Boule Diagnostics (BOUL) investor relations material

Executive summary

• Organic sales declined 3.3% year-over-year in Q2, with net sales at SEK 129.3 million, impacted by geopolitical instability, supply chain delays, and unfavorable FX movements.

• Instrument unit sales grew 17% year-over-year, with five-part instrument sales more than doubling, but at lower average selling prices.

• Consumable sales fell 12% due to delayed payments and halted deliveries, resulting in a larger backlog.

• Positive operating cash flow was achieved in Q2, supported by a 47% reduction in operating expenses.

• Executive leadership was strengthened with new appointments in R&D, technology, and regional sales management.

Financial highlights

• Q2 sales were SEK 129.3 million, down 5.6% year-over-year, with a 2.3% negative currency impact.

• Gross profit was SEK 50 million, with gross margin at 38.7% (down from 43.1% last year).

• Adjusted EBIT reached SEK 5.8 million, and adjusted operating margin fell to 4.5% from 7.2%.

• Available liquidity at quarter-end was SEK 39 million, with SEK 23 million in cash and SEK 16 million in unused credit facilities.

• Operating cash flow improved to SEK 2.9 million from -4.4 million year-over-year.

Outlook and guidance

• OEM and blood controls markets are expected to grow, with additional US service revenue in Q3.

• No further deterioration in average selling prices for five-part instruments is anticipated; prices expected to remain stable.

• Strategic focus remains on growing the installed base and expanding the portfolio through technology partners.

• Continued cost control and positive operating cash flow are expected to support business plan financing.

• Ongoing investments in sales coverage in high-growth regions are planned.