Boule Diagnostics (BOUL) Q4 2024 earnings summary

Executive summary

• Q4 2024 saw stable but slightly lower sales at SEK 143.2 million, with instrument unit sales up 1% but overall sales down due to lower average selling prices and a shift to a license model in India.

• Major restructuring in Q4 led to SEK 18 million in annualized cost savings and a significant reduction in headcount, with a new supply chain function and R&D reorganization.

• Adjusted operating profit for Q4 rose 85.7% to SEK 19.5 million, with margin at 13.6%, driven by cost reductions and operational efficiency.

• Signed a multi-year exclusive U.S. distribution agreement with VitalScientific, expected to add SEK 20 million in revenue when fully implemented and expand the product portfolio.

• One-off costs in 2024 totaled SEK 321.3 million, mainly from impairment of intangible assets, restructuring, and write-downs related to Russia, resulting in a full-year net loss.

Financial highlights

• Q4 sales were SEK 143.2 million, down 3.3% year-over-year; organic decline was 1.8%, but adjusting for India license model, organic growth was 1.2%.

• Adjusted gross profit for Q4 was SEK 65.7 million (flat), with gross margin improving to 45.9% from 44.5%.

• Adjusted EBIT for Q4 rose 85.7% to SEK 19.5 million; adjusted operating margin reached 13.6% (up from 7.1%).

• Full-year sales were SEK 559 million, down 0.6% organically (or up 0.4% adjusted for India); adjusted EBIT up 63% to SEK 64 million; operating margin at 11.4%.

• Cash flow from operating activities was SEK 15.1 million in Q4 and SEK 47 million for the year.

Outlook and guidance

• 2025 is expected to be stable overall, with cost reduction measures supporting improved cash flow and a focus on profitability and organic growth.

• The India license model will continue to impact top-line sales negatively but improve margins.

• The VitalScientific agreement will be commercialized in H1 2025 and fully implemented by H2 2025.

• Strategic focus on transforming into a higher growth, higher margin company through cost reductions and disciplined execution.

• No dividend proposed for 2024.