Quarterly Report • Nov 2, 2022
Quarterly Report
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Interim Report January - September 2022
HumanKind Unlimited
* See definitions on pages 20-21.
| Quarter | Interim period | ||||
|---|---|---|---|---|---|
| Amounts in MSEK | 7/1/2022 9/30/2022 |
7/1/2021 9/30/2021 |
1/1/2022 9/30/2022 |
1/1/2021 9/30/2021 |
1/1/2021 12/31/2021 |
| Net sales | 401 | 305 | 1,182 | 890 | 1,232 |
| Change, % | 31.2% | 16.3% | 32.7% | 12.1% | 12.7% |
| of which: | |||||
| - Organic growth, % | 12.2% | 17.8% | 16.0% | 20.3% | 17.5% |
| - Currency effects, % | 15.2% | -1.5% | 12.7% | -8.2% | -5.7% |
| - Acquisitions/divestments, % | 3.8% | - | 4.0% | - | 0.9% |
| Gross profit | 241 | 183 | 721 | 543 | 755 |
| Gross margin, % | 60.1% | 60.0% | 61.1% | 61.0% | 61.3% |
| Operating profit (EBIT) | 97 | 68 | 286 | 210 | 271 |
| Operating margin (EBIT), % | 24.2% | 22.3% | 24.2% | 23.6% | 22.0% |
| Adjusted operating profit (EBIT) | 102 | 71 | 301 | 213 | 283 |
| Adjusted operating margin (EBIT), % | 25.5% | 23.1% | 25.5% | 23.9% | 23.0% |
| EBITA | 104 | 71 | 307 | 217 | 284 |
| EBITA margin, % | 26.0% | 23.1% | 26.0% | 24.4% | 23.1% |
| Adjusted EBITA | 110 | 73 | 323 | 220 | 296 |
| Adjusted EBITA margin, % | 27.3% | 23.9% | 27.3% | 24.7% | 24.0% |
| Profit for the period | 65 | 53 | 194 | 159 | 205 |
| Earnings per share, SEK, after dilution Summa Just EBITA 35 737 |
0.98 49 847 56 082 |
0.81 66 977 40 508 |
2.93 64 101 27 193 |
2.44 63 166 |
3.13 62 212 81 728 |
| Summa Just EBITA 35 737 Cashflow from operating activities Adj EBITA margin Adj EBITA margin kv 15,2% |
49 847 56 082 97 20,1% 19,9% |
66 977 89 23,7% 14,0% |
40 508 64 101 242 23,1% 10,7% |
27 193 63 166 249 24,1% |
62 212 81 728 353 20,9% 29,0% |
Interim Report January - September 2022 | 3
Kvartal produktområde
Kvartal produktområde
Q3 2021 Q3 2022 Growth
Last twelve
months
Biotage reached another historic milestone when our sales exceeded SEK 400 million for the first time in a single quarter. We continued to grow faster than the market and broke new sales records for the sixth consecutive quarter. And we did it with continued good margins.
For the third quarter of the year, we achieved a new record for net sales of SEK 401 m (305). The fact that we managed to exceed SEK 400 million for a single quarter is due to the combination of good performance throughout the Group and the tailwinds of currency effects. We continued to show good cost discipline, with an adjusted EBITA margin of 27.3% (23.9%) for the quarter, despite a turbulent environment and ongoing challenges in the supply chain.
One important factor to why we are growing faster than the market is that we conduct our business in a customer-focused and proactive manner. This gives us the conditions to meet the rapid changes that our customers and we ourselves must constantly deal with. Risk management is constantly high on our agenda. We are looking at both how we can tackle the acute impact of events in the world around us and the long-term consequences they can have. The prevailing energy crisis and inflationary pressure are affecting our current costs and continue to present operational challenges. We work in a disciplined, smart and methodical way with everything we have control over in order to continue to meet our customers' needs. So far, we have been able to manage supply chain challenges well, thanks to a strong team and a solid effort. However, our ability to meet customers' needs despite disruptions in the supply chain has a direct impact on both costs and increased tied-up capital.
All three of our customer focus areas show strong growth compared to the same period last year: White Tech with customers in research, development and manufacturing of pharmaceuticals and vaccines, Red Tech with a focus on diagnostic companies and clinical, forensic and doping laboratories, and Blue &
Green Tech with a focus on environmental, water and food laboratories. Overall, our organic growth in the third quarter of the year was 12.2%. We grew double digits for the eighth consecutive quarter, and organic growth for the entire period from January to September was 16.0%.
Broken down by geographical markets, I am pleased to report that Americas continued its fantastic development with a new record quarter and sales growth of 40% compared with the third quarter of 2021 (13.7% organic growth). China also had a very strong quarter, and both EMEA and South Korea showed double-digit growth.
To better serve the ASEAN region, Biotage has now established a new office in Singapore. This follows our strategy of being as close to our customers as possible, both to provide them with better service and support and to gain local insights that help us develop our products and solutions in the right way.
If we look at our various product areas, Biologics & Advanced Therapeutics stood out with sales growth of 70.7% (34.9% organic growth) driven by sales in the Americas of our Biotage® PhyPrep automated plasmid purification system. Recently, we invested in expansion in this area by expanding our operations in San Jose, California. We are now continuing to focus on further strengthening our position in this attractive niche. Strong growth was also noted for Analytical Testing, with 49.3% (29.6% organic growth). Sales success of, among other things, our recently launched Biotage® Extrahera HV contributed to the good development. Water & Environmental Testing also grew during the quarter by 32.2 percent (12.2% organic growth).
Large-scale vaccine production that was rapidly expanded to meet new needs as a result of the COVID-19 mass vaccinations brought Biotage new business opportunities and strong growth in the Scale Up product area. As the pandemic subsides and there are fewer investments in vaccinations, Biotage's sales in this particular
application of our Scale Up products also decline. The fact that Biotage is still able to deliver another record-breaking quarter shows the strength of our business model. Our business rests on several legs and we are committed to creating new revenue streams through a constant search for new niches where we can help streamline our customers' workflows.
Our solutions also contribute to reducing customers' use of solvents and thereby to production that takes greater care of the environment. At our own manufacturing unit in Cardiff, Wales, we continue to optimize production processes in order to further reduce the amount of solvent use. We are accelerating efforts to establish relevant data on our environmental and climate impacts across the Group. In this way, we can establish a starting point for future improvements and obtain better data for our sustainability reporting.
To summarize, we have had a formidable journey so far this year, despite a turbulent world, an inflation crisis and supply chain pressures. We continued to defend our gross margin and also showed strong cash flow in the third quarter of the year. It is difficult to predict the future in this rapidly changing world, but I can still confirm that Biotage has a healthy balance sheet and is well equipped for continued strategic investments in attractive niches with recurring sales.
Uppsala, November 2, 2022
Tomas Blomquist President and CEO
Net sales for the quarter amounted to SEK 401 (305) million, an increase of 31.2 percent with an organic growth of 12.2 percent. Americas was the largest market, with 44 (41) percent of net sales. EMEA accounted for 26 (28) percent and APAC for 30 (31) percent.
Net sales for the nine-month period amounted to SEK 1,182 (890) million, an increase of 32.7 percent and an organic growth of 16.0 percent.
