operating decision maker. The company is considered in its entirety to operate within one business segment.

Parent company

During the period, the parent company has received compensation for services and interest on its receivables from group companies. No investments were made during the period.

Risk factors

Companies within the Group are exposed to various types of risk through their activities. Bactiguard continually engages in a process of identifying all risks that may arise and assessing how each of these risks shall be managed. The Group is working to create an overall risk management program that focuses on minimizing potential adverse effects on the company's financial results. The company is primarily exposed to market related risks, operational risks, and financial risks. A description of these risks can be found on page 16 and 45–47 in the annual report 2023.

The geopolitical situation and macro trends

In addition to identified risks, the macro situation and its impact is continuously monitored. The global healthcare challenges have a significant impact on society. The need for more efficient and safe healthcare is driven by both economic and demographic developments, as well as increased political unrest, conflicts, wars, and natural disasters. Particularly prominent are healthcare-associated infections and antimicrobial resistance where we see an increased interest in infection prevention.

Bactiguard does not have suppliers in or sales to any of Russia, Belarus, or Ukraine. However, the global economy is affected by the situation of the war, and we follow developments closely and continuously evaluate the operational and financial effects as the global situation may change and affect the company's financial position. Bactiguard has a subsidiary in Israel. We are closely following the developments there and our primary focus is to ensure the staff's well-being and security. We make the assessment that the conflict in Israel will have a negligible effect on the group's result and financial position.

While we see falling inflation levels, inflation and higher prices can continue to affect the company negatively as it is not always possible to change the price to the customers, all of which can affect the financial position negatively. The falling inflation levels can lead to lower interest rates, which can positively impact the interest costs. Some countries are now in or close to recession, which can lead to a decreased ability for customers to pay their invoices. The company also has a large exposure to the USD and EUR, see the annual report 2023.

Group consolidated income statement

Oct-Dec Jan-Dec
TSEK Note 2024 2023 2024 2023
Revenues 1
Net sales 63,074 56,252 241,678 201,545
Other operating revenue 5,182 5,082 20,200 21,628
Sum 68,256 61,335 261,877 223,174
Change in inventory of finished goods and products in progress 438 268 148 1,000
Capitalized production - 8 - 563
Raw materials and consumables -5,897 -15,735 -36,117 -65,572
Other external expenses -21,715 -21,966 -87,567 -97,854
Personnel costs -29,964 -25,034 -111,462 -123,456
Depreciation and amortization -11,640 -19,549 -46,883 -55,865
Other operating expenses -2,682 -3,118 -8,857 -13,923
Sum -71,460 -85,126 -290,738 -355,107
Operating profit/loss -3,204 -23,791 -28,860 -131,933
Profit/loss from financial items
Financial income 4,107 3,497 7,844 13,428
Financial expenses -3,263 -10,739 -15,566 -28,649
Sum 844 -7,242 -7,722 -15,221
Profit/loss before tax -2,360 -31,033 -36,585 -147,154
Current tax - -303 - -136
Deferred tax 1,440 4,118 6,769 8,908
NET PROFIT/LOSS FOR THE PERIOD -920 -27,218 -29,815 -138,382
Attributable to:
The parent company´s shareholders -920 -27,218 -29,815 -138,382
Earnings per share, before and after dilution, SEK -0.03 -0.78 -0.85 -3.95

Condensed statement of comprehensive income

Oct-Dec Jan-Dec
TSEK Note 2024 2023 2024 2023
Net profit/loss for the period -920 -27,218 -29,815 -138,382
Other comprehensive income:
Items that will not be reclassified to profit or loss for the year - - - -
Items that will be reclassified to profit or loss for the year
Translation differences 886 -3,170 4,979 -4,149
Other comprehensive income, after tax 886 -3,170 4,979 -4,149
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -34 -30,388 -24,834 -142,531
Attributable to:
The parent company´s shareholders -34 -30,388 -24,834 -142,531
Number of shares at the end of period ('000) 35,044 35,044 35,044 35,044
Weighted average number of shares ('000) 35,044 35,044 35,044 35,044

