Boule Diagnostics (BOUL) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw a 25.1% year-over-year organic sales decline, with net sales at SEK 112.9 million, driven by delayed shipments, tough prior-year India comparison, and geopolitical instability affecting payments.

• OEM business grew 7–9% organically, with expanded and renewed supply agreements.

• Gross margin improved to 47.4% (from 46.2%) due to favorable product mix, OEM growth, and efficiency gains.

• Strategic actions included closure of the BM950 project, site consolidation in Sweden, and new regional sales leadership.

• Investments in sales resources in Southeast Asia and the US aim to drive organic growth.

Financial highlights

• Q1 sales were SEK 112.9–113 million, down 23.6% year-over-year; organic growth was -25.1%.

• Adjusted gross profit was SEK 53.5–53.7 million; gross margin improved to 47.4%.

• Adjusted EBIT reached SEK 17 million, with an adjusted operating margin of 15.1%, up from 12.9%.

• Cash flow from operating activities was negative SEK 7.8 million, impacted by severance payments, inventory, and receivables.

• Available liquidity at quarter-end was SEK 38 million, including SEK 20 million in cash and SEK 18 million unused credit facility.

Outlook and guidance

• Q2 expected to benefit from a higher-than-usual order backlog as delayed Q1 shipments are executed.

• Operating cash flow anticipated to improve in Q2 and targeted to turn positive in the second half of 2025.

• R&D spend projected to decrease by about 50% annually following BM950 closure, with no further capitalization of R&D costs.

• Clinical Chemistry US commercialization expected in Q3 2025.

• Focus remains on lean operations and incremental adjustments, with no major further cost reduction programs planned.