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Bactiguard Holding
Quarterly Report • Apr 25, 2024
3004_10-q_2024-04-25_d37a82df-07f3-4c8f-ac78-f43e6f0ac6a4.pdf
Quarterly Report
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INTERIM REPORT FIRST QUARTER 2024
Strategic transformation concluded and new leadership in place
First quarter 2024 (January – March)
- Total revenue amounted to SEK 58.8 (61.2) million, a decrease of SEK 2.4 million, corresponding to 3.9%.
- Net sales amounted to SEK 53.9 (55.6) million, a decrease of SEK 1.7 million, corresponding to 3.1%. Adjusted for currency effects of SEK 0.2 million, net sales decreased by 3.5%.
- Operating loss amounted to SEK 12.9 (18.7) million.
- EBITDA amounted to SEK -1.5 (-6.6) million.
- Net loss for the period amounted to SEK 9.9 (22.1) million.
- Loss per share, before and after dilution1 , amounted to SEK 0.28 (0.63).
- Cash flow from operating activities amounted to SEK -19.1 (-7.7) million, corresponding to SEK -0.54 (-0.22) per share.
| Key figures | Jan-Mar | Full year | RTM | ||
|---|---|---|---|---|---|
| 2024 | 2023 | 2023 | 2023/24 | ||
| Total revenue¹,MSEK | 58.8 | 61.2 | 223.2 | 220.8 | |
| Operating profit/loss¹,MSEK | -12.9 | -18.7 | -131.9 | -126.1 | |
| EBITDA²,MSEK | -1.5 | -6.6 | -76.1 | -71.0 | |
| EBITDA margin²,% | -2.6 | -10.8 | -34.1 | -32.1 | |
| Net profit/loss for the period¹,MSEK | -9.9 | -22.1 | -138.4 | -126.2 | |
| Earnings per share¹,SEK | -0.28 | -0.63 | -3.95 | -3.60 | |
| Cash flow from operating activities ¹,MSEK | -19.1 | -7.7 | -52.3 | -63.7 | |
| Cash flow from operating activities, per share²,SEK | -0.54 | -0.22 | -1.49 | -1.82 | |
| Equity ratio²,% | 51.3 | 60.2 | 53.3 | 51.3 | |
| Net debt²,MSEK | 145.7 | 55.4 | 109.9 | 145.7 |
1 Defined according to IFRS.
2 Alternative performance measure. For definition and reconciliation, see pages 14-15.
CEO statement
Strategic transformation concluded and new leadership in place
Total revenue for Q1 2024 amounted to SEK 58.8 million (Q1 2023: SEK 61.2 million) and the EBITDA to SEK -1.5 million (Q1 2023: SEK -6.6 million), both in line with expectations following the strategic transformation activities. Costs for Q1 2024 are in control with a total OPEX of SEK -48.8 million (Q1 2023: SEK -53.6 million).
The journey continues with the new Bactiguard
The activities related to one of the biggest strategic shifts in Bactiguard's history, announced in Q3 2023, were concluded in Q1. We are well underway evolving into a knowledge and specialist organization, and now focus on license partnerships and our Wound Management business. It is an honor to be entrusted with leading the new Bactiguard and continue our journey towards our vision of becoming the global standard of care to prevent medical device related infections. I am grateful for the support from our strong Board of Directors and pending the outcome of the Annual General Meeting in May, I look forward to working together with Thomas von Koch as Chairman and Christian Kinch as a Senior Advisor to Bactiguard.
Financial results in line with expectations
The Q1 financial results are in line with our expectations following the strategic shift. We are on track to deliver cost savings from the transformation exceeding SEK 25 million on a yearly basis. Total cash flow for the period amounted to SEK -31.6 million, which relates primarily to increases in accounts receivable of SEK 16.0 million and investments of SEK 6.2 million. Accounts receivable as of the end of Q1 are attributable to invoiced and not overdue amounts with our long-standing partners. Investments relate to the new production and lab facilities in Markaryd, the move of the head office to Stockholm, and digital systems.
During Q1, we continued to strengthen our ties with Beckton Dickinson & Company (BD). The transition process is ongoing related to the agreement announced in December 2023 for additional markets for Bactiguard coated Foleys. During 2024, market demand for Bactiguard coated Foleys may be met by either BD or Bactiguard. Bactiguard obtained MDR approval for the coated silicone urinary catheter in Q1, which is an important milestone as this will support BD's go-to-market strategy in Europe. Revenues from the BD partnership were stable at SEK 28.0 million for Q1 (Q1 2023: SEK 36.3 million) and we remain confident about its potential.