Group condensed statement of financial position

TSEK
Note
2024-12-31 2023-12-31
ASSETS
Non-current assets
Intangible fixed assets
Goodwill 251,817 248,103
Technology
Brands
48,179
25,602
73,304
25,729
Customer relationships 3,856 5,107
Capitalized development expenditure 1,619 2,953
Patents 962 1,345
Sum 332,035 356,541
Tangible assets
Right of use lease assets 52,685 50,426
Buildings 25,588 13,766
Improvements, leasehold 18,513 4,991
Machinery and other technical plant 6,554 15,583
Equipment, tools and installations 5,837 9,092
Sum 109,177 93,858
Financial assets
Other non-current accounts receivable 2,937 2,885
Sum 2,937 2,885
Deferred tax assets 17,517 10,763
Total non-current assets 461,669 464,047
Current assets
Inventories
Accounts receivable 26,231
25,046
29,646
17,249
Other current receivables
2
12,960 8,118
Prepaid expenses and accrued income 13,279 19,898
Cash and cash equivalents 116,727 123,217
Total current assets 194,243 198,127
TOTAL ASSETS 655,911 662,174
EQUITY AND LIABILITIES
Equity attributable to shareholders of the parent
Share capital 876 876
Translation reserve 4,124 -855
Other capital 930,680 930,680
Retained earnings including net profit for the period -607,338 -577,523
Total equity 328,342 353,178
Non-current liabilities
Liabilities to credit institutions - -
Leasing liability 40,694 42,306
Provisions 5,257 5,257
Other long-term liabilities - 28
Total non-current liabilities 45,951 47,590
Current liabilities
Liabilities to credit institutions 170,893 178,569
Leasing liability 16,180 12,224
Accounts payable 22,925 16,695
Provisions 18,104 10,256
Other current liabilities
2
3,312 4,570
Accrued expenses and prepaid income 50,204 39,093
Total current liabilities 281,618 261,406
TOTAL LIABILITIES 327,569 308,996
TOTAL EQUITY AND LIABILITIES 655,911 662,174

Group condensed statement of changes in equity

Retained
earnings
including net
Share Other profit for the
TSEK capital capital Reserves period Total equity
Opening balance 2023-01-01 876 930,680 3,294 -439,141 495,709
Net profit/loss for the period -138,382 -138,382
Other comprehensive income:
Translation differences -4,149 -4,149
Total comprehensive income after tax -4,149 -138,382 -142,531
Closing balance 2023-12-31 876 930,680 -855 -577,523 353,178
Opening balance 2024-01-01 876 930,680 -855 -577,523 353,178
Net profit/loss for the period -29,815 -29,815
Other comprehensive income:
Translation differences 4,979 4,979
Total comprehensive income after tax 4,979 -29,815 -24,836
Closing balance 2024-12-31 876 930,680 4,124 -607,338 328,342

Group condensed statement of cash flows

Oct-Dec Jan-Dec
TSEK Note 2024 2023 2024 2023
Net profit/loss for the period -920 -27,218 -29,815 -138,382
Adjustments for depreciation and amortization and other non-cash 8,096 28,936 38,255 72,288
items
Increase/decrease inventory 5,901 9,532 12,858 8,252
Increase/decrease accounts receivable 10,965 19,600 -7,290 28,455
Increase/decrease other current receivables 5,522 -4,846 -5,031 -10,450
Increase/decrease accounts payable -8,873 -1,657 6,230 -17,127
Increase/decrease other current liabilities -1,830 -14,238 9,782 4,632
Cash flow from changes in working capital 11,685 8,391 16,549 13,762
Cash flow from operating activities 18,860 10,110 24,989 -52,331
Investments in intangible assets - 0 - -1,420
Investments in tangible assets -1,707 -6,041 -14,781 -7,189
Cash flow from investing activities -1,707 -6,041 -14,781 -8,609
Amortization of financial leasing liability -3,673 -2,806 -13,522 -11,139
Amortization of loan -3,957 -696 -7,676 -696
Change in bank overdraft - -332 - -
Other financing activities - - - -
Cash flow from financing activities -7,630 -3,835 -21,198 -11,835
Cash flow for the period 9,523 235 -10,990 -72,775
Cash and cash equivalents at the beginning of the period 106,421 124,415 123,217 197,727
Exchange difference in cash and cash equivalents 786 -1,433 4,501 -1,735
Cash and cash equivalents at end of period 116,727 123,217 116,727 123,217

Condensed parent company income statement

Oct-Dec Jan-Dec
TSEK Note 2024 2023 2024 2023
Net sales 1,251 1,314 3,423 3,062
Sum 1,251 1,314 3,423 3,062
Other external expenses -1,074 -680 -4,277 -3,176
Personnel costs -742 -752 -3,096 -3,295
Sum -1,816 -1,432 -7,373 -6,471
Operating profit/loss -565 -118 -3,949 -3,409
Interest income and similar profit/loss items 4,759 5,599 20,846 19,625
Interest expenses and similar profit/loss items -2,839 -3,267 -12,717 -12,016
Sum 1,920 2,332 8,130 7,609
Income after financial items 1,355 2,214 4,180 4,200
Deferred tax - 10 - 10
Net profit/loss for the period 1,355 2,224 4,180 4,210

The parent company presents no separate statement of comprehensive income since the company has no items in 2024 or 2023 recognized in other comprehensive income. Net profit/loss for the period for the parent company thereby also constitutes of the comprehensive income for the period.