The Group's gross margin for the quarter increased by 0.1 percentage points to 60.1 percent (60.0). Sales were distributed as follows: system sales 48 (48) percent and aftermarket products (consumables and service) 52 (52) percent. The gross margin for the nine-month period increased by 0.1 percentage points to 61.1 (61.0) percent.
Operating expenses for the quarter amounted to SEK -144 (-115) million, an increase of SEK 29 million. Distribution costs increased by SEK 22 million to SEK -93 (-71) million. Administrative expenses increased by SEK 5 million to SEK -34 (-29) million. Research and development expenses increased by SEK 9 million to SEK -28 (-19) million. Other operating items for the quarter were SEK 11 (4) million and consist primarily of currency effects on operating liabilities and receivables.
Operating expenses for the nine-month period amounted to SEK -436 (-333) million, an increase of SEK 103 million. Distribution costs increased by SEK 80 million to SEK -280 (-200) million, mainly because of increased activity due to markets opening again after shutdowns during the pandemic. Administrative expenses increased by SEK 18 million to SEK -99 (-81) million. Research and development expenses increased by SEK 16 million to SEK -78 (-62) million. Other operating items for the nine-month period were SEK 21 (10) million and consist primarily of currency effects on operating liabilities and receivables.
Operating profit for the quarter increased by SEK 29 million to SEK 97 (68) million and the operating margin (EBIT) increased by 1.9 percentage points to 24.2 (22.3) percent. Operating profit for the nine-month period increased to SEK 286 (210) million and the operating margin (EBIT) amounted to 24.2 (23.6) percent. Adjusted operating profit, operating profit adjusted for transaction costs and costs related to an additional purchase consideration relating to ATDBio, Ltd., amounted to SEK 102 (71) milllion and the adjusted operating margin amounted to 25.5 percent (23.1) for the quarter. For the nine-month period, the corresponding values were SEK 301 (213) million and 25.5 (23.9) percent, respectively.
EBITA for the quarter amounted to SEK 104 (71) million. Adjusted EBITA amounted to SEK 110 (73) million for the quarter. For the nine-month period, the corresponding values were SEK 307 (217) million and SEK 323 (220) million, respectively. See also Note 2.
Net financial items for the quarter amounted to SEK -12 (-2) million, and consisted primarily of interest expenses and currency effects from long-term intra-Group balances. Nine-month financial net was SEK-34 (-6) milion.
Profit after tax for the quarter increased by SEK 12 million to SEK 65(53) million. Recognized tax expense increased to SEK -20 (-13) million. Profit after tax for the nine-month period increased to to SEK 194 (159) million. Recognized tax expense for the nine-month period increased to SEK -58 (-45) million.
Cash flow from operating activities for the quarter increased by SEK 8 million to SEK 97 (89) million, primarily because of increasing profits. Cash flow from operating activities for the nine-month period decreased by SEK 7 million to SEK 242 (249) million.
Investments for the quarter amounted to SEK 17 (10) million and for the nine-month period to SEK 49 (45) million. Investments in property, plant and equipment were SEK 10 (4) million for the quarter, and SEK 26(17) million for the nine-month period, mostly investments into production facilitites in Cardiff, UK.
Investments in intangible assets were SEK 7 (6) million for the quarter and SEK 23 (27) million for the nine-month period. Capitalized development expenses accounted for SEK 7 (5) million of the investments in intangible assets during the quarter and SEK 6 (6) million of amortization. Corresponding amounts for the nine-month period were SEK 21 (25) million in invetsments and SEK 17 (17) million of amortizations.
Total depreciation and amortization for the quarter was SEK 25 (18) million, with SEK 4 million attributable to property, plant and equipment; SEK 6 million to amortization on rights-of-use assets and SEK 15 million to intangible assets. Total depreciation and amortization for the nine-month period was SEK 74 (54) million, with SEK 13 million attributable to property, plant and equipment; SEK 19 million to amortization on rights-of-use assets, and SEK 42 million to intangible assets.
The Group's cash & cash equivalents on September 30 were SEK 388 (311) million. Interest-bearing liabilities relate to borrowings of SEK 150 (150) million under a credit facility arranged in 2018, lease liabilities of SEK 47 (53) million, an estimated additional consideration of SEK 54 (46) million for the acquisition of PhyNexus, Inc. and other financial liabilities of SEK 2 (2) million. The net cash position was SEK 135 (61) million. See also Note 6.
The Group's total goodwill on September 30 amounted to SEK 804 (741) million, and is the result of acquisitions from 2010 onwards. The change is mostly attributable to exchange rate differences.
Capitalized development expenses amounted to SEK 133 (128) million and other intangible assets, mainly identified surplus values related to acquisitions, amounted to SEK 186 (185) million.
Equity amounted to SEK 1,599 (1,371) million on September 30. The change in equity is mainly attributable to net profit of SEK 194 million, currency effects of SEK 125 million on the translation of foreign subsidiaries, and dividend paid to the shareholders of SEK 102 million.
Balance sheet items in parentheses refer to figures on December 31, 2021.
The Group had 510 employees (full-time equivalents) on September 30, compared with 478 one year earlier, and 497 on December 31, 2021.
The Group's Parent Company, Biotage AB, has whollyowned subsidiaries in Sweden, the US, the UK, Germany, France, Italy, Switzerland, Japan, China, South Korea, India, and Singapore. The Parent Company is responsible for Group management, strategic business development and administrative functions at the Group and subsidiary levels.
The Parent Company's net sales for the quarter amounted to SEK 2 (1) million. Operating expenses were SEK -9 (-6) million. Operating loss was SEK -7 (-5) million. The nine-month revenue was SEK 5 (3) million and operating profit was SEK -20(-14) million.
The Parent Company's net financial items for the quarter amounted to SEK 12 (4) million. The nine-month financial net was SEK 362 (16) million and consisted mainly of dividends from subsidiaries.
Recognized tax for the quarter amounted to SEK -1 (0) million and SEK -1 (+1) million for the nine-month period. Profit after tax amounted to SEK 4 (-1) million for the quarter, and 341 (4) for the nine-month period.
Cash and bank balances on September 30 were SEK 1 (2) million.
No significant events have taken place during the reporting period.
No significant events have taken place since the end of the reporting period.
As an international Group, Biotage is exposed to various risks that affect its ability to achieve defined targets. These include operational risks, such as the risk of competitive situations affecting price levels and sales volumes, and the risk of economic instability in the markets and areas where the Group operates. There are also financial risks, which include currency risks, interest rate risks and credit risks.
There has been no significant change in material risks or uncertainties during the period, apart from the factors described below. Other risks are unchanged from the section on Biotage's risks, uncertainties and risk management in the Company's 2021 annual report.
The recovery continued during the quarter in many regions, after previous quarters' lockdowns in China and other places. As has been shown on several occasions, it is still too early to determine at what point the situation is normalized.
If the financial position of our customers weakens, this may also affect Biotage in terms of their ability to pay, which could lead not only to longer payment periods but also to eventual credit losses. Biotage has not been affected in this respect so far.
Biotage has a strong financial position, but if the pandemic's course is protracted, it may have an adverse effect on financially strong companies like Biotage. However, it is still too early to draw any conclusions about credit losses and impairment due specifically to the coronavirus pandemic. The same applies to general impairment of other asset classes. No general impairment due to the coronavirus pandemic has been identified to date.