The collaboration with Zimmer Biomet is making progress and revenues for Q1 amounted to SEK 3.2 million (Q1 2023: SEK 1.8 million). Following the launch in 2023 of the trauma nail ZNN Bactiguard across the European markets, the demand continues to increase, however uptake is at a slower pace than originally expected. Zimmer Biomet has informed us that there is a strong interest among clinicians and the need for infection prevention is clearly getting attention. In addition, ZNN Bactiguard is expected to be launched in Japan late Q2.
In our efforts to provide better financial transparency on progress in partnerships with our infection prevention technology, as of Q1 2024 we will divide revenues into license partnerships, exclusivity partnerships and application development partnerships. In addition, we will report Wound Management and the BIP portfolio separately. For BIP, revenues in Q1 were positively impacted by the phase-out sales and amounted to SEK 6.0 million (Q1 2023: SEK 5.1 million). For the Wound Management business, revenues for Q1 came in at SEK 12.7 million (Q1 2023: SEK 11.2 million).
Outlook – 2024 characterized by transition
While the strategic transformation has been concluded, 2024 will be characterized by transition and still be influenced by the Foley market transfer to BD and other out-licensing activities. Our dialogue with various parties to license out Bactiguard's central venous catheters and endotracheal tubes continues but, as previously stated, we expect this to have limited impact in 2024. In the dental area, conversations are ongoing with leading dental organizations and interest remains strong thanks to the clinical evidence supporting the efficacy of our technology.
With the license-focused strategy, both revenues and margins are expected to increase as we expand our infection technology through partnerships. I am fully aware of the challenges Bactiguard has had in the past. Our top priority ahead is to truly seize the USD 80 billion opportunity presented within the strategic therapeutic areas we have defined as key for our infection prevention technology. We are set to scale up in a cost-effective manner and create profitable and sustainable growth for the new Bactiguard.
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. Zimmer Biomet (their broader orthopedics portfolio) is an example of an exclusivity partner.
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.
Development in the first quarter
Revenue
| Jan-Mar | RTM | ||||
|---|---|---|---|---|---|
| MSEK | 2024 | 2023 | 2023 | 2023/24 | |
| Total license revenue | 35.1 | 39.4 | 117.2 | 113.0 | |
| License partners | 32.4 | 37.7 | 104.3 | 99.1 | |
| Exclusivity partners | 2.6 | - | 9.7 | 12.3 | |
| Application development partners | 0.1 | 1.7 | 3.2 | 1.6 | |
| Wound Management portfolio | 12.7 | 11.2 | 53.8 | 55.4 | |
| BIP portfolio | 6.0 | 5.1 | 30.5 | 31.5 | |
| Net sales | 53.9 | 55.6 | 201.5 | 199.8 | |
| Other operating revenues | 4.9 | 5.5 | 21.6 | 21.0 | |
| Total revenue | 58.8 | 61.2 | 223.2 | 220.8 |
Total revenue for the first quarter amounted to SEK 58.8 (61.2) million, a decrease of SEK 2.4 million, corresponding to 3.9 percent. Adjusted for currency effects of SEK 3.0 million, revenue decreased by 8.8 percent.
Net sales amounted to SEK 53.9 (55.6) million, a decrease of SEK 1.7 million, corresponding to 3.1 percent. Adjusted for currency effects of SEK 0.2 million, net sales decreased by 3.5 percent.
Total license revenue amounted to SEK 35.1 (39.4) million, a decrease of SEK 4.2 million, corresponding to 10.8 percent. Adjusted for currency effects of SEK 0.2 million, license revenues decreased by 11.2 percent. Revenues from Becton Dickinson & Company (BD) amounted to SEK 28.0 (36.3) million, a decrease of SEK 8.2 million, corresponding to 22.7 percent. Adjusted for currency effects of SEK 0.2 million, revenues from BD decreased by 23.1 percent. Revenues from Zimmer Biomet amounted to SEK 3.2 (1.8) million, an increase of SEK 1.4 million.
