Enzymatica (ENZY) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 were SEK 6.4 million, down 27% year-over-year; H1 2024 net sales were SEK 15.8 million, also a 27% decrease compared to H1 2023.

• Operating loss widened to SEK -13.5 million in Q2 and SEK -31.9 million for H1 2024.

• Cash flow from operating activities was negative at SEK -19.0 million in Q2 and SEK -26.3 million for H1.

• Interim results from a University of Kent study show ColdZyme reduces rhinovirus and shortens illness duration by up to five days; final results expected August 2024.

• Board proposes a rights issue to raise approximately SEK 130 million, mainly to fund operations, expansion, and loan repayment.

Financial highlights

• Q2 2024 net sales: SEK 6.4 million (Q2 2023: SEK 8.8 million); H1 2024: SEK 15.8 million (H1 2023: SEK 21.8 million).

• Gross margin in Q2: 60% (Q2 2023: 63%); H1: 65% (H1 2023: 62%).

• Operating loss Q2: SEK -13.5 million (Q2 2023: SEK -11.2 million); H1: SEK -31.9 million (H1 2023: SEK -25.5 million).

• Earnings per share Q2: SEK -0.08 (Q2 2023: SEK -0.07); H1: SEK -0.19 (H1 2023: SEK -0.16).

• Cash and cash equivalents at period end: SEK 8.2 million (H1 2023: SEK 26.9 million).

Outlook and guidance

• Board maintains EBIT target of at least SEK 170 million, but timeline extended to end of 2027 due to planned business model change.

• New net sales target to be communicated later; focus on expanding into China, Japan, and North America.

• Regulatory changes and new clinical evidence expected to create commercial opportunities, especially in the US and Sweden.