Boule Diagnostics (BOUL) Q1 2025 earnings summary

Executive summary

• Q1 2025 organic sales declined 25.1% year-over-year to SEK 112.9 million, impacted by delayed shipments, tough prior-year India comparison, and geopolitical instability affecting payments in key markets.

• OEM sales grew 7–9% organically, supported by expanded supply agreements, while hematology sales dropped 31% due to business model shifts and delayed payments.

• Operating margin improved to 15.1% (from 12.9%) due to favorable product mix, restructuring, and efficiency gains, despite lower sales.

• Strategic focus shifted to technology partnerships, closing the BM950 project, extending M51 analyzer agreements, and consolidating Swedish operations.

• Non-recurring expenses included SEK 18.5 million for BM950 closure and SEK 5 million for Russian asset impairment.

Financial highlights

• Net sales were SEK 112.9–113 million, down 23.6% year-over-year, with a 1.5% positive currency impact.

• Adjusted gross profit was SEK 53.5–53.7 million; gross margin improved to 47.4% from 46.2% year-over-year.

• 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, inventory, and receivables.

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

Outlook and guidance

• Q2 expected to benefit from a higher backlog as delayed Q1 orders are shipped.

• Operating cash flow anticipated to turn positive in the second half of 2025; ambition for neutrality in Q2.

• R&D spend projected to decrease by about 50% annually following BM950 closure, with no further major cost reductions planned.

• Commercialization of US clinical chemistry business expected to begin in Q3 2025.