Biotage has not made any staff reductions or lay-offs as a result of the coronavirus pandemic. Biotage has also not participated in any support programs other than reduced employer contributions in Sweden, China, the UK, and other countries.
Biotage is only affected to a lesser extent by the war in Ukraine in the short term, but it is too early to make a qualified assessment of the impact in the longer term. The war affects the global supply chain in general and it is likely that Biotage may also be affected.
The current energy crisis and inflationary pressure affect our cost picture at the moment and continue to have consequences that are difficult to see. We see price increases for important components and inputs, which could affect future profitability. Increasing energy costs also affect our shipping costs in the wrong direction with increasing fuel surcharges. How big the impact will be is uncertain, and may affect both profitability and capital tied up.
There were no significant transactions during the period other than transactions between subsidiaries and remuneration of senior executives of the Group and Parent Company. The amounts are essentially the same as in the most recent annual report.
This report contains forward-looking information based on management's current expectations. Although management believes that the expectations reflected in this forward-looking information are reasonable, no assurance can be given that these expectations will prove to be correct. Actual future outcomes may consequently vary significantly from those contained in this forwardlooking information due to factors such as changes to economic, market and competitive conditions, amended legal and regulatory requirements, other policy measures and exchange rate fluctuations.
This report has been reviewed by the Company's auditors.
A Nomination Committee consisting of members appointed by the three largest shareholders or group of shareholders and the Chairman of the Board of Directors has been formed for Biotage AB in accordance with the principles
adopted by the annual general meeting held on 28 April 2022. The Nomination Committee shall, before the Annual General Meeting 2023, prepare proposal for the election of Chairman and other members of the Board of Directors, the election of Chairman of the Annual General Meeting, election of Auditors, the determination of fees and matters pertaining thereto.
The members of the Nominations Committee are:
Torben Jørgensen, Chairman of the Board of Biotage AB, is an acting member of the Nomination Committee.
Shareholders wishing to submit a proposal to the Nomination Committee may do so by sending e-mail to the Chairman of the Board of Directors of Biotage AB at: [email protected]. Proposals should, in order to be timely assessed by the Nomination Committee, be submitted no later than seven weeks in advance of the meeting.
Unless otherwise indicated in this interim report, the Group is referred to.
Figures in parentheses indicate the outcome for the corresponding period in the previous year, apart from balance sheet items where they refer to the value on December 31 of the previous year. Unless otherwise stated, amounts are presented in SEK millions.
All financial reports are published on www.biotage.com
| Year-end Report 2022 | February 15, 2023 |
|---|---|
| Interim Report January-March 2023 | April 27, 2023 |
| Annual General Meeting 2023 | April 27, 2023 |
| The Annual Report for 2022 is planned to be published |
week 14, 2023 |
| Interim Report January-June 2023 | July 17, 2023 |
| Interim Report January-September 2023 | October 25, 2023 |
| Year-end Report 2023 | February 15, 2024 |
This document has been prepared in Swedish and English versions. In the event of any discrepancies between the versions, the Swedish version will take precedence.
Tomas Blomquist, President and CEO phone: +46 705 23 01 63 Maja Nilsson, CFO
phone: +46 733 25 51 70
This information is information that Biotage AB (publ) is required to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act.
The information was submitted for publication, through the agency of the contact persons set out above, on November 2, 2022 at 15.00 CET.
The interim report for Biotage AB (publ) has been issued by the Company's President and CEO Tomas Blomquist after authorization by the Board of Directors.
Uppsala, November 2, 2022
Tomas Blomquist President and CEO
| Amounts in SEK million |
7/1/2022 9/30/2022 |
7/1/2021 9/30/2021 |
1/1/2022 9/30/2022 |
1/1/2021 9/30/2021 |
1/1/2021 12/31/2021 |
|---|---|---|---|---|---|
| Net sales | 401 | 305 | 1 ,182 | 890 | 1,232 |
| Cost of sales | -160 | -122 | -460 | -347 | -477 |
| Gross profit | 241 | 183 | 721 | 543 | 755 |
| Distribution costs | -93 | -71 | -280 | -200 | -287 |
| Administrative expenses | -34 | -29 | -99 | -81 | -117 |
| Research & development expenses |
-28 | -19 | -78 | -62 | -91 |
| Other operating items | 11 | 4 | 21 | 10 | 11 |
| Total operating expenses |
-144 | -115 | -436 | -333 | -483 |
| Operating profit | 97 | 68 | 286 | 210 | 271 |
| Net financial items | -12 | -2 | -34 | -6 | -2 |
| Profit before tax | 85 | 66 | 252 | 204 | 269 |
| Income tax | -20 | -13 | -58 | -45 | -64 |
| Profit for the period | 65 | 53 | 194 | 159 | 205 |
| 7/1/2022 9/30/2022 |
7/1/2021 9/30/2021 |
1/1/2022 9/30/2022 |
1/1/2021 9/30/2021 |
1/1/2021 12/31/2021 |
|
|---|---|---|---|---|---|
| Average number of shares outstanding |
65,983,775 | 65,201,784 | 65,983,775 | 65,201,784 | 65,355,239 |
| Average number of shares outstanding after dilution due to outstanding share programs |
66,194,634 | 65,345,460 | 66,179,040 | 65,281,082 | 65,464,807 |
| Ordinary shares outstanding at the reporting date |
65,983,775 | 65,201,784 | 65,983,775 | 65,201,784 | 65,983,775 |
| Earnings per share for the period |
0.99 | 0.81 | 2.94 | 2.44 | 3.13 |
| Diluted earnings per share for the period |
0.98 | 0.81 | 2.93 | 2.44 | 3.13 |
| Items that may be reclassified to profit or loss for the year: | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Exchange differences from translation of foreign subsidiaries |
48 | 15 | 125 | 34 | 67 | ||||
| Total other comprehensive income |
48 | 15 | 125 | 34 | 67 | ||||
| Total comprehensive income for the period |
113 | 68 | 319 | 193 | 272 | ||||
| Profit for the period attributable to owners of the Parent |
