Hofseth BioCare (HBC) Q4 2023 earnings summary

Executive summary

• Q4 sales revenue reached NOK 45.9m, up 26% YoY; underlying FY revenue was NOK 190.8m, up 58% YoY, while gross operating revenue including asset-sale gain was NOK 218.5m.

• Demand for oil and PHP products exceeded production capacity; expansion added countries, customers and human-nutrition markets.

• FY EBITDA remained negative at NOK 66.1m; a January 2024 conversion of NOK 144m in payables to preference shares strengthened the equity ratio to ~47%.

Financial highlights

• Q4 gross operating revenue was NOK 47.4m vs NOK 33.6m YoY; FY gross operating revenue was NOK 218.5m vs NOK 120.4m.

• Q4 EBITDA was NOK -39.8m vs NOK -28.3m; FY EBITDA was NOK -66.1m vs NOK -98.2m.

• Q4 EBIT was NOK -49.3m vs NOK -35.3m; FY EBIT was NOK -102.5m vs NOK -128.6m.

• Q4 net loss was NOK 51.9m and EPS NOK -0.13; FY net loss was NOK 106.7m and EPS NOK -0.27.

• Q4 gross margin excluding the NOK 15m excess-calcium inventory write-down was 27% vs 18% YoY.

Outlook and guidance

• FY 2024 sales target is 50% further growth, with higher capacity utilization and positive EBITDA targeted.

• Stronger fish-oil pricing is anticipated in spring 2024; January seasonality and maintenance shutdown are expected to slow activity.

• E-commerce is planned to exceed 50% of total sales revenue in 2024; two new pet products are expected to launch early in the year.

• OmeGo allergic-asthma trial results are anticipated in H2 2024; CalGo bone-trial data are expected in 2025.