BICO (BICO) Q1 2025 earnings summary

Executive summary

• Q1 2025 was seasonally weak, with net sales of SEK 389 million, down 17% year-over-year, and organic growth at -19%.

• Adjusted EBITDA was SEK -12 million with a margin of -3%, stable versus Q1 2024, supported by growth in Life Science Solutions and Bioprinting.

• Lab Automation faced headwinds from fewer project starts and a strong comparison quarter, while Life Science Solutions and Bioprinting segments delivered growth, especially via CELLINK and SCIENION.

• Macro-economic uncertainty, potential tariffs, and reduced NIH funding created market insecurity; a tariff task force was established.

• Agreement signed to divest MatTek and Visikol for USD 80 million, expected to close in Q2 2025, aligning with updated strategy and strengthening the balance sheet.

Financial highlights

• Net sales for Q1 2025 were SEK 389 million, a 17% decrease year-over-year; organic growth was -19%.

• Gross margin improved to 54%, attributed to product mix and operational initiatives.

• Adjusted EBITDA was SEK -12 million, margin -3%.

• Cash flow from operating activities was SEK 77 million, mainly from Q4 2024 receivables and working capital effects.

• Cash reserves at Q1 end were SEK 684 million; total cash flow in Q1 was SEK -229 million, mainly due to SEK 276 million in convertible bond repurchases.

Outlook and guidance

• Proceeds from the MatTek and Visikol divestment will be used to resolve outstanding convertible bonds, with a net cash position expected in Q2 2025.

• Updated strategy focuses on lab automation, selected workflows, and commercial initiatives in Asia, India, and Europe, with a shift toward Pharma & Biotech customers.

• Working capital as a percentage of sales expected to return to around 20% from Q2 onwards.