65 | 53 | 194 | 159 | 205 | ||||
| Total comprehensive income for the period attributable to owners of the Parent |
113 | 68 | 319 | 193 | 272 |
| Amounts in SEK million | 9/30/2022 | 12/31/2021 | |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Goodwill | 804 | 741 | |
| Capitalized development expenditure | 133 | 128 | |
| Other intangible assets | 186 | 185 | |
| Right-of-use assets | 46 | 52 | |
| Property, plant and equipment | 92 | 76 | |
| Financial assets | 15 | 14 | |
| Deferred tax asset | 22 | 22 | |
| Total non-current assets | 1,298 | 1,218 | |
| Current assets | |||
| Inventories | 306 | 237 | |
| Trade receivables | 253 | 180 | |
| Other receivables | 61 | 46 | |
| Cash and cash equivalents | 388 | 311 | |
| Total current assets | 1,008 | 774 | |
| TOTAL ASSETS | 2,306 | 1,992 |
| Amounts in SEK million | 9/30/2022 | 12/31/2021 | |
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| Capital and reserves attributable to equity holders of the parent company | |||
| Share capital | 92 | 92 | |
| Reserves and other contributed capital | 352 | 216 | |
| Retained earnings | 1,155 | 1,063 | |
| Total equity | 1,599 | 1,371 | |
| Non-current liabilities | |||
| Liabilities to credit institutions | 150 | 150 | |
| Lease liabilities | 24 | 30 | |
| Other interest-bearing liabilities | 53 | 45 | |
| Deferred tax liability | 73 | 73 | |
| Non-current provisions | 5 | 10 | |
| Total non-current liabilities | 305 | 308 | |
| Current liabilities | |||
| Accounts payables | 74 | 56 | |
| Lease liabilities | 23 | 23 | |
| Other financial liabilities | 3 | 2 | |
| Other liabilities | 299 | 229 | |
| Current provisions | 3 | 3 | |
| Total current liabilities | 402 | 313 | |
| TOTAL EQUITY AND LIABILITIES | 2,306 | 1,992 |
| Other paid-in | Translation | Retained | |||
|---|---|---|---|---|---|
| Amounts in SEK million | Share capital | capital | reserve | earnings | Total equity |
| OPENING BALANCE JANUARY 1, 2021 | 91 | 60 | -117 | 956 | 990 |
| Changes in equity between January 1 and December 31, 2021 | |||||
| Total comprehensive income for the period | - | - | 67 | 205 | 272 |
| Total changes during the period, excluding transactions with owners of the Parent | - | - | 67 | 205 | 272 |
| Transactions with owners of the Parent | |||||
| New share issue | 1 | 200 | - | - | 201 |
| Dividend to shareholders of the Parent | - | - | - | -98 | -98 |
| Share-based compensation | - | 6 | - | - | 6 |
| Share buy-back, Parent company | - | - | - | -0 | -0 |
| Closing balance December 31, 2021 | 92 | 266 | -50 | 1,063 | 1,371 |
| CHANGES IN EQUITY BETWEEN JANUARY 1 AND SEPTEMBER 30, 2021 | |||||
| Total comprehensive income for the period | - | - | 34 | 159 | 193 |
| Total changes during the period excluding transactions with owners of the Parent | - | - | 34 | 159 | 193 |
| Transactions with owners of the Parent | |||||
| Dividend to shareholders of the Parent | - | - | - | -98 | -98 |
| Share-based compensation Closing balance September 30, 2021 |
- 91 |
4 64 |
- -83 |
- 1,017 |
4 1,090 |
| CHANGES IN EQUITY BETWEEN JANUARY 1 AND SEPTEMBER 30, 2022 | |||||
| Total comprehensive income for the period | - | - | 125 | 194 | 319 |
| Total changes during the period excluding transactions with owners of the Parent | - | - | 125 | 194 | 319 |
| Transactions with owners of the Parent | |||||
| Dividend to shareholders of the Parent | - | - | - | -102 | -102 |
| Share-based compensation | - | 11 | - | - | 11 |
| Closing balance September 30, 2022 | 92 | 277 | 75 | 1,155 | 1,599 |
| Amounts in SEK million | 7/1/2022 9/30/2022 |
7/1/2021 9/30/2021 |
1/1/2022 9/30/2022 |
1/1/2021 9/30/2021 |
1/1/2021 12/31/2021 |
|---|---|---|---|---|---|
| OPERATING ACTIVITIES | |||||
| Profit before tax | 85 | 66 | 252 | 204 | 269 |
| Adjustments for non-cash items | 31 | 16 | 103 | 49 | 78 |
| 116 | 82 | 355 | 253 | 347 | |
| Income tax paid | -12 | -5 | -38 | -14 | -16 |
| Cash flow from operating activities before changes in working capital | 104 | 77 | 317 | 239 | 332 |
| CASH FLOW FROM CHANGES IN WORKING CAPITAL | |||||
| Increase (-)/decrease (+) in inventories | -4 | -9 | -37 | -37 | -54 |
| Increase (-)/decrease (+) in operating receivables | -2 | 7 | -68 | 9 | 16 |
| Increase(+)/decrease (-) in operating liabilities | -1 | 15 | 30 | 38 | 60 |
| Cash flow from changes in working capital | -7 | 13 | -75 | 11 | 21 |
| CASH FLOW FROM OPERATING ACTIVITIES | 97 | 89 | 242 | 249 | 353 |
| INVESTING ACTIVITIES | |||||
| Acquisition of intangible assets | -7 | -6 | -23 | -27 | -33 |
| Acquisition of property, plant and equipment | -10 | -4 | -26 | -17 | -23 |
| Acquisition of financial assets | 0 | - | -0 | -1 | -2 |
| Acquisition of subsidiaries, net of cash | - | - | - | - | -282 |
| Cash flow from investing activities | -17 | -10 | -49 | -45 | -341 |
| FINANCING ACTIVITIES | |||||
| Dividend to shareholders | - | - | -102 | -98 | -98 |
| Subscription of new loans | - | - | - | - | 150 |
| Repayment of borrowings | -8 | -3 | -25 | -129 | -134 |
| Cash flow from financing activities | -8 | -3 | -127 | -227 | -82 |
| Cash flow for the reporting period | 72 | 76 | 65 | -22 | -69 |
| Cash and cash equivalents at beginning of period | 312 | 279 | 311 | 371 | 371 |
| Exchange differences | 4 | 4 | 12 | 10 | 9 |
| Cash and cash equivalents at end of reporting period | 388 | 359 | 388 | 359 | 311 |
| Adjustments for non-cash items | |||||
| Depreciation and impairment | 25 | 18 | 74 | 54 | 75 |
| Translation differences | 8 | -3 | 23 | -7 | 4 |
| Value adjustment, additional consideration | - | 0 | - | - | -9 |
| Other items | -2 | -0 | 5 | 2 | 9 |
| Total | 31 | 16 | 103 | 49 | 78 |
| Amounts in SEK million | 7/1/2022 9/30/2022 |
7/1/2021 9/30/2021 |
1/1/2022 9/30/2022 |
1/1/2021 9/30/2021 |
1/1/2021 12/31/2021 |
|---|---|---|---|---|---|
| Net sales | 2 | 1 | 5 | 3 | 4 |
| Administrative expenses | -8 | -6 | -22 | -15 | -21 |
| Research & development expenses | -1 | -1 | -3 | -2 | -3 |
| Other operating items | 0 | -0 | 0 | 0 | -1 |
| Operating expenses, net Operating profit |
-9 -7 |
-6 -5 |
-25 -20 |
-17 -14 |
-25 -21 |
| Profit/loss from financial investments | |||||
| Interest income on receivables from group companies | 1 | - | 2 | 1 | 3 |
| Profit/loss from investments in subsidiaries | - | - | 338 | 9 | 8 |
| Other interest and similar income | 17 | 4 | 46 | 14 | 22 |
| Interest and similar expense | -5 | -0 | -24 | -8 | -16 |
