Devyser Diagnostics (DVYSR) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 sales of SEK 53.2 million, up 41% year-over-year, all organic growth, with H1 2024 sales at SEK 104.0 million.

• Expanded global reach through a major agreement with Thermo Fisher, increasing the addressable market by 43% for kidney-related products.

• Secured significant tenders in Italy, totaling SEK 84 million in Q2, including a record for the Tuscany region.

• Focused on scaling in North America and Europe, with North America identified as a top long-term priority.

• Gross margin declined to 77.7% in Q2 (from 83.4%), mainly due to relocation costs.

Financial highlights

• Q2 net sales: SEK 53.2 million (Q2 2023: SEK 37.7 million); H1 net sales: SEK 104.0 million (H1 2023: SEK 77.2 million).

• Q2 gross margin: 77.7% (Q2 2023: 83.4%); H1 gross margin: 80.1% (H1 2023: 84.3%).

• Q2 EBIT: SEK -23.1 million (Q2 2023: SEK -13.5 million); H1 EBIT: SEK -35.3 million (H1 2023: SEK -32.6 million).

• Cash and cash equivalents at June 30, 2024: SEK 201 million, with no interest-bearing debt except lease liabilities.

• Q2 EPS: SEK -1.41 (Q2 2023: SEK -0.90); H1 EPS: SEK -2.15 (H1 2023: SEK -2.14).

Outlook and guidance

• Confident in maintaining or accelerating local currency growth in H2 2024, with new tenders and Thermo Fisher partnership to drive revenue from H2 2024 and 2025.

• Gross margin expected to recover above 80% by year-end as relocation costs subside.

• EBIT margin target exceeding 20% for 2024–2026 remains in place.

• North America anticipated to become the largest regional market within a few years.

• Expansion of product indications (Heart, Liver, Lung) expected to increase the addressable market by 52%.