Biomm (BIOM3) Q3 2023 earnings summary

Executive summary

• 9M23 revenue rose 25% YoY to R$98,190 thousand and gross profit increased 51% to R$19,980 thousand; net loss narrowed to R$60,085 thousand from R$70,269 thousand.

• Glargine and trastuzumab gained market share, while enoxaparin share declined; Glargilin production at Nova Lima awaits ANVISA approval for commercial use.

Financial highlights

• Q3 revenue was R$33,133 thousand, up 8% YoY; 9M revenue increased from R$78,640 thousand to R$98,190 thousand, mainly on higher sales volumes.

• Gross profit was R$8,075 thousand in Q3, up 82%, and R$19,980 thousand in 9M, up 51%; product mix and lower average acquisition costs supported growth.

• Operating expenses totaled R$27,970 thousand in Q3, down 0.3%, and R$73,770 thousand in 9M, down 5% YoY; prior-year medicine losses affected the comparison.

• Consolidated net loss was R$21,931 thousand in Q3 and R$60,085 thousand in 9M, versus R$25,136 thousand and R$70,269 thousand in 2022.

• Net financial result was negative R$2,210 thousand in Q3 and negative R$5,965 thousand in 9M; Q3 deterioration reflected lower financial income and period FX movements.

Outlook and guidance

• Commercial production of Glargilin at Nova Lima depends on ANVISA approval to add the plant as a manufacturing site; initial stability testing and process-validation batches were completed.

• Strategic priorities include expanding the biotechnology portfolio, consolidating marketed products and progressing factory validation to support in-house production.