Condensed parent company balance sheet

TSEK
Note
2024-12-31 2023-12-31
ASSETS
Non-current assets
Financial assets
Shares in subsidiaries 625,191 575,191
Receivables from group companies 351,757 368,803
Deferred tax assets 15,255 15,255
Total non-current assets 992,202 959,249
Current assets
Current receivables
Other current receivables 1,767 1,639
Prepaid expenses and accrued income 52,887 32,806
Sum 54,654 34,446
Cash and bank balances 3,562 1,811
Total current assets 58,216 36,256
TOTAL ASSETS 1,050,418
995,506
EQUITY & LIABILITIES
Equity
Restricted equtiy
Share capital 876 876
Total restricted equity 876 876
Non-restricted equity
Retained earnings -29,347 -33,556
Non-restricted share premium 727,969 727,969
Net profit/loss for the period 4,180 4,210
Total non-restricted equity 702,803 698,623
Total equity 703,679 699,499
Non-current liabilities
Liabilities to credit institutions - -
Total non-current liabilities - -
Current liabilities
Liabilities to credit institutions 170,941 170,941
Liabilities to group companies 174,000 124,000
Accounts payable 178 86
Other current liabilities 321 407
Accrued expenses and prepaid income 1,300 572
Total current liabilities 346,740 296,007
Total liabilities 346,740 296,007
TOTAL EQUITY AND LIABILITIES 1,050,418 995,506

Definitions of alternative key performance indicators

Bactiguard presents certain financial measures in its annual report that have not been defined in line with IFRS (referred to as alternative key performance indicators as set forth in the ESMA guidelines). It is the opinion of the company that these measures provide useful supplementary information to investors and the company's management as they allow for the evaluation of the company's performance. Since not all companies calculate the measures in the same way, these are not always comparable to measures used by other companies. These performance measures should therefore not be considered a substitute for measures as defined under IFRS.

The definitions and tables below describe how the performance measures are calculated. The measures are alternative in accordance with ESMA's guidelines unless otherwise stated.

EBITDA

EBITDA presents the company's earning capacity from ongoing operations irrespective of capital structure and tax situation. The key figure is used to facilitate comparisons with other companies in the same industry. The company considers this performance measure to be the most relevant, since the company's technology is depreciated by large amounts, which does not impact cash flow negatively. Bactiguard's patented, unique technology can be applied to a broad range of products in the licensing business.

The company defines EBITDA as operating profit/loss excluding depreciation and amortization of tangible and intangible assets.

Oct-Dec Jan-Dec
TSEK 2024 2023 2024 2023
Operating profit/loss -3,204 -23,791 -28,860 -131,933
Depreciation 11,640 19,549 46,883 55,865
EBITDA 8,436 -4,242 18,023 -76,068

EBITDA margin

Presents the company's earning capacity from ongoing operations, irrespective of capital structure and tax situation, in relation to revenues. The key figure is used to facilitate analysis of the company's result in comparison with comparable companies.

Oct-Dec Jan-Dec
TSEK 2024 2023 2024 2023
EBITDA 8,436 -4,242 18,023 -76,068
Revenues 68,256 61,335 261,878 223,174
EBITDA margin % 12.4 -6.9 6.9 -34.1

Net debt

Net debt is a measure used to describe the Group's indebtedness and its ability to repay its debt with cash generated from the Group's operating activities if the debts matured today. The company considers this key figure interesting for creditors who want to understand the Group's debt situation.

The company defines net debt as interest-bearing liabilities minus cash and cash equivalents at the end of the period.

Jan-Dec
TSEK 2024 2023
Non-current liabilities to credit institutions - -
Current liabilities to credit institutions 170,893 178,569
Short-term lease debt 40,694 42,306
Long-term lease debt 16,180 12,224
Interest-bearing debt 227,767 233,099
Cash and cash equivalents -116,727 -123,217
Net debt 111,040 109,882

Equity ratio

Equity ratio is a measure the company considers important for creditors who want to understand the company's long-term ability to pay. The company defines equity ratio as equity and untaxed reserves (less deferred tax), in relation to the balance sheet total.

Jan-Dec
TSEK 2024 2023
Equity 328,342 353,178
Balance sheet total 655,911 662,174
Equity ratio, % 50.1 53.3

Cash flow from operating activities per share

Cash flow per share calculated as the cash flow from operating activities divided by the average number of shares outstanding during the period. The key figure is presented because it is used by analysts and other stakeholders to evaluate the company – it shows operating cash flow per share.

Profit/loss from financial items

Financial income minus financial expenses. Direct reconciliation against financial report is possible.

RTM/Rolling 12 months

This performance measure implies the twelve months before and including a certain date.