Revenues from license partners amounted to SEK 32.4 (37.7) million, a decrease of SEK 5.3 million, corresponding to 13.9 percent. Adjusted for currency effects of SEK 0.2 million, revenues from license partners decreased by 14.4 percent.
Revenues from exclusivity partners amounted to SEK 2.6 (0.0) million, an increase of SEK 2.6 million.
Revenues from application development partners amounted to SEK 0.1 (1.7) million, a decrease of SEK 1.6 million, corresponding to 92.3 percent with and without currency effects.
Revenues from Wound Management portfolio amounted to SEK 12.7 (11.2) million, an increase of SEK 1.6 million, corresponding to 14.0 percent with and without currency effects.
Revenues from the BIP portfolio amounted to SEK 6.0 (5.1) million, an increase of SEK 1.0 million, corresponding to 18.7 percent. Adjusted for currency effects of SEK 0.1 million, revenues from the BIP portfolio increased by 17.6 percent. The BIP portfolio revenue growth is mainly due to the portfolio's end-of-life sales.
Other revenues amounted to SEK 4.9 (5.5) million, a decrease of SEK 0.6 million, corresponding to 11.7 percent. Currency effects amounted to SEK 2.8 (3.6) million and the remaining revenue primarily relates to rent income.
Result
Costs for raw materials and consumables for the first quarter amounted to SEK -11.5 (-14.1) million, a decrease of SEK 2.7 million, corresponding to 18.9 percent. Other external costs amounted to SEK -18.8 (-23.1) million, a decrease of SEK 4.3 million, corresponding to 18.7 percent. Personnel costs amounted to SEK -29.4 (-26.9) million, an increase of SEK 2.5 million, corresponding to 9.4 percent. Other operating expenses are related to currency exchange losses/gains, which amounted to SEK -0.7 (-3.7) million. In total operating expenses (OPEX) amounted to SEK -48.8 (-53.6) million, a decrease of SEK 4.8 million, corresponding to 8.9 percent.
The operating loss amounted to SEK 12.9 (18.7) million, a decrease of SEK 5.8 million, corresponding to 31.2 percent.
EBITDA for the first quarter amounted to SEK -1.5 (-6.6) million, an increase of SEK 5.1 million. EBITDA margin was -2.6 (-10.8) percent.
Depreciation and amortisation amounted to SEK -11.4 (-12.1) million, a decrease of SEK 0.7 million, corresponding to 6.0 percent. Amortization of intangible assets amounted to SEK -6.8 (-8.3) million, attributable primarily to amortization of SEK -6.4 (-6.4) million related to Bactiguard's technology. Depreciation of fixed assets amounted to SEK -4.5 (-3.8) million, primarily attributable to depreciation on leasing of SEK -3.6 (-2.8) million.
Financial items amounted to SEK 0.7 (-3.7) million. Financial income amounted to SEK 4.5 (1.9) million which pertained mainly to exchange rate effects. Financial expenses amounted to SEK -3.9 (-5.6) million which mainly pertained to interest expenses of SEK -3.6 (-2.9) million.
Tax for the period amounted to SEK 0.0 (0.2) million. Change in deferred tax amounted to SEK 2.3 (0.1) 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 first quarter of 2024 amounted to SEK 9.9 (22.1) million.
Cash flow
Cash flow from operating activities for the quarter amounted to SEK -19.1 (-7.7) million. This is mainly attributable to change in working capital of SEK -11.3 (4.9) million, including change in accounts receivable of SEK -16.0 (7.0) million, driven by outstanding amounts, yet not overdue in the quarter, with our long-standing partners.
Cash flow from investing activities amounted to SEK -6.2 (-1.2) million. This is mainly attributable to investments in tangible assets of SEK -6.2 (-0.7) million, including investments in our new sites and digital systems.
Cash flow from financing activities for the quarter amounted to SEK -6.3 (-3.0) million. This is mainly attributable to amortization of loan of SEK -3.8 (-0.2) million.
Cash flow for the quarter amounted to SEK -31.6 (-11.8) million. Cash and cash equivalents at the end of the period of 31 March 2024 amounted to SEK 95.8 (186.6) million.
