BICO (BICO) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw a soft market for instrument sales, especially in Academia & Research and Diagnostics, due to CapEx constraints and fewer project starts, impacting sales and profitability.

• All business areas remained EBITDA positive, with group adjusted EBITDA at SEK 40 million and an 8% margin.

• A new strategy (BICO 2.0) with updated vision, mission, and business area structure was launched in September 2024.

• Key post-quarter actions included the agreement to divest Nanoscribe, repurchase of convertible bonds, and further rightsizing with a sharpened commercial agenda for CELLINK.

Financial highlights

• Q3 2024 net sales were SEK 496 million, with organic growth of -13% year-over-year.

• Adjusted EBITDA was SEK 40 million (8% margin); net loss for the quarter was -SEK 248 million.

• Gross margin improved to 53% due to product mix.

• Operating cash flow was SEK 45 million, with cash reserves at quarter-end of SEK 682 million.

• Services and consumables accounted for 32.5% of Q3 sales, up from 29% year-over-year.

Outlook and guidance

• Market environment remains challenging with continued CapEx constraints and macroeconomic/geopolitical uncertainty.

• Management reiterates focus on commercial excellence, operational efficiency, and strategic review.

• Financial targets: double-digit organic growth, adjusted EBITDA margin above 10%, net debt/EBITDA below 3.0x.

• No additional rightsizing activities planned; focus is on operational excellence and efficiency.