Note 1 Revenue distribution

Oct-Dec Jan-Dec
TSEK 2024 2023 2024 2023
License partners 41,205 29,544 155,397 104,322
Exclusivity partners 2,477 2,639 7,746 9,709
Application development partners 551 0 1,548 3,164
Wound Management portfolio 15,628 13,917 60,942 53,818
BIP portfolio 3,213 10,152 16,045 30,533
Sum 63,074 56,252 241,677 201,546
Time for revenue recognition
Performance commitment is met at a certain
time
60,046 53,613 232,384 188,673
Performace commitment is met during a
period of time
3,028 2,639 9,294 12,873
Sum 63,074 56,252 241,677 201,546

Note 2 Financial assets and liabilities at fair value

The table below shows the breakdown of financial assets and financial liabilities recognized at fair value in the consolidated balance sheet. Distribution of how fair value is determined is based on three levels.

Level 1: according to prices quoted on an active market for the same instrument.

Level 2: based on directly or indirectly observable market data not included in level 1.

Level 3: based on input data that is not observable on the market.

For description of how real values have been calculated, see annual report 2023, note 4. Fair value of financial assets and liabilities is estimated to be substantially consistent with posted values. The balance sheet contains receivables and liabilities from the business that are held to maturity. These are reported at amortized cost, which also constitutes an approximation to fair value.

Quarterly information

TSEK Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 RTM 2024
License partners 41,205 46,639 35,129 32,424 29,544 17,960 155,397
Exclusivity partners 2,477 - 2,678 2,591 2,639 2,696 7,746
Application development partners 551 866 - 131 - 153 1,548
Wound Management portfolio 15,628 17,880 14,700 12,733 13,917 17,501 60,942
BIP portfolio 3,213 1,939 4,847 6,046 10,152 7,148 16,045
Other operating revenues 5,182 6,611 3,540 4,867 5,083 4,029 20,200
Total revenue 68,256 73,936 60,893 58,793 61,334 49,486 261,880
EBITDA 8,436 9,877 1,211 -1,501 -4,242 -9,529 18,023
EBITDA margin (%) 12.4 13.4 2.0 -2.6 -6.9 -19.3 6.9
EBIT -3,204 -1,943 -10,846 -12,867 -23,791 -21,592 -28,860
Net profit/loss for the period -920 -4,674 -14,318 -9,901 -27,218 -24,602 -29,813
Earnings per share, before and
after dilution, SEK
-0.03 -0.13 -0.41 -0.28 -0.78 -0.70 -0.85
Operating cash flow 18,860 8,342 16,843 -19,056 10,110 -35,008 24,989
Operating cash flow per share, SEK 0.54 0.24 0.48 -0.54 0.29 -1.00 0.71
Net debt 111,040 128,961 134,020 145,690 109,882 111,533 111,040
Total shares (pcs) 35,043,885 35,043,885 35,043,885 35,043,885 35,043,885 35,043,885 35,043,885

Signatories of the report

The Board of Directors and the CEO certify that the interim report, to the best of their knowledge, provides a fair overview of the parent company's and the Group's operations, financial position and results and describes the material risks and uncertainties faced by the parent company and the companies included in the Group.

Stockholm 6 February 2025

Thomas von Koch Richard Kuntz Chairman of the Board Board Member

Board Member Board Member

Anna Martling Magdalena Persson

Jan Ståhlberg Christine Lind Board Member CEO

This interim report has not been reviewed by the company auditors.

This information is information that Bactiguard Holding 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 persons set out below on 6 February 2025, at 07:00 a.m. CET.

This is a translation of the Swedish Interim report. In the event of any discrepancy, the Swedish version applies.

About Bactiguard

Bactiguard is a global MedTech company developing safe and biocompatible technology to prevent medical device related infections. The company's unique technology is based on an ultra-thin noble metal coating that prevents bacterial adhesion and biofilm formation on medical devices.

Bactiguard's infection prevention solutions decrease patient suffering, save lives, and unburden healthcare resources while also fighting against antimicrobial resistance, one of the most serious threats to global health and modern medicine.

Bactiguard operates through license partnerships with leading global MedTech companies that apply the technology to their medical devices and sell them under their own brand or cobranded with Bactiguard. The company also has a portfolio of wound management products.

Bactiguard is headquartered in Stockholm and listed on Nasdaq Stockholm.

Read more about Bactiguard bactiguard.com

Follow Bactiguard on LinkedIn

Forthcomming disclosures of information

17 April 2025 Annual Report 2024
24 April 2025 Interim report first quarter 1 January – 31 March 2025
15 July 2025 Interim report second quarter 1 April – 30 June 2025
23 October 2025 Interim report third quarter 1 July – 30 September 2025

Contacts

For additional information, please contact: Patrick Fruergaard Bach, CFO: +46 8 440 58 80 Nina Nornholm, Head of Communication & Investor Relations: +46 708 550 356

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