| Group contributions received | - | - | - | - | 29 |
| Net financial items | 12 | 4 | 362 | 16 | 46 |
| Profit/loss after financial items | 5 | -2 | 342 | 2 | 25 |
| Appropriations | - | - | - | - | 5 |
| Income tax | -1 | 0 | -1 | 1 | -4 |
| Profit/loss for the reporting period | 4 | -1 | 341 | 4 | 26 |
| STATEMENT OF COMPREHENSIVE INCOME, PARENT COMPANY | |||||
| Profit/loss for the reporting period | 4 | -1 | 341 | 4 | 26 |
| Other comprehensive income | |||||
| Items that may be reclassified to profit or loss for the year | - | - | - | - | - |
| Comprehensive income for the reporting period | 4 | -1 | 341 | 4 | 26 |
| Amounts in SEK million | 9/30/2022 | 12/31/2021 |
|---|---|---|
| ASSETS | ||
| Non-current assets | ||
| Intangible assets | ||
| Patents and licenses | 12 | 13 |
| Total intangible assets | 12 | 13 |
| Financial assets | ||
| Investments in Group companies | 1,134 | 1,134 |
| Receivables from Group companies | 161 | 131 |
| Other financial assets | 10 | 10 |
| Total financial assets | 1,305 | 1,275 |
| Total non-current assets | 1,317 | 1,288 |
| Current assets | ||
| Current receivables | ||
| Receivables from Group companies | 3 | 1 |
| Other receivables | 5 | 8 |
| Prepaid expenses and accrued income | 2 | 2 |
| Total current receivables | 7 | 10 |
| Cash and bank balances | 1 | 2 |
| Total current assets | 8 | 12 |
| Total assets | 1,328 | 1,301 |
| Amounts in SEK million | 9/30/2022 | 12/31/2021 |
|---|---|---|
| EQUITY, PROVISIONS AND LIABILITIES | ||
| Equity | ||
| Restricted equity | ||
| Share capital | 92 | 92 |
| Total restricted equity | 92 | 92 |
| Unrestricted equity | ||
| Other paid-in capital | 257 | 258 |
| Retained earnings | 364 | 429 |
| Profit/loss for the reporting period | 341 | 26 |
| Total unrestricted equity | 962 | 713 |
| Total equity | 1,054 | 805 |
| Untaxed reserves | 3 | 3 |
| Non-current liabilities | ||
| Liabilities to credit institutions | 150 | 150 |
| Other non-current liabilities | 59 | 56 |
| Total non-current liabilities | 209 | 206 |
| Current liabilities | ||
| Trade payables | 2 | 3 |
| Liabilities to Group companies | 45 | 257 |
| Current tax liabilities | - | 11 |
| Other current liabilities | 5 | 5 |
| Accruals and deferred income | 10 | 11 |
| Total current liabilitites | 62 | 286 |
| Total equity and liabilities | 1,328 | 1,301 |
| 2022 | 2021 | 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Amounts in SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 |
| Net Sales | 401 | 395 | 386 | 341 | 305 | 303 | 281 | 298 | 263 |
| Growth in net sales, % | 31.2% | 30.3% | 37.0% | 14.5% | 16.3% | 19.4% | 1.4% | 3.3% | -7.1% |
| Organic growth, % | 12.2% | 14.4% | 21.9% | 10.0% | 17.8% | 32.1% | 12.0% | 10.0% | -2.7% |
| Gross profit | 241 | 240 | 241 | 212 | 183 | 182 | 177 | 179 | 161 |
| Gross margin, % | 60.1% | 60.6% | 62.5% | 62.1% | 60.0% | 60.0% | 63.1% | 59.9% | 61.1% |
| Operating profit | 97 | 93 | 96 | 61 | 68 | 63 | 79 | 60 | 61 |
| Operating margin, % | 24.2% | 23.4% | 24.9% | 18.0% | 22.3% | 20.6% | 28.2% | 20.0% | 23.1% |
| Profit for the period | 65 | 57 | 71 | 46 | 53 | 46 | 60 | 44 | 37 |
| Profit margin, % | 16.2% | 14.5% | 18.4% | 13.4% | 17.4% | 15.1% | 21.3% | 14.9% | 14.2% |
| Total Assets | 2,306 | 2,158 | 2,056 | 1,992 | 1,503 | 1,407 | 1,576 | 1,434 | 1,420 |
| Net cash(+)/net debt(-), SEK millions | 135 | 67 | 103 | 61 | 244 | 161 | 190 | 157 | 90 |
| Equity/Assets ratio, % | 69.3% | 68.6% | 70.8% | 68.9% | 72.5% | 72.5% | 68.7% | 69.0% | 69.6% |
| Cash flow from operating activities, SEK/share | 1.47 | 1.25 | 0.86 | 1.57 | 1.37 | 1.41 | 1.04 | 1.34 | 1.13 |
| Average number of employees | 510 | 493 | 496 | 497 | 478 | 469 | 462 | 463 | 466 |
| Return on equity, % | 17.8% | 18.2% | 17.0% | 17.3% | 19.6% | 19.0% | 17.1% | 18.8% | 16.1% |
| Return on capital employed, % | 28.6% | 28.1% | 23.2% | 23.0% | 25.2% | 26.4% | 23.2% | 23.7% | 21.6% |
| Return on total assets, % | 22.9% | 22.6% | 19.3% | 18.9% | 20.9% | 22.0% | 19.5% | 20.0% | 18.3% |
| Earnings, SEK/share | 0.99 | 0.87 | 1.08 | 0.69 | 0.81 | 0.71 | 0.92 | 0.68 | 0.57 |
| Earnings after dilution, SEK/share | 0.98 | 0.87 | 1.08 | 0.69 | 0.81 | 0.70 | 0.92 | 0.68 | 0.57 |
| Stock market price at end of period, SEK/share | 166.8 | 181 | 220.2 | 262.0 | 239.4 | 202.6 | 154.0 | 139.0 | 177.3 |
| Equity, SEK/share | 24.23 | 22.44 | 22.05 | 20.83 | 16.71 | 15.64 | 16.60 | 15.18 | 15.17 |
| Equity after dilution, SEK/share | 24.16 | 22.39 | 21.98 | 20.77 | 16.68 | 15.62 | 16.59 | 15.18 | 15.17 |
| Weighted average number of shares, thousands | 65,984 | 65,984 | 65,984 | 65,822 | 65,202 | 65,202 | 65,202 | 65,202 | 65,202 |
| Weighted average number of shares after dilution, thousands | 66,195 | 66,158 | 66,185 | 66,015 | 65,345 | 65,267 | 65,230 | 65,222 | 65,208 |
| Total number of shares outstanding at end of the period, thousands | 65,984 | 65,984 | 65,984 | 65,984 | 65,202 | 65,202 | 65,202 | 65,202 | 65,202 |
See definitions in Note 2 and in the 2021 Annual Report, pp 104-106.
Biotage's consolidated financial statements are based on International Financial Reporting Standards as adopted by the EU. The interim report for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities. The Group and the Parent Company have applied the same accounting policies and calculation methods in the interim report as in the most recent annual report. Disclosures in accordance with IAS 34 Interim Financial Reporting are provided in the notes and elsewhere in the interim report. Amended and new standards and interpretations from the IASB and IFRS Interpretations Committee that are effective for the 2022 fiscal year have not had any impact on the Group's financial reporting. Amendments to RFR2 that have come into force and are effective on or after January 1, 2022 have not had any material impact on the Parent Company's financial statements.
When preparing the interim reports for the Group and Parent Company, the same accounting policies and calculation methods have been used as in Biotage's 2021 annual report. The accounting policies are described on pages 63-78 of the annual report. For balance sheet items, figures in parentheses refer to the value at the end of the previous fiscal year, December 31, 2021. For income statement and cash flow items, figures in parentheses refer to the corresponding period in the previous year.