Financial position
Equity on 31 March 2024 amounted to SEK 343 (473) million and net debt to SEK 146 (55) million. The parent company has a credit facility with SEB with a term until May 2025. On 31 March 2024 that credit facility amounted to SEK 171 (171) million. As of 31 March 2024, the overdraft facility from SEB of SEK 30 million was unutilized. Foreign subsidiaries had credit facilities amounting to SEK 3.3 (9.4) million as of 31 March 2024. Total assets on 31 March 2024 amounted to SEK 669 (786) million.
Employees
Full-time equivalents in the Group during the period January to March averaged to 196 (214) of which 119 (135) are women. On 31 March 2024, the number of full-time equivalents was 191.
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 72.4 (74.0) on 31 March 2024 and the market capitalization amounted to SEK 2,537 (2,593) million.
The share capital in Bactiguard on 31 March 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 March 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 |
|---|---|---|---|---|---|
| Thomas von Koch and company* | 2,000,000 | 4,443,787 | 6,443,787 | 18.4 | 34.4 |
| Christian Kinch with family and company | 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 Investment Funds | 3,524,877 | 3,524,877 | 10.1 | 5.0 | |
| The Fourth Swedish National Pension Fund | 3,370,992 | 3,370,992 | 9.6 | 4.7 | |
| Handelsbanken Fonder | 2,267,593 | 2,267,593 | 6.5 | 3.2 | |
| SEB Life International Assurance* | 1,864,884 | 1,864,884 | 5.3 | 2.6 | |
| AMF - försäkring och fonder | 1,706,340 | 1,706,340 | 4.9 | 2.4 | |
| Avanza Pension | 1,144,711 | 1,144,711 | 3.3 | 1.6 | |
| Lancelot Avalon Master | 491,042 | 491,042 | 1.4 | 0.7 | |
| Total, major shareholders | 4,000,000 | 26,598,702 | 30,598,702 | 87.3 | 93.7 |
| Total, others | 4,445,183 | 4,445,183 | 12.7 | 6.3 | |
| Total number of shares | 4,000,000 | 31,043,885 | 35,043,885 | 100.0 | 100.0 |
* Of which 1,785,384 of SEB Life International Assurance relates to capital insurance for companies controlled by Thomas von Koch. Note that these do not have voting rights.
Per 31 March 2024 Bactiguard had 3,260 (3,585) shareholders.
Key events
Key events during the quarter
Christine Lind appointed new CEO.
Agreement with Dentsply Sirona not to pursue the application development project further due to changed priorities at Dentsply Sirona.
Hydrocyn aqua received approval from the Central Drugs Standard Control Organization (CDSCO) to start commercialization in India.
Bactiguard obtained MDR approval for the coated silicone urinary catheter, which will support BD's go-to-market strategy in Europe.
Key events after the end of the quarter
Christine Lind assumed the role as CEO per 12 April 2024, just over a month earlier than previously communicated.
The Nomination Committee announced ahead of the Annual General Meeting 2024 that Christian Kinch will assume a role as Senior Advisor to Bactiguard and has declined re-election to the Board of Directors. Thomas von Koch is suggested to be re-elected as Chairman of the Board of Directors.
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.
Growth
Net sales in excess of SEK 1,000 million.
Profitability EBITDA of SEK 500 million.
Application areas
10 application areas in license partnership with products in the market.
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 received 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.
