Gentian Diagnostics (GENT) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales reached NOK 32.7 million, up 2% year-over-year, with EBITDA at NOK 5.0 million, a significant increase from NOK 1.2 million in Q3 2023.

• Gross margin improved to 52% from 46% in Q3 2023, and cash position rose to NOK 93.8 million from NOK 76.4 million.

• fCALⓇ turbo sales surged 76% year-over-year, driving growth in Europe; US sales also increased due to new customer additions.

• NT-proBNP assay achieved a clinical milestone with positive initial evaluation on 220 patient samples and a European patent granted.

• Net profit for Q3 2024 was NOK 3.4 million, compared to a loss of NOK 0.8 million in Q3 2023.

Financial highlights

• Revenue for Q3 was NOK 32.7 million, a 2% increase year-over-year, with Europe up 46% and US up 28%; Asia declined due to China.

• EBITDA rose to NOK 5.0 million for the quarter and NOK 16.5 million year-to-date, marking a shift to EBITDA positive.

• Gross margin improved to 52% in Q3 2024 (46% in Q3 2023); YTD gross margin 54%.

• Free cash flow was NOK 12.5 million in Q3 2024, up from NOK -4.3 million in Q3 2023.

• Equity ratio increased to 85.4% as of 30 September 2024.

Outlook and guidance

• Targeting 20%+ annual growth for established products and aiming for 60%+ gross margin and 40% EBITDA margin long-term.

• Expecting gradual recovery in China sales as supply chain normalizes, but lower ordering patterns may persist into early 2025.

• NT-proBNP assay planned for research use launch in H2 2025 and full commercial launch in 2026, pending regulatory clearance.

• Serviceable market estimated at USD 1.8 billion, growing 5-10% annually.

• Aim to secure one new global partner contract per year.