Biotage has a financial liability in connection with an additional consideration for an acquisition, which is measured at fair value through profit or loss. The additional consideration, attributable to the acquisition of PhyNexus Inc., is based on the agreed allocation of gross profit on related products during the period 2019 to 2023. The agreement with the sellers does not include a maximum amount.
The company's best assessment of fair value on the balance sheet date is shown in the table below. The fair value calculations are based on level 3 of the fair value hierarchy, which means that the fair value was determined on the basis of a valuation model using significant inputs that are unobservable. Valuation was based on expected future cash flows, discounted using a market interest rate.
If sales in the forecast period were to be 10 percent higher than estimated, this would mean a higher provision of 15 percent.
| 9/30/2022 | 12/31/2021 | |
|---|---|---|
| Additional consideration, non current portion |
52 | 44 |
| Additional consideration, current portion |
2 | 2 |
| Total | 54 | 46 |
| Opening value, January 1, 2022 | 46 |
|---|---|
| Value adjustment | - |
| Translation differences | 10 |
| Settled during the year | -2 |
| Closing balance, September 30, 2022 | 54 |
Biotage has a financial asset in the form of shares in Chreto ApS, reported as financial assets at fair value. The holding has been allocated to level 2 of the fair value hierarchy on the basis that issue prices during the fourth quarter of 2021 are observable market data. At September 30, the shares were valued at the last known transaction price, which is the same price as on the previous reporting date.
A fair value calculation based on discounted future cash flows, for which the most significant input is a discount rate that reflects the counterparty's credit risk, is not expected to differ significantly from the carrying amount of other financial assets and current financial liabilities measured at amortized cost. Consequently, the carrying amounts of these financial assets and liabilities are considered to represent a good approximation of the fair values. Further information about financial assets and liabilities and their classification can be found in note 19 and 20 of the 2021 Annual Report.
Performance share program
In accordance with a resolution of the AGM, Biotage has adopted long-term incentive programs in the form of performance-based share programs ("LTIP 2020", "LTIP 2021", and "LTIP 2022") for employees of the Biotage Group. All programs include the CEO, senior executives and other key personnel, meaning that a maximum of 18 individuals within the Biotage Group will be eligible to participate. For further information on LTIP 2020 and LTIP 2021, see the 2021 Annual Report.
Changes in number of performance shares:
| Number of performance | LTIP | LTIP | LTIP |
|---|---|---|---|
| shares | 2020 | 2021 | 2022 |
| Opening balance January 1, 2022 |
127,819 | 151,599 | |
| Allotted performance shares | - | - | 168,926 |
| Cancelled performance shares | - | - | - |
| Closing balance September 30, 2022 |
127,819 | 151,599 | 168,926 |
Allotment of performance shares requires that the participant remains in his/her employment for three years from the allotment date. In addition to the requirement for the participant's continued employment, the final number of performance shares that each participant is entitled to receive is settled based on the following performance terms:
Performance term 1: 50 percent of the performance shares if the total return of the company's ordinary share amounts to or exceeds 64.3 percent in the period June 2022 – May 2025, however, at least 26 percent is required for the allotment to take place. Total return refers to return to shareholders in the form of price increase and reinvestment of any dividends during the vesting period.
Performance term 2: 25 percent of the performance shares if the average adjusted operating margin amounts to or exceeds 25 percent in 2022-2024 (calendar years), however, at least 22 percent is required for allotment to take place.
Performance term 3: 25 percent of the performance shares if the average organic sales growth amounts to or exceeds 15 percent in 2022-2024 (calendar years), however, at least 11 percent is required for allotment to take place. For further information on the rights, see the Annex to the General Meeting Protocol at the company's website.
The rights related to Performance term 1 are valued according to the Monte Carlo model with an expected volatility of 37.5 percent and an interest rate of 1.58 percent. This gives a value of SEK 84.82. The rights related to Performance terms 2 and 3 are valued on the basis of the current share price less forecast dividend during the vesting period. This gives a value of SEK 184.31.
Scope and costs of the LTIP programmes Nine participants, including the CEO, have been awarded a total of 127,819 rights to performance shares under the LTIP 2020 program. 11 participants, including the CEO, have been awarded a total of 151,599 rights to performance shares under the LTIP 2021 program. 13 participants, including the CEO, have been awarded a total of 168,926 rights to performance shares under the LTIP 2022 program. All senior executives are included in the program. All programs are reported in accordance with IFRS 2, which means that the rights are measured on the grant date at the fair value of allotted equity instruments.
The cost of LTIP 2020 for the quarter amounted to SEK 2 million, including social security contributions. The estimated maximum total cost of LTIP 2020 is SEK 24 million. The cost of LTIP 2021 for the quarter amounted to SEK 2 million, including social security contributions. The estimated maximum total cost of LTIP 2021 is SEK 30 million. The cost of LTIP 2022 for the quarter amounted to SEK 2 million, including social security contributions. The estimated maximum total cost of LTIP 2022 is SEK 30 million.
Effects on key figures and dilution In order to secure the allotment of ordinary shares in Biotage to participants in LTIP 2020 and 2021, Biotage issued and repurchased C shares. Further information about the terms and conditions of the Class C shares can be found in the appendix to the minutes of the respective AGM on the Biotage website. With regard to LTIP 2022, there is a corresponding authorization for the board to issue and buy back C shares.
On maximum allotment of performance shares under LTIP 2020, 127,819 ordinary shares will be allotted to participants and 40,161 ordinary shares will be used to cover any social security contributions associated with the program. This will have a dilutive effect of about 0.24 percent of the number of ordinary shares in the Company. On maximum allotment of performance shares under LTIP 2021, 151,599 ordinary shares will be allotted to participants and 47,130 ordinary shares will be used to cover any social security contributions associated with the program. This will have a dilutive effect of about 0.31 percent of the number of ordinary shares in the Company. On maximum allotment of performance shares under LTIP 2021, 196,183 ordinary shares will be allotted to participants and 47,130 ordinary shares will be used to cover any social security contributions associated with the program. This will have a dilutive effect of about 0.37 percent of the number of ordinary shares in the Company.
The average number of shares after dilution is affected by the estimated allotment of shares as of September 30. However, this does not have any material effect on earnings per share before and after dividends.
A list of definitions of key figures and performance measures reported in the consolidated financial statements can be found in Note 32 of the 2021 Annual Report.
In this report, Biotage presents information used by management to assess the Group's performance. Some of the financial measures presented are not defined under IFRS. The Company believes that these measures provide useful additional information to investors and Company management and contribute to the evaluation of relevant trends and the Company's performance. As not all companies calculate performance measures in the same way, the measures are not always comparable with those used by other companies. These performance measures should therefore not be considered a substitute for measures defined under IFRS. ESMA's guidelines on alternative performance measures are applied and include enhanced disclosure requirements for performance measures not defined under IFRS. Explanations of the financial measures that Biotage considers relevant are provided below.
Information on the Group's net cash/debt, defined as cash less liabilities to credit institutions, is reported in order to enable stakeholders and management to monitor and analyze the Group's financial strength.
| Others | -56 | -47 |
|---|---|---|
| Lease-related liabilities | -47 | -53 |
| Liabilities to credit institutions | -150 | -150 |
| Cash and cash equivalents | 388 | 311 |
In this report, Biotage uses the performance measure EBIT (Earnings Before Interest and Taxes) as an alternative term for operating profit, and EBITA Earnings Before Interest, Tax and Amortizations. EBIT margin is an alternative term for the operating margin, which is calculated as operating profit divided by net sales. Operating profit is calculated as net sales less cost of sales and operating expenses. EBITA is calculated as earnings before amortization of acquisition-related surplus values, interest and tax. EBITA margin is EBITA divided by net sales.