Inflation and higher prices on electricity for instance affect the company negatively and it is not always possible to change the price to the customers, all of which can affect the financial position negatively. The high inflation has caused the interest rates to rise, which will negatively impact 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
| Jan-Mar | RTM | |||
|---|---|---|---|---|
| TSEK Note |
2024 | 2023 | 2023 | 2023/24 |
| Revenues 1 |
||||
| Net sales | 53,926 | 55,648 | 201,545 | 199,824 |
| Other operating revenue | 4,867 | 5,511 | 21,628 | 20,985 |
| Sum | 58,793 | 61,159 | 223,174 | 220,809 |
| Change in inventory of finished goods and products in progress | 28 | - | 1,000 | 1,028 |
| Capitalized production | - | - | 563 | 563 |
| Raw materials and consumables | -11,475 | -14,146 | -65,572 | -62,901 |
| Other external expenses | -18,751 | -23,053 | -97,854 | -93,552 |
| Personnel costs | -29,375 | -26,858 | -123,456 | -125,973 |
| Depreciation and amortization | -11,366 | -12,090 | -55,865 | -55,141 |
| Other operating expenses | -721 | -3,719 | -13,923 | -10,925 |
| Sum | -71,660 | -79,866 | -355,107 | -346,901 |
| Operating profit/loss | -12,867 | -18,707 | -131,933 | -126,093 |
| Profit/loss from financial items | ||||
| Financial income | 4,536 | 1,945 | 13,428 | 16,019 |
| Financial expenses | -3,869 | -5,634 | -28,649 | -26,884 |
| Sum | 667 | -3,690 | -15,221 | -10,865 |
| Profit/loss before tax | -12,200 | -22,396 | -147,154 | -136,958 |
| Current tax | - | 169 | -136 | -306 |
| Deferred tax | 2,299 | 128 | 8,908 | 11,077 |
| NET PROFIT/LOSS FOR THE PERIOD | -9,901 | -22,099 | -138,382 | -126,187 |
| Attributable to: | ||||
| The parent company´s shareholders | -9,901 | -22,099 | -138,382 | -126,187 |
| Earnings per share, before and after dilution, SEK | -0.28 | -0.63 | -3.95 | -3.60 |
| Condensed statement of comprehensive income | ||||
| Net profit/loss for the period | -9,901 | -22,099 | -138,382 | -126,187 |
| 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 | 127 | -386 | -4,149 | -3,636 |
| Other comprehensive income, after tax | 127 | -386 | -4,149 | -3,636 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | -9,774 | -22,485 | -142,531 | -129,823 |
| Attributable to: | ||||
| The parent company´s shareholders | -9,774 | -22,485 | -142,531 | -129,823 |
| 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 2024-03-31 | 2023-03-31 | 2023-12-31 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Intangible fixed assets | |||
| Goodwill | 249,091 | 250,254 | 248,103 |
| Technology | 66,903 | 92,487 | 73,304 |
| Brands | 25,691 | 25,840 | 25,729 |
| Customer relationships | 4,740 | 6,211 | 5,107 |
| Capitalized development expenditure | 2,953 | 12,091 | 2,953 |
| Patents | 1,244 | 1,303 | 1,345 |
| Sum | 350,622 | 388,186 | 356,541 |
| Tangible assets | |||
| Right of use lease assets | 62,567 | 58,780 | 50,426 |
| Buildings | 23,739 | 14,937 | 13,766 |
| Improvements, leasehold | 8,913 | 5,718 | 4,991 |
| Machinery and other technical plant | 6,886 | 17,749 | 15,583 |
| Equipment, tools and installations | 10,200 | 5,604 | 9,092 |
| Sum | 112,305 | 102,788 | 93,858 |
| Financial assets | |||
| Other non-current accounts receivable | 3,053 | 1,299 | 2,885 |
| Sum | 3,053 | 1,299 | 2,885 |
| Deferred tax assets | 11,735 | 1,901 | 10,763 |
| Total non-current assets | 477,715 | 494,174 | 464,047 |
| Current assets | |||
| Inventories | 29,337 | 43,045 | 29,646 |
| Accounts receivable | 33,647 | 39,970 | 17,249 |
| Other current receivables 2 |
10,382 | 8,479 | 8,118 |
