Hemply Balance (HMPLY) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 increased by 4.6% year-over-year to 249 TSEK, with a significant improvement in profitability metrics.

• Gross margin rose to 74.6% from 47.7% in Q1 2024, reflecting improved cost control and product mix.

• EBITDA improved to -93 TSEK from -593 TSEK year-over-year, and net result after tax was -94 TSEK versus -594 TSEK.

• Strategic focus remains on the Japanese market and ongoing evaluation of structural transactions, including potential sale, merger, or reverse acquisition.

Financial highlights

• Net sales: 249 TSEK (up 4.6% year-over-year); gross profit: 186 TSEK (up from 115 TSEK); gross margin: 74.6%.

• EBITDA: -93 TSEK (improved from -593 TSEK); net result: -94 TSEK (improved from -594 TSEK).

• Cash flow from operations: -167 TSEK (improved from -1,084 TSEK); cash at period end: 316 TSEK.

• Equity as of March 31, 2025: 1,073 TSEK (up from 996 TSEK year-over-year); equity ratio: 87.9%.

• No outstanding warrants as of March 31, 2025.

Outlook and guidance

• Board aims to complete a structural transaction in 2025, which may include a sale, merger, or reverse acquisition.

• Continued focus on the Japanese market and product development to meet demand for high-quality, THC-free CBD products.