To make it easier for the reader to form an opinion about underlying operations adjusted for non-recurring items related to acquisitions, Biotage also reports adjusted profit measures in the form of adjusted EBIT and adjusted EBITA. The performance measures, how they relate to each other and the effect of adjustments are shown in the tables below.
| EBITA | 7/1/2022 9/30/2022 |
7/1/2021 9/30/2021 |
1/1/2022 9/30/2022 |
1/1/2021 9/30/2021 |
1/1/2021 12/31/2021 |
|---|---|---|---|---|---|
| Operating profit | 97 | 68 | 286 | 210 | 271 |
| Adjustment: Amortization of acquisition related surplus values |
7 | 2 | 21 | 7 | 12 |
| EBITA | 104 | 71 | 307 | 217 | 284 |
| Adjusted EBIT | 7/1/2022 9/30/2022 |
7/1/2021 9/30/2021 |
1/1/2022 9/30/2022 |
1/1/2021 9/30/2021 |
1/1/2021 12/31/2021 |
| EBIT | 97 | 68 | 286 | 210 | 271 |
| Adjustment additional consideration | 5 | - | 16 | - | 4 |
| Adjustment transcation costs | - | 3 | - | 3 | 8 |
| Adjusted EBIT | 102 | 71 | 301 | 213 | 283 |
| Adjusted EBITA | 7/1/2022 9/30/2022 |
7/1/2021 9/30/2021 |
1/1/2022 9/30/2022 |
1/1/2021 9/30/2021 |
1/1/2021 12/31/2021 |
| EBITA | 104 | 71 | 307 | 217 | 284 |
| Adjustment additional consideration | 5 | - | 16 | - | 4 |
| Adjustment transcation costs | - | 3 | - | 3 | 8 |
| Adjusted EBITA | 110 | 73 | 323 | 220 | 296 |
As most of the Group's net sales are settled in currencies other than the reporting currency, SEK, the amount recognized is affected by exchange rate changes between periods to a relatively large extent. The Group's revenue is also affected by acquisitions. To enable stakeholders and management to obtain a clear picture of organic growth and analyze the sales trend excluding currency effects and acquisitions, the Company reports sales growth for the current and comparative period at constant exchange rates and adjusted for acquisitions. The current period's sales in each currency are translated at the exchange rates that were used in the financial statements for the comparative period and adjusted for acquisitions. Organic growth as a percentage is the ratio of organic growth and reported net sales for the comparative period.
Biotage has chosen to report graphs of the net sales and the operating result on a last twelve months (LTM) basis as corporate management also follows the development over time on a LTM basis and believes that this provides supplementary information to the calendar-based interim data otherwise given in the report.
In connection with the acquisition of ATDBio, Ltd., there has been an agreement on an additional purchase price of GBP 5 million, which may be due provided that certain conditions are met. The terms mean that the additional purchase price is expensed over time, and owed to the extent that they are earned. The excess part, SEK 42 (57) million, is a contingent liability.
| 7/1/2022 9/30/2022 |
7/1/2021 9/30/2021 |
1/1/2022 9/30/2022 |
1/1/2021 9/30/2021 |
|||||
|---|---|---|---|---|---|---|---|---|
| MSEK | % | MSEK | % | MSEK | % | MSEK | % | |
| Net sales recognized in the comparative period | 305 | 263 | 890 | 794 | ||||
| Net sales recognized in the period | 401 | 305 | 1,182 | 890 | ||||
| Recognized change | 95 | 31.2 | 43 | 16.3 | 291 | 32.7 | 96 | 12.1 |
| Net sales for the period, excl. acquisitions | 389 | 305 | 1,146 | 890 | ||||
| Change attributable to acquisitions | 12 | 3.8 | - | - | 35 | 4.0 | - | - |
| Net sales for the period at comparative period's exchange rates, excl. acquisitions |
343 | 309 | 1,033 | 955 | ||||
| Change attributable to currency | 46 | 15.2 | -4 | -1.5 | 113 | 12.7 | -65 | -8.2 |
| Net sales for the period at comparative period's exchange rates, excl. acquisitions |
343 | 309 | 1,033 | 955 | ||||
| Organic growth | 37 | 12.2 | 47 | 17.8 | 143 | 16.0 | 161 | 20.3 |
| 9/30/2022 | ||||||
|---|---|---|---|---|---|---|
| 1/1/2022 9/30/2022 |
10/1/2021 12/31/2021 |
LTM | 1/1/2021 9/30/2021 |
10/1/2020 12/31/2020 |
LTM | |
| Net sales | 1,182 | 341 | 1,523 | 890 | 298 | 1,188 |
| Operating result | 286 | 61 | 347 | 210 | 60 | 270 |
| Growth, % | 28.2 % | 9.8 % |
As a result of changes in customer or product classifications, individual sales information may differ from that disclosed in previous interim reports.