| Prepaid expenses and accrued income | 22,508 | 13,206 | 19,898 |
| Cash and cash equivalents | 95,839 | 186,648 | 123,217 |
| Total current assets | 191,713 | 291,348 | 198,127 |
| TOTAL ASSETS | 669,428 | 785,522 | 662,174 |
| EQUITY AND LIABILITIES | |||
| Equity attributable to shareholders of the parent | |||
| Share capital | 876 | 876 | 876 |
| Translation reserve | -728 | 2,908 | -855 |
| Other capital | 930,680 | 930,680 | 930,680 |
| Retained earnings including net profit for the period | -587,424 | -461,240 | -577,523 |
| Total equity | 343,404 | 473,224 | 353,178 |
| Non-current liabilities | |||
| Liabilities to credit institutions | 170,940 | 179,220 | - |
| Leasing liability | 50,668 | 50,629 | 42,306 |
| Provisions | 5,257 | - | 5,257 |
| Other long-term liabilities | 125 | - | 28 |
| Total non-current liabilities | 226,990 | 229,849 | 47,590 |
| Current liabilities | |||
| Liabilities to credit institutions | 3,870 | - | 178,569 |
| Leasing liability | 16,051 | 12,155 | 12,224 |
| Accounts payable | 19,757 | 30,491 | 16,695 |
| Provisions | 9,568 | - | 10,256 |
| Other current liabilities 2 |
3,004 | 5,743 | 4,570 |
| Accrued expenses and prepaid income | 46,784 | 34,060 | 39,093 |
| Total current liabilities | 99,034 | 82,449 | 261,406 |
| TOTAL LIABILITIES | 326,024 | 312,298 | 308,996 |
| TOTAL EQUITY AND LIABILITIES | 669,428 | 785,522 | 662,174 |
Group condensed statement of changes in equity
| Retained | |||||
|---|---|---|---|---|---|
| earnings | |||||
| including net | |||||
| TSEK | Share | Other | Reserves | profit for the | |
| capital | capital | period | Total equity | ||
| Opening balance 2023-01-01 | 876 | 930,680 | 3,294 | -439,141 | 495,709 |
| Adjustment of equity for previous year | |||||
| Net profit/loss for the period | -22,099 | -22,099 | |||
| Other comprehensive income: | |||||
| Translation differences | -386 | -386 | |||
| Total comprehensive income after tax | -386 | -22,099 | -22,485 | ||
| Closing balance 2023-03-31 | 876 | 930,680 | 2,908 | -461,240 | 473,224 |
| Opening balance 2024-01-01 | 876 | 930,680 | -855 | -577,523 | 353,178 |
| Net profit/loss for the period | -9,901 | -9,901 | |||
| Other comprehensive income: | |||||
| Translation differences | 127 | 127 | |||
| Total comprehensive income after tax | 127 | -9,901 | -9,774 | ||
| Closing balance 2024-03-31 | 876 | 930,680 | -728 | -587,424 | 343,404 |
Group condensed statement of cash flows
| Jan-Mar | Full year | RTM | ||||
|---|---|---|---|---|---|---|
| TSEK | Note | 2024 | 2023 | 2023 | 2023/24 | |
| Net profit/loss for the period | -9,901 | -22,099 | -138,382 | -126,184 | ||
| Adjustments for depreciation and amortization and other non-cash items |
2,101 | 9,469 | 72,288 | 64,920 | ||
| Increase/decrease inventory | 1,178 | 456 | 8,252 | 8,974 | ||
| Increase/decrease accounts receivable | -15,987 | 7,020 | 28,455 | 5,448 | ||
| Increase/decrease other current receivables | -5,044 | -1,355 | -10,450 | -14,139 | ||
| Increase/decrease accounts payable | 3,063 | -3,245 | -17,127 | -10,819 | ||
| Increase/decrease other current liabilities | 5,535 | 2,067 | 4,632 | 8,100 | ||
| Cash flow from changes in working capital | -11,256 | 4,943 | 13,762 | -2,437 | ||
| Cash flow from operating activities | -19,056 | -7,687 | -52,331 | -63,701 | ||
| Investments in intangible assets | - | -424 | -1,420 | -996 | ||
| Investments in tangible assets | -6,225 | -735 | -7,189 | -12,679 | ||
| Cash flow from investing activities | -6,225 | -1,159 | -8,609 | -13,674 | ||
| Amortization of financial leasing liability | -2,575 | -3,839 | -11,139 | -9,875 | ||