| Distribution between products and services | 7/1/2022 9/30/2022 |
7/1/2021 9/30/2021 |
1/1/2022 9/30/2022 |
1/1/2021 9/30/2021 |
|---|---|---|---|---|
| Products | 354 | 278 | 1,049 | 810 |
| Services | 44 | 25 | 125 | 73 |
| Other sales revenue | 3 | 2 | 8 | 7 |
| Total sales revenue | 401 | 305 | 1,182 | 890 |
| Revenue by sales channel | 7/1/2022 9/30/2022 |
7/1/2021 9/30/2021 |
1/1/2022 9/30/2022 |
1/1/2021 9/30/2021 |
| Direct sales through own sales channels | 378 | 223 | 1,135 | 764 |
| Sales through distributors | 23 | 82 | 47 | 126 |
| Total sales revenue | 401 | 305 | 1,182 | 890 |
| Point in time of transfer of goods and services | 7/1/2022 9/30/2022 |
7/1/2021 9/30/2021 |
1/1/2022 9/30/2022 |
1/1/2021 9/30/2021 |
| Goods transferred at a point in time | 354 | 278 | 1,048 | 810 |
| Services transferred at a point in time | 23 | 9 | 67 | 25 |
| Service contracts and other services transferred over a period of time |
24 | 19 | 67 | 55 |
| Total sales revenue | 401 | 305 | 1,182 | 890 |
| Revenue by systems and aftermarket products | 7/1/2022 9/30/2022 |
7/1/2021 9/30/2021 |
1/1/2022 9/30/2022 |
1/1/2021 9/30/2021 |
| System | 192 | 145 | 561 | 420 |
| Service | 53 | 31 | 149 | 91 |
| Consumables | 156 | 129 | 472 | 379 |
| Total sales revenue | 401 | 305 | 1,182 | 890 |
| Revenue by customer focus area | 7/1/2022 9/30/2022 |
7/1/2021 9/30/2021 |
1/1/2022 9/30/2022 |
1/1/2021 9/30/2021 |
| White | 226 | 208 | 769 | 602 |
| Red | 132 | 58 | 282 | 185 |
| Blue & Green | 43 | 39 | 131 | 103 |
Total sales revenue 401 305 1,182 890
After a review of the Group's product areas, Biotage has decided to update the product area classification from 1 January 2022. The previous product area Analytical Chemistry has been divided into the product areas Analytical Testing and Water & Environmental Testing. The part of the product area Scale Up that came with the acquisition of ATDBio, Ltd. has broken out in the Diagnostics product area. At the same time, the Organic Chemistry product area has changed its name to Small molecules & Synthetics, and the Biomolecules product area has changed its name to Biologics & Advanced Therapies. The changes are shown in the table below:
| Previous reported | After Change | |||
|---|---|---|---|---|
| Previous name | 7/1/2021 9/30/2021 |
Change | 7/1/2021 9/30/2021 |
New name |
| Organic chemistry | 160 | - | 160 | Small Molecules & Synthetic Therapeutics |
| Biomolecules | 11 | - | 11 | Biologics & Advanced Therapeutics |
| Scale Up | 42 | - | 42 | Scale Up |
| - | - | - | - | Diagnostics |
| Analytical Chemistry | 93 | -24 | 69 | Analytical Testing |
| - | - | 24 | 24 | Water & Environmental Testing |
| Total | 305 | - | 305 | |
| Previous reported | After Change | |||||
|---|---|---|---|---|---|---|
| Previous name | 1/1/2021 9/30/2021 |
Change | 4/1/2021 9/30/2021 |
New name | ||
| Organic chemistry | 449 | - | 449 | Small Molecules & Synthetic Therapeutics |
||
| Biomolecules | 28 | - | 28 | Biologics & Advanced Therapeutics |
||
| Scale Up | 137 | - | 137 | Scale Up | ||
| - | - | - | - | Diagnostics | ||
| Analytical Chemistry | 277 | -67 | 210 | Analytical Testing | ||
| - | - | 67 | 67 | Water & Environmental Testing |
||
| Total | 890 | - | 890 |
| Americas | EMEA | APAC | Total | |||||
|---|---|---|---|---|---|---|---|---|
| 7/1/2022 9/30/2022 |
7/1/2021 9/30/2021 |
7/1/2022 9/30/2022 |
7/1/2021 9/30/2021 |
7/1/2022 9/30/2022 |
7/1/2021 9/30/2021 |
7/1/2022 9/30/2022 |
7/1/2021 9/30/2021 |
|
| Small Molecules & Synthetic Therapeutics | 64 | 50 | 45 | 39 | 88 | 70 | 197 | 159 |
| Biologics & Advanced Therapeutics | 14 | 7 | 3 | 2 | 1 | 2 | 18 | 11 |
| Scale Up | 13 | 14 | 18 | 21 | 8 | 7 | 40 | 42 |
| Analytical Testing | 58 | 36 | 27 | 20 | 17 | 13 | 103 | 69 |
| Diagnostics | 1 | - | 6 | - | 4 | - | 11 | - |
| Water & Environmental Testing | 25 | 18 | 6 | 4 | 2 | 2 | 32 | 24 |
| Summa | 175 | 125 | 105 | 86 | 120 | 94 | 401 | 305 |
| Americas | EMEA | APAC | Total | |||||
|---|---|---|---|---|---|---|---|---|
| 1/1/2022 9/30/2022 |
1/1/2021 9/30/2021 |
1/1/2022 9/30/2022 |
1/1/2021 9/30/2021 |
1/1/2022 9/30/2022 |
1/1/2021 9/30/2021 |
1/1/2022 9/30/2022 |
1/1/2021 9/30/2021 |
|
| Small Molecules & Synthetic Therapeutics | 181 | 135 | 120 | 107 | 279 | 206 | 580 | 448 |
| Biologics & Advanced Therapeutics | 41 | 19 | 6 | 6 | 3 | 3 | 50 | 28 |
| Scale Up | 43 | 38 | 84 | 78 | 24 | 21 | 151 | 137 |
| Analytical Testing | 149 | 109 | 79 | 57 | 52 | 45 | 281 | 211 |
| Diagnostics | 2 | - | 22 | - | 11 | - | 34 | - |
| Water & Environmental Testing | 63 | 45 | 15 | 14 | 7 | 7 | 86 | 66 |
| Summa | 479 | 346 | 326 | 262 | 376 | 282 | 1,182 | 890 |
The distribution relates to sales per product area to customers located in the above geographical areas.
The acquisition of ATDBio on October 20, 2021 contained customary provisions on adjustment of the acquisition amount due to subsequent reviews of the company, among other things with regard to working capital. Upon review and subsequent agreement with the sellers, an adjustment to the purchase price has been made. Against the background of the rules on adjustments in the acquisition analysis in IFRS 3, the group's Goodwill as of September 30, 2022 increases by SEK 7 million as a consequence of the adjustment.
We have reviewed the condensed interim financial information (interim report) of Biotage AB as of 30 September 2022 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.
Uppsala, 2 november 2022
Öhrlings PricewaterhouseCoopers AB
Leonard Daun
Authorized Public Accountant
Biotage, a global impact tech company, provides innovative solutions that streamline analytical testing, drug development and manufacturing, alongside water and environmental analysis. We help solve societal issues on a local and global level by working in a systematic, goal-oriented, and sustainable manner.
Everything we offer helps solve challenging issues facing society. Our customers work in a broad spectrum of industries, including pharmaceutical manufacturing, diagnostics, biotechnology, contract research and manufacturing, clinical, forensic, and academic laboratory research, and food safety, water quality, and environmental testing.
Our wide selection of effective, high-quality solutions plays a key role in streamlining our customers' workflows in pharmaceutical research, development, and manufacturing, as well as diagnostics, analytical testing, and water and environmental analysis. At the same time, our products reduce our customers' environmental footprint, and Biotage is constantly finding ways to continuously lower the amount of solvents and consumables required by our products.
We are proud to contribute to sustainable science in order to make the world a healthier, greener, and cleaner place for humanity - a goal that is summarized by our ethos "HumanKind Unlimited".
Biotage is headquartered in Uppsala in Sweden and employs approx. 497 people worldwide. The Group had sales of 1,232 MSEK in 2021. Biotage's share (BIOT) is listed in the Large Cap segment on the NASDAQ Stockholm
Website: www.biotage.com
Biotage has 14 office locations in seven different countries. Our own sales organization encompasses 18 countries in North America, Europe, and Asia while our distribution network covers numerous additional countries in South America, Europe, Africa, the Middle East, and Asia.
Biotage's mission is to help our customers make the world a healthier, greener and cleaner place. To achieve this we provide them with a wide set of solutions ranging from tools and services for drug and diagnostics discovery and development to products, methods and applications for analytical, clinical, environmental and food testing. All this is in line with our ethos – HumanKind Unlimited.
Our portfolio of solutions is very wide and so is our customer base. They span a wide range of activities – including the pharmaceutical and diagnostic industry, biotech, contract research and manufacturing as well as clinical, forensic and academic laboratories; in addition to organizations focused on food safety, clean water and environmental sustainability. To better meet the needs of each customer group we have divided them into three focus areas: White Tech, Red Tech and Blue & Green Tech.
Biotage AB (publ) Box 8 SE-751 03 Uppsala Visiting adress: Vimpelgatan 5 Telephone: +46 18 565900 Org.no.: 556539-3138 www.biotage.com
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