| Amortization of loan | -3,759 | -159 | -696 | -4,296 | ||
| Change in bank overdraft | - | 922 | - | -922 | ||
| Other financing activities | - | 74 | - | -74 | ||
| Cash flow from financing activities | -6,334 | -3,002 | -11,835 | -15,167 | ||
| Cash flow for the period | -31,615 | -11,848 | -72,775 | -92,542 | ||
| Cash and cash equivalents at the beginning of the period | 123,217 | 197,727 | 197,727 | 186,648 | ||
| Exchange difference in cash and cash equivalents | 4,237 | 770 | -1,735 | 1,731 | ||
| Cash and cash equivalents at end of period | 95,839 | 186,648 | 123,217 | 95,839 |
Condensed parent company income statement
| Jan-Mar | 2023 | 2023/24 | ||
|---|---|---|---|---|
| TSEK Note |
2024 | 2023 | Full year | RTM |
| Net sales | - | 846 | 3,062 | 2,216 |
| Sum | - | 846 | 3,062 | 2,216 |
| Other external expenses | -1,841 | -733 | -3,176 | -4,284 |
| Personnel costs | -783 | -886 | -3,295 | -3,192 |
| Sum | -2,624 | -1,620 | -6,471 | -7,476 |
| Operating profit/loss | -2,624 | -774 | -3,409 | -5,260 |
| Interest income and similar profit/loss items | 5,461 | 4,067 | 19,625 | 21,019 |
| Interest expenses and similar profit/loss items | -3,175 | -2,524 | -12,016 | -12,667 |
| Sum | 2,286 | 1,544 | 7,609 | 8,352 |
| Income after financial items | -338 | 770 | 4,200 | 3,092 |
| Deferred tax | - | - | 10 | 10 |
| Net profit/loss for the period | -338 | 770 | 4,210 | 3,102 |
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 |
2024-03-31 | 2023-03-31 | 2023-12-31 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Financial assets | |||
| Shares in subsidiaries | 575,191 | 481,191 | 575,191 |
| Receivables from group companies | 363,791 | 381,838 | 368,803 |
| Deferred tax assets | 15,255 | 15,255 | 15,255 |
| Total non-current assets | 954,237 | 878,283 | 959,249 |
| Current assets | |||
| Current receivables | |||
| Other current receivables | 180 | 31 | 1,639 |
| Prepaid expenses and accrued income | 37,963 | 17,914 | 32,806 |
| Sum | 38,143 | 17,945 | 34,445 |
| Cash and bank balances | 1,512 | 1,811 | |
| Total current assets | 41,531 | 19,457 | 36,256 |
| TOTAL ASSETS | 995,768 | 897,740 | 995,506 |
| EQUITY & LIABILITIES | |||
| Equity | |||
| Restricted equtiy | |||
| Share capital | 876 | 876 | 876 |
| Total restricted equity | 876 | 876 | 876 |
| Non-restricted equity | |||
| Retained earnings | -29,347 | 694,413 | 694,413 |
| Non-restricted share premium | 727,969 | 0 | 0 |
| Net profit/loss for the period | -338 | 770 | 4,210 |
| Total non-restricted equity | 698,284 | 695,183 | 698,623 |
| Total equity | 699,160 | 696,059 | 699,499 |
| Non-current liabilities | |||
| Liabilities to credit institutions | 170,941 | 170,941 | - |
| Total non-current liabilities | 170,941 | 170,941 | - |
| Current liabilities | |||
| Liabilities to credit institutions | - | - | 170,941 |
| Liabilities to group companies | 124,000 | 30,000 | 124,000 |
| Accounts payable | 320 | 40 | 86 |
| Other current liabilities | 107 | 369 | 407 |
| Accrued expenses and prepaid income | 1,240 | 331 | 572 |
| Total current liabilities | 125,667 | 30,740 | 296,007 |
| Total liabilities | 296,608 | 201,681 | 296,007 |
| Total equity and liabilities | 995,768 | 897,740 | 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.
| Jan-Mar | Full year | RTM | |||
|---|---|---|---|---|---|
| TSEK | 2024 | 2023 | 2023 | 2023/24 | |
| Operating profit/loss | -12,867 | -18,707 | -131,933 | -126,094 | |
| Depreciation | 11,366 | 12,090 | 55,865 | 55,141 | |
| EBITDA | -1,501 | -6,617 | -76,068 | -70,953 |
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.
| Jan-Mar | Full year | RTM | |||
|---|---|---|---|---|---|
| TSEK | 2024 | 2023 | 2023 | 2023/24 | |
| EBITDA | -1,501 | -6,617 | -76,068 | -70,953 | |
| Revenues | 58,793 | 61,159 | 223,174 | 220,809 | |
| EBITDA margin % | -2.6 | -10.8 | -34.1 | -32.1 |
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-Mar | |||
|---|---|---|---|
| TSEK | 2024 | 2023 | 2023 |
| Non-current liabilities to credit institutions | 170,940 | 179,220 | - |
| Current liabilities to credit institutions | 3,870 | - | 178,569 |
| Short-term lease debt | 50,668 | 50,629 | 42,306 |
| Long-term lease debt | 16,051 | 12,155 | 12,224 |
| Interest-bearing debt | 241,529 | 242,004 | 233,099 |
| Cash and cash equivalents | -95,839 | -186,648 | -123,217 |
| Net debt | 145,690 | 55,356 | 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-Mar | Full year | ||
|---|---|---|---|
| TSEK | 2024 | 2023 | 2023 |
| Equity | 343,404 | 473,224 | 353,178 |
| Balance sheet total | 669,428 | 785,522 | 662,174 |
| Equity ratio, % | 51.3 | 60.2 | 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
| Jan-Mar | RTM | ||||
|---|---|---|---|---|---|
| TSEK | 2024 | 2023 | 2023 | 2023/24 | |
| License partners | 32,424 | 37,678 | 104,322 | 99,070 | |
| Exclusivity partners | 2,591 | - | 9,710 | 12,302 | |
| Application development partners | 131 | 1,706 | 3,163 | 1,588 | |
| Wound Management portfolio | 12,733 | 11,170 | 53,817 | 55,380 | |
| BIP portfolio | 6,046 | 5,094 | 30,533 | 31,485 | |
| Sum | 53,926 | 55,648 | 201,545 | 199,824 | |
| Time for revenue recognition | |||||
| Performance commitment is met at a certain time | 51,203 | 53,942 | 188,672 | 185,935 | |
| Performace commitment is met during a period of time | 2,722 | 1,706 | 12,873 | 13,890 | |
| Sum | 53,926 | 55,648 | 201,545 | 199,824 |
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 group holds derivative instruments for foreign exchange contracts which are recognized at fair value through profit or loss, considering the current exchange rate on the foreign exchange market and the remaining maturity of respective instruments.
| 2024 | 2023 | 2023 | |
|---|---|---|---|
| TSEK | 2024-03-31 | 2023-03-31 | 2023-12-31 |
| Derivatives (Level 2) Derivatives (Level 2) Derivatives (Level 2) | |||
| Assets | |||
| Other current receivables | - | - | - |
| Liabilities | |||
| Other current liabilities | - | 142 | - |
Quarterly information
| TSEK | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | RTM 23/24 |
|---|---|---|---|---|---|---|---|
| License partners | 32,424 | 29,544 | 17,960 | 19,140 | 37,678 | 39,856 | 99,070 |
| Exclusivity partners | 2,591 | 2,639 | 2,696 | 4,376 | - | 787 | 12,302 |
| Application development partners | 131 | - | 153 | 1,304 | 1,706 | 5,703 | 1,588 |
| Wound Management portfolio | 12,733 | 13,917 | 17,501 | 11,229 | 11,170 | 9,823 | 55,380 |
| BIP portfolio | 6,046 | 10,152 | 7,148 | 8,139 | 5,094 | 5,106 | 31,485 |
| Other operating revenues | 4,867 | 5,083 | 4,029 | 7,006 | 5,511 | 10,901 | 20,985 |
| Total revenue | 58,793 | 61,334 | 49,486 | 51,194 | 61,159 | 72,175 | 220,809 |
| EBITDA | -1,501 | -4,242 | -9,529 | -55,681 | -6,617 | -1,118 | -70,953 |
| EBITDA margin (%) | -2.6 | -6.9 | -19.3 | -108.8 | -10.8 | -1.5 | -32.1 |
| EBIT | -12,867 | -23,791 | -21,592 | -67,844 | -18,707 | -13,300 | -126,094 |
| Net profit/loss for the period | -9,901 | -27,218 | -24,602 | -64,464 | -22,099 | -14,178 | -126,185 |
| Earnings per share, before and | |||||||
| after dilution, SEK | -0.28 | -0.78 | -0.70 | -1.84 | -0.63 | -0.40 | -3.60 |
| Operating cash flow | -19,056 | 10,110 | -35,008 | -19,746 | -7,687 | 6,963 | -63,701 |
| Operating cash flow per share, SEK | -0.54 | 0.29 | -1.00 | -0.56 | -0.22 | 0.20 | -1.82 |
| Net debt | 145,690 | 109,882 | 111,533 | 75,794 | 55,356 | 40,972 | 145,690 |
| 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 25 April 2024
Christian Kinch Thomas von Koch Chairman of the Board Board Member
Richard Kuntz Anna Martling Board Member Board Member
Magdalena Persson Jan Ståhlberg Board Member Board Member
Christine Lind CEO
The interim report is not 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 above on 25 April 2024, at 08.00 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
16 July 2024 Half-year report 1 April – 30 June 2024 24 October 2024 Interim report 1 July – 30 September 2024
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